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Audit faults Aeroflot spending

April 26, 2013 at 10:27 AM

MOSCOW, April 26 (UPI) -- An audit of Russia's largest airline, Aeroflot, said the company made poor decisions that resulted in $443 million misspent in less than three years.

RIA Novosti reported Friday an Audit Chamber report presented to the Federation Council's Rules Committee concluded the airline misspent $276 million on commodities and services, $127 million on loans and investing in a subsidiary and $50 million on selling and then buying back trademarks.

The audit covered 2010-11 and the first nine months of 2012, RIA Novosti reported.

The airline defended its decisions in an online posting, saying it had "a major social responsibility as the national airline." The firm's spending decisions had "social consequences for the region and the nation as a whole," said the airline that flew more than 14 million passengers in 2011.

The Federal Agency for State Property Management owns a 51.17 percent stake in Aeroflot with the remainder owned by legal entities and individuals, including businessman Alexander Lebedev who owns 15 percent, RIA Novosti said.

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