Volga-Dnepr Group business results in January-September 2007

MOSCOW, OCTOBER 25, 2007 – During the 9 months of 2007 Group sales grew by 49,6% in comparison to same period of 2006 and hit over USD 720 million. AN-124 and IL-76 charter business and B747 scheduled cargo business development provided constant growth of income.

“In 2007 we managed to beat the figures of previous years. We gained boost both in charter business, and in scheduled operations of AirBridge Cargo Airlines. Our success came from the concept of cargo supermarket, offering wide range of air transportation service to our customers and providing efficient feedback. The clear objectives and professional approach of our employees provide our development and constant growth of business”, – said Alexey Isaikin, Volga-Dnepr Group President. Volga-Dnepr Airlines, the charter carrier, increased the sales to USD 491 million which exceeds the figures of 2006 by USD 183 million. In 2007 VDA and Antonov Airlines (ADB affiliate) keep on working under Ruslan SALIS and Ruslan International projects.

In January-September 2007 Volga-Dnepr Airlines transported 33207 tons of cargo by АN-124-100 freighters, which exceeds the figures of 2006 by 4823 tons. The share of АN-124 of total charter operations equals to 78.3%; IL-76TD-90VD share reached 2.8%. In January-September 2007 Volga-Dnepr Airlines transported 24780 tons of cargo by IL-76TD, which exceeds the figures of 2006 by 2788 tons.

During 9 months of 2007 AirBridge Cargo Airlines enhanced its position in the domestic and international market. The sales exceeded the figures of 2006 by 31% and reached over USD 204 million. AirBridge Cargo traffic volume of Boeing 747 grew by 29% and reached 70494 tons.

In 2007 AirBridge Cargo continues expanding the route network. In September the company started to perform Boeing 747 flights en-route Moscow-Tokyo-Krasnoyarsk. In 2006 the airline received the status of designated carrier from Russia to Japan. In 2007 Russian and Japanese Aviation Authorities signed the cooperation agreement, and AirBridge Cargo Airlines obtained traffic rights to increase the number of frequencies to Narita Airport in 2008-2010. The agreement enhances the position of the company in that region.

AirBridge Cargo Airlines contributes to hub development, which is the strategic trend for air cargo industry of Russia. The traffic volumes increased five times during the first year of business of AirBridge Cargo in Krasnoyarsk. Nowadays the cargo terminal in Krasnoyarsk is nearly constructed, and AirBridge Cargo plans to perform B747-400ERF and B747-8F operations there.

Volga-Dnepr Group keeps on implementing industrial projects for expanding and modernizing the fleet. In 2007 the company completed the stage of AN-124 Ruslan modernization and certified brand-new AN-124-100М-150 freighter. In August 2007 Volga-Dnepr Group, OJSC Motor Sich and ADB signed the agreement on resumed production and modernization of AN-124 fleet. Volga-Dnepr Group plans to place an order for 17 new АN-124 freighters.

In September 2007 Volga-Dnepr Airlines received the second modernized IL-76TD-90VD freighter, manufactured at TAPO Plant in Tashkent under the order of Volga-Dnepr Group. The modernized IL-76 aircraft has greatly expanded the geography of operations. In August VD Group and Ilyushin Aircraft Corporation signed an agreement on the production of another three IL-76ТD-90VD freighters at TAPO Plant, to be delivered in 2009-2010.

The favourable results of business during 9 months of the year demonstrate the VD Group performance improvement. At end-year we expect the considerable growth of financial and operational figures in all businesses of the Group.