Volga-Dnepr Group expands scheduled operations fleet

Moscow-Voronezh-Paris, June 20, 2007: During a visit to the Voronezh Aircraft Production Plant today by Sergey Ivanov, Deputy Prime Minister of Russia, Volga-Dnepr Group and Ilyushin Finance Co. have signed a contract to purchase two TU-204C cargo aircraft.

The mid-range freighters will be assembled at the Aviastar-SP Production Plant.

The TU-204C aircraft are being purchased under a 15-year financial lease arrangement and will be operated by AirBridge Cargo Airlines, the Group’s scheduled cargo airline, for domestic services from its hubs in Moscow and Krasnoyarsk in the Russian Far East. The first aircraft delivery is scheduled for the fourth quarter of 2008, with the second freighter joining the AirBridge fleet in the first quarter of 2009. Volga-Dnepr Group plans to purchase five TU-204C aircraft by 2010.

“The Group strategy includes systematic fleet expansion for its charter and scheduled operations. By 2010, we also expect to take delivery of two new AN-124-100 freighters and, two days ago at the International Paris Air Show, we signed a General Agreement to purchase three more modernised IL-76ТD-90VD freighters. These orders are in addition to the contract we signed earlier this year with Boeing for the delivery of five long-haul Boeing 747-8F freighters to be used on trans-continental services.

“The mid-range TU-204C aircraft will complement our route network by operating feeder flights. This will enable further expansion of our scheduled business opportunities,” said Alexey Isaikin, Volga-Dnepr Group President.