Volga-Dnepr Group and Ilyushin Interstate Aviation Company sign agreement for delivery of IL-76TD-90VD freighters

Paris, June 18, 2007: At the 47th International Paris Air Show at Le Bourget, Volga-Dnepr Group and the Ilyushin Interstate Aviation Company have signed a general agreement for new IL-76TD-90VD freighter aircraft construction and delivery. Under the terms of the agreement, Volga-Dnepr will place a firm order before August 1st, 2007 to purchase three aircraft of this type. The first freighter delivery will take place within 15 months of the contract being signed. To fulfil this obligation to Volga-Dnepr, the Ilyushin Aviation Complex has reserved three IL-76TD airframes, located at the Chkalov Tashkent Aircraft Production Company.

The partners have established an option agreement for a further 10 IL-76TD-90VDs for the future.

Volga-Dnepr has been developing the IL-76TD modernisation programme since 2002. In 2004, the Volga-Dnepr Leasing Company was established to promote the project.

In 2006, the three-year programme to modernise the aircraft was successfully completed, and Volga-Dnepr Airlines’ commercial fleet took delivery of the first new generation IL-76TD-90VD (VD stands for Volga-Dnepr Group). A second aircraft, being built at the Chkalov Tashkent Aircraft Production Company, will enter service with Volga-Dnepr Airlines in the third quarter of 2007.

The new aircraft, which has an increased payload to 50 tonnes as well as new engines and avionics, has been awarded a Chapter 4 noise certificate by the International Civil Aviation Organization (ICAO), allowing the freighter to operate anywhere in the world, including major markets in Europe, North America, Australia and Japan without any limitations.

Volga-Dnepr’s first IL-76TD-90VD has now successfully operated to all of these markets, restricted to older versions of the aircraft. In early 2007, the IL-76TD-90VD made its first flight to the USA. This was the first IL-76 commercial flight to the US market since 2000.

In 2006, IL-76 operations contributed 29% of the overall volume carried by Volga-Dnepr’s charter fleet and 16 per cent of the Group’s total sales revenues.

Market research carried out by Volga-Dnepr indicates the potential market size for the new IL-76 will require a further 15-20 aircraft by 2015.

Notes:
The Ilyushin interstate aviation company is a business unit of the United Aircraft Corporation and exclusively sells the IL-76 family of aircraft. The company comprises Ilyushin aviation complex and the Voronezh Aircraft Plant (VASO). In 2006, 86% of Ilyushin’s shareholding was transferred to OAK charter capital.