VOLGA-DNEPR GROUP COMMENCES SCHEDULED CARGO OPERATION

Moscow, May 24, 2004. – Volga-Dnepr Group, the world’s leading AN-124 outsize and heavyweight cargo carrier, has entered the scheduled airfreight market with the launch of a new airline, AirBridge Cargo.

AirBridge Cargo is the first Russian carrier operating regular scheduled flights between Asia and Europe. It has commenced operations under the umbrella of Volga-Dnepr but AirBridge will gain full independent status by 2005. .

AirBridge Cargo successfully completed its first commercial flight between Beijing (China) and Luxembourg on May 13th 2004. It will initially operate four weekly flights: two from Shanghai and two from Beijing to Luxembourg via Moscow and Novosibirsk..

Currently, the carrier’s fleet includes two Boeing 747-200 freighters that were purchased by Volga-Dnepr from Alitalia. Volga-Dnepr took delivery of its first B747-200F in April. The second aircraft is due to arrive at the end of May and will commence scheduled operations in mid-June.

AirBridge Cargo’s long-term strategic development plan is to operate a combined fleet. Volga-Dnepr has chosen the Boeing 747 aircraft, which has no comparable Russian freighter equivalent, for trunk routes linking Europe and Asia, and Russian-built aircraft – Tupolev 204C and IL-76 – for regional feeder services (regional routes from hubs in Novosibirsk, Moscow and Krasnoyarsk). Within 5-6 years, the airline expects to operate up to six Boeing 747Fs and four-to-six Russian jets.

As soon as the second Boeing 747-200F enters service in the AirBridge Cargo fleet, the airline’s route network and frequency of operations will grow up to eight weekly flights: two flights from Beijing, two from Shanghai, three from Tianjin and one from Guangzhou to Luxembourg via Moscow, Novosibirsk or Krasnoyarsk.

“We are now on the international cargo timetable and all our partners and customers may rely on the top quality services provided by AirBridge Cargo. For this project, we’ve gained active support from our partners in Russia, Europe, Asia and the USA. Due to our common efforts, AirBridge Cargo has the potential to become one of the most successful cargo airlines in the world,” said Stanley Wraight, Executive Director of AirBridge Cargo.

In China and Russia, AirBridge Cargo conducts sales via its own offices but in Europe it uses Air Cargo Trader (ACT) and International Aviation Services (IAS) as its general sales agents. With extensive sales networks across Europe, both companies have a proven track record of marketing B747 cargo capacity.

Russian flight crews, trained at the Lufthansa Flight Training Centre in Germany to operate Boeing 747s, man the AirBridge fleet. All pilots were selected with previous experience of Boeing aircraft operations. A check crew consisting of experienced Boeing 747 pilots from Flight Training International will accompany each flight during the initial months of operation.

“In modern competition, the winners are those that are able to provide their customers with a high quality, flexible and universal product. Our strategic plan has been to create a full and diverse airfreight service offering within Volga-Dnepr Group for our global customers. Due to our highly professional management team this plan is now starting to be realised. We offer our customers a unique combination of the best two jets of the present – AN-124 and B747 – and soon they will be reinforced with smaller aircraft – IL-76s, IL-96s and TU-204c,” said Alexey Isaikin, President of Volga-Dnepr Group. “Today we are proud to tell our customers about the enhanced levels of quality and service capability we can provide to meet their existing and potential needs in both the charter and scheduled air cargo markets.”

Notes:

Volga-Dnepr is an international group consisting of aviation, trucking and insurance businesses. Its offices are located in Russia, the USA, UK, China, Ireland and the UAE. The Group’s activity is aimed at promoting the unique AN-124-100 product in the global air cargo market.

Volga-Dnepr Group is the market leader in the global movement of heavyweight and outsized air cargo, controlling 51-percent market share in 2003. Among its permanent customers are such companies as Lockheed Martin, Exxon Mobil, Alcatel Aerospace and many other top global businesses that see Volga-Dnepr as an integral part of their logistic chains.

Volga-Dnepr has a fleet of ten AN-124-100s, two IL-76s and five YAK-40s. Its scheduled cargo airline business, AirBridge Cargo, also operates two Boeing 747-200s. Volga-Dnepr’s Group employs more than 1,300 people of 20 nationalities.