VOLGA-DNEPR GROUP PRESENTS NEW FREIGHTERS

The Group implements projects to resume the AN-124-100 ‘Ruslan’ production

Volga-Dnepr’s subsidiary commences international scheduled cargo operations

Moscow, May 24, 2004 – Volga-Dnepr has presented its new freighters – an AN-124-100 and Boeing 747-200F – to governmental authorities, business and finance community, its partners and customers. The presentation took place at the Moscow Domodedovo airport. Combining the best Western and Russian-built aircraft and operating them in different air cargo markets, the Group is looking to meet the demand in transportation of both general and unique cargoes.

Volga-Dnepr, a leading company in the outsize and heavyweight market, operates 10 AN-124-100s. For the sake of further development of the global heavyweight market and preservation of Russia’s leadership in it, Volga-Dnepr together with Russian and Ukrainian AN-124 designers and manufacturers, advocates resuming the AN-124 production at the Ulyanovsk Aviastar-SP aircraft manufacturing plant. The Group has invested $90 million in maintaining the production at Aviastar-SP and actively taken part in resuming production at some Russian and Ukrainian facilities.

Based on vast international operating experience in charters, the Volga-Dnepr management team decided to launch a scheduled cargo operation. To implement this large-scale project, Volga-Dnepr created a subsidiary named AirBridge Cargo and introduced a fleet that will include B747-400F, IL-96, TU-204 and IL-76 freighters. Initially AirBridge Cargo will operate two B747-200Fs between Asia-Pacific, Russia and Europe. The airline started its operation with four weekly flights – two from Shanghai and two from Beijing to Luxemburg via Moscow and Novosibirsk. In future, the project will be extended to include the development of cargo hubs in Moscow, Novosibirsk and Khabarovsk.

If successful, these Volga-Dnepr projects will contribute (through aircraft orders) to the revival of Russia’s aircraft manufacturing industry, will have a great impact on development of the transportation infrastructure in the country and strengthen Russia’s aviation in the global market. Today cargo operations account for some 30 percent of Russia’s air transportation, and a fast growth is forecasted, having doubled since 1995. According to analysts, revenues of Russia’s civil aviation will reach $5 billion by 2013 compared with $0.8 billion in 2003. FTKs will increase from 2.7 billion to 14 billion in 2013.

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 AN-124-100 unique product in the global air cargo market. Volga-Dnepr Group is the leader in the global heavyweight and outsized air cargo market, controlling 51-percent market share in 2003. Among its permanent customers are such companies as Lockheed Martin, Exxon Mobile, Alcatel Aerospace and some others. For them Volga-Dnepr has become an integral part of their logistics chains.

Volga-Dnepr has a fleet of ten AN-124-100s, two IL-76s, five YAK-40s and two B-747s. It employs more than 1350 people of 20 nationalities.