VOLGA-DNEPR DEMONSTRATES RECORD RESULTS IN THE FIRST QUARTER OF 2002

In the first quarter of 2002 Volga-Dnepr Airlines, leader in the superheavy and outsize air cargo market, transported 12,503 tons of cargo--2.5 times more than in the first quarter of 2001. The increase is partly because results in the first quarter of 2001 dropped slightly due to reorganising the company's marketing and sales network.

The total sales volume of Volga-Dnepr in the first quarter of 2002 is equal to $47 million with the total market volume of almost $90.3 million. Volga-Dnepr's market share increased by 6% up to 52%. The first quarter of 2002 has proven the most successful period for the company ever, owing to the efficient work of its own sales offices, agents and partners and the changing market

"Last year was decisive for the development of the company. The restructuring of the company's global sales and marketing network coincided with the unfavourable market situation provoked by the global recession and became the ultimate test for the company", says Alexey Isaikin, General Director of Volga-Dnepr Airlines. "Evaluating the results of the company in the first quarter of 2002, I can say for sure that the new marketing strategy was correct and that the company's personnel did a very good job working in a more narrow and competitive market".

Market growth in the first quarter of 2002 was affected by the augmented level of relief operations. At the same time the company significantly increased its client pool by signing contracts with industrial companies, among them aerospace, oil & gas and heavy industry companies. The growth of the industrial client base can be attributed to several factors: the full-scale implementation of the reorganised sales network, the work of the company's clients and partners, the high quality of service.

In the first quarter of 2002 Volga-Dnepr experienced a volume increase in North America as well as on the routes between Europe and Asia-Pacific. In terms of sales volume Asia-Pacific retains first place - it contributed over 50% of the airline's total sales volume.

Realisation of the new development strategy by the company's new sales offices in Stansted (UK) and Houston (USA) and reinforcing Volga-Dnepr's facilities and offices in Beijing (China), Shannon (Ireland) and Sharjah (UAE), was a decisive factor inthe airline not only surviving the recession in the beginning of 2001 but gradually increasing its market share in the course of 2001 and the first quarter of 2002.

Volga-Dnepr, established in 1990 in Ulyanovsk, has a fleet of nine Antonov An-124-100 freighters that is 43% of the world fleet.