Volga-Dnepr Group of Companies

Established in 1990 Volga-Dnepr Group of Companies is an international organization originally deriving from Russia and bringing its personnel together from all over the world to provide its customers with high-quality air cargo services on a charter and scheduled basis. The Group is the largest air cargo carrier and the world leader on the unique, oversize and heavy cargo market.

Affiliating over twenty business units in seven countries the Group is a dynamically developing organization entering the Top Twenty of the world aviation leaders. Volga-Dnepr’s international staff includes over 2,500 employees.

The Group mission sounds as follows - We build reliable air bridges for our Partners across the world. Through our work and unique capabilities we change ideas about the air logistics.

A key to the Volga-Dnepr success was its new product – international charters on Antonov An-124-100 and Ilyushin IL-76. The strategic development plan implemented by the Group resulted in its entering the international scheduled cargo market on Boeing 747s in 2004.

The Volga-Dnepr primary leadership strategy is based on “cargo supermarket” concept and complementary operation of the best Russian and foreign-manufactured aircraft. The Group performance and strategic development includes the following principles: future concern, high professionalism, client orientation, financial stability and transparency, safety and leadership as the core business idea of the Group.

Volga-Dnepr provides its customers with a unique expertise and a wide range of logistic services meeting the highest international quality standards.

Managing Company Volga-Dnepr-Moscow

The Company was established in 2001. It is in charge of developing and monitoring the implementation of the single Group development strategy, complying with the common management standards, consolidation and rational use of intellectual and financial resources, ensuring economic security, centralization of monitoring over financial and economic activities of the Group as a whole, as well as coordinating of the work of all its business units.

Volga-Dnepr Airlines

Established in 1990 in Ulyanovsk Volga-Dnepr Airlines was an essential basis for the International Group which has currently surpassed its billion-dollar turnover. The success was achieved through the introduction of a new product – international charters on the best Russian-manufactured An-124-100 and IL-76 aircraft.

The heavy An-124-100 Ruslan freighter (with capacity of up to 120 tons and freight compartment space of up to 1091 square meters) being the mainstay of the Volga-Dnepr fleet has provided for the airline’s absolute leadership on the international oversize cargo market since 1990s. Operating 10 aircraft of the type (43% of the total operational fleet) Volga-Dnepr Airlines is the world largest An-124 operator. At the beginning of 1990s the airline became the Ruslan civil customer and thus managed to maintain its unique manufacture and later establish a new international market niche for unique, oversize and heavy cargo transportation.

Volga-Dnepr Airlines operates 13 IL-76, including two modified IL-76TD-90VD, and 5 Jak-40 aircraft too.

The Company leads the industry in the area of development and introduction of new technologies for An-24-100 operation. The loading equipment designed by the Volga-Dnepr specialists make it possible to transport oversize cargo previously carried by ground and sea vehicles only, including heavy engines and generators, oil and gas pumping stations, reactors and satellites, aircraft and helicopters.

Throughout its history Volga-Dnepr keeps a constant eye on flight safety. The airline’s best practices and new operational technologies have been confirmed by the honorary certificate Distinguished Flight Service of the International Aviation Safety Foundation. Endeavors of Volga-Dnepr personnel resulted in introduction of new flight safety standards starting from 2008 which shall be made mandatory by the aviation authorities for all airlines beginning 2009.

Volga-Dnepr has been certified to service all stages of full production cycle ranging from training flight crews and making international flights to carrying out all kinds of aircraft maintenance. The maintenance standards have been approved by the Russian and foreign aviation authorities. The company is registered with the International Civil Aviation Organization (ICAO) and is a member of the International Aviation Transport Association (IATA) and the International Air Cargo Association (TIACA). In November 2007 Volga-Dnepr was granted the IOSA certificate confirming the airline’s compliance with the world flight safety standards. Volga-Dnepr was the first cargo airline in Russia and the CIS and the second one in the world to pass the IOSA audit for compliance with the new IATA standards.

The Volga-Dnepr client list includes governments of many countries, recognized international organizations, and such world biggest corporations as The Boeing Company, Exxon Mobile, Lockheed Martin, British Petroleum, General Electric, etc.

Since 1997 Volga-Dnepr Airlines has been winner of the national aviation prize Wings of Russia in the category Domestic and International Cargo Carrier six times. In February 2001 the airline was awarded by the world largest aviation edition Air Transport World (USA) for the Development of Cargo Services, and in February 2003 honored with a prestigious Aviation Week & Space Technology award in the category Commercial Air Service. The nine months of 2008 demonstrated the sales of AN-124 and IL-76 charters in amount of US$882.9 mln which makes 69.8% of the Group total sales and exceeds the 2007 results by 80%. The cargo carried reached 112.8 thousand tons (68.6 thou tons in January-September 2007).

Volga-Dnepr Airlines is a client-oriented business unit providing high-quality services in cargo transportation and developing logistic schemes to the satisfaction of the customer by using the own unique technologies.

Passenger Service, a Volga-Dnepr Subsidiary

The Passenger Service subsidiary was established in 1994. Its current fleet includes 5 Yak-40 four of which are the own aircraft. The company performs daily flights en-route Ulyanovsk - Moscow. However, the subsidiary engages in charter service as well with the sales constantly growing as a result of special marketing policy and long-term contracts. VIP service is an important charter part of passenger affiliate too.

The client list of Passenger Service includes Total - the French oil company, football and hockey clubs from Russia, showmen, etc. Since 2006 the subsidiary has performed passenger flights by operating aircraft of other airlines and providing the whole range of transportation, ticket reservation and hotel accommodation services.

Volga-Trucks, a Volga-Dnepr Subsidiary

The affiliate was established in April 1994 as a motor vehicle unit of Volga-Dnepr Airlines to support its core business activities and provide door-to-door truck services. Volga-Trucks is an active ASMAP member, and is licensed as an all-cargo carrier and an all-Russian customs carrier. The current truck fleet of the Company includes 4 Man, 18 Mercedes and 2 Gazelle trucks. The affiliate also has a lease agreement for 3 more trucks executed with the DaimlerChrysler Leasing Automobiles.

According to CODE 3000 forwarding company rating, by results of 2006 Volga-Trucks entered Top Five of the best Russian truck carriers and was honored with the Golden Ton award.

AirBridge Cargo

The subsidiary was set up in 2003 within an attractive scheduled services project of Volga-Dnepr Airlines. In 2004 the project resulted in AirBridgeCargo (ABC) establishment which entered the international scheduled cargo market with Boeing 747 freighters. AirBridgeCargo was the first Russian cargo airline to operate this aircraft type. In 2006 it obtained its operator certificate.

The company performs scheduled cargo flights en-route Europe – Russia – East Asia. Its services shall connect the European biggest airports (i.e. Frankfurt and Amsterdam) with the Asian major ones (i.e. Beijing, Shanghai, Hong Kong, Tokyo, Nagoya) through Russia. The scheduled network includes 21 destinations.

The current ABC fleet includes 3 Boeing 747-200Fs, 1 Boeing 747-300F and 3 Boeing 747-400ERFs. The airline intends to extend its fleet by purchasing the brand-new long-range Boeing 747-8Fs and Russian-manufactured Tupolev TU-204Cs.

Among the ABC evolution factors in 2008 was the sales system restructuring to provide for comprehensive efficiency growth, and further network extension. Through the appointment of new General Sales Agents in the European leading countries (i.e. Great Britain, France, Italy, etc.) and Asian ones (i.e. Korea, Thailand, Indonesia) ABC managed to lay the foundations of a long-term growth of operational and commercial figures thus acquiring access to the new international networks and unique contracts. In 2008 ABC established the direct flight Moscow – Shanghai and increased the frequency of flights en-route Moscow – Beijing and Moscow – Hong Kong.

Another key to the ABC success on scheduled cargo market is its ground infrastructure development. Together with its parent, Volga-Dnepr Group, ABC takes active part in the establishment of a Russian hub system which will enable the government to occupy the leading position on the international air services market due to the unique geographical location of Russia.

Thus in June 2008 Volga-Dnepr Group and the Krasnoyarsk district administration executed the cooperation agreement within the Krasnoyarsk international hub establishment including its Special Economic Port Area. The contract was the result of a four-year work of Volga-Dnepr and its partners and the region authorities. The Krasnoyarsk airport may soon become the center of international cargo services along the trans-Siberian and cross polar routes being located right between the major world air lines.

In January-September 2008 the AirBridgeCargo sales showed $344.1 mln (as compared to $204.1 in 2007) and the cargo carried on Boeing 747 reached 97.5 thousand tons which exceeds the results of 2007 by 38%. Boeing 747 scheduled business share was 27.2% of the Group total sales.

Volga-Dnepr UK

Volga-Dnepr UK Ltd. was established in 1999 and is based at Stansted, United Kingdom. The subsidiary engages in coordination of the airline charter operations and general activities in Europe.

Volga-Dnepr UK employs Russian personnel and British managers. The Company has all the required services in place, including commerce, flight operations, navigation, load planning, finance, etc. Today, Volga-Dnepr UK is the major marketing and sales center within the Group charters.

Volga-Dnepr Unique Air Cargo

Volga-Dnepr - Unique Air Cargo Inc. was established in 2000 to operate on the North and South American markets. This is a most important market for the Group which accounts for about 30% of the total Volga-Dnepr operations on the global market. The company is responsible for Volga-Dnepr marketing and sales within this region.

Volga-Dnepr Airlines Ireland

Volga-Dnepr Ireland Ltd was established in 1996 for An-124-100 maintenance. The line maintenance station certified in 1997 was originally located in Shannon, Ireland, with a production base to perform the entire range of maintenance, repair and inspection of An-124-100 aircraft. In addition to that, Volga-Dnepr Airlines Ireland provided maintenance and repair of special loading equipment for An-124-100 oversize cargo operations. Thereafter as a result of Ruslan SALIS project establishment (see the relevant topic) the decision was made to move this maintenance facility to Leipzig. Equipment transportation was carried out in August – September 2006. The Shannon office now continues to coordinate the Group operations within Europe.

Volga-Dnepr China

The Volga-Dnepr China subsidiary was established at the end of 1994 in Beijing, China. The company now has two offices – in Beijing and Shanghai. The affiliate is responsible for sales and support of the Volga-Dnepr scheduled and charter flights, and coordination of the Group activities in East and Southeast Asia.

Volga-Dnepr Airlines is a long-term designated cargo carrier en-route Russia – China.

Volga-Dnepr Gulf

The Volga-Dnepr Gulf, Ltd. servicing station was established in Sharjah (UAE) in 1996 to be the first Volga-Dnepr foreign maintenance facility. It is responsible for maintaining not only the Group fleet, but those of external customers too. The company has highly skilled personnel and is certificated and equipped to perform the full maintenance cycle for Russian-manufactured aircraft, i.e. Yak-40, An-24, An-26, An-32, An-12, An-74, An-124-100, IL-76TD, and IL-76TD-90VD operated by the Russian and foreign airlines in the Middle East and North Africa.

Volga-Dnepr Gulf engages in An-124-100 and IL-76 charter sales as well.

Volga-Dnepr-Leasing

The company was established in 2004 to consolidate organizational and financial resources required to implement the IL-76 aircraft fleet upgrading project and organize management for this large-scale project.

The heavy ramp IL-76 has been over two decades one of the most popular aircraft of the world cargo aviation. This aircraft modernization program implemented by the Group within over three years provides for the extension of IL-76 life limit up to no less than 25 years and the aircraft compliance with the current and future ICAO requirements.

The two renovated IL-76TD-90VD aircraft joined the Volga-Dnepr fleet in 2006-2007. These aircraft now take the flight routes that were previously prohibited for IL-76 due to its noise restrictions, i.e. Western Europe, North America, Australia, and Japan. In 2007 the upgraded IL-76 performed the first flight to the United States within 7 years.

In August 2007 at MAKS-2007 International Aviation and Space Salon Volga-Dnepr Airlines and “Ilyushin” Aircraft Manufacturing Company executed an agreement for the delivery of three more aircraft of the IL-76TD-90VD type. Modernized IL-76s are the only aircraft in the world with 30-50-ton capacity capable to transport oversize cargo to almost any destination airport.

NIC Insurance Company

NIC Insurance Company was established in 1995. It operates on the Russian and international insurance markets being one of the largest and fastest-growing insurance companies in Privolzhsky district by its financial assets.

NIC was set up to provide reliable insurance protection covering the major aviation risks of the Group. The company implements an effective reinsurance system based on a long-term cooperation with the major international insurance companies. NIC is a member of the All-Russian Insurers Association, Russian Association of Air and Space Insurers, and Interregional Union of Medical Insurers.

Being one of the major aviation insurance companies in Russia, NIC is actively engaged in the development of non-aviation insurance business as well, including voluntary health insurance, accident insurance, car insurance, cargo insurance, property insurance, and liability insurance.

NIC Life

In December 2006 Volga-Dnepr Group established its new business unit – Flamingo insurance company to assign it all the NIC’s life and pension insurance rights and obligations. The assignment was made in compliance with the Russian Federation Insurance law under which all the companies on the Russian Federation territory must not handle both property and life insurance at the same time starting from July 1, 2007. Thereat, in January 2007 Flamingo launched its own life and pension insurance programs.

In June 2008 the decision was made to rename Flamingo into NIC Life. This rebranding was aimed at operating on the market under a single NIC trade name. Renaming is part of the NIC strategy to optimize the market proposals for their clients and develop an effective sales system.

Volga-Dnepr International Educational Center

The company was established in 1994 as a Volga-Dnepr Airlines’ subsidiary to provide additional training in general and specialized knowledge of English. In 2004 Volga-Dnepr International Educational Center gained status of an Aviation Training Center and was certified as a Postgraduate Extended Educational Facility. In addition to that, the language program has been supplemented with 82 professional training, refresher and advanced training courses for aviation specialists

The company annually participates in training conferences of such well-known teaching associations as IATEFL, TESOL, ICAE across the world. Since 2005 the subsidiary is a member of ATEEL which brings together different foreign language schools, centers and courses in both Russia and the CIS.

Volga-Dnepr International Educational Center is currently a highly professional institution dynamically developing in Top Three of the non-government educational facilities in Russia. The company annually educates over 2000 students.

Under the Rostransnadzor estimation, the Volga-Dnepr Aviation Training Center is one of the industry leaders alongside with Aeroflot and Transaero schools.

Ruslan SALIS

Ruslan SALIS GmbH was officially established in 2006 in Leipzig by its founder partners, Volga-Dnepr Airlines (Russia) and Antonov Design Bureau (Ukraine) to meet the air transportation needs of the EU and NATO countries.

The company has won an international tender of antiterrorist, peacekeeping and humanitarian operations for Canada and 17 West European countries incorporated within a single SALIS project (Strategic Airlift Interim Solution). The key to SALIS success was a unique An-124-100 Ruslan aircraft and a wide range of specialized technologies for a variety of cargo transportation. The three-year contract stipulates utilization of up to 6 aircraft at a time.

In October 2006 in Leipzig there was launched a maintenance base for the Russian-manufactured equipment which provides for all the contract terms to be duly fulfilled.

Ruslan International

In June 2006 Volga-Dnepr Airlines (Russia) and Antonov Design Bureau (Ukraine) established a joint venture Ruslan International Ltd. incorporated in the United Kingdom. The company became a single marketing agent on the An-124-100 international market. Ruslan International was set up for a more effective utilization of An-124-100 fleet by both Russia and Ukraine. Thereat both Volga-Dnepr Airlines and Antonov Design Bureau perform their flights as independent operators under their own long-term and government contracts. Their total fleet is 17 Ruslan aircraft (10 belong to Volga-Dnepr Airlines and 7 are owned by Antonov Design Bureau).

The joint operation of the Russian and Ukrainian fleet allows for better quality and flexibility of air logistic services with the highly effective pricing. Ruslan International is the second successful co-project of Volga-Dnepr Airlines and Antonov Design Bureau.

Cargo Aircraft Managing Company

Cargo Aircraft Managing Company was established in January 2007 by Volga-Dnepr Airlines. The new business unit is to promote and manage the relaunch of AN-124 Ruslan serial production.

The project is an important new milestone of Volga-Dnepr business. The aircraft manufacturer Aviastar-SP (Ulyanovsk) and Volga-Dnepr Airlines are currently considering the contract for two An-124 manufacture involving a more complicated modification than An-124-100. The aircraft economic and operational performance will meet both current and future ICAO requirements, however its specification will be a different one. Introduction into commercial service of the two brand-new Ruslan aircraft will be a signal of further serial production.