DENIS ILYIN, Senior Vice-President for Strategy & Commercial Moscow, Russia 18.06.

08

Development of Cargo Aircraft Market in Russia

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World Air Freight Market Will Grow 6.2% Year Through 2025
RTKs, billions 800 History Forecast
High Base Low

Average annual growth 2005-2025 High Base Low 7.1% 6.2% 5.4%

600

400 5.3% growth per year 200

1995

2000

2005

2010

2015

2020

2025

Source: Boeing Commercial Airplanes, World Air Cargo Forecast

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Average World Air Cargo Freight growth, 6.2%

Domestic China Intra-Asia

Asia-North America Europe-Asia

Latin America-North America Latin America-Europe Europe-North America Europe-Africa Intra-Europe Europe-Middle East North America Russia

Average Growth in %
0% 2% 4% 6% 8% 10% 12%
Source: Boeing Commercial Airplanes, World Air Cargo Forecast

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Air Cargo Market for non ramp aircraft Scheduled Services 1879 Aircraft ~98,5%$78,8 billion
DC-10, MD-11

Total volume in 2007 ~ $80 billion 190 billion tons / kilometer 41 mln tons

Air Cargo Market for ramp aircraft Charter Services 479 AC ~1,4% $1 billion
-76

A-300-330 -12 -124-100 C-130

-96

B-747

-204

311 AC 747F $30 billion per year (2007) ~ 38% market share

28 AC An-124-100 $771 mln per year (2007) ~ 70% market share

Market Growth Forecast (2020): - On Non ramp Aircraft 6%-6,2% (according to Boeing, Airbus, IATA)

- On Ramp Aircraft 8%-10% (according to Volga-Dnepr Groups forecast)

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Scheduled cargo operations market (2007)

Ramp aircraft operations market 2007

$80 billion

Russian civil aviation 1,4 % European countries 24%

$1 billion
Russian civil aviation 74 %

Asian and Pacific Region countries 1,4 %

other countries 7,6 % Ukraine and other countries 26%

USA 31%

By 2020 Russian transport aviation development strategy specifies: 1. Increase in dominant position of ramp aircraft cargo operations (from 74% up to 90%). Already now Russian cargo air carriers play the role of international military-cargo airlines. With all that US, European and UNO show the growing need in the services of Russian ramp aircraft air carriers. Expansion on the market of general cargo transportation and share growth on this market (from 1% up to 10%) .

2.

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2008
100 tons; 16; 11% 10tons; 91; 63%

2020
10 tons; 28; 21% 100 tons; 55; 39%

An-124 Il-76
30-100 tons; 15; 10%

An-124

Charter Services

Il-76
10-30 Tons; 28; 16% Medium 10-30 Tons; 12; 9% 30-100 tons; 41; 31%

Current Ramp Cargo Fleet (150 aircraft)

Ramp Cargo Fleet Forecast (136 aircraft)

Total Number of Aircraft in use 171

Scheduled Services
10 tons; 3; 14%

212 Total Number of Aircraft required 207

10 tons; 8; 11%
100 tons; 20; 27%

10-30 tons; 3; 14%

100 tons; 12; 16%

747F B 747
100 tons; 12; 57%
30-100 tons; 1; 16% 10 tons; 8; 11%

100 tons; 25; 32%

30-100 tons; 19; 26%

747F

B 747

10-30 Tons; tons; 30-100 5; 24%

10-30 Tons; 24; 36%

6; 29%

Current Non Ramp Cargo Fleet (21 aircraft) Source: Volga-Dnepr Group Forecast

30-100 tons; 19; 25% Non Ramp Cargo Fleet Forecast (92 aircraft)

10-30 tons; 24; 32%

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Other Countries 98,7%

2004
Russia 1,3%

Other Countries 98,6%

2007
Russia 1,4%

Total volume $55 billion

Total volume

$80 billion
Other Countries 92,0%

2015

Other Countries 84,0%

Total volume

$105 billion
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Russia 8,0%

Market volume

$160 billion

2030
Russia 16,0% next

DC-10, MD-11

USA

Canada

USA

Canada

B-747, 777

Europe

Moscow

Khabarovsk Krasnoyarsk

Europe Moscow

St.Petersburg

Khabarovsk Krasnoyarsk

China Middle East, Africa India Singapore India

China

Singapore

Moscow natural geographical hub connecting Europe to Middle East, Indian Subcontinent and South-East Asia

Krasnoyarsk natural geographical hub connecting USA, Europe & Canada to China, Japan and South-East Asia

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HOU ORD NYC

YYC LAX

Moscow

Krasnoyarsk

AMS LHR FRA MIL LED MOW TLV KJA SHA NBO BJS DEL SIN UUS NGO

NRT
HKG

KUL

B 747-8F

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Total Aircraft 2

Aircraft Type 2 x Boeing 747-200 (VP-BIA, BIB)

Delivery/Retirement Schedule April 2004, July 2005

Current Status Retired in 2007-2008

3
4 6 5 6 8 7 8-12

1 x Boeing 747-300SF (VP-BIC)

1 x Boeing 747-200F (VP-BID) 2 x Boeing 747-200F (VP-BII, BIJ) 2 x Boeing 747-200F (VP-BIA) Boeing 747- 400ERF (VP-BIG) Boeing 747-400ERF Boeing 747-200 (VP-BIB) Boeing 747-8

October 2005
June 2006 (NCA) March 2007 (NCA) September 2007 October 2007 (Boeing) February & April 2008 (Boeing) March 2008 2010-2013 (Boeing)

In Service
In Service In Service Retired in 2007 In Service In Service Retired in 2008 On Order

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Boeing 747-8F

Boeing 747 8F Boeing 747-400 ERF 2 x Boeing 747-200 1 x Boeing 747 -400 ERF

+5

+5

2020

+2

2010-13

Boeing 747-200

+3

2008
Boeing 747-200

Boeing 747-200

+1

2007
Boeing 747-200

-1

Boeing 747-200

+1

2006
-1

2005

2004

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Cities with population more than 1mln people

Regions of significant economic growth

S. Petersburg Moscow Rostov on Don Nizhny Novgorod

Kazan Ufa
Chelyabinsk

Yekaterinburg Omsk Novosibirsk Krasnoyarsk

Source: Ministry of Economic of RF Federal State Statistics Service

Samara

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-204

AirBridgeCargo Hubs ABC Schedule Service Air Feeder Service

B-737, 757, 767 Road Feeder Service

A320F, A330F

ST. PETERSBURG (LED)

MOSCOW (SVO)

Oil & Gas Exploration fields

YUZHNOSAKHALINSK (UUS)

KRASNOYARSK (KJA)
KHABAROVSK (KHV)

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While Boeing 747 freighters offer capacity on long haul international routes, regional aircraft will complement transcontinental services with local distribution capabilities. Tupolev 204C has been selected as the middle range aircraft type to serve Russian domestic markets from ABC hubs in Moscow and Krasnoyarsk. In June 2007, two planes of this type have been ordered with AVIASTAR-SP (Ulyanovsk, Russia), and 3 more are in plans until 2010

Aircraft 1-2 3-5

Aircraft Type Tupolev-204C Tupolev-204C

Delivery Schedule 2009 Quarter 1 Until 2010

Status In production On Option

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