JANUARY 2012 ISSUE 41INTERACTIVE BUSINESS NEWS FROM THE HEAVYWEIGHT IN AIRFREIGHT

Volga-Dnepr Airlines has added a fourth modernized IL-76TD-90VD cargo aircraft to its fleet.

The new freighter successfully completed its first commercial flight on December 31st from Moscow’s Domodedovo Airport to Bahrain before returning to Moscow.

The fourth new generation IL-76TD-90VD freighter was built to order at the Tashkent Chkalov Aviation Factory in accordance with the contract concluded between UAC - Transport Aircraft and Volga-Dnepr-Leasing at the MAKS 2007 International Aerospace Show. The aircraft - assigned registration RA-76503 - was delivered from Tashkent to Ulyanovsk, Russia, in November to be painted in Volga-Dnepr Airlines’ livery.

Dennis Gliznoutsa, Vice President for Sales, Volga-Dnepr Airlines, said the increase in

the IL-76TD-90VD fleet will allow Volga-Dnepr to respond to market demand more flexibly and expeditiously. “The aircraft performs to an extremely high standard for airfreight transportation and is in high demand by our

customers. The entry of the fourth IL-76TD-90VD into service facilitates our plans to gain a larger share of the cargo market for shipments in the up to 50 tons category of the international market. The demand for modernised IL-76TD-90VD services is due to its ability to operate globally without

restrictions and because older versions of the aircraft are gradually being taken off the market,” he added.

“Volga-Dnepr Group will continue to implement the programme to grow its new IL-76 fleet. We expect to take delivery of our fifth IL-76TD-90VD in May 2012. It is currently being built at the Tashkent Chkalov Aviation Factory,” says General Director of Volga-Dnepr-Leasing, Andrey Pakhomov.

Volga-Dnepr Group initiated the IL-76 modernisation programme in 2002. The first IL-76TD-90VD entered commercial service with Volga-Dnepr Airlines in the summer of 2006. The new version of the popular freighter meets all the current requirements of foreign aviation authorities and is approved to fly all over the world without restriction. It is equipped with PS-90A-76 engines and modern avionics, using the Kupol-III-76M-VD flight navigation system. The crew size of the IL-76TD-90VD aircraft compared to old versions of the IL-76 is reduced to four people.

Volga-Dnepr adds fourth modernized IL-76TD-90VD to fleet

MOSCOW2012TIACA EXECUTIVE SUMMIT & AGM

A VERY HAPPY NEW YEAR TO ALL OF OUR FRIENDS AND INDUSTRY COLLEAGUES! WE WISH YOU A

HAPPY, HEALTHY AND PROSPEROUS 2012!

May 22-24, 2012 Full details inside

Volga-Dnepr Group to host TIACA Executive Summit & AGM in Moscow –

AirBridgeCargo launches 3 x weekly B747-400F to Chengdu in western China

AirBridgeCargo Airlines (ABC) has commenced scheduled all-cargo services to Chengdu International Airport (CTU). The service, operated by B747-400 freighter, adds Chengdu - the capital of Sichuan province in Western China- to ABC’s existing route between Zhengzhou (CGO), Moscow and Amsterdam (AMS).

Chengdu is not a new destination for Volga-Dnepr Group and AirBridgeCargo. Many charter flights with unique cargoes have been operated to the airport by Volga-Dnepr’s AN-124 cargo aircraft. In addition, a number of emergency flights using both Volga-Dnepr AN-124s and ABC’s Boeing 747 freighters were operated to Chengdu in May 2008, delivering relief goods, medical and rescue

equipment to the region after it was hit by a devastating earthquake.

The new scheduled routing will operate three times per week, connecting Chengdu directly with Moscow, Amsterdam and ABC’s many other online network destinations in Europe.

The service will undoubtedly benefit the local export manufacturing and freight forwarding

Volga-Dnepr supports NASA’s historic mission to MarsMajor parts of the launch vehicle for NASA’s most ambitious rover mission to Mars, now successfully launched into orbit, were delivered to the Cape Canaveral launch site in Florida by Volga-Dnepr Airlines.

The Mars Science Laboratory ‘Curiosity’ will take eight and a half months to reach its destination. Onboard is a car-sized rover vehicle that will scour soil and rocks for any signs of current or past environments on the planet that could have supported life. NASA says Curiosity is the largest and most complex piece of equipment ever to try to reach the surface of another planet.

In support of the mission, a Volga-Dnepr AN-124-100 freighter aircraft safely delivered the Atlas V active expendable launch system, part of the Atlas rocket family

operated by the Lockheed Martin-Boeing joint venture, United Launch Alliance. The flight departed from Huntsville, Alabama, for Cape Canaveral.

This is just the latest space mission to call upon Volga-Dnepr’s air logistics expertise. Since 1997, Volga-Dnepr has regularly provided transportation services for the U.S. space launch programme. In addition to delivering the Atlas V launch system, the airline has also carried the Russian-built RD-180 engines used in Atlas V from Moscow via Denver to Cape Canaveral.

The Russian carrier also delivers the Atlas V payload fairing developed by RUAG Emmen in Switzerland and the Centaur upper stage from Huntsville to Cape Canaveral.

Each Atlas V rocket delivered by Volga-Dnepr’s AN-124-100 aircraft weighs up to 25 tonnes and is 36 metres in length. It has a diameter of 3.8 metres and is 4.3 metres high in transport configuration. The weight of the Centaur upper stage reaches up to nine tonnes. It measures 14 metres in length and 3.3 metres in diameter.

“To provide services to United Launch Alliance, the utmost punctuality, preciseness and technical discipline are needed. We conduct meticulous loading and offloading in strict accordance with all technological requirements by using Lockheed Martin equipment that has been specially adjusted for our AN-124-100 ‘Ruslan’ specifications,” says Vladimir Vyshemirsky, Head of Volga-Dnepr’s Engineering & Logistics Centre in the UK.

communities. ABC is confident of gaining support for the service from manufacturers and freight forwarders that want to use a reliable and dedicated freighter solution for their products. This is especially critical for time and security-sensitive commodities for Chengdu’s thriving high-tech industry. The direct delivery of high-end products from Europe will also help to satisfy Chengdu’s fast developing consumer market.

China is a major market for AirBridgeCargo Airlines. It already has a strong presence in China’s traditional airfreight markets of Shanghai, Hong Kong, Beijing and Zhengzhou. Adding Chengdu to its network expands the airline’s coverage to inland regions of China which are quickly catching up with the developed coastal areas of the country.

Moscow will play host to The International Air Cargo Association’s (TIACA) Executive Summit and AGM from May 22-24, 2012, hosted by Volga-Dnepr Group.

The theme of the Summit will be ‘Air Cargo in the Rising Economies: East Balances West’.

With sustained growth momentum supported by a home market of 143 million consumers, rich oil and gas reserves and its imminent membership of the World Trade Organization (WTO), Russia sits proudly at the top table of the world’s most influential economies. Situated midway between the Asian and North American markets and with a thriving air cargo industry of its own, the conference will explore the importance of the Russian air cargo market to the global economy.

A keynote speaker from Russia’s Ministry of Transportation will open the Summit. Other topics will include:

Russia and the CIS

Russia in the BRIC and the impact on world economy: the effect and opportunity of Russia as a WTO member.

Doing business in Russia

With more and more businesses looking to establish a foothold in the Russian market, leaders from across the air cargo supply chain and Russian Customs discuss the key issues and opportunities for both Russian and global organizations.

The global picture

Senior representatives of airlines, airports, freight forwarders, Customs and shippers review the current status of the global air cargo market and the latest developments in the industry, including the outlook for the year ahead.

Fraport names ABC ‘Best Cargo Performer’ for third consecutive year in FrankfurtFor the third year in a row Air-BridgeCargo Airlines (ABC) has been recognised as the lead-ing carrier handled by Fraport at Frankfurt Airport in terms of freight volume in its annual “Best Cargo Performer” ceremony.

Russia’s biggest cargo carrier was nominated and awarded in two categories for the “Most cargo volume in 2011” and “The biggest volume increase in 2011” after its cargo traffic grew to 104, 960 tons for the first 10 months of 2011.

“This victory reflects the strengthening of ABC’s position in Frankfurt. Under severe market conditions, including night flight restrictions, we have been able to maintain the same level of frequencies and provide customers with the same service in an outstandingly successful way. The reliable and long-term relationship between Fraport Cargo Services and ABC demonstrate a model for partnership which we would like to apply in every region throughout our network,” said Tatyana Arslanova, Executive President of AirBridgeCargo. She added that Fraport’s traditional Bembel prize was greatly welcomed by the ABC team and extended her thanks to Fraport’s handling professionals for their outstanding performance over the course of the year.

ABC operates Boeing 747-400 freighter services linking Frankfurt with Russia and other markets in Europe, China, Hong Kong and Japan. The airline currently operates 14 frequencies per week from Germany’s leading airport.

MOSCOW2012TIACA EXECUTIVE SUMMIT & AGM

Daniel Fernandez, Secretary General of TIACA, said:

“Russia is already a strong player in the global air cargo industry and the growth and development of Volga-Dnepr Group is one of the country’s great business success stories. We believe this will be a fascinating event for businesses already doing business in Russia, for those that want to enter the market and for the local Russian cargo industry that want to establish more links with international partners.”

Volga-Dnepr Group to host TIACA 2012 TIACA Executive Summit and AGM

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One of Volga-Dnepr Airlines’ AN-124-100 freighters delivered equipment from Saint Petersburg to the Russian Far East in support of a project to modernise the infrastructure at Vladivostok Airport.

The equipment consisted of modular transformer substations used for lighting the airport’s commercial and military aprons as well as a scaled mock-up of the airport reconstruction plan for the Asia-Pacific Economic Co-operation (APEC) Summit that takes place in Vladivostok on September 8th and 9th 2012. The AN-124 flight was operated for TransStroyMekhanizatsiya LLC (TSM), a leading engineering and construction company in the Russian market for airport, road and hydraulic engineering construction.

The 63 tons of cargo was packaged in special containers and included one that posed a loading challenge due to its displaced center of gravity, preventing the use of standard overhead cranes. Volga-Dnepr’s experts helped to find a solution and the complex challenge was resolved using a tailored loading procedure involving special beams. To support this procedure, Volga-Trucks, a specialist trucking company within Volga-Dnepr Group, delivered the necessary tooling to Saint Petersburg on the day before the flight.

As part of its general support of the flight, Volga-Dnepr’s Engineering & Logistics Center (ELC) also provided terminal services, arranging documentation and transportation of the cargo from the Pulkovo terminal to the aircraft.

The Asia-Pacific Economic Cooperation (APEC) is the premier forum for facilitating

economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC was established in 1989 to enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community. As of now, APEC has 21 members which account for approximately 41% of the world’s population, approximately 55% of world GDP and about 49% of world trade.

New airport equipment arrives as Vladivostok prepares to welcome APEC 2012 Summit