JANUARY 22ND, 2014

Transaero Airlines Announces Its Operational Results for 2013

Transaero Airlines announced operational results for 2013. The results demonstrate that the airline continued to maintain a sustainable development path and achieved record operational results in 2013:

· Passenger turnover amounted to 47.09 billion RPK, representing a 14.7% growth over 2012
· The number of passengers carried grew to 12.5 million people, a 21% increase over 2012
· The airline delivered 69,735.77 tons of cargo, 5.9 % more than 2012
· Ton-kilometers amounted to 4.6 bn TKM, a 13.6% increase over 2012

Transaero Airlines recorded the highest growth rate of passenger turnover, as well as the highest passenger load factor of 83.61% among the five largest Russian air carriers. For the first time in its history the airline carried more than 1 million passengers per month during the period from May to October 2013.

According to the results of 2013 the airline became the leader among Russian airlines in terms of cargo turnover on domestic routes.

In line with its strategy to enhance operational and financial efficiency, Transaero has improved its products and services by introducing unique innovation technologies in the Russian aviation market.

In 2013 the airline continued the large-scale fleet renewal programme. Transaero’s fleet expanded as new aircraft joined the fleet. The airline carried on its aircraft interiors refurbishment and renovation programme implementing the latest technologies and high tech materials. The advanced aircraft cabins of the airline were equipped with the Transaero Connect system offering Internet connection and mobile services to passengers.

Transaero began offering its unique Imperial class services on narrowbody Boeing 737-800 aircraft operating on mid-range international routes.

By the end of 2013 the airline was operating 98 aircraft: 20 Boeing 747, 14 Boeing 777, 14 Boeing 767, 45 Boeing 737, 3 Тu-214, 2 Тu-204-100С. Transaero Airlines has the largest fleet of long-haul widebody aircraft in Russia, CIS and Eastern Europe. In 2013 Transaero started to operate the first two cargo aircraft in its fleet Tu-204-100C.

Transaero remains the only Russian carrier to have ordered the Аirbus А380, Boeing 747-8 Intercontinental and Аirbus А320neo aircraft. In 2013 the airline also ordered Boeing 737NG and started negotiations on additional deliveries of Boeing and Аirbus jets. Furthermore, Transaero has also started preparations for the operation of the Аirbus А380, the largest aircraft worldwide, which will join its fleet in 2015.

2013 witnessed further extensive development of the airline’s route network that now comprises more than 200 destinations in Russia, Europe, Asia, America and Africa. Transaero continued operating flights from all three Moscow Airports – Vnukovo, Domodedovo and Sheremetyevo. An important trend this year was the increased frequency and number of destinations of flights carried out from the most advanced Vnukovo Terminal A. Transaero’s development strategy positions this Terminal as the one offering the highest quality services and recording increased demand among premium class passengers.

In 2013 Transaero launched new flights on a range of routes including those from Moscow to Kokshetau, Istanbul, Havana. Flights to Antalya, Dubai and Jamaica are now operated as scheduled flights. The airline also continued to extend its offering of direct flights from Russian regions to popular leisure destinations. Transaero also actively took part in the programme for subsidized air operations for citizens of the Russian Far East, achieving a 15.8% increase over 2012 for passengers carried on these routes.

An important achievement in 2013 was the launch of a new class of service called Discount. Transaero started operating flights with Discount class, on January 14, 2014, on several domestic and international routes from Moscow Domodedovo Airport.

2013 was a year of successful cooperation between Transaero Airlines and its partners:
· Transaero signed the Strategic Cooperation Agreement with UTair
· EasyJet, Virgin America, WestJet, JetBlue and China Airlines became new international partners of Transaero

As of the end of 2013 Transaero has seven code-sharing, 55 interline and 33 special prorate agreements with the leading foreign airlines.
In 2013 Transaero became the first Russian airline to be awarded and recognized as The Most Improved Airline at the Skytrax World Airline Awards. Transaero also won the prize for Best Airline in Europe, Middle East and Africa at the GlobeRunner Awards.

Transaero’s CEO Olga Pleshakova for the second year in a row was in the Fortune 50 most powerful women list and remains the only Russian woman in this rating.

Transaero continues to maintain its tradition and commitment to charitable activities and confirmed its highest level of corporate social responsibility at ААА(s). It is the only Russian airline officially listed in this rating. In 2013 the airline offered its partnership to the Konstantin Khabensky Charity Fund. Transaero also launched a unique project called Flight of Hope aimed at raising money for the treatment of critically ill children.

Transaero Airlines was the winner of the HR-Brand Best Employer Awards, and was rated one of the Best companies for work and career by the national Russian Leadership Index.

Summarizing the results for 2013 Transaero’s CEO Olga Pleshakova said:

«We are truly happy that 2013 was a record year for Transaero. It is crucial for us that our leading professional team focused on enhancing the company’s efficiency. The fact that 12.5 million passengers in 2013 made their choice in favour of Transaero is a clear indicator that we are following the right path. I would like to thank all the passengers for their choice and would like to reassure them that in 2014 our company will do its best to continue improving the quality of our service and products».