MARCH 4TH, 2015

Transaero repays 2.5 bln rbl BO-01 bond-secured loan

Moscow, March 4, 2015, – On March 3, 2015, OJSC Transaero Airlines fully and in time repaid 2.5 bln rbl BO-01 bond-secured loan. In total, the airline paid more than 2.6 billion rbl including coupon payment.

Transaero Airlines has always met its obligations on the loan market over the past years, even during difficult economic periods. It is worth to highlight that the airline has repaid the loan in the extremely severe macro-economic conditions. Notwithstanding the economic headwinds, including currency fluctuations, the rise of interest rates, and the decrease of consumer demand on the air transportation market, the airline has confirmed its reliability.

In line with this, the company has seen the positive dynamics of its operating results in January 2015.

Transaero’s revenue from air operations reached 9 bln rbl, which is a 23% rise in comparison with January 2014.
Revenue per RPK in rbl grew by 42% in comparison with January 2014, while expenditures grew by 29.8%.
Revenue from international passenger services reached 7,438 million rbl (25% over January 2014).
Revenue from domestic passenger services reached 1,527 million rbl (
14% increase over January 2014).
Thus, international passenger services accounted for 82% in the airline’s revenue structure, while domestic passenger services accounted for 18%.

The following factors influenced the airline’s operating results:
- an increase in revenue from international passenger services both in terms of volume and in terms of its share in the company’s overall revenue structure. This has been achieved given that the airline’s own sales saw a significantly growth, which allowed compensating the decrease in tour operators bookings (for instance, the airline’s ticket sales on flights to popular tourist destinations through its own sales channels grew by 35%).
- The step-by-step implementation of the Programme of rigid economy and business enhancement, which was drawn up by Transaero Airlines taking into consideration the recommendations given by international consultancy firm McKinsey&Co.

«It is of utmost importance that in the current severe economic conditions Transaero Airlines has confirmed its reputation of the reliable borrower, which enjoys the confidence with investors, financial institutions and its partners. We highly appreciate their trust and we’ll do everything possible to justify their confidence in future,” said Olga Pleshakova CEO Transaero Airlines.