Annual reports airline. JSC Rossiya Airlines: Accounting Statements and Financial Analysis. Address to Shareholders

pre-approved

Supervisory Board

UTair

(Minutes No. 10/08 dated 01.01.2001)

UTair Aviation

Annual report

UTair Aviation is one of the leading passenger carriers in Russia and one of the largest helicopter operators in the world. UTair operates in several market segments:

o passenger scheduled and charter air transportation on the airline's aircraft;

o helicopter operations in Russia and international markets (including contracts with the UN);

o aviation services: airport activities, maintenance and repair, service support for passenger flights.

UTair's presence segments are well diversified, in each of them the company works with different categories of customers - individuals, oil and gas companies, international organizations. Together, this gives the airline's business the necessary stability and creates a high potential for further development.

UTair Aviation today:

· largest helicopter operator in the world.

included in top three leading Russian airlines in terms of the number of passengers carried on domestic routes.

valid member of the International Air Transport Association (IATA) .

· The company's shares are traded on Russian and foreign stock markets.

occupies 166 place in the Rating of the 400 largest companies in Russia in terms of sales and 139 place in the list of the largest companies in Russia by market value (capitalization). *

IFRS

International Financial Reporting Standards (IFRS).

UTair, Society

Open Joint Stock Company UTair Aviation.

Emission limits.

Maximum allowable discharges.

Pkm (passenger kilometer)

Transportation of 1 passenger for a distance of 1 km.

Limit passenger turnover

An indicator calculated by multiplying the number of passenger seats at each stage of the flight by the length of the stage.

Limit tonne-kilometre

An indicator calculated by multiplying the amount of available payload (passengers, cargo and mail) at each stage of the flight by the length of the stage.

Reduced plaque

The flight time reduced to the An-2 aircraft in accordance with the coefficients. This indicator to the greatest extent characterizes the efficiency of the aircraft.

Labor productivity

The ratio of revenue to the average number of employees.

RAS

Open Joint Stock Company "Stock Exchange "Russian Trading System".

SanPiN

Sanitary rules and regulations.

Tkm (ton-kilometer)

Transportation of 1 ton of commercial load (passengers at the rate of 90 kg per 1 passenger, cargo, mail) over a distance of 1 km.

Closed Joint Stock Company "Transport Clearing House".

MRO

Maintenance and repair.

FAVT

Federal Air Transport Agency.

FSNST

Federal Service for Supervision in the Sphere of Transport.

2. Key figures

Note: 2008 performance figures for passenger traffic include Mi-8 and AN-2 flights.

Financial indicators

3. Appeal to shareholders

Last year, UTair Airlines and the aviation industry as a whole had to work in the most difficult economic conditions, formed by the explosive growth in energy prices, and then the financial and economic crisis that began. Nevertheless, we were able to almost fully implement the plans outlined for 2008. First of all, in such vital areas as improving the structure of the airline, updating the aircraft fleet, developing new aviation markets in Russia and abroad. The successfully implemented route network development strategy and the expansion of the geography of flights have borne fruit - in 2008 we carried 3.225 million passengers - by 12.2% more than in 2007, increased by 7.3% the production flight time on helicopters. Despite the constant growth of costs in the industry, we managed to make a profit at the end of the year and achieve a relative increase in financial indicators in our main areas of activity. In 2008, UTair's revenue amounted to ths. rub. The company's net profit in the reporting year amounted to thousand. rub.

One of the most significant events for the airline was its entry into the International Air Transport Association (IATA) in 2008. Having successfully passed the IOSA operational safety audit procedure, UTair, among the world's leading airlines, has confirmed its status as a carrier that meets the high requirements of international safety standards.

A serious downturn in the global aviation business, which began in the 4th quarter of 2008, continued this year as well. According to IATA, global industry losses in 2008 amounted to $8.5 billion, and the loss forecast for 2009, originally estimated at $2.5 billion, was revised to $4.7 billion in March. The Russian civil aviation industry was one of the first to feel the negative impact of the crisis, although on the whole it showed an upward trend at the end of the year - the passenger traffic of Russian airlines in 2008 increased by 10.4%. As a result of adverse economic factors in the past year, several airlines were forced to declare themselves bankrupt and leave the market, unable to fulfill their obligations to passengers and partners.

Competent financial and management policy allowed UTair to cope with the negative impact of the crisis and preserve the company's staff, its assets and priority areas of activity. In many respects, this was achieved due to the diversified business structure, in which various activities complement each other depending on the market situation. At the same time, we timely implemented a number of anti-crisis resource-saving measures. Significant cost savings have been achieved through an active transition to more efficient types of aircraft on domestic routes. In the course of optimizing the route network, inefficient routes were reduced and efforts were focused on the most profitable directions. After the bankruptcy of a number of airlines, UTair was able to use the current market situation and occupy the vacant niches. In particular, such destinations in demand on the market as Moscow - Krasnoyarsk, Omsk, Barnaul, Perm and Baku were opened.

· Helicopter operations in Russia and abroad;

· Airport activities;

Services for:

repair and maintenance of aviation equipment;

Providing passengers with in-flight meals (catering);

training of aviation personnel.

At the end of 2008, UTair's aircraft fleet consisted of 135 aircraft and 200 helicopters.

Last year, UTair became a full member of the International Air Transport Association (IATA). IATA acts as a coordinator and representative of the interests of the air transport industry in such areas as flight safety, flight operations, tariff policy, aviation security, and the development of international standards in conjunction with the International Civil Aviation Organization (ICAO).

UTair Aviation takes an active part in the activities of the Russian Association of Air Transport Operators (AEVT): UTair General Director Andrey Martirosov holds the post of Chairman of the Board of the AETA, and key executives of the airline work in the main committees of the association.

The segments of the Russian and international air transportation market in which UTair operates are characterized by stability and high development potential.

o Medium-haul passenger transportation is carried out mainly from regional centers and large cities with a high level of economic development, such as Moscow, St. Petersburg, Novosibirsk, Yekaterinburg, Samara, Ufa, Khanty-Mansiysk, Tyumen.

o The development of regional transportation is carried out in cooperation with the authorities of the constituent entities of the Russian Federation, who are interested in supporting and developing socially significant transportation.

o Helicopter operations in Russia are carried out mainly in the interests of large oil and gas companies, which ensures stability and predictability of development in this area.

o Activities in international markets are carried out both within the framework of participation in the programs of international organizations, primarily the UN, and on the basis of direct commercial contracts, in particular, with the South African Forest Fire Fighting Association, Airborne Energy Solutions (Canada), the Government of Canada.

UTair occupies a leading position in the industry in its main areas of activity, and the receipt of revenue from several independent segments provides the airline with high stability in the face of growing competition and market volatility.

5.1. Structure

Organizational structure of UTair Group: *

The corporate center of the group provides operational and financial control over the activities of enterprises and organizations included in the structure of the group, by:

· fixing in the statutory documents of subsidiaries and affiliates the following management system: general meeting of shareholders / participants - Board of Directors / Supervisory Board - sole executive body;

· restrictions on the powers of the sole executive body to make major transactions;

· election of representatives of UTair to the management and control bodies of subsidiaries and affiliates;

· introduction of unified business planning processes and a single format for quarterly and annual reporting;

· Participation of UTair's key managers in the work of the management bodies of subsidiaries and affiliates (directives are developed on voting on key issues on the agenda of general meetings of shareholders / meetings of the Board of Directors).

Passenger Transportation

UTair is one of the top five Russian air carriers in terms of the number of passengers carried on domestic and international routes. The airline occupies a leading position in the country in terms of the number of flights: UTair aircraft operate about 180 regular passenger flights daily to more than 100 destinations. The company forms its schedule taking into account the maximum use of the transit potential of passenger traffic, organizing a large number of connections between flights. UTair is restoring interregional air transport links and distributing passenger traffic not only through Moscow, but also through major regional airports.

The priority areas of the airline's activity in the field of passenger transportation are maintaining a high level of flight safety, developing the route network, optimizing the fleet of short-haul and medium-haul aircraft, improving the quality of service, and increasing the professionalism of the staff.

The company provides air transportation services in business, comfort, economy plus and economy classes.

The competitive advantages of UTair Airlines in the field of passenger air transportation include:

· operation of modern economical aircraft such as ATR-42/72 and Boeing;

· highly qualified aviation personnel and own personnel training center;

· effective system of sales of services in Russia and abroad;

· A developing system of interactive booking through the airline's website and by phone.

Geography of passenger traffic:

Regular flights are operated

to 70 destinations in 8 countries

Charter flights are carried out to 19 countries of the world

Helicopter work

UTair Aviation is the largest helicopter operator in Russia and one of the leaders in the global helicopter business.

The airline's helicopter fleet consists of 200 aircraft, including more than twenty of the world's largest lifting Mi-26 helicopters, capable of carrying 20 tons of cargo inside the fuselage and on an external sling.

UTair helicopters perform work both under commercial and UN contracts in all regions of the world - from North America to South Africa and Asia. At the same time, the airline continues to implement the strategy of active business expansion to international markets.

UTair performs the main part of helicopter operations in Russia in the northern regions of the country, as well as within the administrative boundaries of the Ural and Siberian federal districts. The market for helicopter operations in these regions is characterized by a relatively high concentration of enterprises that have the financial ability to attract aviation for their own needs. The main types of services provided by the airline are the transportation of people and cargo in the interests of oil and gas companies in the Russian Federation. Among the customers of aviation work on helicopters, the leading companies are Surgutneftegaz, Rosneft, Gazprom-Avia, THK-BP, Integra, BP, Shell, Novatek, Marathon Oil Company.

Geography of helicopter operations:

Over 30 countries around the world

In 2008, UTair Aviation performed helicopter operations in the following countries: Sudan, Democratic Republic of the Congo, Sierra Leone, Liberia, Côte d'Ivoire, Afghanistan, Nepal, Chad, Slovakia, Czech Republic, Hungary, Poland.

Aviation Services

UTair provides airport services, repair and maintenance of aircraft, service support for its own flights, training and education of personnel, and sale of air transportation.

Airports

The airline continues to intensively develop airport activities, including ground handling of Russian and foreign-made aircraft, reception and departure of passengers, mail, cargo, aircraft maintenance, operation of airport terminals, airfields and other ground facilities.

UTair owns and operates six regional airports, including: in the city of Noyabrsk, in the settlements of Berezovo, Igrim (Khanty-Mansi Autonomous District), Cape Kamenny, Tazovsky (Yamal-Nenets Autonomous District) and in the city of Ust-Kut ( Irkutsk region). To support small aircraft flights, the airline operates 15 assigned landing sites in the Tyumen region. The airport activities of all UTair branches are certified.

The strategic goal of the airline in the field of airport activities is to increase the economic efficiency of the business, improve passenger service through the renewal and modernization of infrastructure facilities and technological systems.

Maintenance and repair (MRO)

The main tasks of the maintenance and repair business are to ensure stable, uninterrupted, safe and world-class operation of the airline's aircraft, as well as the provision of similar services to other air carriers.

UTair is the world's largest provider of maintenance and repair services for Russian-made helicopters, as well as one of the largest aircraft maintenance providers in the Tyumen Region, Khanty-Mansiysk Autonomous Okrug-Yugra and Central Russia.

As a result of the restructuring carried out at UTair, maintenance and repair of aviation equipment is carried out by subsidiaries certified for the relevant types of work: -Technician, -Engineering, -Express.

-Technician"- one of the largest centers in Russia for maintenance and repair of aviation equipment, which provides operational and periodic maintenance of Tu-154M (B), Tu-134, An-24, An-26, Yak-42, Yak-40, ATR-42 aircraft, Boeing-737, Gulfstream.

The main activity of the aviation repair complex -Engineering»(Tyumen), - overhaul of Mi-8, Mi-8MTV, Mi-8AMT, Mi-2 helicopters, An-2 aircraft and their components, as well as modification, improvement of the interior, repair and restoration work in the conditions of operating enterprises.

The structure of UTair-Engineering includes a technology and design department, which is the holder of reference documentation for the Mi-26, Mi-171, Mi-8T, Mi-8MTV, Mi-10K types.

Nine external linear stations, which are also part of the UTair Engineering structure, perform maintenance and current repairs of UTair helicopters in all regions of the world where they are operated.

A network of 13 certified UTair-Technic and UTair-Engineering line stations in Central Russia, the Tyumen and Irkutsk Regions, and the Krasnoyarsk Territory provides maintenance services for UTair aircraft and other aviation equipment operators.

-Express" carries out:

Ensuring and improving the airworthiness procedures for a large fleet of Tu-134 aircraft at the final stage of their operation, which includes maintenance and repair issues, individual determination of the resource and certification of an aircraft instance, timely provision of their operation with units and components;

Maintaining the airworthiness of the existing An-24 fleet.

The Airline's Technical Directorate, UTair-Technic, UTair-Engineering, UTair-Express Aviation and Technical Base form a single structure that ensures the implementation of the entire range of routine maintenance, as well as effective management of maintaining the airworthiness of Russian and Russian aircraft operated by the company. foreign production.

Service support

ZapSib-Ketering, a branch of UTair Aviation, is a major service provider and one of the leading in-flight catering manufacturers in Russia.

The main activities of the branch include:

production, storage and delivery of in-flight meals to aircraft,

Aircraft service provision, including external washing, internal cleaning, soft picking,

assembly and delivery of printed materials on board,

catering,

retail trade.

In-flight catering shops operating in Surgut, Khanty-Mansiysk, Tyumen and Noyabrsk are equipped with modern technological equipment that allows preparing delicious and high-quality meals for passengers on their own flights and flights of other air carriers.

The branch is constantly striving to improve the level of passenger service, using the advanced methods of in-flight catering shops, service support services of other airlines and airports in Russia. ZapSib-Catering cooperates with in-flight catering shops at Moscow Vnukovo and Domodedovo airports, as well as at the airports of Samara, Krasnodar, Anapa, Omsk, Ufa, Kazan, Novosibirsk, etc.

Staff training

Maintaining and improving the level of flight safety, the regularity and quality of the service provided is largely determined by the availability of highly qualified personnel. That is why UTair Aviation's top-priority tasks include the implementation of a targeted personnel policy based on the principles of constant and regular improvement of the level of professional training of employees. To this end, the Group operates a non-profit partnership "Personnel Training Center" (NP TsPP) - a non-governmental educational organization for additional professional education of aviation personnel, which has a license for a wide range of types of training for flight personnel, engineering and technical personnel and other aviation specialists. NP CPP is one of the largest civil aviation training centers in Russia and has an extensive database of information materials, training simulators and facilities that allow for full theoretical and practical training of students. The teachers have a higher education, rich experience in production, command and flight work, and many years of teaching experience. NP CPP is the only training center for civil aviation in Russia, which has in its composition a flight-methodical aviation squadron, the instructor staff of which has extensive experience in performing flights on domestic and international airlines.

Sale of air transportation

The sale of transportation and services of UTair Aviation is carried out by the sale of transportation and services” (TsRPU). This is one of the largest air transportation sales agencies in Russia, which has an extensive network of sales offices in the Tyumen region and other regions of Russia.

Since the establishment of the enterprise from a small agency, CRPU has turned into an extensive network of branches, offices, with 149 ticket sales points in 68 cities and towns. The whole range of services for the sale of air transportation is provided in almost every region of Russia - from the Far North to the southern borders.

Thanks to TCH and IATA accreditations, the Transportation and Services Sales Center sells air tickets for flights of UTair, other airlines in Russia and the CIS countries, as well as leading airlines in the world. In addition, the CRPA provides a full range of services in the aviation services market:

· registration of baggage and cargo transportation for UTair flights, as well as for regular flights of Russian and CIS airlines;

· conclusion of contracts with legal entities for the purchase of air tickets by bank transfer ;

provision of services for advance payment of the cost of air transportation in one city with subsequent receipt of an air ticket in another city;

· sale of air tickets on bank plastic cards VISA, MasterСard, American Express, issuance of air tickets on credit;

· reservation of seats for UTair flights, placing seats on air tickets with an open date;

· issuance of air tickets under interline agreements of UTair airlines for custom and charter flights;

delivery of air tickets in Tyumen, Noyabrsk, Nizhnevartovsk, Khanty-Mansiysk, Ufa, pos. Tazovsky.

· Mastering new types and increasing the efficiency of helicopter operations by increasing the use of light helicopters.

Helicopter work abroad

· Strengthening its position among the leaders of the world market of helicopter operations.

· Integration into the global helicopter community through unification of standards and technologies and cooperation with global helicopter operators.

· Increasing the market share of helicopter operations under commercial contracts in Africa, India and Canada, expanding the scale of operations in Europe, as well as performing helicopter operations to support the development of offshore oil and gas fields by Russian and foreign companies.

· Strengthening cooperation with the UN on helicopter support for peacekeeping missions.

Airport activities

· Improving the efficiency of airports that are part of the UTair Group.

· Implementation of effective modern technologies for servicing passengers, aircraft and cargo.

Repair and maintenance of aviation equipment

· Expansion of MRO services for aircraft operated not only by UTair Group, but also by third-party airlines.

· Certification for compliance with international requirements (JAR, FAR), introduction of ISO-9001/2000 standards and technical regulations.

Catering

· Expanding the scope of catering services not only to UTair Group companies, but also to third-party air carriers.

· Strengthening of positions among the five largest suppliers of in-flight meals in Russia.

6. Performance analysis

High jet fuel prices in the first half of last year and the global financial crisis have had a major impact on the global air travel industry. Against the background of the first profitable year for the aviation industry in the last seven years in 2007, last year the total losses of the global air transportation industry amounted to $8 billion (according to IATA). According to the results of 2008, the volume of freight traffic decreased by 4%, while passenger traffic increased by only 1.6%.

The end of 2008 was one of the most difficult periods for airlines: world cargo transportation in December compared to the previous year decreased by 22.6%, passengers - by 4.6%. According to the IATA forecast, updated in March 2009, this year the losses of the global air transportation industry will exceed $4.7 billion, with fuel prices at $50 per barrel. At the same time, passenger traffic will decrease by 3%, the volume of freight traffic - by 5%, profitability - by 3%. Air carriers' direct revenue will fall by $35 billion, from $536 billion in 2008 to $501 billion. At the same time, total losses will be less than in 2008, due to a sharp drop in jet fuel prices.

In 2008, Russian airlines carried 49.8 million people (an increase of 10.4% compared to 2007). Passenger turnover also increased by 10.4% to 122.6 billion pkm. 779.4 thousand tons of cargo were transported (an increase of 6.4%). The volumes of regular and non-scheduled traffic increased at a similar pace.

Russian airlines carried 779.4 thousand tons of cargo in 2008, which is 6.4% more than in the previous year; freight turnover increased by 7.8% to 3.7 billion tkm. The volume of cargo transportation increased on international routes by 12.6%, to 519.9 thousand tons, on domestic routes it decreased by 4.1%, to 259.4 thousand tons.

It should be noted that the overall increase in traffic was largely due to the results of the industry in the first half of last year. According to the results of the first six months, the growth in the number of passengers carried by Russian airlines amounted to 21.9%, cargo and mail - 27.5%. By this period, the intensive growth of aviation fuel prices reached its maximum.

The share of aviation fuel costs in the operating costs of most Russian airlines began to exceed 60-70%. More than half of Russian airlines' flights, carried out on fuel-consuming domestically produced aircraft of the previous generation, turned out to be far below the profitability line. By the end of the summer, many airlines had significant debts to refueling complexes at airports. As a result, the latter stopped their service, which led to massive long flight delays during the peak months of passenger traffic (August-September).

The impact of the financial crisis on the reduction in consumer demand for air transportation began to manifest itself since September last year: in September, the total growth rate of passenger traffic of Russian airlines amounted to only 3.6%, in October 0.8%, in November they recorded a decrease of 6.5% , in December the fall was 12%.

6.1. Passenger Transportation

The year 2008 for Russian airlines engaged in passenger and cargo transportation, despite the negative expectations associated with the growth of aviation fuel prices and the developing financial and economic crisis, can be considered generally successful. According to the report of the Transport Clearing House (TCH), in 2008, Russian airlines carried 49.8 million passengers and 779.4 thousand tons of cargo and mail, which exceeds the figure by 10.4% and 6.4%, respectively. %. The first half of 2008 was characterized by high growth rates, in the 3rd quarter there was some slowdown, and in the 4th quarter of 2008 there was a downward trend compared to the same period of the previous year.

Full name: JSC "AIRCOMPANY "RUSSIA"

TIN: 7810814522

Type of activity (according to OKVED): 51.10.1 - Transportation by air passenger transport, subject to the schedule

Form of ownership: 42 - Mixed Russian ownership with a share of ownership of the constituent entities of the Russian Federation

Legal form: 12267 - Non-public joint-stock companies

Reporting is done in thousand rubles

See detailed verification of the counterparty

Accounting statements for 2011-2017

1. Balance sheet

Brief balance sheet analysis

Graph of changes in non-current assets, total assets and capital and reserves by years

2. Profit and loss statement

Brief analysis of financial results

Schedule of changes in revenue and net profit by years

4. Cash flow statement

6. Report on the intended use of funds

2017 2016 2015 2012

No data for this period

Additional checks

Check counterparty Download data for financial analysis

* An asterisk indicates indicators that are adjusted in comparison with Rosstat data. The adjustment is necessary to eliminate obvious formal inconsistencies in reporting indicators (difference in the sum of lines with the final value, typos) and is carried out according to an algorithm specially developed by us.

Reference: The financial statements are presented according to Rosstat data, disclosed in accordance with the legislation of the Russian Federation. The accuracy of the given data depends on the accuracy of the data submission to Rosstat and the processing of these data by the statistical agency. When using this reporting, we strongly recommend that you check the figures with the data of the paper (electronic) copy of the reporting posted on the official website of the organization or received from the organization itself. The financial analysis of the presented data is not part of the Rosstat information and is performed using a specialized

pre-approved

Supervisory Board

OJSC UTair Aviation

(Minutes No. 10/08 dated May 22, 2009)

UTair Aviation

Annual report

UTair Aviation is one of the leading passenger carriers in Russia and one of the largest helicopter operators in the world. UTair operates in several market segments:

passenger regular and charter air transportation on the aircraft of the airline;

helicopter operations in Russia and international markets (including contracts with the UN);

aviation services: airport activities, maintenance and repair, service support for passenger flights.

UTair's presence segments are well diversified, in each of them the company works with different categories of clients - individuals, oil and gas companies, international organizations. Together, this gives the airline's business the necessary stability and creates a high potential for further development.

UTair Aviation today:

largest helicopter operator in the world.

included in top three leading Russian airlines in terms of the number of passengers carried on domestic routes.

valid member of the International Air Transport Association (IATA) .

the company's shares are traded on Russian and foreign stock markets.

* - according to the agency "Expert RA".

1. Glossary

Abbreviation of metric and monetary units

2. Key figures

Financial indicators

3. Appeal to shareholders

Dear colleagues,

Last year, UTair Airlines and the aviation industry as a whole had to work in the most difficult economic conditions, formed by the explosive growth in energy prices, and then the financial and economic crisis that began. Nevertheless, we were able to almost fully implement the plans outlined for 2008. First of all, in such vital areas as improving the structure of the airline, updating the aircraft fleet, developing new aviation markets in Russia and abroad. The successfully implemented route network development strategy and the expansion of the geography of flights have borne fruit - in 2008 we carried 3.225 million passengers - by 12.2% more than in 2007, increased by 7.3% the production flight time on helicopters. Despite the constant growth of costs in the industry, we managed to make a profit at the end of the year and achieve a relative increase in financial indicators in our main areas of activity. In 2008, the revenue of UTair Aviation OJSC amounted to 32,994,476 thousand rubles. The company's net profit in the reporting year amounted to 75,822 thousand rubles.

One of the most significant events for the airline was its entry into the International Air Transport Association (IATA) in 2008. Having successfully passed the IOSA operational safety audit procedure, UTair, among the world's leading airlines, has confirmed its status as a carrier that meets the high requirements of international safety standards.

A serious downturn in the global aviation business, which began in the 4th quarter of 2008, continued this year as well. According to IATA, global industry losses in 2008 amounted to $8.5 billion, and the loss forecast for 2009, originally estimated at $2.5 billion, was revised up to $4.7 billion in March. The Russian civil aviation industry was one of the first to feel the negative impact of the crisis, although on the whole it showed an upward trend at the end of the year - the passenger traffic of Russian airlines in 2008 increased by 10.4%. As a result of adverse economic factors in the past year, several airlines were forced to declare themselves bankrupt and leave the market, unable to fulfill their obligations to passengers and partners.

Competent financial and management policy allowed UTair to cope with the negative impact of the crisis and preserve the company's staff, its assets and priority areas of activity. In many respects, this was achieved due to the diversified business structure, in which various activities complement each other depending on the market situation. At the same time, we timely implemented a number of anti-crisis resource-saving measures. Significant cost savings have been achieved through an active transition to more efficient types of aircraft on domestic routes. In the course of optimizing the route network, inefficient routes were reduced and efforts were focused on the most profitable directions. After the bankruptcy of a number of airlines, UTair was able to use the current market situation and occupy the vacant niches. In particular, such destinations in demand on the market as Moscow - Krasnoyarsk, Omsk, Barnaul, Perm and Baku were opened.

In February 2008, as part of the modernization program for the fleet of passenger aircraft, UTair began operating the Boeing 737-500. This made it possible to optimize the structure of the fleet of medium-haul aircraft in accordance with the development strategy, reduce fuel costs, expand the geography of flights and increase the volume of traffic. In 2008, the number of Boeing 737-500 aircraft in UTair's fleet reached six, and by the end of 2009 should be at least 15 units. We also continued to replenish our fleet with European-made ATR-42 and ATR-72 regional aircraft, the number of which reached 15 in 2008. All this undoubtedly gives us the opportunity to compete even more successfully in the passenger air transportation market.

Last year marked the beginning of a promising and fruitful cooperation with the world's largest air carrier Lufthansa and, in general, with the global airline alliance Star Alliance. In November, UTair and Deutsche Lufthansa AG signed an agreement on commercial cooperation. Thanks to an interline agreement with the leading European airline, UTair significantly expanded its competitive advantages: the airline's passengers were able to purchase a single ticket for a flight through the airports of Moscow, St. Petersburg, Samara, Ufa, Nizhny Novgorod and Yekaterinburg to Frankfurt, Munich, Berlin, Dusseldorf and further to more than 100 countries of the world at special favorable rates.

The most important component of UTair's ongoing efforts to strengthen and develop its position in the global and Russian helicopter operation markets has been the improvement of the rotorcraft fleet. Last year, the largest contract was signed with JSC "Ulan-Ude Aviation Plant" for the supply during 2008-2010. 20 new Mi-171 helicopters with an option for another 20 helicopters. The first batch of Mi-171s was delivered to the airline in October 2008. The company's fleet has also been replenished with two Eurocopter AS 350B3 helicopters purchased as part of the Light Multi-Purpose Helicopter project being implemented by UTair. Since 2006, the company has been successfully operating Eurocopter AS 355N and VO-105 helicopters. Their advantages are highly appreciated by customers: light helicopters transport VIP clients, patrol oil and gas pipelines, take photos and videos, deliver cargo on an external sling, and also perform medical flights. The AS 350B3 helicopters that have replenished the company's fleet are mainly involved in the performance of work in the field of geological exploration and geophysics.

In Houston (USA), during the largest international exhibition HELI-EXPO 2008, a firm agreement was signed between UTair Aviation and Eurocopter for the supply of new EC 175 helicopters designed to carry 16 passengers. UTair received the status of the launch customer of this program. Starting from 2012, the airline will receive 15 helicopters with an option for another 15 helicopters. UTair and Eurocopter also announced their intention to implement a large-scale joint project to create an integrated center for maintenance and operation of Eurocopter helicopters in Russia. The project provides for the opening of a certified maintenance center for Eurocopter helicopters at the production facilities of UTair, as well as the organization of a center for training flight personnel for the maintenance and operation of Eurocopter rotorcraft.

The geography of flights has been expanded and the volume of helicopter work under commercial contracts has been increased. UTair's subsidiary in Europe in 2008 performed complex construction and installation works in Poland, Slovakia, Bulgaria, Serbia, Montenegro, Bosnia and Herzegovina. On the territory of Northern and Western Canada, with the help of the Mi-26 helicopter, unique for the North American market, aerial work was carried out to deliver heavy bulky cargo to the places of development and development of oil and gas fields. The South African subsidiary of UTair has resumed firefighting work in South Africa.

The past year has become another strength test for the airline. We made it. And they did well. On behalf of the Management Board of UTair Aviation, I would like to express my sincere gratitude and appreciation to the entire workforce of the company. Thanks to our investors and shareholders, whose trust helps us meet market demands and keep the bar high in flight safety and quality services.

I would like to note that the challenges that the year 2009 has in store for us will require us to give everything we love and be highly professional in everything. I am confident that the foundation that we have laid in previous years will allow us not only to withstand the crisis, but also to emerge from it even stronger and more successful.

/signature/

Andrey Martirosov

General Director - Chairman of the Management Board of UTair Aviation OJSC

Organizations Position from to 2008 2009 OJSC " Airline "UTair" Deputy General Director - ... confirmation of the accuracy of the data included in annualreports society, annual accounting reports, reports income statement (accounts...