Actuality March 6, 2008

   Rostecnology State Corporation introduced to the Ministry of Transport offers about the transfer to ownership of the state stockholdings of State Transport Company "Russia" and OJSC Vladivostok Air.

The Corporation also plans to take control over the less significant assets, such as AiRUnion, OJSC Saratov Airlines, Federal State Unitary Aviation Enterprise (FSUAE) Kavminvodyavia, Federal State Unitary Enterprise (FSUE) Orenburg Airlines, Federal State Unitary Enterprise (FSUE) Uchebno-Trenirovochnyjj Center.

If the plans of

the State Corporation will be realized, a new company can appear in Russia outstripping Aeroflot on the internal market. The State Corporation asks to transfer it these assets under the condition that all FSUEs will be restructured into OJSC.

   In Rostecnology renounced to comment information about the possibility of aviation assets receipt.

In STC Russia marked that did not hear yet about the new initiatives of Rostecnology.

In the Federal Air Transport Agency (Rosaviation) of the Ministry of Transport of the Russian Federation mark that they support the idea of air companies' consolidation, however, the department did not receive any documents concerning the issue of amalgamation of all listed air enterprises.

   Till recently Rostecnology appetites were much more modest.

Recently the Ministry of Transport introduced to the government the draft document about the transfer of the state shares of the companies to Rostecnology State Corporation that are planned to integrate to OJSC AiRUnion. The transfer terms depend on the

terms of assets estimation.

"On the first stage – more than the controlling stock interest, than their share will decrease during the additional emission", said earlier Alexander Misharin, the deputy minister of Transport of Russia.

In future during the additional em ission or IPO is possible the share decrease of Rostecnology in AiRUnion. In January the head of Rostecnology Sergey Chemezov sent the letter to the president with the offer about the transfer of the state stockholding of AiRUnion stocks to the State Corporation.

In AiRUnion alliance did not comment the new initiative of Rostecnology.

   As reported to the journal ists Alexander Tikhonov, the department director of the Min

istry of Transport, the bill draft of the corresponding decree of the president and regulation of the government about the transfer of AiRUnion are already prepared, and the offer is coordinated with the Ministry of Economic Development and Trade and introduced to the government. He underlined that it would be done not to delay the consolidation of companies that will enter AiRUnion. "It is offered to transfer these assets to the Corporation, so that afterwards Rostecnology would establish AiRUnion with the participation of private companies", Alexander Tikhonov explained.

According to him, the transfer of AiRUnion assets will not demand the additional coordination with the Ministry of Finance and the Federal Antimonopoly Service.

   "If Rostecnology consolidates all indicated assets and for their management will be hired highly professional managers, this, probably, will result in establishment of indeed competitive air company", supposes Oleg Panteleev, the head of analytical service of "AirPort" agency. "However, if all results in control over money flows, and the civil aviation has high turnover of facilities, so the final will be rather sad", he marks. "But if they succeed to consolidate the stockholdings of all air companies, the total volume of transportations of the established company can surpass Aeroflot Group on the airlines within Russia by scales, although Aeroflot still remains beyond the reach in international transportations".