UTair and Sberbank leasing modernize fleet

UTair Aviation and CJSC Sberbank Leasing concluded a finance lease deal for 7 Boeing aircraft. The total project cost is more than $100 million. The term of the lease agreement is 5 years.

The aircraft was introduced into service in the end of 2011. In total the lease agreement provides for delivery of two Boeing 737-800s and five Boeing 737-500s. Financing of transactions is carried out by the West-Siberian Bank of Sberbank.

Acting General Director of CJSC Sberbank Leasing Sergei Clischo said: “This project demonstrates in practice the most active participation of Sberbank in financing of the modernization processes in the country. The Company's development strategy aims at diversifying the order book and gain priority competencies in the aviation market. Our experience in implementing such large-scale and complex-structured projects with the leader Russian airline UTair is a real proof: Sberbank Leasing is one of the most attractive partners for investment air transport industry projects”.

First Deputy General Director and Chief Financial Officer of UTair Igor Petrov said: “UTair continues to implement the planned program of fleet renewal. The implementation of this transaction is a logical continuation of partnership with Sberbank Leasing, built in recent years. Having a considerable experience in implementing of such transactions, we appreciate flexibility and efficiency of work showed by our partners. As one of the most stable airlines in Russia, UTair plans to further develop its cooperation with the leaders in the field of aircraft finance”.

UTair enters the top three airlines in Russia, the Baltic countries and CIS and is one of the world’s largest helicopter operators in the world. The Group consists of consists of UTair Aviation, UTair Express, UTair-Ukraine, UTair-Cargo, Turukhan Airlines, Nefteyugansk, Helisur, UTair Europe s.r.o., UTair South Africa Ltd and UTair India. UTair aircraft performs more than 300 passenger flights per day. According to its business plan for 2012, the airline will transport more than 10 million passengers. UTair Group operates the largest fleet in Russia, which consists of more than 200 aircraft, including 25 Boeing 737-500s, 9 Boeing 737-800s, 6 Boeing 737-400s and 4 Boeing 757-200s.

CJSC Sberbank Leasing operates on the leasing market in Russia since 1993 and is one of the leading Russian leasing companies. In the first 9 months of 2011, the aggregate volume of the company's order book constituted more than 202 billion roubles. The bank enters the top-20 rating of the European Federation of National Associations of leasing companies. High business reputation of Sberbank Leasing was confirmed in January 2012 by the International rating agency Fitch Ratings - Rating “BBB”, national rating – “AAA”. Sberbank Leasing is a laureate of the “Financial Elite of Russia” award in the category “Reliability” and “Leasing Company in 2011”. The company enters the top-three list according to Expert RA rating agency for the first 9 months of 2011 and Top-5 in aircraft leasing segment. The company’s fleet consists of about 40 aircraft.

Regional network of CJSC Sberbank Leasing has 62 branches in major cities of Russia and its subsidiaries in Kazakhstan, Ukraine and Belarus. The company’s website - www.sberleasing.ru