Source: European Bank for Reconstruction and Development (EBRD)

EBRD Project Summary Document: Sky Express

Country: Russia

Project number: 35719

Board date: 7 November 2006

Status: Board approved, Pending signing

Date PSD updated: 15 September 2006

Project description and objectives:

The proposed project will support the launch of the first low cost airline, Sky Express, in the Russian Federation, focusing on domestic services.

Transition impact: The transition impact of the project will stem from:

Demonstration effect: this will be the first low cost airline in the Russian Federation and new patterns in the air transport sector will thus be introduced (e-tickets, innovative mode of distribution, new approach to customer service, etc.)

Improved competitiveness in the air transportation sector: the introduction of a low cost service will further push for consolidation and modernization of the airline industry.

Market expansion: the introduction of this service will drive the upgrading and expansion of the air transport infrastructure to achieve the required ground service efficiency

The client: SkyExpress is a start up airline and is expected to commence operations before the end of 2006.

EBRD finance: Up to USD 20 million equity, alongside a range of private equity investors and local entrepreneurs.

Total project cost: Initial capitalisation of the airline will be USD 48 million.

Environmental impact: The project was Screened C/1.The Company plans to implement the IOSA training programme so as to meet air safety and industry standards required by IATA. The Bank will require that the Company operates in compliance with Russian and international aviation safety and environmental standards, including ICAO and EU standards of civil aviation and aircraft safety, fuel consumption, engine emissions and noise.

Technical cooperation: None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact: Marina Bukalova

Tel: + 7 903 676 09 16

EBRD contact: Florence Bachelard-Bakal, Operation Leader: bachelaf@ebrd.com

Business opportunities: For business opportunities or procurement, contact the client company.

General enquiries: EBRD project enquiries not related to procurement:

Tel: +44 20 7338 7168; Fax: +44 20 7338 7380

Email: projectenquiries@ebrd.com

For more information on Transportation sector in Eurasia, visit BISNIS online at http://www.bisnis.doc.gov/bisnis/isa/isa-transp.cfm

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