MORE THAN AEROEXPRESS. Air//Rail 2012, Berlin,

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Eugene Robinson
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1 MORE THAN AEROEXPRESS Air//Rail 2012, Berlin,

2 Aeroexpress Raicing Team fight for the Lada Granta Cup 2

3 TRANSGROUP PART FEDERAL OPERATOR POWERFUL BRAND INNOVATIVE COMPANY HIGH QUALITY STANDARDS 3

4 Aeroexpress LLC is one of the Transgroup AS private holding parts. It has been created as the result of Russian railways industry reform Air-Rail InterCity International Suburb region express 50% 50% Worldwide Invest TRANSMASHHOLDING 4

stage Sheremetyevo Moscow Pulkovo Saint-Petersburg 2015

5 Aeroexpress is the federal air-rail operator in Moscow, Sochi and Vladivostok, Saint-Petersburg is the following stage Sheremetyevo Moscow Pulkovo Saint-Petersburg 2015 Vnukovo Sochi Knevichi 2012 Domodedovo Sochi 2012 Vladivostok 5 5

6 Aeroexpress is developing the suburb railway transportations in Moscow region and the potential air-rail transfer under the Region express local trade mark region express DUBNA LOBNYA ALEXANDROV VLADIMIR MOSCOW ZVENIZOROD OREKHOVO-ZUEVO MOZHAYSK OZHERELYE KALUGA RYAZAN TULA POTENTIAL: 9 routes 25 Kpass a day 6

Aeroexpress air-rail links 5:00 00:30 every 30 min journey time

7 Moscow is the main Aeroexpress market. All Moscow airports are connected with the downtown via Aeroexpress air-rail links 5:00 00:30 every 30 min journey time 45 min 3 air-rail routes 200 departures a day 40 Kpass a day/ 0,3 mln. a day 99,7% on-time arrivals 5:30 00:00 every 30/60 min journey time 35 min Launched in: :00 00:00 every 30 min journey time 45 min 7

8 Aeroexpress air-rail links are integrated into Moscow mass transit system. Aeroexpress downtown terminals have very fast connections with the Moscow Circle line and railway stations 10 mln. pass. a day 8

9 The Aeroexpress total ridership increased almost in 2 times for the last 2 years Ridership, mln.pass % 16.67% % % % % 20% 15% 10% Market share, % % % The train ticket cost increased by 22%: 2009 / 6, / 7,5 9

10 Aeroexpress is the very powerfull & common brand name of worldwide air-rail service with high quality standards for Muscovites & Russians Brand awareness improved (Russia): 2009 / 78% 2011 / 92% 10

11 New logo and corporate style is very important part of Aeroexpress new service quality standards 11

12 The marketing campaign. The Aeroexpress marketing campaign 2010 (Never miss your flight!) & 2011 (Be on time!) is the main part of the marketing strategy Make friends with stoppers in facebook 12

13 Aeroexpress has an extensive distribution network in Russia and the CIS. Tickets are sold through travel agencies and the Internet 80 regions point of sales 12 airlines 13

14 Aeroexpress is the innovative company which introduces new ticketing and boarding control technologies

Aeroexpress introduced the in-house Integrated Control Centre

It provides real-time control over all quality, safety and

/ Failure / Emergency / Terrorism / Fire / Access / Statistics 24

15 Aeroexpress introduced the in-house Integrated Control Centre based on the NICE Situational Management System. It provides real-time control over all quality, safety and security aspects of the transportation Delay / Overload / Accident / Failure / Emergency / Terrorism / Fire / Access / Statistics 24 hours on-line Supervisor Rolling stock manager Safety and security manager 220 CCTV cameras 15

16 In the end of this year Aeroexpress will introduce smart phone applications 16

It is popular for 5% of the Aeroexpress passengers Separate coach Greater leg room between seats Guaranteed seat Closet

17 Aeroexpress organized business class services on all its air-rail connections for passengers who prefer the best possible service. It is popular for 5% of the Aeroexpress passengers Separate coach Greater leg room between seats Guaranteed seat Closet for hanging overcoats Mineral water Business newspapers DISCOUNTS AND PRIVILEGES FOR MasterCard PREMIUM CARDS HOLDERS PREMIUM SELECTION Standard class - 8 / Business class % discount for the Aeroexpress business class 17

18 Aeroexpress equipped in-house maintenance depot to perform all types of maintenance and light kinds of repair 146 employees Whole area: m 2 Workshop area: m 2 Maintenance workshop Repair workshop Auxiliary rooms, wheels reprofiling Storages 18

19 Aeroexpress uses electric trains of AERO series in two class configuration was made TRANSMASHOLDING 26 seats coaches 544 seats

20 In peak periods density of trains population exceeds 150%. Since 2015 Aeroexpress plans to use dividable double-deck coaches to increase trains capacities and transportation efficiency 20

21 At the moment Aeroexpress uses combined development strategy in which dominate development in the new markets and wide differentiation Corporate strategy Competitive strategy Existing products New products Lower cost Differentiation Market penetration Product development Cost leadership Differentiation Existing markets Moscow air-rail market New ticketing technologies Branding Broad target Service quality standards Double-deck trains Airlines partnership Market development Product/ market diversification Cost focus Differentiation focus Sochi air-rail market Moscow suburb market New markets Vladivostok air-rail market Saint-Petersburg air-rail market Sochi suburb market Vladivostok suburb market Narrow target Train maintenance market 21

22 Thank you for your attention! 22

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