Aeroflot Benefits from Introduction of New Booking Technologies from Sabre; New Functionality Launched, Others on the Way Improve Customer Service, Support Expansion Plans of Russian Flag-Carrier

2005–Aeroflot Russian Airlines today demonstrated significant
progress in its technology upgrade project, started in March this
year. At a press conference in Moscow the Russian flag carrier
launched a pilot version of its new online booking service, reported
its plans to introduce electronic paperless ticketing, confirmed it is
on schedule with the technical requirements needed for its planned
entry to the SkyTeam Alliance in March 2006 and reported the success
of the travel agency technology switch in Russia.

The airline also revealed plans for the launch of self-service
airport “express check-in” kiosks, as well as touch-screen
self-booking units in Aeroflot offices that travelers can use to plan
flights and make their own bookings.

The Aeroflot technology upgrade involved the successful switch
from outdated technology systems to cutting-edge reservation,
operational and decision-support products provided by Sabre. The IT
overhaul, combined with the airline’s recent product upgrade and
re-branding exercise, enables the Russian carrier to compete
successfully on international routes and paves the way for it to enter
the SkyTeam airline alliance.

Sergey Kiryushin, Aeroflot CIO, said the scale of the project was
vast, and one of the biggest travel IT projects attempted in Russia.

“To change our entire technology platform while running a growing
and successful business has been a major challenge,” Kiryushin said.
“The fact that we have got as far as we have, while simultaneously
servicing growing customer inquiries and maintaining service levels
has been an outstanding achievement by the Aeroflot and Sabre teams.”

The pilot version of Aeroflot’s Internet booking service
( goes live today. Aeroflot Bonus passengers in Russia
are able to view and book seats on any Aeroflot flight around the
world. During the first phase of the project passengers will pay for
and collect tickets from Aeroflot offices in Moscow. Online payment
and ticket delivery is expected to become available in a few months.

Aeroflot also announced new automated booking units for its ticket
office, to help reduce customer waiting times. The touch-screen
self-booking units, specially developed for Aeroflot by Sabre Airline
Solutions, will allow travelers to plan flights and make their own

Once agreement is reached with the Sheremetyevo airport authority,
Aeroflot plans to introduce self-service airport “express check-in”
kiosks. Industry analysts project that within five years 80 percent of
all airlines’ check-in transactions worldwide will be via self-service
check in.

“That is a huge goal to achieve, but one that is being pursued
diligently as airlines seek to improve service and cut costs,”
Kiryushin said. He added that Aeroflot expects to have one passenger
in every five using the automated check-in facilities by the end of
2006 and that this new technology will help the airline manage growth
in passenger volume as well as giving cost savings and customer
service benefit.

Electronic, or paperless, ticketing is another area where the
technology is being tested at Aeroflot for implementation once allowed
by the Russian legislation. Once approval is granted Aeroflot will be
positioned to immediately start issuing e-tickets for travel sold
through Aeroflot sales offices in Russia.

“Everything we are announcing today is about customer convenience,
staffing and cost efficiencies, bringing the airline up to date with
best practice in the competitive world of the international aviation
industry,” said Eugene Bachurin, Aeroflot commercial director. “We’re
rapidly turning Aeroflot into an airline which embraces the best
available technology and efficiencies — resulting in a better service
for customers and a more streamlined, cost-effective airline for the
country. It’s one of the advantages of having chosen to go with Sabre
Airline Solutions in the first place — they offered better technology
and better support for these innovations than the previous incumbent
or any of its competitors.”

“These projects have huge implications for Aeroflot and its role
as a major international airline, as well as advancing
customer-oriented travel services within Russia,” said Tom Klein,
group president of Sabre Airline Solutions and Sabre Travel Network.
“The Sabre team recognized the importance of this accomplishment and
dedicated itself to making it successful. We are pleased that our new
generation solution was ready for Aeroflot to implement in the
timeframe it required, rather than depending on promises of future
developments. The successes outlined today truly separate us from our
competitors in this regard. We congratulate all involved on a great
achievement for the industry.”

Klein also confirmed that Aeroflot was now well-positioned to join
the SkyTeam Alliance as scheduled in March 2006. “All the technical
foundations are now in place,” he said. “Sabre’s Open Systems
technology means any software program used by a SkyTeam Alliance
member will be able to ‘talk’ with any Aeroflot software program. This
has huge benefits in terms of efficiency and compatibility, and is
greatly easing the process of integrating Aeroflot into the Alliance.”

These foundations include e-ticketing capability, technology to
integrate SkyTeam partner airline Frequent Flyer programs, redemption
of Frequent Flyer awards among all partner airlines, the ability for
travel agents to view all bookings with partner airlines that contain
an Aeroflot flight, and the interactive exchange of reservations data.

“Aeroflot’s objective is to continue making use of the most
efficient technologies in the industry,” said Bachurin. “This is why
we chose Sabre’s technology package. We believe Sabre provides more
flexibility in the areas of air travel reservation and sales and
ticketing than any other offering currently available while at the
same time ensuring maximum efficiency from both the travel agents and
the airline sales offices. In addition, the new technology offers a
variety of new functions which will benefit Aeroflot and travel
agencies and will help to improve customer service.”

The project involved switching not only Aeroflot’s internal
reservations system from the old to the new, but also the reservation
system used by nearly 6,000 Aeroflot-affiliated travel agents in more
than 3,000 locations in Russia and elsewhere around the world. It
attracted attention from aviation and travel technology specialists
all over the world and made Sabre the system most widely used by
travel agents in Russia. Sabre announced that in July it processed
53.5 percent of all GDS bookings in Russia.

Leading Russian travel agencies and industry bodies have welcomed
the move by Aeroflot to update its reservations system.

Igor Gorelov, commercial director of ITC, said he wished the
switch to Sabre had been made many years ago.

“It’s like a toothache,” Gorelov said. “Over time you get used to
the ache, but after you are finally forced to see the dentist you
wonder why you didn’t go a lot earlier”.

Aeroflot expects the new reservation, operational and
decision-support products to boost the company’s revenues by
US$10-US$15 million in the first year. In future the new system could
increase annual revenues by US$20-$30 million.

Part of the cost savings comes from reduced telecommunication
charges. Aeroflot’s previous technology provider was primarily a
telecommunications provider and charged for access to the airline’s
reservation system. With Sabre, travel agents connect to the airline
less expensively, using the Internet.

“Aeroflot wanted to leapfrog its competitors by using the most
advanced and effective booking technology available to the travel
industry,” said Sergey Obryvalin. “We chose Sabre Travel Network for
this reason as its products lead the way for both travel providers and
travel agencies. The new technology gives us a whole spectrum of
advanced functionality that we will use, in turn, to raise our levels
of service to both the travel agency community and our traveling
customers. By switching to this new, highly effective technology
Aeroflot has booked itself into the future.”

In addition to the savings and revenue potential made possible
through the reservations and distribution technology, Aeroflot is
targeting an increase of up to three percent additional revenue from
the integration of Sabre’s revenue management technology. This revenue
integrity software will also provide fraud control, providing
significant savings from lost revenue.

About Aeroflot Russian Airlines

JSC Aeroflot-Russian Airlines (RTS:AFLT) is the largest Russian
airline and national flag carrier. The State owns 51% of the company
stock. It was founded in 1923. Aeroflot controls about 11% of the
domestic and 39% of the International air travel market in Russia. The
net revenue in 2004 made $172,1M (according to IAS). Based on the
financial characteristics Aeroflot was included in the list of 25
leading international carriers (according to ATW magazine data). In
2004 Aeroflot flew 6,8 million passengers. The aircraft fleet contains
89 aircraft. Aeroflot is based in Moscow, in Sheremeteyvo airport. By
2007 the airline is planning to build Aeroflot own terminal –
Sheremeteyvo-3. Further information can be found at Aeroflot Web sites,

About Sabre Airline Solutions

Sabre Airline Solutions, a Sabre Holdings company, is the world’s
largest provider of software products; reservations, departure control
systems and other passenger management systems; and consulting
services that help airlines simplify operations and lower costs. Sabre
Airline Solutions’ proven leadership is demonstrated by the growing
number of airlines that leverage the technology and services: More
than 200 airlines worldwide use Sabre Airline Solutions’ broad
portfolio of smart solutions for decision-support tools to increase
revenues and improve operations. More than 500 contracts worldwide
were signed in 2004 for Sabre Airline Solutions’ leading technology
solutions. More than 100 airlines worldwide rely on Sabre Airline
Solutions for passenger management solutions, with eight new carriers
choosing SabreSonic, the first new generation reservations system
offered in the market, in 2004 and six carrier renewals. In addition,
more than 100 clients worldwide have turned to the Sabre Airline
Solutions consulting group for strategic, commercial and operational

About Sabre Travel Network

Sabre Travel Network, a Sabre Holdings company, provides access to
the world’s leading global distribution system (GDS) enabling agents
at more than 50,000 agency locations worldwide to be travel experts.
The Sabre GDS, the first system to connect the buyers and sellers of
travel, today includes more than 400 airlines, approximately 60,000
hotels, 32 car rental companies, nine cruise lines, 35 railroads and
220 tour operators. Key brands of Sabre Travel Network include
GetThere, the leading Web-based corporate travel reservation
technology, and Jurni Network, the unique leisure travel agency
consortium that enables members to sell more products from preferred
travel suppliers using sophisticated market intelligence.

Sabre Holdings Corporation (NYSE:TSG) is a world leader in travel
commerce, retailing travel products and providing distribution and
technology solutions for the travel industry. More information about
Sabre Holdings is available at

Sabre Airline Solutions, Sabre Travel Network, the Sabre Airline
Solutions logo, the Sabre Travel Network logo, MySabre, SabreSonic,
GetThere and Jurni Network are trademarks and/or service marks of an
affiliate of Sabre Holdings Corporation. All other trademarks, service
marks, and trade names are the property of their respective owners.
(c) 2005 Sabre, Inc. All rights reserved.


    CONTACT: Sabre Airline Solutions
             Kathryn Hayden, 682-605-2252
             Sabre Travel Network
             Nanci Williams, 682-605-2271

    SOURCE: Sabre