The Russian Federation (48) Airlines from the following countries participate in Air Transport Settlement System*: The Russian Federation (48) Austria (1) Azerbaijan (1) Armenia (1) Belarus (1) Greece (2) Georgia (1) Egypt (1) Israel (1) Kazakhstan (2) Kirgizia (5) Tajikistan (4) Latvia (1) Moldova (1) UAE (3) Turkmenistan (1) Turkey (3) Ukraine (4) Uzbekistan (1) Germany (2) Finland (1) South Korea (1) * number of airlines is shown in brackets as of February 2015

Air Transport Settlement System (ATSS) Combination of governing bodies and participants interacting under concepts, technologies and rules effective in the System

In operation since January 1, 1993 ATSS has been implemented: Under initiative of major carriers and agencies of Russia and CIS countries with administrative support (in 1992 and subsequent years) of Russian aviation authorities, Russian Association of Aircraft Operators and Inter-State Aviation Committee Within extremely short period – ONE YEAR By analogy to ARC (USA) and BSP (IATA)

Purpose and scope Rendering of standardized services related to passenger transportation sold by Accredited Agencies on CCS-TCH Standard Traffic Documents, including CCS-TCH e-tickets (hereafter – “STD”) and ensuring the full and timely settlement of sold transportation with the Airlines in accordance with effective rules, standards, procedures and technologies.

Purpose and scope Facilitation of the procedures related to passenger transportation sales, standardization of technologies, reporting and settlement for the benefited revenue among the System participants Ensuring control over the funds flow from the Accredited Agencies to the Airlines Reduction of Airlines’ costs intended for the maintenance of their own network of passenger transportation sales Reduction of settlement periods between the Airlines and their contracting parties Notification of the Airlines about the availability and spending volume of revenue Reduction of revenue loss risk incidental to financial defaults of ATSS participants

World Settlement Systems in operation ASP (Area Settlement Plan) has been operating since 1964 in the USA under control of ATA (Air Transport Association of America). Since 1984 settlement services are rendered by ARC (Airline Reporting Corporation). BSP (Billing and Settlement Plan) established by analogy to ASP (USA) is being implemented since 1971 under control of IATA (International Air Transport Association). ATSS (Air Transport Settlement System) operates under control of ACCS (Airline Control Council of Settlement) since 1993. Since 1994 ATSS services are rendered by TCH (Transport Clearing House) established by major airlines of Russia and CIS countries as a Joint Stock Company.

A T S S T o d a y: 93 scheduled (including over 40% of foreign airlines) 399 accredited agencies with over 6,000 sales locations in 24 countries worldwide Over 30,000 ticketing agents operating about 20,000 terminals of authorized domestic and foreign CRSs 26 accredited Training Centers, branches inclusive 10 accredited Practice Centers 10 accredited CRS operators Guaranteed timely remittance of full revenue to airlines 99.9% of transportation issued on CCS-TCH electronic tickets Air services sales via 233 ATSS accredited Internet points of sales (POS) Air services sales via aviation/global distribution systems (Sirena-Travel, Galileo/Travelport, Sabre, Amadeus)

ATSS Today (continuation) ATSS agencies sell hotel and other ancillary services on CCS-TCH e-documents via Computerized Distribution Systems for Ancillary Services (CDSAS), ADS «Sirena-Travel» and other integrated CRSs ATSS agencies reserve and sell rail transportation on CCS-TCH e-documents via System for Reservation and Sales of Passenger Rail Services and ADS «Sirena-Travel» (in cooperation with Automated Management System «Express-3» of Russian Railways, JSC ) on Internet technology platform Reporting can be generated in three currencies, i.e. Ruble, Dollar or Euro. Interactive Reporting System for ATSS accredited agencies is implemented and running Bank card system for transportation payment via the Internet on the platform of secure e-commerce (3D-Secure) is implemented and running System of Electronic Interchange for ATSS participants is implemented and running Electronic document control flow among ATSS participants is implemented and running ATSS employs issuance procedure for CCS-TCH EMD via accredited CRSs ATSS employs issuance procedure for МСО for excess baggage, surcharge baggage and declared value baggage ATSS runs Information Support System for Ticket Agents (ISTOK) designed on web platform ATSS employs ticket exchange rules via accredited CRS/GDS in accordance with streamline international technologies

LEGISLATIVE AUTHORITIES ATSS Governance LEGISLATIVE AUTHORITIES Conference of Settlement System Participants convoked once in 2-3 years. Airline Control Council of Settlement (ACCS) composed of the Presidium and two Committees (of scheduled carriers and of accredited agencies) acts in-between Conferences. EXECUTIVE AUTHORITY Transport Clearing House (TCH)

ATSS Participants and TCH Partners Airlines (carriers) signing Model Agreements with TCH for sales and settlement related to air services issued on CCS-TCH STDs and e-tickets Accredited Agencies signing Model Agreements with TCH for air transportation sales for carriers’ flights Transport Clearing House (ТCH) Partners: Russian Railways (RZD, OJSC) "Аeroexpress“, LLC Providers/Suppliers of ancillary services Tour operators

ATSS Governance Structure (approved by the 6th Conference of Settlement System Participants as of 18.04.2013) CONFERENCE OF SETTLEMENT SYSTEM PARTICIPANTS ACCS PRESIDIUM AIRLINE CONTROL COUNCIL OF SETTLEMENT (ACCS) 15 ACCS CARRIER COMMITTEE ACCS AGENCY COMMITTEE TRANSPORT CLEARING HOUSE Executive authority Legislative authorities PRESIDIUM OF ACCS CARRIER COMMITTEE PRESIDIUM OF ACCS AGENCY COMMITTEE 35 30 70 * Number of members is circled

Interaction of ATSS executive authority (TCH) with participants and other entities TRANSPORT CLEARING HOUSE (TCH) RESOLUTIONS, APPROVED DOCUMENTS ELABORATION OF ANALYTICAL MATERIALS, DRAFTS OF REGULATORY DOCUMENTS ACCS PRESIDIUM ACCS ACCS CARRIER AND AGENCY COMMITTEES PAYMENT ORDERS PAYMENT FOR SERVICES FROM AIRLINE REVENUES UNDER AIRLINE INSTRUCTIONS AGENCIES and companies of other means of transport Providers of ancillary services AIRLINES Other entities ATC FUEL AIRPORTS REVENUE LESS AGENCY COMMISSION AND TCH SERVICE CHARGE REVENUE DATA, RECONCILIATION STATEMENTS, HOT FILES SALES UNDER DIRECT AGREEMENTS REVENUES, PENALTIES, DEPOSITS REMITTANCE DATA FILE AUTHORIZED BANKS ATSS HINGE ACCOUNT REVENUE REMITTANCE INSTRUCTIONS ORDER AND PAYMENT OF STDs ADMINISTRATION OF AGENCY RIGHTS TO SELL SERVICES ON STDs of ACCS-TCH RET FILES SECURITY PRINTERS STANDARD TRAFFIC DOCUMENTS SCHEDULE AND TARIFFS CENTRE (STC) INDUSTRY STATISTICS Reporting Processing Centre (RPC) CONTROL, RECON- CILIATION STATEMENTS SALES REPORTS E-TICKETING CENTRE (ETC) STD FORMS AND QUOTAS ОF ELECTRONIC TICKETS OF CCS-TCH COMPUTERIZED RESERVATION SYSTEMS (АDS/GDS/PSSRS/CDSAS) STATE DUMA OF THE RF FEDERAL ASSEMBLY MINISTRY OF TRANSPORT OF RUSSIA FEDERAL STATE STATISTICS SERVICE (ROSSTAT), MINISTRY FOR ECONOMIC DEVELOPMENT FEDERAL AGENCY OF AIR TRANSPORT (ROSAVIATSIYA) OTHER FEDERAL EXECUTIVE AGENCIES INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO) INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) ATSS TRAINING AND PRACTICE CENTERS

General Services of ATSS Executive Authority -TCH Arrangement and administration of sales: Development, updating and implementation of ATSS fundamental concepts, regulatory and organizational/legal documents and training programs Accreditation of passenger sales agencies, sales locations and internet points of sale Accreditation of agents selling railway transportation and ancillary services Elaboration of STD Forms outlays approvable by ACCS; ensuring their registration with an authorized state agency; arrangement and holding of tenders among printers of CCS-TCH STD forms Ordering, secure custody, distribution, record and control over the availability and usage of CCS-TCH STD stock, allocation and control over the usage of CCS-TCH e-ticket quotas, investigation of STD losses, notification of carriers, airports and Accredited Agencies (hereinafter – «Agencies») about lost CCS-TCH STD forms Creation of common legal field intended for interaction among ATSS participants by means of Model Agreements stipulating mutual obligations of the parties, whose format and contents shall be approved by ACCS

General Services of ATSS Executive Authority (TCH) (continuation) Arrangements for Agency passenger air transportation sales issued on STD, including sales via accredited Internet points of sale, credit cards sales, web-money sales, etc. Arrangements for sales of railway transportation and ancillary services issued on CCS-TCH STDs Administering of Agencies’ and their sales locations’ rights related to sales of passenger air transportation, railway transportation and ancillary services issued on CCS-TCH STDs Collection, input and processing of Agency reports with STD audit coupons, cancelled/refunded tickets; generating and secure custody of documentary archive of Agency reports Collection of revenue; settlements with Airlines and providers of ancillary services; debt settlement with Airlines for carriages sold against military traffic documents Continuous control over Agencies’ passenger transportation sales issued on STDs and revenue settlement with Airlines; audit arrangement for Agencies and their sales locations

General Services of ATSS Executive Authority (TCH) (continuation) Accreditation of Computerized Reservation Systems (CRS) operators and certification of Automated Ticketing Systems within the Settlement System Accreditation of Computerized Distribution Systems for Ancillary Services (CDSAS) operators within the Settlement System Accreditation of training centres; training of aviation enterprises’ staff to be engaged in the Settlement System Drafting of project solutions and standards (norms & regulations) to upgrade and develop production process in the Settlement System

General Services of ATSS Executive Authority (TCH) (continuation) Information support services: Information support services for prompt access of ATSS participants to essential data, message transmission, exchange files/documents handling, including documents signed with EDS Support for information exchange for the systems of settlement, reservation & sale, schedule & tariff as well as for participants and operators of these systems Updating ATSS participants about day-to-day ATSS activities in mass media and via ATSS website Upgrading of ATSS e-system technologies for interactive interchange among ATSS participants System of Interactive Interchange (SII) is designated for: - Claims management; - Submission of e-applications, etc.

Milestones of TCH – ATSS Executive Body for Industry Benefit (Russian Federation) Services of computerized systems designated for development, coordination, updating and publication of aircraft timetable, charges & fees for aircraft ground handling, object codifying, registration and display of fare data associated with scheduled air transportation. Services of computerized collection and processing of airline and airport statistical/financial reporting, development and delivering of analytical records associated with industry statistics. Evaluation and coordination of activities essential to upgrade national computerized systems for transportation reservation. Involvement in drafts of industry regulatory and legal documents.

Scheme of ATSS Contractual Relations TRANSPORT CLEARING HOUSE (TCH) ATSS PARTICIPATING AIRLINES DIRECT AGREEMENTS at Airline’s choice АDS/GDS/PSSRS/CDSAS ACCREDITED WITH ATSS PARTNERS (PROVIDERS, ETC.) ACCREDITED AGENCIES LEGEND АDS/GDS – AVIATION (GLOBAL) DISTRIBUTION SYSTEMS PSSRS – PASSENGER SALES SYSTEM FOR RAIL SERVICES CDSAS – COMPUTERIZED DISTRIBUTION SYSTEM FOR ANCILLARY SERVICES

Standard requirements to Airline joining the System The Airline: Files application for joining the Settlement System Signs model agreement with TCH on sales and settlement related to air services issued on CCS-TCH STDs and e-tickets Ensures access to its inventory in CRS via ADS/GDS accredited with ATSS Pays for TCH services in compliance with price-list approved by ACCS Note: The Airline must be registered as a carrier in compliance with legislation of the country of registration and have got valid operator’s certificate and license to operate scheduled flights New entrant airline–participant of ATSS pays a fee for System development Obtains a code assigned by TCH Schedule and Tariffs Centre (STC) (for airlines without IATA code) Uploads its schedules and fares in STC (for Russian airlines)

Airline application form for joining the Settlement System TCH mail address: 59, build. 1 Bolshaya Grouzinskaya str., Moscow, 123056, Russia To: President of Transport Clearing House, PJSC Airline name: ____________________ Address, phone, fax, SITA: _________ Flights operated by the Airline: _________ Types of aircraft used by the Airline: _________ Airline codes (ICAO/IATA designators, Accounting Code, STC Code): _________ Name of the Reservation System where the Airline intends to hold its inventory: _________ Hereby the Airline agrees with the Rules effective in the Settlement System with intention to sign with TCH Agreement on Sales and Settlement Related to Air Services Issued on CCS-TCH STDs and E-Tickets. On behalf of the Airline __________________________ Title __________________________ _ Signature Seal

Standard requirements to Agency joining the Settlement System Passenger Sales Agency: Files the set of application documents necessary for accreditation of Agency, its Sales Locations and Internet Points of Sale Delegates its experts to TCH for participation in appraisal procedure of submitted documents and amends them in accordance to recommendations Delegates its experts to Agency Accreditation Panel meeting upon formal invitation thereto In case of Positive decision of Agency Accreditation Panel: Concludes Model Agreement and the Agreement on TCH Information System Subscriber Service with TCH Provides financial guarantees as stipulated for the agency Signs Agreement with CRS on access to airline seat inventory Files application for defining new technological addresses of terminals (TAT) in CRS and application for ticketing agents registration Files application for obtaining CCS-TCH STD forms and e-tickets quotas pursuant to the technology set forth in "Manual for Ordering, Distribution, Record and Control over the use of STD forms and CCS-TCH E-Ticket Quotas" and obtains STD forms and E-ticket quotas Obtains Agency Accreditation Certificate, TCH validators, access to the CRS/GDS/PSSRS/CDSAS accredited within ATSS Implements the rights to sell air services issued on CCS-TCH STDs in accordance with accreditation rules and Model Agreement

Certificate of Accreditation – a pass to air transportation market in ATSS

Validator of accredited sales location (Roman font) SALES LOCATION COUNTRY CODE SALES LOCATION CODE ID NUMBER OF TICKETING AGENT SALES LOCATION CITY AGENCY NAME FIVE-CHARACTER AGENCY CODE AUTOMATED MANUAL SUPER-AVIA MOSCOW RU 92-3 0730 5 19MOV TCH 19MOV TCH SUPER-AVIA MOSCOW RU 92307305 0001

The map of accredited agencies and sales locations

Technological Flow Chart of E-ticketing and tracking of passenger transportation in ATSS Airline ET Servers (ETSs) Departure control systems (DCSs) ET Database TCH E-Ticketing Centre … Check-in Boarding ET Issuance Internet ADS/GDS* Airport Reservation Systems 26 Check-in desks *ADS/GDS – AVIATION/GLOBAL DISTRIBUTION SYSTEM

CCS-TCH e-ticket (itinerary/receipt) on A4 paper TICKET NUMBER: 000 6155012346 COMPUTER GENERATED NUMBER Travel data Mandatory notices

Electronic Multipurpose Document (EMD) (Passenger Receipt) on A4 paper EMD NUMBER : 000 618000002 COMPUTER GENERATED NUMBER Travel data Mandatory notices

IATA code 61 for CCS-TCH STDs

Electronic Ticket for Railway Transportation Audit coupon Boarding Coupon

HOW TCH SETTLES WITH ATSS CARRIERS TRANSPORTATION SETTLEMENT WITH EACH CARRIER NOTIFICATION OF (MULTILATERAL AGREEMENT WITH OPEN FARES) INTERLINE ACCOUNTING WITH RESPONSIBLE CARRIER NOTIFICATION OF RESPONSIBLE CARRIER ACCOUNTING CODE OF M2 AGREEMENT ACCOUNTING CODE OF RESPONSIBLE CARRIER ACCOUNTING CODE OF M1 AGREEMENT (MULTILATERAL AGREEMENT WITH CLOSED FARES) М1 М2

Various ATSS Settlement Agreements for Sold Transportation INTERLINE When transportation is operated by several airlines under interline agreement, accounting code of ATSS participating airline (responsible carrier) should be shown at the time of transportation issuance. The rule to choose responsible carrier for transportation issuance is determined in the airline interline agreement, or alternatively (where the interline agreement lacks such rule), accounting code of the first ATSS-member airline in the travel itinerary should be shown. Sold transportation is settled with the responsible carrier. М1 AGREEMENT Transportation operated by several ATSS-member airlines under М1 Multilateral Agreement (multilateral interline - "Open fare") is issued only at fares applied for relative travel segment. TCH settles sold transportation with each airline participating in the transportation. М2 AGREEMENT Transportation operated by several ATSS-member airlines under М2 Multilateral Agreement (multilateral interline - "Closed fare") is issued only at through fare applied for several segments. TCH settles sold transportation with each airline participating in transportation on the basis of carrier’s share in fare.

"АА" Airline Accounting Code Several interlining carriers. TCH settles with responsible carrier under its accounting code АА ВВ "АА" Airline Accounting Code MOSCOW (DME) BERLIN (SXF) ST.PETERSBURG (LED) Carriage

Several carriers participating in М1 agreement (accounting code 99А) Several carriers participating in М1 agreement (accounting code 99А). TCH settles with each carrier АА ВВ Fare АА Fare ВВ OMSK (OMS) MOSCOW (DME) BERLIN (SXF) Carriage

Issuance of CCS-TCH E-ticket under М2 ET Pattern Ticket number with CC carrier accounting code TICKET NUMBER: 222 6155012371 BOOKING REF: 123456/1Н Single PNR number Agreement code/code of automated transfer TOUR CODE: 01C Code of special through fare to build transfer services via hub ЕЕDМE THROUGH FARE FOR ROUTE VOZFRA WITH TICKETS 1116155012370/2226155012371 Notification Reflection of single through fare VOZ BB MOW AA FRA400.00 Value of single through fare applied for transfer route ТАРИФ: EUR0.00 Carriage by CC Airline

Issuance of CCS-TCH E-ticket under М2 ET Pattern Ticket number with ВВ carrier accounting code TICKET NUMBER: 111 6155012370 Single PNR number BOOKING REF: 123456/1Н Agreement code/code of automated transfer connection   TOUR CODE: 01C Code of special through fare to build transfer services via hub ЕЕDМE THROUGH FARE FOR ROUTE VOZFRA WITH TICKETS 1116155012370/2226155012371 Notification VOZ BB MOW CC FRA400.00 Reflection of single through fare Zero value for second ticket (value of single fare reflected on first ticket) Fare: EUR300.00 Carriage by BB

E-ticketing technology development in ATSS ATSS enhancement E-ticketing technology development in ATSS Extended payment options for transportation via the Internet, self-service kiosks (cash machines) and other e-sales facilities, e-money inclusive SII development within ATSS Secure sales facilitation Upgrading of e-ticketing regulatory and technological platform enabling passenger air transportation sales via GDSs Development of ancillary services sales within ATSS (hotel, airport and transfer services, et al), expanded service portfolio and engagement of new providers ATSS development in the field of interaction with carriers, accredited agencies and other entities; elaboration, updating, standardization and implementation of new regulatory and technological documents, training courses and ATSS standards

Thank you for attention! Welcome to join ATSS!