OJSC Khabarovsk Airport together with OJSC Sheremetyevo International Airport and Lufthansa Consulting, have now finalized
 the strategy project for Khabarovsk and Vladivostok airports. The German aviation consultants were commissioned as experts
'in multidisciplinary consulting projects to develop a joint strategy for the two airports. A key consideration in the process was
 the experience of airlines operating route networks with several hub airports.

Following the analysis, Lufthansa Consulting identified the option of establishing two independent aviation hubs in Khabarovsk
 and Vladivostok as the most favorable ' both for the airports and for the socio-economic development of the Russian Far East.

The Far East of Russia is a promising aviation market with high traffic potential which requires development. Consequently the 
two airports offer exciting opportunities for airlines. Khabarovsk Novy Airport (KHV) aims to develop a domestic hub function 
for passengers and cargo in the Far East. Vladivostok Knevichi Airport (VVO) will focus on the international passenger and cargo
 segments. Both airports will, however, also be integrated into the domestic or international markets with distinct direct routes.

Consistent implementation of the new strategies is expected to increase the annual passenger volume to approximately 5.5 million
 passengers and the annual cargo volume to about 120 thousand tons for both airports in total by 2015. The precondition for this 
level of growth is significant market potential in the transit passenger and air cargo field realized through route development as well 
as infrastructure reconstruction in regards to terminals and aerodromes. The reconstruction at VVO is already in the final stages.

The strategy project started in July 2010 and comprised five modules: a technical infrastructure assessment, a detailed market and
 passenger flow analysis, the development of cargo and passenger traffic strategies for both airports as well as the identification of 
required infrastructure developments and the evaluation of potential fields of cooperation between the airports and the regional and 
federal governments.

The Lufthansa Consulting team has been working in close contact with the clients and other airport-related parties. Various possible
 network operation models of the two airports were carefully investigated and evaluated in order to identify the strategy that maximizes 
the air transport and economic potential of the Russian Far East. In addition, the consultants reviewed the existing governmental development
 programs and concept papers for the region to determine the most beneficial forms of public-private partnership.