ENGINEERING Holding continues to expand its capabilities in order to fully meet the needs of its existing and potential customers. In 2016, ENGINEERING subsidiaries S7 ENGINEERING (with facilities at Domodedovo and Mineralnye Vody airports) and Sibir Technics, which is based at Novosibirsk's Tolmachevo airport, introduced a range of new services and obtained substantial expansions to their current certificates and approvals.

Two of the company's projects being implemented jointly with international partners are worth mentioning in particular. In 2016, a CFM56-5/7 engine repair shop, the only such facility in Russia and the CIS, was launched at S 7 Engineering's Domodedovo base in conjunction with Swiss MRO provider SR Technics. The second project is a dedicated facility for servicing and repairing aircraft lavatories, launched with support from Zodiac Aerospace. Now Russian and CIS airliners (primarily of the Boeing 737NG and Airbus A320 types) can have their engines and lavatories serviced in Russia.

In the light of the growing demand for MRO services on Russian Sukhoi Superjet 100 regional jets, ENGINEERING has entered the aftersales support market for the type. In early 2016, S7 Engineering obtained a FAP-285 approval from Russia's Federal Air Transport Agency for all types of SSJ 100 maintenance services. The company already has the first two SSJ 100 clients: Gazprom Avia and IrAero.

ENGINEEERING's painting division is busy as never before. In 2016, the operation's Mineralnye Vody facility delivered 29 freshly painted aircraft to customers. Last year marked the first time the facility had applied a livery to a foreign-operated airliner.

ENGINEERING's mission is to provide its customers with quality maintenance services within the shortest possible timeframes. With this goal in mind, all of the company's production sites started introducing lean production methods in 2016.

We believe that engaging each of our employees into business optimization processes and focusing on quality customer service will enable us to become one of Europe's leading MRO providers before long.

Despite the downturn experienced by the Russian commercial aviation sector, we have managed to sustain our operational results at the 2015 level. The ENGINEERING subsidiaries logged a combined total of 1.8 million labor hours in 2016. This result was contributed by increasing the number of heavy maintenance operations, such as six-year, 12-year, and redelivery checks, from 20 in 2015 to 24 last year.

We are grateful to our long-standing and new partners for their vote of confidence in our services. ENGINEERING Holding keeps evolving for your benefit.