Ukraine and Russia To Unite Against Giant Airlines

Russian Prime Minister Vladimir Putin believes that there is no alternative to unification of aircraft building complexes of Russia and Ukraine. In the context of globalization and prevailing of such monsters as Boeing and Airbus in the market, there is no room for small businesses. However, this association is possible only on a market basis, said the head of the government.

"The only issue we must decide on, if we do choose to unite our aircraft building complexes, is that, of course, we have to do it only on a market basis. This means that we must undertake an independent - I want to emphasize this - examination of the state of our aviation systems and based on this decide to what extent and in what segment, entirely or in parts, we will unite. I strongly believe that there is no alternative to this organization ", RIA Novosti quotes Putin. The statement was made after the negotiation with Prime Minister of Ukraine Nikolai Azarov.

Earlier a draft agreement between the two countries outlining the transfer of the Ukrainian company to the Russian state-owned corporation was released by the Ukrainian media.

"The parties have agreed that for the purpose of integration [...] the Ukrainian party should take part in the registered capital of OAO United Aircraft Corporation by providing 50% plus one share of the State aircraft building company "Antonov" as payment for the issued additional shares of United Aircraft Corporation.

On June 16, 2010, Board of Directors of OAO United Aircraft Corporation (UAC) has approved the establishment of a joint Russian-Ukrainian company KLA and aircraft building company "Antonov" on a parity basis. On 17 June, 2010, President of UAC Alexei Fyodorov suggested that the exchange of assets of Russian and Ukrainian airlines should take place in 2011, RBC reports.

KLA was created based on the same scheme. Airline transferred its controlling stakes in exchange for a small part of the "United Aircraft Corporation.”

Cooperation with Ukraine on the An-70 and AN-140 was resumed last year. The Russian leader requested that 20 units of AN-124 "Ruslan" are included in the state arms purchase program through 2020. The foreign market has reacted to it by filing hundreds of applications for the supply of similar aircrafts. In April of this year the first official demonstration of the new regional jet An-158 for 99 passengers designed on the basis of AN-148 took place in Kiev. It meets all modern requirements and is one of the best in its class.

It is worth mentioning that marketing and sales of AN-148 and AN-158 are done by a Russian leasing company "Ilyushin Finance Co.” (IFC). According to the company, the portfolio of firm orders and pre-contract agreements for the An-158 already includes over 20 units.

In June the information was released that the United Aircraft Corporation is negotiating to build a heavy AN-124 Ruslan in the US at Boeing Corporation factories. The units can be assembled in the United States under the Pentagon's military order, which extensively utilizes Soviet aircrafts to move cargo.

Earlier Russian Vice-Premier Sergei Ivanov talked about possible assembly of AN-124 in the US. The final assembly of aircrafts for the US market will certainly be performed on the American territory, possibly in Long Beach. “ Because we know that according to the US rules 50% of work should be conducted in the USA," ITAR-TASS quotes Alexei, head KLA, who visited the ILA air show in Berlin. According to Fyodorov, the proposal of the Russian authorities regarding joint participation in Antonov An-124 project was discussed by Boeing and the government.

It was assumed that the issue of building Ruslanov in the US will also be discussed during the visit of Russian President Dmitry Medvedev to the US. However, there is no further information regarding the future of this project.

Vitaly Salnik.

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Author`s name Dmitry Sudakov