Expected funding of new An-124s for Volga Dnepr by Heavy Lift does not materialise

Published: 11/12/1999

  Sberbank funds Ruslans for Volga-Dnepr Sberbank, the Russian state savings bank, has agreed to provide a loan to Volga-Dnepr (VD), in order to enable the completion of two An-124-100 Ruslans at Aviastar, in Ulyanovsk. According to Alexander Stepanenko, PR Manager at VD, this means that the first airframe, which is 60% finished, will be delivered in 2000 becoming VD's 10th An-124, with the second following in 2001.According to the airline it has plans to take delivery of a further 11 unspecified aircraft to expand its fleet, which currently has an average age of 7-8 years. For Aviastar, VD based in its home city of Ulyanovsk, is becoming its most important customer along with Sirocco, the leasing vehicle for the Tu-204. The purchase by VD subsidiary NIK, of 34% of VD held by the aircraft manufacturer in July 1999, has cemented the already close relationship, as Aviastar is the only producer of VD's major aircraft the An-124.The proceeds of the share sale were used to fund the building of the VD aircraft and pay wage arrears. The terms of the loan have not been disclosed. VD has been attempting to raise funds for the two An-124s for some time. Previous reports had suggested that VD's UK marketing partner, Heavy Lift, intended to provide the cash needed (www.concise.org 11th August 1999). According to Volga Dnepr however, Sberbank simply offered the funding on better terms than Heavy Lift and they therefore decided to go with Sberbank. Heavy Lift has so far declined to comment on this new development. Aviastar is also in the process of selling one of its associated plants, in order to fund the construction of Tu-204s and An-124s (www.concise.org. 22nd September 1999).  

Article ID: 1073