Ilyushin Finance finally appears to have closed the deal to provide additional Il-96-300s for Aeroflot

Published: 12/1/1999

It seems that Russian aerospace leasing may finally emerging from the darkness with the news that Aeroflot has signed a deal with the Ilyushin Finance Company, led by the former Vice Chairman of National Reserve Bank , Alex Rubstov, for the lease of seven Il-96-300s. A deal, which according to some reports has been in discussion for an extended period of time and many felt would never be completed. Under the terms of the deal, the leasing company will fund the completion of six Il-96-300s, currently awaiting completion at VASO in Voronezh. It will also buy one of Aeroflot"s existing Il-96, refit with new PS-90s and avionics and return it to Aeroflot in a lease-back arrangement. The funds involved in the transaction are currently unknown, but are unlikely to be as significant as the full purchase of six fully equipped airframes, but most likely involve funding for the completion on the mothballed aircraft followed by a revenue dependent payback. VASO has been searching for a buyer of these airframes for a substantial period of time. According to Vlamir Belyakov, Ilyushin"s Head of Marketing, the new aircraft are scheduled for delivery beginning in 2001. The deal, however, is still contingent on government guarantees for the lending involved. Additionally the producer will be looking for government duty concessions on the import of foreign components. This is an interesting development, following reports, earlier this year, that Ilya Shabanov, governor of the Voronezh region, had appealed to the federal government for support of the negotiations between VASO and Aeroflot for just such a deal. Aeroflot has been deliberating for some time over the merits of the Il-96-300 versus the Boeing 767(www.concise.org. 5th July 1999 and 20th July 1999). It now looks as if it has bowed to industry pressure to buy Russian, subject to ratification of the funds and, in so doing, has provided exactly the kind of boost needed by the aerospace sector in the region (www.concise.org. December editorial).

Article ID: 1152