Transaero follows Aeroflot in ordering Il-96-300s from Ilyushin Finance

Published: 12/16/1999

Transaero has signed a $150m deal with Ilyushin Finance Company (IFC), Tupolev DB and Perm Motors, for the lease of ten Tu-204-100s. This changes Transaero"s policy of operating Western types with the exception of a single Il-86, although it is rumoured that this may not be in flying condition. According to Alexander Pleshakov, General Director of Transaero, the lease payments for the Tu-204-100 will be 30% lower than for a Boeing 757. Pleshakov claims that Transaero will pay IFC less than $300,000 per month. The approximate price for a Tu-204-100 is $20-$25m, compared top $29-$68m for a Boeing 757. He added that the company expected a 6-7% return on the aircraft, subject to IFC obtaining a federal-backed guarantee for the $150m loan needed to launch the project. This latest announcement follows in the wake of the deal between Aeroflot and IFC for the lease of Il-96-300s that suggested Aeroflot might have capitulated to the government"s requirements to buy Russian in return for the waiving of custom duties on imported foreign aircraft. The Aeroflot deal raised a number of unanswered questions concerning the exact terms of the agreement, which seem exceptionally favourable. In the case of Transaero, the airline is struggling to make ends meet. It has just released some poor financial results and has shed much of its fleet over the last ten months. The entering into a $150m leasing commitment seems all the more curious as a result, especially since it is currently unable to afford the 60,000 ruble membership fee for the Association of Air Transport Operators, from which it has been suspended. Associated articles; www.concise.org. 14th December 1999 and 8th December 1999

Article ID: 1229