The Minister comments prior to 15th March statement (289 words)

Published: 3/1/2001

In what appears to be a reproach of Aeroflot, Alexander Dondukov (Minister of Industry, Science, and Technologies) has been reported as saying that, although the memorandum between Aeroflot and Airbus Industries has been signed for an additional A-320, the Ministry would be absolute in its opposition to the agreement. Dondukov, due to reveal his industry plan on 15th March (having postponed it from 1st March), argues that Aeroflot has the option of acquiring an equivalent Russian aircraft in the Tu-204. He does appear to suggest that Aeroflot might have bought the aircraft had a financing structure, equivalent to that for the Airbus, been in place to cover construction and operation. Given the Minister's announcement on 15th March, it sends a clear signal that such a structure will be, as expected, a major building block in the industry's restructuring. This view has been clearly supported by press reported comments by Deputy Prime Minister, Ilys Klebanov, to aerospace protesters last week. In these he said the plan revealed on the 15th would provide for 85% guarantees for leases in this year's budget and would attract long-term and cheaper financing from Russian banks. Dondukov however, does not see the pressure applied to the purchase of domestic aircraft as incompatible with possible international co-operation, commenting rather obliquely that working with foreign companies would integrate Russian facilities into the global market. This would allow Russian producers to use/develop their own products, while benefiting from Western producers' incoming technology. Dondukov has further stated that he believes a market for Russian products exists among those looking for an alternative to Boeing and Airbus. He did not state however, who those potential customers might be.

Article ID: 2386