Published: 11/21/1997

In October, Rybinsk Motors, Aeroflot and Incombank formalised a series of agreements in the frame of a complex finance-industrial scheme on the repair of aero-engines worth $20m. Proposed by Rybinsk Motors, the scheme calls for stage-by-stage funding of major overhaul on 33 D-30KU engines for Tu-154M airliners in service with Aeroflot. The fulfilment of the deal is expected to take six months. In this scheme Incombank acts as a financier providing a credit line for both the factory and airline. The bank agreed to provide a pre-payment amounting to 50% for requisite work on the whole batch of 33 engines, thereby enabling Rybinsk Motors to complete overhaul on the first 12 engines in a short time, return these back to the operator and, without delay, start working on the remaining units. The credit will be paid-off from the operational revenues generated by Aeroflot on the Tu-154Ms with the repaired engines. The engines themselves would be leased back to Aeroflot after major overhaul via a specially-formed Central Aviation Leasing Company. Rybinsk Motors and Incombank believe that, if successful, the scheme would be attractive for small air companies with limited turnover capital. Recently, Rybinsk Motors has manage to organise and fulfil a series of complex financial schemes. Among these are the sale of an Il-76 freighter taken new from the manufacturer (Chkalov's TAPO in Tashkent, Uzbekistan republic) for a batch of D-30KP engines and then sold to the Ministry for Emergencies of the Russian Federation. (IN1197.6) (VK)

Article ID: 80