Relations between Volga-Dnepr and its major shareholder Antonov are not good

Published: 6/18/1999

In a news item in the Russian newspaper, Vremya, on the 10th June 1999, the recently reported intention of Volga Dnepr to extend the life of its An-124s received an interesting twist. According to the report, ANTK Antonov, Kiev, officially informed the Russian air regulatory organisations about violations committed by Volga-Dnepr in the operation of its An-124's “Ruslan”. The company declined to vouch for the safety of the flights. According to Mr Dmitry Kiva, First Deputy General Designer of ANTK Antonov, Volga-Dnepr operates An-124's without the necessary documentation for the extension of their life limits. Given the close association between the company and Volga Dnepr, - in which ANTK Antonov is a substantial shareholder - this suggests that relations are somewhat tense. ANTK Antonov has been competing the Volga Dnepr/Heavy Lift combination, using An-124s with its own marketing agreement with UK based, Air Foyle. Having flown 6,000 hours, each Ruslan has to undergo an inspection, followed by a decision by Antonov on the life limits. In 1998, several aircraft had acquired the 6,000 flying hours, but Kiev, according to press reports, instead of providing the technical assistance and maintenance, suggested that Volga Dnepr, buy additional flying hours at the rate of $250 per hour of operations. The Director General of Volga Dnepr, Alexey Isaykin reportedly refused to pay resulting in the design bureau grounding 4 Ruslans. Dmitry Kiva asserts that given the work required for the extension of the service life it's fee is appropriate. He also adds that the current problems were provoked by the violation of contractual financial obligations by Volga Dnepr. The shareholding of Motor Sich in ANTK Antonov recently changed hands, with the Ukrainian government acquiring a stake.

Article ID: 606