Aerospace companies turn the heat up under Aeroflot to purchase Russian products

Published: 7/5/1999

Russian aircraft manufacturers are making yet another attempt to persuade the government to oblige large airline companies to buy their products. Russian aircraft manufacturers have traditionally appealed to the government each time a new premier comes to power, but so far have met with little success. At the Union of Industrialists forum, which is currently underway, the industry confirmed that, during 1998, total rentals paid by Russian carriers to lessors of US and western European airliners operated in Russia, amounted to $250m. Of that total, Aeroflot, with its fleet of 23 foreign-made aircraft, paid $170m. The industrialists are demanding a new law, obliging companies like Aeroflot to buy a Russian aircraft in addition to each new western aircraft taken on lease, or purchased. Mr Valery Okulov, General Director of Aeroflot, contended that Aeroflot would continue to select aircraft to suit its passengers, regardless of origin. He added that Aeroflot is in tight competition with well-known international carriers for US and West European passengers, flying to Moscow and other destinations. According to Mr Okulov, such clients “are used to the comfort of Boeings and Airbuses”, and suspicious about flying any Russian type, including the newest Il-96-300. Comparing the Boeing 767 and Ilyushin Il-96-300, both present in Aeroflot inventory, Mr Okulov acknowledged that these aircraft perform equally well on certain routes. However, on North American routes, the 767 is far ahead of the Ilyushin in terms of popularity with passengers and resulting operational revenues. He claimed that, on routes where passengers are not so choosy, the Il-96-300 has proved capable of generating similar revenues with the 767, but contended that even on these routes the 767 is usually preferable, owing to its lower maintenance requirements. According to Mr Okulov, “The Il-96-300 needs more man-hours in maintenance, and thus spends more time on the ground”. A 767 amasses 12 hours daily, compared to 9.3 hours for the Il-96-300, although recent reports suggest that the Il-96 is improving. He concluded that Aeroflot would not commit to an alliance with indigenous manufacturers, unless they provided a product that geniunely competed with that produced by the US industry. Mr Okulov added, that although Aeroflot would continue to support the Il-96M/T effort, he was becoming less optimistic about its successful completion. The first Il-96T freighter was originally scheduled for delivery to Aeroflot in 1997, but remains outstanding as of June 30th 1999. In response to a question from Concise, on the validity of reports in the Russian press concerning Aeroflot's interest in buying the Antonov An-140 regional turboprop. Mr Aleksandr Lopukhin, PR Director of Aeroflot said that: “ We are still looking at its technical capabilities and prices, and are far from a serious commitment”. Aeroflot is also considering the Ilyushin Il-114 turboprop. At present, the carrier does not have a suitable small liner to serve short-haul routes and feeder lines to the capital and to its growing regional hub business. Currently, the 70 seat Tu-134 jets perform such flights. Mr Lopukhin confirmed that the use of the An-140 and Il-114 could make such flights profitable.

Article ID: 652