Rostec does not exclude agreement with Bombardier


Rostec does not exclude agreement with Bombardier

Rostec may sign an agreement of intent with Bombardier (world’s third aircraft manufacturer and the world leader in regional aircraft) to assemble Bombardier Q400 in Russia at the end of August during MAKS-2013.

Sergei Chemezov, the Director General of a State Corporation told already in February that Rostec offers Bombardier to assemble aircrafts in Russia. Rostec offered to set up a joint venture on a parity basis. The State Corporation was prepared to invest about 100 mil dollars into the project with the would-be production site in a free economic zone in Ulianovsk, told Chemezov. However, in the Summer it was reported that negotiations reached deadlock. “To assemble the aircraft a market is required” – a source close to Bombardier explained.

“So far, there is not specific understanding and it is not certain that the agreement will be signed specifically at MAKS” – a companion of “Vedomosti” periodical told. The companions did not disclose when the production of aircraft may begin in Russia. So far, it will be a question of CKD assembly, with wing assembly also possible.

Q400 is the best vehicle in the regional aircraft class. Its seating capacity is up to 78 seats, the flight range is up to 2500 km, the catalog price of an upgraded version is about 30 mil dollars.

The demand of Russian companies in these aircraft till 2020 is 120-141 vehicles as it appears from the presentation of the Ministry of Industry and Trade. However, with regard to withdrawal of old TU-134 from airlines fleet the demand may increase up to 200 aircraft, it is noted in the document.

Russian companies began to announce the plans on production of new regional aircraft following the statement of Vladimir Putin who insisted on production of regional aircraft in Russia. It is fair for Russia; as a result the country will get new expertise.

Bombardier has localized a part of their production of Q400 in China but yet hesitate to hand over the final assembling there. Probably, Russia was chosen exactly in this guise for its serious treatment of intellectual rights.

In addition, there is the market for these aircraft in Russia. A hand of “Vedomosti” newspaper in “Aeroflot” tells that if Bombardier Q400 is produced in Russia the company will consider purchase of aircraft. In this case they will be exempt from paying 20% customs duty. This is a very effective aircraft, a companion of the newspaper noted. Though it is a turboprop liner, it is more profitable to fly passengers by this plane than by Airbus 320.

Source: “Vedomosti”