Questions remain over government funding

Published: 3/7/2000

Vladimir Kravchuk, Deputy Director of RSK MiG"s Tu-334 programme, stated that, at the end of February, the company was on the verge of concluding supplier agreements for the Tu-334. The agreements cover the delivery of components to RSK MiG. These comprise: · Fuselage from Taganrog Aviation Plant · Aviakor producing the nose section RSK MiG is acting as the prime contractor for the programme, under a government decree. According to reports, the programme requires an investment of $370m with the objective of producing a return in seven years for those involved, once 67 aircraft have been produced. The figure of $370m, which has recently gained currency, is substantially more than the $70-90m being talked about by Tupolev, prior to MiG joining the programme in September 1999, for the production of the $15-18.5m aircraft. Funding continues to be a problem almost regardless of the amount required and, according to sources within MiG, the state currently has contributed only $2m, despite development costs of $67.8m. The company, despite this lack of funding, is reported in 1999 to have paid Tupolev, the designer of the aircraft, $0.5m under the original investment agreement. The government"s lack of commitment to the development of the aircraft may also affect the issue of government funded leasing, which is seen a cornerstone for successfully selling the Tu-134 replacement in Russia. The second aircraft is expected by Tupolev to be flying by the end of third quarter and is being produced by Aviant in the Ukraine. Tupolev has also recently announced its intention to fly the development of the Tu-204, the Tu-234: the 160-seat twinjet, sometimes known as the Tu-204-300, which is designed to replace the aging Il-62 on long thin routes. The flight of the prototype, powered by PS-90s, has been delayed since the aircraft was converted from a Tu-204-100 frame and rolled out in 1995. The design bureau claims that the flight will take place in the middle of this year. A second Tu-324, minus engines, is reported to be in storage at Aviastar, since its rollout in mid-1996. Given the aircraft"s close relation to the Tu-204-100, (it is 40.2m compared to the Tu-204"s 46.1m), it seems likely that the aircraft will require a relatively short certification process. Tupolev estimates that 50 hours of testing will be needed. Associated articles: www.concise.org 8th September 1999: MAPO joins the Tu-334 programme 15th February 2000: Tu-334 must await the end of 2001 for certification 25th February 2000: Variants of Tu-334 continue to be developed

Article ID: 1516