Completion with funding from Sberbank (540 words)

Published: 8/23/2000

The Irkutsk Aircraft Building Enterprise (IAPO) has announced that it expects to get a loan from the Russian savings bank Sberbank to complete seven Be-200 amphibians for the Ministry of Emergency Situations (MES). Alexei Fyodorov, IAPO President, has been reported as saying that talks have been taking place for a low interest loan by the state-owned bank and the deal is expected to be completed within the next two to three months, although recent reports suggest that the deal has been agreed by both sides in principle and simply awaits confirmation. Fyodorov added that he envisaged the loan being part of a much larger deal involving further advances from the bank potentially amounting to $50m. The contract for the new aircraft was signed with the MES in the spring and the ministry is already providing funding for the aircraft's completion according to IAPO, but the funding is not sufficient to complete the seven aircraft. According to reports, the funding only amounts to 450m rubles ($16m) on top of the state aid of 80m rubles for the reported $30m aircraft, although IAPO reports that in reality, the price is a lower figure. The issue of funding the complete MES order also remains uncertain. IAPO is therefore seeking initial funding to provide working capital for production and to supplement the considerable investment the plant has made from its own revenues from the production of the Su-30MKI. The plant reports that it has the components for seven aircraft and is currently completing its second for delivery to Beriev TANTK in Taganrog later this year. IAPO is currently working with MES to certify the aircraft and the first prototype is due to begin operating in November with the ministry as part of a process to get limited certification for the aircraft this year. The aircraft has not acquired enough flying hours for full certification, which is due next year. The commitment of the MES to the aircraft was recently re-emphasised at a meeting on 7th August between the designer of the aircraft Beriev TANTK and officials of the MES including the Alexander Muskatels, Deputy Minister, and the Russian Aerospace Agency in the form of Stanislav Rynkevich, Deputy General Director. IAPO is also looking for overseas contracts through Betair, its Swiss company responsible for marketing the aircraft for the Be-200, and reports that it is on a shortlist for a possible deal in South Korea, where it is competing with Bombardier offering the Canadair 415 and an American producer. The result of the tender is expected in the several weeks according to IAPO. Similar discussions are underway in China, India and a number of other countries in the Asian region. Earlier reports have however, suggested that the Betair is being constrained in its development of foreign orders by the lack of funding for potential customer requirements on the aircraft and of offering after sales support. The latter problem has even led to reports that Betair was discussing certification and support for the US market with Bombardier.

Article ID: 2021