Government aerospace meeting postponed yet again (374 words)

Published: 3/14/2001

The signing of an agreement between GTK Rossiya, GUAP Pulkovo, KAPO, and International Bank Saint Petersburg is being greeted as the first attempt to create a government-backed aircraft leasing company. This signing follows an agreement made by the parties on 29th December, creating the Aviation Transportation Company “Rossiya-Pulkovo-Alliance”. The agreement provides for the two state-owned carriers to share their respective fleets in what has become an increasingly common trend among Russian carriers, without merging. Deputy Prime Minister, Ilya Klebanov, explained at the signing ceremony yesterday that the formation of the leasing company in order to provide funding for the Tu-214 was the last attempt at preserving the aircraft-building industry - which built only 6 aircraft in 2000. The International Bank Saint Petersburg will provide the state-guaranteed financing (it acts as both airlines' banker) for the structure, although its President, Serguey Bazhanov did not reveal the size or terms of the financing. It was however, revealed that the new structure would purchase four Tu-214s from KAPO (two for each of the carriers), with Rossiya reported to be receiving its aircraft this year and Pulkovo in 2002. Some reports have put the value of the initial deal at $60m, which seems extremely low given that Dalavia announced last November that it had acquired two aircraft in a leasing deal reported to be worth $62m over 8 years, with the airframes without engines costing $30m. Boris Demchenko, General Director of Pulkovo (where the new General Director of Rossiya Nikolai Shipil previously worked) commented yesterday that membership of the alliance was open to new members. The fact that this deal has been announced with these two particular players is perhaps noteable because Shipil is seen as being close to Putin and the other major carrier happens to be based in St Petersburg - the power base of President Putin. In addition, it does not appear to involve Ilyushin Finance, who to date have offered by far the most challenging leasing structure in terms of scale and finance. Despite this announcement, the meeting billed to reveal, among other things, the government's new aerospace leasing plans, has been delayed yet again. It has been rescheduled for 22nd March - its second postponement in the last three weeks.

Article ID: 2415