Sibir and Aeroflot attracted by prospect of PM engines (434 words)

Published: 6/20/2001

According to media reports, Sibir and Aeroflot are keen to involve financial holding company, Interros, in the development of the already announced joint aviation leasing company. The motive behind the involvement would be to improve the leasing company's capability, in the area of aero engines, where Interros has had exposure through its shareholding at Perm Motors. The carriers are reported to believe that this shareholding may give them some leverage on supply. The leasing company has not yet been created, according to Vladislav Filev, General Director of Sibir, but he confirmed that negotiations are taking place with a number of banks and companies involved in aerospace production, and that Interros may be a partner. Mikhail Koshman, a spokesman for Sibir, said the suggestion has been made to Interros that it could contribute PS-90A engines to the lease company, just as the airlines are contributing aircraft. It is not clear how many engines are being discussed, but the current value of a PS-90A is reported to be between $2-2.5m. Dmitry Kravchenko, advisor to the General Director of Interros, confirmed that negotiations with Sibir and Aeroflot were taking place, but said that no conclusion had been reached, as Perm Motors had it own interest in leasing structures, although discussions were continuing on the involvement of Interrosleasing. Sibir, however, has problems with the quality of the aircraft that it might put into such a company. According to Vladimir Filev, General Director, of the airline's eight Tu-204s, only two are operating and much of the remainder of the fleet - inherited from VAL- is currently inoperable, owing to lack of spares. Despite the government's lack of speed in clarifying the nature of the new leasing companies, a number of groupings are emerging for the tender. This was originally timed for July but, on the basis of recent information, it could be later in the year. Since the PM product is the key to all the aircraft currently proposed for leasing, Interros's involvement would be an attractive addition, particularly given the limited capacity to produce aero engines at Perm. Sibir may, however, have another access to engines. It was recently visited by the British Ambassador, Sir Roderick Lyne and a group of businessmen, including Mike Blore, Russian project executive from Rolls Royce, who was reported by the local media as having discussed the possibilities of upgrading the Sibir Tu-204 fleet with Rb-211s. During the visit, the ambassador was also reported to have discussed the possibility of direct flights by Sibir to London.

Article ID: 2598