Helicopter producer in better health (462 words)

Published: 7/6/2001

Kazan Helicopters (KVZ) has reported that business, although slower than anticipated by the company's management at this point last year, is still reasonably healthy, with turnover in 2000 from $8.3m to $52.6m. Programme funding remains a problem and heavy delays undermine the development and certification of new aircraft. The company, which exports 87% of its output, also announced that it would pay a dividend and raise average wages at the plant to Rb3,600($128). Some shareholders, however, complained at the AGM that the dividends remained low in proportion to the company's relative success. General Director Lavretyev responded by saying that the company had to retain profits to invest in the plant's equipment and design upgrades and also, more tangentially, the financing of building of apartments for the company's employees. The AGM elected a new board of 11 directors, including six representatives from the plant and four from the state that owns 29.9% of the company. One of the directors is Valery Voskoboinikov, Deputy General Director of RAKA. Commenting on the year ahead, Lavrentyev said that the priorities for 2001 would include the completion of the Kazan Ansat light utility helicopter with Rb70m ($2.4m) budgeted for 2001 and 20 Pratt & Whitney PW PK206C turboshafts, which have already been acquired. The Mi-38 that has also received further funding commitments in principle from EADS subsidiary Eurocopter, is earmarked for a modest Rb40m ($1.3m), while developments of the Mi-17 Rb100m ($3.4m), such as the Kazan/Mil Mi-17KF Kittiwake, are ongoing. The $1.5m Ansat, the first designed by the producer, is reported by Lavrentyev to be of interest to GTK Rossiya, as well as to a number of other potential customers. Earlier interest was also expressed by both Gazprom and the Russian Federal Border Service, provided, of course, that the aircraft, which first flew in late 1999, gets its much delayed certification in 2002. The high cost of operating Russia's ageing Mi-8 fleets, together with increasing difficulties of airworthiness, make the replacement an attractive option, should finance be available. KVZ will submit the Ansat in the MoD tender, due to be declared this month, for 100 helicopters for delivery over the next ten years. Lavrentyev thinks that, although KVZ has competitors, the Ansat's prospects are good: a view endorsed by Deputy Prime Minister Ilya Klebanov, while on a visit in mid-June to KAPO and KVZ. During Klebanov's visit, an order was placed by GTK Rossiya for the delivery, in the first quarter of 2002, of two Mi-8MTV-1Cs in VIP configuration for use by President Putin. Additional revenues are also expected from a contract that is being negotiated with India for the upgrade of about 50 Mi-17 with TV2-117 engines and follows a contract for 40 Mi-17 in 2000.

Article ID: 2626