Collaboration between users and design bureau to get required UK certification (290 words)

Published: 12/14/2001

Alexei Isaikin, General Director of Volga-Dnepr Airlines, has reported that Volga-Dnepr has made the decision to re-register its aircraft in the UK to allow it to collateralise its fleet to raise financing for the acquisition of further An-124s. The move will require the aircraft to certified in the UK. According to Isaikin, the move was necessary due to Russia"s high interest rates, the lack of availability of long term financing from domestic institutions and the current lack of functioning leasing structures. To certify the aircraft Volga-Dnepr has come together with the Antonov Design Bureau, Antonov Airlines and MAK in negotiations with the UK"s CAA. The negotiations, according to Isaikin, have been planned by the participants for over a year. Isiakin is however, reported to be cautious about the An-124 receiving certification, as UK certification would give the aircraft access to all EU states and he believes that there may be some opposition to what he describes as a “new player". According to Isaikin, the airline"s UK subsidiary VolgaDnepr UK, will register the An-124s after the aircraft are certified. With the goal of attracting longer term financing of 8 - 12 years, at interest rates well below those available in Russia. The funding when raised, according to Isiakin, will be used to acquire two complete An-124s from Aviastar. The aircraft are already 50% complete at the plant and according to Isiakin, should cost between $30-40m per aircraft to finish. Commenting on the impact of the airline"s split from its global partner Heavy Lift, Isaikin said the split had cost the airline substantial trade in early 2001 with turnover down from $5.95 m in January 2001 to $2.63 m in February 2001. He did however, add that VolgaDnepr UK"s sales had subsequently stabilised at $10-11 m per month.

Article ID: 2953