Russia’s replacement of TU-134s and An-24s supports Motor Sich

Russian President Dmitriy Medvedev said yesterday called on his country to replace its aging fleets of Tu-134 and An-24 aircraft following recent accidents, Interfax reported yesterday. Vitaly Gorovoy: In our view, the news is positive for Ukrainian Motor Sich (UX: MSICH UK). Russian airlines have about 100 An-24s and 90 Tu-134s, according to our estimates. The An-148 is a potential candidate to replace the Tu-134s and An-140 for the An-24s, both of which Motor Sich supplies engines for. We expect sales of An-148/158 engines to bring Motor Sich USD 2.4 bln in revenue in 2011E-20E.