Ukraine to begin modernizing India's An-32s in December

Interfax reported yesterday that Ukraine plans to begin modernizing India’s An-32s in December by the Antonov Design Bureau. The contract, signed in June between the Indian Armed Forced and Ukrspetsexport, foresees a total of 105 An-32s due for work at a price of USD 400 mln. The program will see an overhaul to the aircrafts’ avionics and power plants, as well as increase their lifespan by up to 40 years and their payload from 6.7 mt to 7.5 mln mt. Yegor Samusenko: This Indian contract implies USD 80 mln in orders for Motor Sich (MSICH) for repairing aircraft engines, to be completed in 2010-2011. Since the contract was announced in June, we think market has already priced this contract in to Motor Sich’s stock price.