First An-70 to be delivered in 2013

Russia’s Defense Ministry may receive the first An-70 aircraft, Motor Sich’s (MSICH UK) CEO Vyacheslav Boguslaev said yesterday (via Interfax). The plane will be equipped with four unique D-27 turbopropfan engines, which would be jointly manufactured by Motor Sich (70% of manufacturing) and Russia’s Salut. The An-70 is medium-range transport aircraft with a 47 t payload; by its profile it is close to the Airbus A400M, but cheaper and more efficient.

Roman Dmytrenko: The An-70 has been stuck in the final stage of development since 1994, with only two prototypes produced so far due to a lack of firm orders and financing. Considering that Motor Sich is capable of producing D-27 engines independently, the involvement of a Russian aircraft engine maker in the project looks like a necessary concession to get firm orders from the Russian Defense Ministry and finally launch serial production of the aircraft. For political reasons, the Russian Defense Ministry can order a more fully “made in Russia” plane easier. The An-70 project is included in Russia’s State Program for Armaments for 2011-2020 and the Russian Defense Ministry plans to purchase up to 60 An-70s by 2020. Assuming revenues from D-27 engine sales would be distributed equally according to the announced contribution from each party, this contract could translate into an estimated USD 0.8 bln in revenues for Motor Sich in 2013-2020.