Ukraine’s Antonov, Russia’s VASO to jointly produce An-148/158

Ukraine’s Antonov and Russia’s VASO are in talks to jointly produce An-148/158 regional jets, Antonov CEO Andrei Kiva said on Friday. The joint venture could be created in 1Q12. The An-148/158 aircrafts are equipped with D-436-148 engine produced by Motor Sich (MSICH UK). Roman Dmytrenko: Russia and Ukraine currently make about 10 An-148/158s a year and potential increase of production is positive for Motor Sich in the short-term, as it has mandate to supply engines for first 50 machines. Establishment of a joint venture confirms high demand for An-148/158-type aircrafts which is estimated by Illushin Finance at 400 items over next 15 years. However, given that Russians insist that demand could be twice as high if the aircraft is equipped with non-Motor-Sich engines, we see a risk of Motor Sich’s involvement in the project decreasing in the mid to long-term.