4 October 2011
Iranian officials have indicated preliminary interest in buying Ukrainian-built An-158 aircraft following a demonstration on September 2, Bloomberg reported yesterday. Iran suggested it would build up to 30 percent of each An-158 domestically. Vitaly Gorovoy: Iran’s government previously estimated its potential need for An-158s at 80, which implies a potential order volume of up to USD 1 bln. Regardless of Iran’s plans for partial domestic manufacturing of the aircraft, we believe it will source its engines from Motor Sich (UX: MSICH UK, BUY). This could translate into up to USD 500 mln in revenues for Motor Sich, representing around 27% of our expected revenues from An-148/158 engine sales in 2011-20E.