More Opportunities for Motor Sich at MAKS-2007

Two more announcements at the MAKS-2007 airshow in Russia last week have implications for Motor Sich (MSICH: BUY). The Antonov Design Bureau and Russian Novosibirsk Aircraft Production Association (NAPO) announced on Thursday that they have signed an agreement to modernize and create new versions of the An-38. According to Interfax, Russian airlines have a need for 130 of these airplanes by 2015. Antonov also announced that it had signed a preliminary agreement to join a Ukrainian-Russian venture, which was created by Volga-Dniper and Motor Sich to produce the An-124 Ruslan. Volga-Dniper and Antonov expressed their intention to order 17 Ruslan aircraft. Inna Perepelytsya: We expect that the new An-38 version will be equipped with Motor Sich’s new VK-1500s engines. If orders for 130 An-38s and the 17 An-124s are realized, we estimate the value of orders for Motor Sich at USD 300 mln.