Motor Sich Signs Agreements at MAKS-2007 Airshow

CEO of Ilyushin Finance Company Aleksandr Rubtsov said that it signed a contract with Motor Sich (MSICH: BUY) to buy 74 engines and 34 auxiliary engines for the An-148. The value and timeframe for the deliveries were not disclosed. Also at the MAKS-2007 exhibition near Moscow, Russian Transportation Minister Igor Livitin said that he does not see competition from the An-148 for Russian aircraft models, because of high demand for regional passenger planes. Livitin also said Russia plans to purchase 450 regional jets by 2012. Inna Perepelytsya: Despite the announcement that Oboronprom pulled out of negotiations on a merger earlier this week, the Russian industry is dependent on Motor Sich to supply engines to key projects such as the An-148, for which regional airlines lack a viable alternative. Compared to rival projects like the Sukhoi Super Jet, the An-148 has already been certified in the CIS (certification in the EU is pending) and does not require additional landing requirements. We estimate this new contract to have a value of USD 141 mln.