This year's MAKS air show did not bring Ukraine major contracts. The official part of the air show ended yesterday and the Antonov state enterprise received firm orders for only a few An-158 and An-148 aircraft worth about USD 100 million, the Kommersant Ukraine newspaper writes.
Antonov presented the An-158 jet aircraft, a new modification of the An-2-100 biplane, and the An-70 military transport aircraft at the air show.
Antonov itself did not sign direct contracts for supply of aircraft, but the Russian leasing company Ilyushin Finance Co. (it concluded almost all the international contracts for supply of An-148 and An-158 aircraft) and Roseximbank (a subsidiary of VEB) concluded an agreement on financing supplies of up to four An-148 and An-158 aircraft during the period of 2014-2015 for lease to the Cubana de Aviacion airline company (Cuba).
Antonov’s spokeswoman Oksana Trofymchuk clarified that Ilyushin Finance Co. has already signed the contract. According to the director of Ilyushin Finance Co., Aleksandr Rubtsov, it is not yet clear whether the ordered aircraft will be bought from Kiev or Voronezh (the final assembly of An-148 takes place at plants in these cities). He also announced the existence of plans to sign a contract for two more An-148 aircraft.
Interest in Ukrainian aircraft is not lost. The total market for the An-148/An-158 aircraft is estimated at 200-250 aircraft, Rubtsov told reporters. With the average price of one aircraft USD 30 million, the total volume of the market can be estimated at more than USD 6 billion. Rubtsov said that more commercial aircraft would most likely be purchased from the Kiev aircraft plant because the Voronezh aircraft plant is already operating at full capacity, fulfilling state orders. "However, the market is very competitive: a new Embraer is coming out, Mitsubishi will sooner or later appear with a new engine with 25% lower fuel consumption," he said. He expects Antonov to continue to modernize its aircraft and the Motor Sich company to improve the fuel efficiency of its aircraft engines. Increased competition in this segment is expected in 2019.
Oleg Panteleev, the head of the analytical department at the Aviaport agency, notes that Ukraine traditionally has a shortage of funds for promoting its aircraft on foreign markets. "According to the well-established international practice, initial payments by airline companies rarely exceed 15% of the value of a deal. The manufacturer offers the remainder in the form of a loan at a very low interest rate," said the expert. However, Ukraine periodically has problems financing existing contracts.