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IFC’s results at Farnborough 2010 (Great Britain)


IFC’s contracts in relation to An-158 and An-148

The International Airshow in Farnborough, which took place on July 19-25, 2010 appeared the most successful one throughout the latest decades for the Russian and Ukrainian aircraft producers, in terms of transactions concluded. “Ilyushin Finance Co.” (IFC) leasing company signed contracts and memoranda of intentions in relation to buying 70 aircrafts of various families. It should be noted that IFC has become the launch customer for An-158 Ukrainian jet liner, which was presented in Great Britain for the first time. On July 20, the contract was signed on delivery on 10 An-a58 jets, and the leasing company took the option for another 10 aircrafts, the total value of the transaction amounts to $500 mln. 

Alexander Rubtsov, Director General of IFC, stated that the leasing company had firm orders for 10 An-158 jets from Atlant-Soyuz, the air company of the Government of Moscow, and expected to increase the amount of order up to 60 before the end of 2010. According to the estimates of GP “Antonov”, the market potential of An-158 for the nearest 20 years is about 230 aircrafts. 

Besides, the Ukrainian aircraft producer is planning to supply over 300 An-148 in various modifications. It is also known , that GP “Antonov” also plans to develop the An-148 family in the direction of designing a business-jet with prolonged flight range due to allocation of additional fuel tanks (this jet has been named An-168), and the transport An-178 jet, which will be endowed with a higher section hull and more powerful engines. While IFC has already joined An-168 promotion by accepting orders for a few jets, the interest to the cargo jet is not that obvious so far. Success of An-178 program first of all depends on the governmental structures. 

In August and September, IFC expects to sign contracts in relation to An-148 with Saratov Airlines, Vladivostok Avia, and Rossiya Airlines (GTK “Rossiya”) air companies. 
One of the tasks set to the Russian and Ukrainian aircraft producers is to bringing the aggregate amount of An-148/158 production at the air plants in Kiev and Voronezh to 45-50 aircrafts per year. Today the declared capacities are 24 aircrafts in Voronezh and 12 aircrafts in Kiev. 

The orders portfolio in relation to An-148/158 family will not be frozen at today’s level. Apart from IFC, other structures also promote this jet. For instance, Irkut Corporation, which signed an agreement with VEB-Leasing in Farnborough. An-148 aircraft may also be delivered to state customers directly, skipping leasing companies. Department of Presidential Affairs and the Ministry of Emergencies show interest to this aircraft. 

Certification tests of An-158 may be completed this year, after which the documents will be submitted to the Air Registration Board under the Interstate Aviation Committee. Approximately in the middle of 2011 the first An-158 may be delivered to a customer, however, the launch operator is not determined yet. The fully functional training vehicle for An-148 developed by Transas Company will be put to operation next year. The new training centre will make a significant contribution into the success of the entire program.

Agreement between IFC and Irkut Corporation

At the Airshow in Farnborough IFC was also included in the group of MC-21 jet launch customers by signing a letter of intention with Irkut Corporation, the said letter of intention suggests delivery of 28 MC-21 jets, and the option for 22 jets of the same type. According Mr. Rubtsov, specific models of jets (МС-21-200/300), terms of deliveries, for each year, and other parameters were indicated in the agreement. According to the catalogue prices, the transaction may be assessed (considering the option) as $3 bln., however, the actual amount will be lower, since it is specifically emphasized in the agreement, that IFC, as one of the first buyers, will be entitled to special discounts.


Apart from the concluded transactions and the declared plans, another information, important for IFC, was pronounced at the Air show. After Vnesheconombank refused to buy IFC’s stock of shares belonging to the National Reserve Corporation, the leasing company returned to its plans of shares public allocation in order to attract new capital. According to Mr. Rubtsov, the relevant solution was unanimously approved by the Board of Directors and soon will be brought to consideration to the general meeting of shareholders. 
The Company expects to attract $300 mln. Half of the additionally emitted securities will be allocated at the Russian stock exchange, and the other half – at the Hong Kong stock exchange. According to the forecasts of IFC’s management, it will be possible to enter the Russian market in 2010 already, and the allocation of shares in Hong Kong is expected in the second quarter of 2011, after receipt of the annual reporting. At the present time the Company is choosing underwriters and is conducting negotiations with a number of large investment banks. It is likely to be one of Chinese large banks or a Russian bank or banks.

Source – IFC press service.