Russia and the Ukraine sign the business-plan to put the An-124 back into production and a contract for a full fleet modernization program

Moscow, March, 2005 Representatives from both Russia and the Ukraine met this week to discuss and agree on a business-plan regarding the modernization of the AN124-100 fleet and putting the AN124 back into production. The meeting which took place on March 25th 2005 at the Federal Agency of production, energy and industry resulted in a signed business-plan.

The contract concentrates on a five year modernisation plan to bring the existing fleet of AN124-100 Ruslan aircraft up to their full 150 tonne capacity and fulfilling all the ICAO requirements. Also discussed was the intention to put the AN124 back into production with the initial production of 15 aircraft.

The issue surrounding the production of AN 124 aircraft is to be added to the agenda for the Interstate Council led by both the Russian and Ukrainian Presidents. This is essential for ensuring suitable financing of the project. Volga-Dnepr Group, the largest operator of AN124-100 aircraft, together with Antonov Design Bureau and other interested parties from Russia and the Ukraine are preparing to restore production of the Ruslan at the Aviastar factory in Ulianovsk.

Expert assessment of the outsize cargo market predicts that the market will continue to grow 15-20% between now and the year 2017, resulting in greater demand and 150 tonne capacity not to mention more aircraft. Present at the meeting was the Director of Volga-Dnepr Group Alexey Isaikin, who underlined the importance of concentrating on the efforts at Government level with specific reference to investment and managing the system of orders for new AN124 aircraft.

Petr Balabuev, General Constructor at Antonov Design Bureau commented; “The Antonov Design Bureau supports the need to consolidate our efforts restore the production of AN124 aircraft.”

Participants at the Federal Agency meeting were: Alexander Zelin, Deputy Chief Commander of the Military Defense Forces, representatives from the Ministry of Energy and Industry and the Ministry of Transport, Victor Mikhailov, General Director of Aviastar, Alexey Isaikin, president of Volga-Dnepr Group, Boris Nagatinsky, Deputy General Director of Polet Airlines. The Ukraine was presented by Valery Ivashenko, Chief of the Department of Defense and Industry, Petr Balabuev, General Constructor at Antonov Design Bureau, Gennady Sofrin, Deputy General Director of Motor-Seach, Pavel Soloviev, General Constructor of Progress Design Bureau, Alexandr Baranov, Executive Director of Kiev Aviation Plant Aviant.

Notes:

The AN124-100 aircraft is one of the largest in the world, constructed in the late 1970s performing its first flight during 1982. The aircraft were produced using up to 500 factories from around the former Soviet Union. The final aircraft was produced at the Aviastar factory in Ulianovsk and the Aviant factory in Kiev. 56 aircraft were produced and half of them are now in commercial use.

During 2003 the first step towards the modernization and reproduction of the AN124-100 aircraft was started at the MAKS-2003 show. During the show the Volga-Dnepr Group and Antonov Design Bureau signed an agreement preparing the program together with the support from aviation states of both Russia and the Ukraine.

The new production AN124 will be equipped with new avionic systems, modern power engines, larger tonnage capacity and longer flying ability.

The Russian and Ukrainian collaboration on this project should boost Russian aircraft building opportunities, help to keep both countries at the forefront of the world transportation market and look to create a technical boom within the civil aviation market.

The restoration project of the AN124 together with the government supported modernization of the IL-76 aircraft could be one of the most ambitious projects for Russian aviation for the foreseeable future.