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Resuming production of An-124 Production

The unique heavy and oversize air cargo market formed by ramp freighters is growing faster than that of scheduled services – an average of 10-12% p.a. in cash terms. By the experts’ estimation this market will reach US$3 mln. by 2020, and in 2030 may count about $7 bln. Russia is one of the leaders at this segment having 75% of the market share.

At the same time the potential AN-124 rivals (Ñ-5, Ñ-17, À400Ì) are still underdeveloped. In such conditions the international market can annually accept from two up to five Ruslan freighters with the total demand for the aircraft type growing up to 50 machines and over in the nearest decade.

Since it is objectively possible to successfully and effectively promote these unique aircraft on the world market, Volga-Dnepr Group, the world largest An-124-100 operator, together with the aircraft designer, Antonov Design Bureau, and other interested parties in Russia and Ukraine intends to resume the aircraft production at the Ulyanovsk aircraft manufacturing plant Aviastar-SP.

The commencement of large-scale Military reorganization beginning 2008 resulted in the intention of the Russian Ministry of Defense to place an order for AN-124 fleet modernization being in operation of the military aviation. The aircraft will be upgraded at Aviastar-SP involving the Volga-Dnepr operational, financial, and intellectual resources. The order size (over 20 machines to be upgraded) will allow to establish a full production line and train a qualified staff for further serial manufacture of new Ruslan aircraft.

Under the proposal of the United Aircraft Corporation (UAC) to Volga-Dnepr in summer 2008, the Group of Companies was offered to provide the aircraft manufacturers with the required start-up AN-124-100 order. In the follow-up UAC letter Volga-Dnepr proposed a start-up order for 40 aircraft of AN-124-100M-150 type and measures of its sustainable financing by carrying negotiations with the Vnesheconombank (Bank for Development and Foreign Economic Affairs) which had an advance interest in this project. Today the technical requirements to AN-124-100M-150 freighter have been passed by the UAC to Antonov Design Bureau for its further consideration.

The relaunch of An-124 manufacture should result in the recovery of the Russian aircraft-production, significantly improve the Russian leading positions on the world market of unique cargo air transportation, expand the cooperation between Russia and Ukraine within implementation of large-scale industrial projects, and establish actual conditions for a new technological breakthrough in the civil aviation.

Brief History of the Project

2003 The first step in launching the project was execution by the Russian and Ukrainian representatives of the Decision on Priority Measures to Resume Production and Phased-in Upgrading of An-124-100 Aircraft at Enterprises in the Russian Federation and Ukraine during the 6th International Air and Space Salon MAKS-2003.

2004 A working group including the participating parties was set up to develop a business plan and outline specific measures to resume aircraft production and modification.

March, 2005 The joint Russian and Ukrainian meeting was held at the Federal Agency for Industry to approve the draft business plan for the relaunch of the serial production and phased-in upgrading of An-124-100 aircraft at enterprises in Russia and Ukraine

October, 2006 At the first session of the Economical Cooperation Committee of the Ukrainian – Russian Interstate Commission taken place in Kiev and chaired by the Prime Ministers of Russia and Ukraine Mr. M.Fradkov and Mr. V.Yanukovich, the parties agreed to resume and commence the AN-124-100 serial production.

January, 2007 Volga-Dnepr Airlines together with Motor Sich (Zaporozhye, Ukraine) establish the joint venture Cargo Aircraft Managing Company to execute the federal special purpose program Development of Russian Civil Aircraft for a Period of 2002-2010 through 2015. The new business unit was assigned with the supervising and organizational responsibilities to promote the relaunch program of the Ruslan aircraft serial production.

June, 2007 Interstate Aviation Committee certified the new AN-124 model – AN-124-100M-150. With the capacity increased up to 150 tons and the flight range extended, the aircraft now meets all the European Control requirements to area navigation P-RNAV, including precision and accuracy requirements to aircraft operation Ð-RNP-1.

August, 2007 At the VIII International Air and Space Show MAKS-2007 Volga-Dnepr Group, Motor Sich and Antonov Design Bureau announced the accomplishment of the Ruslan first modernization stage and the AN-124-100M-150 certification, including execution of the agreement under the relaunch program of this unique aircraft serial production and modification.

July, 2008 Volga-Dnepr Group confirms its interest in An-124 again by placing an order with the UAC for forty AN-124-100M-150 aircraft for a period of 2011 up to 2027 (20 aircraft until 2020, and 20 until 2027).

August, 2009 During the MAKS 2009 Air Show in Moscow, OAK (Russia's United Aircraft Corporation) Vice President for Transport Airplanes Victor Livanov, General Designer of Antonov Design Bureau Dmitry Kyva and President of Volga-Dnepr Group Alexey Isaikin signed technical specifications for development of a new AN-124 modification. Technical design requirements were set by OAK and ADB in direct coordination with the launching customer for new AN-124 – Volga-Dnepr Group.

November, 2009 During the visit of the State Council to CJSC Aviastar-SP in Ulyanovsk the Russian President Dmitry Medvedev got on board of Antonov 124 and shared his opinion: “The market is huge, the cargo traffic is great, meanwhile few similar freighters are available worldwide. Someone is going to fill the gap. Better to engage our domestic enterprise; we could do it in cooperation with the US”. The AN-124 Resumed Production Project received support for future.