The program provides for organizing financing for a start order for the Voronezh Aircraft Building Association to begin production of 135 new generation aircraft in 2005-2008, including Il-96 and An-148.
According to the ministry, today, investments in Russia's civil aviation are closely related to the high prices of the planes and the rather long time it takes to recoup investments. It takes 8-12 years, and sometimes longer, to recoup an investment in a new aircraft, however, Russia's current loan and financial system provides for shorter loan terms. In this situation, it is impossible for economically weak airline companies to make direct purchases and therefore it forces them to look for other ways to solve problems.
The state has recognized the need for the state to support leasing projects of new domestic aircraft by compensating part of the leasing company's interest payments for loans for new planes and participate in the authorized capital of these companies.
In July-August 2001, a tender was organized to select lessees and investment projects in which new Il-96 and Tu-204 would be leased.
Ilyushin Finance Co. and Financial Leasing Company won the tender.
Presently, Russia owns 58% of Ilyushin Finance Co. (18% of which are controlled by Vneshekonombank) and 28% of Financial Leasing Company.
The next step toward supporting the domestic aircraft industry was a decision made on the procedure for compensating Russian airline companies for part of their leases of aircraft from Russian leasing companies, as well as part of the interest payments for loans from Russian credit organizations used to purchase Russian aircraft.
In 2003, Russian airline companies bought19 new domestic aircraft, including three Tu-124, a Tu-204, a Tu-154M and a Yak-42D. In 2002, the airlines purchased 12 planes.
Presently, Ilyushin Finance Co. and Financial Leasing Company, are implementing projects to lease domestic aircraft.
Departmental Director of the Ministry of Industry and Energy Yury Koptev said in order to develop aircraft leasing, several Russian laws need to be amended. Then, the aircraft could be mortgaged under loans from banks.
As the basic measure for the state's support of the aircraft industry and the technological modernization of the aircraft fleet, it was proposed to create a mechanism to create long-term orders for new domestic planes for civil aviation by increasing size of the authorized capital in Ilyushin Finance Co. and Financial Leasing Company.
The increased capital in leasing companies will allow them to work stably, without additional government subsidies, on returnable leasing payments, while the practice of granting subsidized loans will spread to all parties involved in the program for the development of the domestic aircraft industry: civil aviation, aviation leasing companies and aircraft enterprises, the ministry said.
