KAZAN COMPANY TO BUILD FIRST 10 NEW-GENERATION LINERS

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MOSCOW, February 12 (RIA Novosti) - The Moscow-based Finance Leasing Co. and the Gorbunov Aviation Production Association of Kazan, a government company of national purport, are signing a contract today in Kazan, Tatarstan's capital, to build ten TU 214 planes, the federal Industry and Energy Ministry says in a press release.

Transaero Co. will rent the liners to be built in 2005-2007 on a contract it signed with the Finance Leasing on February 5.

Aircraft leasing arrangements are welcome to boost up Russian air transport and industry with due account for airlines', designers' and manufacturers' interests alike, Viktor Khristenko, Industry and Energy Minister, said before contract signing. "The contract to build ten TU 214 planes is coming as a stride in Russian aircraft-building and air transport. It is the most ambitious contract made with Russian air companies since the early 1990s," the release quotes Mr. Khristenko as saying.

His ministry "is promoting further steps in government support of aircraft-building, as well as federal allocations to cover a part of lease payments in a scope that meets actual market demands. We are convinced that joint efforts by the state, industry and airlines to implement this strategy, with private stockholders involved, will get Russian air industry out of its current crisis," said the minister.

Meanwhile, the Central Research Institute of Aero- and Hydrodynamics has published a paper with skeptical forecasts. Its experts do not think Russian aircraft and technologies will soon become popular outside this country. To all appearances, things will stay as they were for the nearest years. Russia will not increase long-range civil craft exports before 2010.

Yevgeny Zaritsky, Finance Leasing Co. Director General, is of a contrasting opinion. True, the Boeing and the Airbus have divided the market between themselves but that does not mean Russia has no chance to take part. Whatever problems Russian air industry may now have may be settled sooner than 2010 to enhance exports, he argues.

Mr. Zaritsky highlighted the Middle East and Southeast Asia among tentative Russian aircraft importers.

To promote Russian technologies in the domestic market is of no smaller significance, considering the current industrial situation. As things are now, many Russian-based airlines prefer to purchase second-hand foreign planes, due to their better quality and reliability. As Russian experts see it, however, Russian new-generation liners, in particular, the TU 204 and 214, meet all safety standards and are none inferior to overseas analogues on essential characteristics, fuel consumption included.

As Mr. Zaritsky sees it, Aeroflot ought to be the first to entirely shift to aircraft of Russian design and manufacture. Regrettably, this giant air carrier, with government-held control block, appears in no hurry to encourage Russian manufacturers.

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