Thursday, August 17, 2017

Rostec to manufacture light aircraft in Russia

Rostec signed a $78 million contract with Austrian Diamond Aircraft Industries on Tuesday for the manufacture of light aircraft in Russia.

The contract details the purchase of 114 Da40 Tundra planes by Austrian Dimaond Aircraft, localizing their production and larger aircraft in the future, The Moscow Times reports.

"Regional aviation in Russia is in crises, because there is an absence of quality and affordable planes," Rostec head Sergei Chemezov said, adding the planes would be used in the country's small aviation industry, which declined after the collapse of the Soviet Union, The Moscow Times reports.

He pointed to the widely used Ukrainian-made An-2 and Czech-made L-410 planes as "air taxis" during Soviet times.

The agreement will provide 19 passenger planes designed to cover routes ranging between 249 and 621 miles. The aircraft will eventually be manufactured at the Rostec-owned Urals Civil Aviation plant in the Sverdlovsk region. The first aircraft are scheduled to be completed in 2016, according to The Moscow Times.

Chemezov said $150 million to $200 million would be invested in one model of the aircraft, which will be more economically efficient than existing models.

Austrian Diamond Aircraft has an annual turnover of $300 million. It was founded in 1981, The Moscow Times reports.