Russia’s Sukhoi Signs Over USD 1 Bln Contra


July 16 2008

Russia’s Sukhoi Civil Aircraft company signed over one billion
U.S. dollars worth of contracts at the Farnborough air show for the
supply of Sukhoil SuperJet-100 regional planes.

The company will supply 49 planes and signed an option for the delivery
of another 16 planes.

Sukhoi Civil Aircraft (SCA) signed an agreement on the main terms of
supply of 24 planes to the leasing company Avialiasing. It provides
an option for another 16 planes. The overall price of the deal exceeds
630 million U.S. dollars.

According to unofficial reports, the planes will then be lease to
the Russian airline UTair.

In addition, the joint venture Superjet International, created by the
Sukhoi Holding Company and Italian Alenia, has signed an agreement
for the supply of 20 SuperJet-100 planes to an unnamed company. The
overall value of the agreement is 600 million U.S. dollars.

The company also signed a 150 million U.S. dollar contract with the
Swiss leasing company AMA for the supply of five planes intended for
five different airlines in Europe and Asia.

All contracts and agreements signed at the air show are expected to
be implemented in 2010-2011.

Prior to the Farnborough air show, SCA had 73 firm contracts for
Sukhoil SuperJet-100 planes and 31 options. SCA also had firm contracts
with Aeroflot (30 planes), AirUnion (15 planes), DalAvia (6 planes),
Italian airline ItAli (10planes), and the Armenian company Armavia
(2 planes).

With the approximate cost of one plane being 26 million U.S. dollars,
the combined value of the contracts exceeded 50 billion roubles.

Sukhoi SuperJet-100 is a regional plane that is to replace the Tu-134
planes currently in use.

The SuperJet-100 project is a family of regional passenger aircraft
developed by the Sukhoi Design Bureau in cooperation with major
American and European aviation corporations, including Boeing, Snecma,
Thales, Messier Dowty, Liebherr Aerospace, and Honeywell. Prior to
certification testing, the plane has to undergo a series of preliminary
flight tests at the aircraft manufacturing plant in Komsomolsk-on-Amur
in Russia’s Far East. The airliner made its first test flight in May.

Sukhoi SuperJet-100 integrates the world’s best industry practices
and solutions. All aircraft will be certified in accordance with
both Russian and international requirements. SSJ100’s technical and
operational performance make the product fully marketable and capable
of taking a solid share in the highly competitive global market. Thus,
Sukhoi expects to sell 800 aircraft until the year 2024, while the
global demand for the aircraft of this class totals 5,400. So far
the company had secured 73 solid orders for the aircraft.

The SuperJet-100 was formerly referred to as the Russian Regional Jet,
or "Sukhoi RRJ." The name was changed on 17 July 2006.

The aircraft will be equipped with two Saturn/SNECMA PowerJet SaM146

The Superjet-100 is intended to compete against the Antonov An-148,
Embraer E-Jets and the Bombardier CSeries programs. Sukhoi’s director
general Mikhail Pogosyan claims the SSJ will have 10-15 percent lower
operation costs than its Embraer or Bombardier counterparts and its
wider cabin will offer more comfort; at the catalogue price of 27.8
million dollars, it should also be cheaper by 18-22 percent. On the
other hand, both Embraer and Bombardier offer much more comprehensive
after-sales and maintenance network.

SuperJet-100 will in the future provide the basis for a whole family
of planes, including transport and special purpose planes. However now
the main goal is the certification of the plane and serial production
of 60-70 planes annually.

The project is implemented by Sukhoi Civil Aircraft Company created in
2000. Experts say that the SuperJet-100 project will secure Russia’s
leadership on the market of regional planes. Sukhoi Civil Aircraft is
a subsidiary of the famous Sukhoi combat aircraft manufacturer. It
was created to implement the latter’s civilian projects. The chief
task of the company is to develop a regional Superjet-100 plane that
will replace Tu-134 liners that are now in use.

The Sukhoi SuperJet-100 family consists of two types of aircraft of
basic and increased flying ranges with the carrying capacity of 75
and 95 passengers respectively.

The company is trying to make the two types of plane as universal as
possible in order to increase the number of potential buyers.

The design of the plane meets the requirements applicable in Russia,
the Commonwealth of Independent States and the West.