Week of October 13, 1997

The Latest On Aeroflot's Fleet Plans

By Vovick Karnozov

At a press-briefing last week, Igor Desyatnichenko, director of economics department with Aeroflot - Russian International Airlines (ARIA) detailed the company's plans in the aircraft-acquisition area. Along with 20 Il-96M/Ts and 10 Boeing-737-400 ordered earlier, the national flag-carrier ordered two Boeing-777s and two A-310s.

ILYUSHIN

Desyatnichenko says that the Il-96M/T project remains the paramount. ARIA is going to take its first Il-96T freighter for operational trials by "no later than early November." Two other planes of the type will follow in 1998. This would allow the 13-strong Il-76 fleet to be reduced down to 5 or 6, to be used only for transportation of bulky equipment, including tracked vehicles. According to Desyatnichenko, the second Il-96T will cost an estimated $63 million "in manufacturing." [bank interest rates].

According to the initial scheme, the first 17 Il-96M passenger airliners ordered should enter service by the third quarter of 1999. However, Desyatnichenko admits, with the current rate of construction VASO factory may not be able to deliver its obligations on time. Despite the anticipated delays, Aeroflot is ready to carry on with the Il-96M/T project.

Before the Il-96M becomes operational, ARIA will continue to fly 12-13 Il-62Ms (out of 22 it has) on long-distance routes within the CIS. Desyatnichenko says that the work-load on the Il-62s are very high now, with each serviceable airframe flying 12-13 hours daily. Such intensive usage is caused by recent addition of many new inner routes to ARIA network. Gradually, the company increases load on its six Il-96-300s, giving them more job on new routes from Moscow to the Russian Far East.

BOEING

As a logical step in preparations to the arrival of the 314-seat Il-96Ms, ARIA has decided to hire two Boeing-777s from LA-based International Lease Finance Corporation (ILFC). Desyatnichenko says that Aeroflot inventory does not contain long-range airliners in the 300-seat class capacity: Il-96-300 has 235 seats, A310s from 183 to 189, and the Boeing-767 has 228 seats. Desyatnichenko claims "the two triple sevens will help to warm up the market for the Il-96Ms".

On September 19, ARIA signed a letter of intent to order two Boeing- 777-200s powered by GE-90-85B engines in 311-seat layout (12 first, 50 business class seats) for seven years. The first aircraft will arrive in April with a second following in October. To handle them, 16 Russian crew teams will be prepared. Desyatnichenko admitted that this figure is more than just enough, hinting at possible follow-on orders. Exact routes for the new airliners featuring a range of 9,800-km will be selected in November. Although financial details of the deal have not been determined yet, ARIA has managed to find financial sources to make a 15 percent pre-payment for the Boeing aircraft.

1998 will be critical for the Russian flag- carrier. Company pilots will have to master three new types, the Il-96T, Boeing-777-200 and 737-400. By the end of 1998, ARIA will acquire eight 737s, with the first one due to arrive in April. Aeroflot is preparing a contract with CFMI on maintenance of CFM-56 engines to be set up by CFMI specialists at ARIA's technical center in Moscow.

TUPOLEV

With a heavy political support from the Tatarstan Government, Gorbunov's Aircraft Production Association of Kazan (KAPO), the Tupolev design bureau continues to press Aeroflot in order to sell more Tu-214 mid-liners. Desyatnichenko says five airframes are now being considered. And ARIA is being courted by the newly-formed Moscow Aviation International company, specializing in leasing of the Tu-204s with Perm Motors PS-90 engines in production at Aviastar factory in Ulianovsk.

According to Desyatnichenko, MAI offers seven Tu-204s on "quite good terms for a Russian lessor." Although, lots of questions still need to be signed before an agreement will be ready for signing.

"We do not reject the very idea of taking Tu-204s, even with PS-90s," he said. Slowly but surely Perm Motors improve reliability of the PS-90. Now, their 'on-wing' life on ARIA Il-96-300s is over 4,000 flight hours.

Desyatnichenko pointed out that arrival of many new planes will not entail withdrawal of old Il-62Ms, Tu-154s, Tu-134s - these latter types will have lots of work on the rapidly-expanding network of inner routes. Regarding the Il-86 mid-range wide-body with 340 seats, Desyatnichenko says this type has proved very profitable and irreplaceable on relatively short charters flown in the interests of tourist companies. It is worth noting that two Boeing-767s will remain in ARIA inventory after Fall 1999 when the five-year operating lease agreement is expired.

A-310

On September 12, ARIA and General Capital Aviation Service (GCAS) signed a protocol for a five-year operational lease for two A310-300s with CF-6-80C2F2 engines in two-class layouts (24 first class and 162 economy class seats). Those will come in December this year after modernization of avionics and kitchen equipment. In January, the two aircraft will start flying scheduled services. Both A-310s were manufactured in 1988 and recently were used by Holland and Spanish charter operators.

Meanwhile, ARIA and Diamond Sakha agreed to stop joint usage of the two A310s taken in financial lease back in the Soviet times by the end of the year. The Russian Government and ARIA will no longer be bearing guarantees before Airbus, with the government of Sakha's autonomous republic taking over.