Ilyushin Finance achieves net income of Rb5 billion in 2011

This story is sourced from

Russian lessor Ilyushin Finance Corporation (IFC) reported net income of Rb5 billion (€122 million) for the year 2011. Total profit for the year was Rb250 million, the lessor said at a press conference yesterday.

Assets remained steady at Rb32 billion.

During the year, IFC closed a sale and leaseback transaction with Polet Airlines on an Antonov An-124-100 that helped clear debts with the carrier. The move also enabled the lessor to place a fourth Ilyushin Il-96-400T freighter with the carrier - a deal that is tipped to close "within weeks".

IFC remains committed to the An-148/158 large regional jet programme despite slow production rates in 2011, partly due to the March crash of a Myanmar air force An-148-100E on a crew training mission.

In December, IFC signed agreements with Siberian operator Angara Airlines for three An-148s, with intent to firm up this order during the first quarter.

National Reserve Bank (NRB) reached an agreement with IFC in December to divest itself of its holding in the Russian lessor in exchange for certain Tupolev Tu-204 aircraft with Red Wings airlines, in which NRB is a shareholder.

The move allows further consolidation between IFC and Russia's national development bank, Vnesheconombank (VEB). IFC general director Alexander Roubtsov said VEB is expected to take control over IFC "within months" after all formal procedures are concluded.

When VEB takes control over IFC, the lessor will be excluded from the list of Russia's United Aircraft Corporation member companies.

IFC is also negotiating the purchase of ten Sukhoi Civil Aircraft SSJ100 aircraft and is looking to add turboprops to its asset base.

The lessor is considering Bombardier Dash 8, ATR42/72 and An-140 aircraft, but is believed to be favoring assets from the Canadian manufacturer.