Vladimir Karnozov / Moscow
Volga-Dnepr discusses financing for new-build Ruslan cargo aircraft with World Bank
Russian airline Volga-Dnepr is in talks with an arm of the World Bank to fund the completion of new Antonov An-124 Ruslans.
Production of the giant An-124 freighter was revived last year at Aviastar's Ulyanovsk plant after a five year hiatus. The first of a new production batch of three An-124-100s was delivered to Volga-Dnepr last August. The Ulyanovsk-based outsize cargo carrier is talking to the World Bank's International Finance Corp (IFC) about funding for the completion of additional An-124s and to upgrade its nine in-service aircraft.
Volga-Dnepr says results of the talks are due by year-end. The airline secured a credit line from Sberbank, Russia's largest bank, to fund last year's delivery, as well as the retrofit of older airframes with additional acoustic linings for noise attenuation, and navigation and communications equipment for flights in the USA and Europe.
The expected IFC funds could pay for further improvements, such as Chapter 4 noise modifications, says Volga-Dnepr. Securing additional financing will help the airline through a difficult period as the An-124 cargo market, which had an value of around $300 million in 2000, is suffering a decline with volumes down 20% so far this year.
Market-dominant Volga-Dnepr and rival An-124 operator Antonov Airlines could be set for a serious challenge by the expansion of Polet Airline's Ruslan fleet. The Voronezh-based carrier has already introduced one ex-Russian air force An-124 and plans to eventually have four aircraft in service. The Ruslans will be deployed on long-range routes from South-East Asia to USA and Canada via the North Pole, using Siberian airports as transfer centres.
Source: Flight International