Up to five local providers could qualify for loan and subsidy packages

The Russian Government is finalising its strategy to provide financial support for up to five domestic aviation leasing companies.

A formal announcement on the partners selected by the government is due by the end of August.

Moscow's support structure for the leasing concerns will primarily see it provide a mixture of loan guarantees and interest-rate subsidies for supporting the local aviation industry.

The government, which expects to support "three to five" companies, had planned to announce its decision in June, but this was put back to allow more companies to submit proposals. So far, indications are that the main contenders include Ilyushin Finance; Financial Leasing Corp (FLC); a Sibir/Aeroflot leasing partnership; Leader Group; and Tupolev Leasing. A late bidder is believed to be a group called Alliance, which is thought to include Kras Air.

Ilyushin Finance is a purpose-built company set up two years ago to finance Russian aircraft purchases. It has enlarged its capital base to meet government guidelines, and has associations with the Voronezh production plant and Aviastar factory in Ulyanovsk. It has already agreed to support leases by Aeroflot for seven Ilyushin Il-86-300s and one Ilyushin Il-96T; Transaero with 10 Tupolev Tu-204s and Atlant Soyuz with 10 Il-96s.

FLC, based in the Tatarstan Republic, has the support of the Tatarstan Government and Tatneftgaz (the Tatarstan oil and gas corporation). It has already leased two Tu-214s, produced in Tatarstan's capital Kazan by the Kazan Aircraft Production Association, to Dalavia.

The Sibir/Aeroflot leasing partnership was set up at the request of the Ministry of Transport, and will offer at least 20 Tu-204/Tu-154M/Il-86s on lease. It is not yet clear which factory it will link with.

The Leader Group owns the Aviakor factory in Samara which is manufacturing the Tupolev Tu-334 and Antonov An-140, and is setting up a line for the An-70 transport.

Source: Flight International