The Tupolev Tu-214 production line at the KAPO factory in the Tatarstan capital Kazan has received a boost following the issuing of government funding to its backer Finance Leasing Company (FLC).

The Russian government has finally transferred 1.6 billion roubles ($50 million) worth of funding that FLC was awarded in mid-2001, together with Ilyushin-Finance, in a government bid to revive the country's civil aircraft industry. The funding was transferred in exchange for FLC shares, with Russia's ministry for property now owning 58% of FLC.

According to FLC executive director Eugeny Zaritsky, over the next five years the company aims to acquire 10 Tu-214s for onward lease, including two next year and three in 2004. Two Tu-214s are in service on lease to Khabarovsk-based Dalavia - the only operator so far of the longer-range version of the Tu-204.

Meanwhile, KAPO is set to deliver the first of three Tu-214s to Russian governmental airline GTK Rossiya. A total of six aircraft are due for delivery next year.

Source: Flight International