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Rostec Ready for 737 MAX Out of Court Deal with Boeing

MOSCOW (Reuters) – A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec’s subsidiary Avia Capital Service told Reuters.

Boeing MAX 737 jets have been grounded worldwide and airlines are cancelling multimillion contracts following crashes in October and March that killed 346 people.

Earlier on Tuesday, Rostec said its unit had filed a lawsuit in the United States to cancel its order for the 35 MAX jets. The Financial Times, which first reported the move, said Avia Capital Service gave Boeing a cash deposit of $35 million.

A spokesman for Avia Capital Service told Reuters that delivery of the jets was first scheduled for October 2019 but was moved to March 2022. The Rostec unit had paid Boeing a deposit and was suffering losses from non-delivery, he said.

“If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered,” he said.

He added that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot.

Russia is mainly using Boeing and Airbus jets for passenger flights, with a number of domestic airlines also adding Russian-made regional Sukhoi Superjet aircraft to their fleets.

The Rostec subsidiary now wants the deposit to be returned by Boeing with interest, along with $75 million in “lost profit” and about $115 million in compensatory damages, plus “several times the amount” in punitive damages, the FT said.

Rostec declined to provide further details about the lawsuit.

(Reporting by Gleb Stolyarov; writing by Anton Kolodyazhnyy and Tom Balmforth; Editing by Sherry Jacob-Phillips/Katya Golubkova and Emelia Sithole-Matarise)

Piaggio Aerospace awarded aircraft maintenance Contract

The Italian manufacturer will provide ENAV – the Italian air navigation service provider – with the maintenance of the four P.180s used for flight inspection activities at national airports.

Piaggio Aerospace has been awarded a contract for the maintenance of the P.180s owned by ENAV, the company that manages civil air traffic in Italy. The agreement, with an estimated duration of approximately 7 years, is worth 12.6 million euro and will guarantee integrated logistic support for ENAV’s fleet of four P.180 Avanti II.  

“The agreement signed represents a further step forward in the turn-around process of Piaggio Aerospace”, commented Vincenzo Nicastro, Extraordinary Commissioner of Piaggio Aerospace. “While strengthening the backlog of the Genoa factory-owned service centre, it also confirms the unique expertise of the company in the airframe MRO domain, consolidated throughout decades of activities”. 

The ENAV P.180s perform an average of 1,800 flight hours per year. Thanks to their special equipment, they carry out regular measurements and calibration of airport navaids (Radar, VOR, DME, VDF, ILS etc.) in order to guarantee their continuous operational accuracy, essential for the safety of air navigation.

 A similarly equipped P.180 will be showcased at MAKS ’19, the international air show that will be held at Zhukovsky International Airport (Moscow) from August 27 to September 1. A delegation of Piaggio Aerospace will also be present at the air show.

Ural Airlines Set to Receive First Boeing-737 MAX in December

MOSCOW (Reuters) – Russian airline Ural Airlines plans to receive the first of 14 previously ordered Boeing-737 MAX aircraft for leasing in December, Interfax news agency reported, citing its chief executive Sergei Skuratov.

Two Boeing MAX aircraft crashed in Ethiopia in March and Indonesia last October, triggering the global grounding of the aircraft. Regulators must approve the fix and new pilot training before the jets can fly again.

“These are good aircrafts. Mistakes have been made, but they are going to be fixed,” Skuratov was quoted as saying by Interfax.

Ural Airlines signed a deal for the leasing of 14 Boeing-737 MAX 8 in the spring of 2018. The delivery was expected between October 2019 and May 2022, Interfax said.

When asked whether the company considered cancelling the deal, Skuratov told the agency that “Boeing has certain advantages: seven hours 45 minutes (of flight) without refueling fully loaded.”

Ural Airlines plans to receive its first Airbus A320neo in August with an additional four jets expected to arrive by the end of 2019, he added.

(Reporting by Polina Devitt,; Editing by William Maclean)

Sukhoi Superjet 100 Involved in Deadly Fire

This image taken from a video distributed by Russian Investigative Committee on Sunday, May 5, 2019, shows the Sukhoi SSJ100 aircraft of Aeroflot Airlines on fire, at Sheremetyevo airport, outside Moscow, Russia. At least 40 people died when an Aeroflot airliner burst into flames while making an emergency landing at Moscow’s Sheremetyevo airport, officials said early Monday. (The Investigative Committee of the Russian Federation via AP)

FRANKFURT, Germany (AP) — The Aeroflot-operated SSJ100 passenger jet that caught fire during an emergency landing in Moscow is part of Russia’s efforts to maintain a presence in civil aviation in a market dominated by companies like Boeing, Airbus and Embraer.

Here’s a quick look at the SSJ100 and the Russian company that built it, the Sukhoi Civil Aircraft Company:

THE PLANE

The SSJ100, or Superjet 100, is a short- to medium-haul narrow body jet with two engines that can be configured to carry up to 103 people.

At that size, it’s intended to substitute for larger planes such as the Boeing 737 or Airbus 321 on shorter, less travelled routes and during slower travel seasons. Regional aircraft are an important part of Russia’s transportation system, given the country’s enormous distances and many remote towns. The Superjet succeeds older, Soviet-built planes such as the Tu-134 airliner.

The plane is built at the Sukhoi Civil Aircraft Company’s plant in Komsomolsk-on-Amur in Russia’s distant Far East region. Although the design is Russian, the company says it uses the latest Western technology as well. The engines are made by PowerJet, a joint venture between France’s Safran Aircraft Engines and Russia’s Saturn.

The Sukhoi Superjet 100 aircraft of Airflot Airlines, center, is seen after an emergency landing in Sheremetyevo airport in Moscow, Russia, Sunday, May 5, 2019. (Moscow News Agency photo via AP)

The plane first flew in 2008 and entered commercial service in 2011. It is certified by the European Union Safety Agency but is mainly used in Russia and has not made much headway against international competitors, not just from Boeing and Airbus but also from Brazil’s Embraer.

Aeroflot is the biggest client with 50 of the planes. Mexico’s Interjet said Sunday it operated five of the planes “under the highest safety standards.”

Interjet earlier operated 22 Superjets but referred in a recent earnings report to the “gradual phase out of the fleet of SSJ100.” The company reported lost sales after the planes were grounded due to a defect in the tail section in December 2016 and said it was seeking “contractual recovery of amounts related to maintenance costs” for the planes.

Ireland’s CityJet, which supplies planes and crews to other airlines, stopped operating several Superjets in January.

People gather around the damaged Sukhoi SSJ100 aircraft of Aeroflot Airlines at Sheremetyevo airport, outside Moscow, Russia, Monday, May 6, 2019. Russia’s main investigative body says both flight recorders have been recovered from the plane that caught fire while making an emergency landing at Moscow’s Sheremetyevo Airport, killing at least 40 people on Sunday. (AP Photo/Pavel Golovkin)

THE COMPANY

The Sukhoi Civil Aircraft Company bears the name of the legendary Soviet aircraft designer, Pavel Sukhoi, who was responsible for a series of Soviet military aircraft starting before World War II.

Today’s firm is part of Russia’s United Aircraft Company, which consolidated many of the legendary names of Soviet aviation such as MiG, Sukhoi, Tupolev and Yak. UAC was established by a decree from President Vladimir Putin in 2006 to promote the Russian aircraft industry, which is seen as essential for the security and defense of the country. Much of its production goes to the military, while the SSJ100 is the key project aimed at maintaining a Russian presence in civil aviation.

TROUBLES

On May 9, 2012, a demonstration flight hit Mount Salak in Indonesia, killing all 45 on board, after the pilot disregarded six alarms from the terrain warning system on the apparent assumption there was a problem with the terrain database, according to the report from Indonesia’s air safety regulator. The plane had unintentionally left a circling pattern after the crew was distracted by a prolonged conversation not related to flying the plane.

And a Superjet skidded off the runway at Iceland’s Keflavik airport in 2013 with landing gear up during flight certification tests involving landing on one engine; one crew member suffered minor injuries.

In this photo taken on Tuesday, April 30, 2019, the Sukhoi SSJ-100 aircraft of Aeroflot Airlines that made an emergency landing on Sunday, May 5, 2019 in Moscow’s Sheremetyevo airport, takes off from the Siberian city of Tyumen, Russia. Russia’s flagship airline Aeroflot says the plane that caught fire at Moscow’s Sheremetyevo Airport, killing at least one person, had been forced to turn back after taking off for the city of Murmansk because of technical reasons. (AP Photo/Marina Lystseva)

Boeing To Help Ukrainian Plane Maker Antonov

KIEV (Reuters) –  Ukrainian plane maker Antonov, known for producing the world’s biggest aircraft, plans to restart serial production by the end of next year thanks to a deal with Boeing that will end Antonov’s dependence on Russia.

Relations between Ukraine and Russia collapsed following the annexation of Crimea in 2014 and Antonov, which imported more than 60 percent of its plane parts from Russia, halted serial production two years later.

It now plans to build eight planes a year thanks to a deal with Aviall, Boeing’s parts, equipment and services unit, with the first two or three planes ready by the end of 2019, Antonov chief Oleksandr Donets told Reuters in an interview.

He gave no details on future customers. Antonov’s main sales markets have been Russia, the former Soviet republics and Africa.

The companies will jointly set up storage facilities in Ukraine by November, he said.

“(The agreement with) Aviall has given us two gains. We are setting up a joint warehouse, located on Ukrainian territory in (the city of) Gostomel,” Donets said.

“This warehouse will deal with products, materials, metals, non-metals – with all the components which we are not able to get from our former partner, the Russian Federation.” The warehouse could cost tens of millions of dollars, Donets added, to be funded by Aviall.

Antonov was founded in 1946 and has manufactured some 30 different types of airplane including the two biggest air cargo planes – the An-124 Ruslan and An-225 Mriya.

Mriya, built in 1988 for the Soviet space shuttle programme is still the world’s largest and heaviest plane which is able to carry a cargo of up to 250 tonnes.

Ukraine’s leaders are pushing the country on a pro-Western course, aspiring to join the European Union and NATO while cutting trade and diplomatic ties with Russia and weaning itself off dependence on Moscow in sectors like defence and energy.

Ukraine no longer imports any gas directly from Russia and in July completed another milestone as, for the first time, a unit at one of its nuclear power plants was fully loaded with fuel from U.S. firm Westinghouse rather than from Russia.

Aviall will support Antonov’s new manufacturing programme to build the AN-1X8 planes and will have exclusive rights to help service the planes, Donets said, envisaging that Aviall will source parts from the United States, Canada, Israel and Europe.

Antonov also wants Aviall to procure equipment for Antonov to produce more parts domestically, he said.

Boeing rival Airbus also made a recent foray into Ukraine, announcing an agreement in July to sell 55 helicopters to the interior ministry for search and rescue, public services and emergency medical service missions.

By Pavel Politick; Writing by Matthias Williams; Editing by Alexandra Hudson

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