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. Last Updated: 07/27/2016

Deripaska May Produce Bombardier

bloombergEmployees working on a Q300 model at a plant in Toronto. Production of the aircraft could be moved to Samara.
Billionaire Oleg Deripaska is in talks with Bombardier, the world's third-biggest maker of commercial aircraft, to assemble its turboprop model, Kommersant said Tuesday. Deripaska's spokesman Georgy Oganov said the talks were on general cooperation.

Deripaska discussed the production of the Dash 8 Q300 model at his Aviacor plant in Samara with Bombardier CEO Laurent Beaudoin, Kommersant reported Tuesday.

Economic Development and Trade Minister German Gref said Monday that during the World Economic Forum in Davos one large aircraft manufacturer agreed to sell Russia a 53-seater model along with the production plant, technology and documentation, the newspaper said.

"I can confirm that we spoke to Aviacor," Bombardier spokesman Marc Duchesne said. "Russia is a very interesting market. These are exploratory talks and nothing has been signed. The discussions are confidential."

If the deal is confirmed it would be the first foreign-branded aircraft to be assembled in Russia, Kommersant reported.

On Monday, United Aircraft Corporation chairman Alexei Fyodorov said the country would require around $13 billion to carry out a five-year program to build long-haul and regional planes, Interfax reported.

"This year will be crucial, as $5.4 billion in state investments will need to be made this year," Fyodorov said after a meeting of the government's military industrial commission, the agency reported.

Deputy Prime Minister Sergei Ivanov, who chaired the meeting, agreed the civilian aviation production sector was in crisis.

"The aircraft used by most Russian airlines are obsolete and outdated and have to be renovated," Ivanov said.

"The average long-haul plane is 18 years old. Meanwhile, regional planes, it is scary just to say it, are 30 years old on average."

(Bloomberg, MT)