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"Ilyushin" To Merge  
User currently offlineAviatsiya From , joined Dec 1969, posts, RR:
Posted (15 years 2 weeks 5 days 23 hours ago) and read 1116 times:

First the report as reported by the Uzbek media.


Russia and Uzbekistan are planing to develop and confirm a plan for setting up an international aircraft corporation, which will consolidate the Ilyushin design bureau and the Voronezh and Tashkent aircraft manufacturing enterprises. A relative agreement was reached by the Russian-Uzbek intergovernmental commission in Moscow on Thursday, Russian Deputy Prime Minister Ilya Klebanov told. In Russia, the establishment of the international corporation will be supervised by Head of the Rosaviakosmos aviation and space agency Yuri Koptev.

During the intergovernmental commission, the side have reached an agreement to settle all disputable issues on indirect taxes by June 1, the current year. Under another agreement, a special group comprised of representatives of the Russian and Uzbek finance ministries will start working next week to settle all the debt problems. The commission has also touched upon the problems of joint property, Klebanov said.


After reading this report, I have really taken notice of how it states consolidate and not merge. However, consolidation of business entities can often lead to full blown mergers. Is that would should occur?

We have the situation where Ilyushin and the manufacturers of Ilyushin designs are at the point where there is no money being made from their products.

VASO (Voronezh Aviation Production Association) is responsible for the production of the Il-96 (in all her derivatives, the Il-96-300, Il-96M, Il-96T and Il-96-400). Sales of the Il-96 has been what can be best described as sluggish. Atlant-Soyuz have order 10 Il-96-400s (but the leasing deal is still being organised). Last year China Xinjiang Airlines announced an order for 3 Il-96-300s, but this deal has yet to be finalised (negotiations between the airline and Perm Motors/Aviadigatel are still ongoing).

TAPO (Chkalov Tashkent Aviation Prod. Assoc.) is responsible for the production of the Il-76 and Il-114. The Il-76 is in urgent need of upgrading (mainly the engines...which could probably be done with PS-90As) if they are going to continue to operate in Europe, because of noise regulations. Does anyone know where that program stands at all? We also have the Il-114, which apart from "orders" from Uzbekistan Airways has yet to find a customer (apart from an unconfirmed, unnamed South East Asian Airline).

I know that VASO operates charter flights to Europe with their Il-86s, and TAPO operates cargo charters with their Il-76s. Would I be wrong in assuming that VASO and TAPO get a vast amount of their revenue from the commercial leasing of their aircraft on the commercial markets?

Just what is Ilyushin hoping to achieve in this merger?



5 replies: All unread, jump to last
User currently offlineMx5_boy From , joined Dec 1969, posts, RR:
Reply 1, posted (15 years 2 weeks 5 days 21 hours ago) and read 1066 times:

Does it appear there is any economies of scale to merge?

Does one have more 'modern' manufacturing equipment thant the other?



User currently offlineRIX From United States of America, joined Aug 2000, 1896 posts, RR: 1
Reply 2, posted (15 years 2 weeks 5 days 4 hours ago) and read 1032 times:

Well, it was jut one state-owned enterprise during old Soviet times - a design office plus several factories. It was artificially divided when the USSR ceased to exist, now it is one unit again...

User currently offlineAviatsiya From , joined Dec 1969, posts, RR:
Reply 3, posted (15 years 2 weeks 5 days 4 hours ago) and read 1030 times:


It doesn't really appear to be any economies of scale to merge because each "unit" is involved in it's own operations, and there is no overlapping of production. The only thing that could be "cutback" on is management.

As to how modern their plants are, GOD ONLY KNOWS!! Will try to find out though.


You are right on them being one "unit" under the USSR, but since the breakup of the Soviet Union, Uzbekistan (as far as I can tell from reports) considers TAPO to be an important part of the Uzbek economy. I am just surprised that the Uzbekis are going to allow TAPO to come under the control of Moscow (again). Hence the problems the report mentions about joint property issues.

In the initial report that I posted, it talks of debt. Just who owes who, and what?
Does anyone have any idea of this debt?



User currently offlineGOT From Sweden, joined Dec 2000, 1912 posts, RR: 1
Reply 4, posted (15 years 2 weeks 5 days 3 hours ago) and read 1024 times:

Everything that can make a russian manufacter to a godd competitor to Airbus and Boeing is good in my eyes. Hope that it will be good and that western airlines might order russian a/c in the future.


Just like birdwatching - without having to be so damned quiet!
User currently offlineRIX From United States of America, joined Aug 2000, 1896 posts, RR: 1
Reply 5, posted (15 years 2 weeks 5 days 2 hours ago) and read 1019 times:

Aviatsiya, I'd say I'm surprised too. Maybe the Uzbek part came to conclusion that it is better from the business/competitiveness/quality-of-the-product point of view to be less independent. It looks like a part of some processes inside the CIS - first everybody wanted to be "hungry but free", now some of them agree to be less free but less hungry. Maybe it's far from being what I'm saying but, anyway, aviation is too serious industry to be supported by a poor state, which Uzbekistan I'm pretty sure is...

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