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?