Cuba about to order 10 more jets

Cuba about to order 10 more jets



CUBA STANDARD — Possibly using its leverage with close allies in Latin

America, Cuba may expand a previous order of three An-158 jets with

Antonov Design Bureau and is now negotiating delivery of 10, Russia's

Komersant daily reported.



Quoting Antonov's Deputy General Designer, Alexander Keeva, the

newspaper said the Cuban government has reached an agreement in

principle with the Ukrainian aircraft maker and Russia's Ilyushin

Finance Co., and that the three sides are "getting close" to signing a

final agreement.



Flag carrier Cubana de Aviación this year began operating three new

An-158 jets ordered in 2011, on routes from Havana to Santiago,

Guantánamo, Holguín, Nassau, Santo Domingo, Cancún and Caracas.



During delivery of the third jet at an airshow in Moscow in August, Cuba

reportedly signed an order for the leasing of three more of the

Ukrainian-made mid-range aircraft. The three additional An-158 were

scheduled for delivery in 2014. Russia's Ilyushin Finance Co. will

finance the three aircraft under an agreement with Roseximbank.



Now, Cuba is apparently negotiating delivery of seven more An-158 jets.



Cubana, Antonov and Ilyushin Finance just completed high-altitude tests

with a Cubana An-158 jet in Ecuador and Bolivia. The two Andean

countries, both close allies of Cuba, apparently have expressed interest

in purchasing the jets as well.



"During this expedition, following demands of potential customers from

the region, Antonov … and its partner Ilyushin Finance … conduct the

airplane tests under conditions of alpine airfields," Antonov said in a

press release Nov. 15. "This expedition is an important constituent to

promote the aircraft of the AN−148/AN−158 family into the market of

Latin America."



The An-158 is a midrange, 100-seater derivative of the Antonov-148. The

jet is manufactured under Russian-Ukrainian cooperation with final

assembly in Kiev, Ukraine. Sixty-five percent of its components are

Russian-made; the jet also uses French, German and U.S. parts, but U.S.

components represent under 10 percent, thus avoiding conflict with U.S.

sanctions against Cuba.



Cuban flag carrier Cubana de Aviación is the only airline in the western

hemisphere that flies the An-158.



Since 2004, Ilyushin Finance has delivered three long-haul Il-96 and

four medium-range Tu-204 to Cuba under a Russian state guarantee program

that supports high-tech exports. The guarantees were provided through

state bank Vneshekonombank (VEB), a subsidiary of Roseximbank.



Even though the Russian government has been guaranteeing and guiding

Cuba's aircraft purchases, the going has not always been easy. In 2009,

Flight International magazine reported that Cuba rejected delivery of

one of three Tu-204 ordered in 2007. Cubana de Aviación did not take the

Tu-204-100CE cargo aircraft after Vneshtorgbank attempted to charge a

higher interest rate than the agreed 8 percent.



Cuba went through a pronounced cash crunch in 2008-10, during which it

froze hard-currency accounts and rescheduled debt agreements.



In February this year, Russia agreed to convert the previous purchase of

five jets into a leasing deal. Russia is now leasing three previously

delivered Ilyushin-96-400 long-haul jets and two Tu-204SM mid-range

aircraft to Cuba through South American Aircraft Leasing Co., a

Cyprus-based company with Russian owners. All three An-158 jets are

leased from SAAL as well.



Source: "Cuba about to order 10 more jets « Cuba Standard, your best

source for Cuban business news" -

http://www.cubastandard.com/2013/11/24/cuba-about-to-order-10-more-jets/