The Hindu : Karnataka News : HAL to evaluate Russian jet project

Online edition of India's National Newspaper
Friday, Feb 11, 2005

Karnataka

Karnataka

HAL to evaluate Russian jet project

By Our Staff Reporter

BANGALORE, FEB. 10. The ambitious Russian Regional Jet (RRJ) project involving India appears set to take off the ground here, with aviation major Hindustan Aeronautics Limited (HAL) appointing SBI Capital as its financial consultant for a full-fledged analysis of the project. Initiated by the Sukhoi Design Bureau, the project has plans to make about 800 regional jets in the next 15 years for the global market. The analysis is expected to begin next week. "We will be doing a detailed cost analysis of the project next week to evaluate the risk-sharing aspects. We intend to take up about 10 per cent of the aircraft manufacturing, which contains empennage, canopy frame and some critical components," the HAL Chairman, Ashok K Baweja, told presspersons at the "Aero-India 2005" here on Thursday.

He said the company wanted to understand the business and financial implications, the costing, the investments by other project partners before going further. "We want to be a little cautious to ensure that the project is viable. After the project study, we will assess its viability." India has expressed its desire to invest $100 million in the venture. The Russian consortium behind the project has proposed to capture 16 per cent of the global market share for the 65, 75 and 95-seater short-haul aircraft. The French aviation majors Snecma and Thales and U.S. aircraft maker Boeing are the other partners in the RRJ project.

The Sukhoi design bureau of NPO Saturn will design and develop the prototype, with SM-146 engines from Snecma, avionics from Thales and body and certification by Boeing, while HAL would make airframe modules for the RRJ, a top HAL official said.

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