Daily Management Review

Boeing In A Deal With The World’s Biggest Aircraft Manufacturer


Ukraine’s plane maker’s joint venture with Boeing aligns with the country’s attempt to turn pro-western by carving a space into the EU.

Antonov is a Ukrainian plane manufacturer; it is recognised for making the biggest aircraft in the world, whereby the company is planning to go back on serial production by the “end of next year”. This decision has been fuelled by a deal with Boeing, reports Reuters, as the said contract will relieve the former’s “dependence on Russia”.
In the year of 2014, after the “annexation of Crimea”, the Ukraine-Russia bond crumbled down. Antonov used to import over 60% of its “plane parts from Russia”. However, given the turn of events, in 2016, the company stopped its “serial production”. At present, the company is planning to create “eight planes” on an yearly basis after striking a deal with Aviall, the latter being “parts, equipment and services unit” of Boeing.
Moreover, the first two to three planes will be made ready by the “end of 2019”, informed the Chief of Antonov, Oleksandr Donets. However, he did not provide any details on the company’s “future customers”, while the main sales sector for Antonov have been “Russia, the former Soviet republics and Africa”.
Furthermore, he also informed that both the companies will together establish “storage facilities in Ukraine by November”. In Donets’ words:
“(The agreement with) Aviall has given us two gains. We are setting up a joint warehouse, located on Ukrainian territory in (the city of) Gostomel”.
“This warehouse will deal with products, materials, metals, non-metals - with all the components which we are not able to get from our former partner, the Russian Federation.”
Aviall will be funding the warehouse which could cost “tens of millions of dollars”. From the time Antonov was founded, in the year 1946, the manufacturer created around “30 different types of airplane” which even include “the two biggest air cargo planes”, namely “An-124 Ruslan and An-225 Mriya”. The latter was built in 1988 which was used in the “Soviet space shuttle programme” and till date remains the “largest and heaviest plane” in the world capable of carrying “a cargo of up to 250 tonnes”.
The leaders of Ukraine are trying to push the country towards a pro-Western approach with the wish to be a part of the “European Union and NATO” besides severing ties, be it diplomatic or trade, with Russia. This way, the company wants stop leaning on Moscow for acquiring support from its energy and defence sectors. Ukraine has stopped direct trading of any gas with Russia. Moreover, the country has completed a milestone by fully loading the fuel of its “nuclear power plants” from “U.S. firm Westinghouse” in July, wherein Russia was not at all involved.
According to reports, the new production of Antonov will be supported by Aviall, whereby the plane manufacturer will create “the AN-1X8 planes” while acquiring the “exclusive rights to help service the planes”. The part required for the manufacturing will be sourced from the “United States, Canada, Israel and Europe”. In fact, Antonov wants Aviall to obtain equipments so that the company can produce “more parts domestically”.
While, Reuters added:
“Boeing rival Airbus (AIR.PA) also made a recent foray into Ukraine, announcing an agreement in July to sell 55 helicopters to the interior ministry for search and rescue, public services and emergency medical service missions”.