Outlook brightens for Ukraine's planemaker

Subject

The outlook for Ukrainian planemaker Antonov.

Significance

The Antonov company has been unable to manufacture aircraft for the past two years, but that looks set to change with the entry of Boeing subsidiary Aviall, which will supply parts and materials that formerly came from Russia. The focus is likely to be on smaller passenger planes rather than the cargo-carrying giants that made Antonov's name.

Impacts

• The Aviall facility is likely to provide services to Boeing entities throughout the post-Soviet region, including Russia.
• The deal may benefit an aircraft repair plant in Belarus, which has a pre-existing contract with Antonov.
• Russia's aerospace group says it may resume An-124 production itself, although it will need to devise complex upgrades.