Russian state-owned industrial and defence firm Rostec is holding negotiations with Canadian aeroplane manufacturer Bombardier over a multi-million dollar joint venture to construct Q400 aircraft in Russia.
If the talks prove successful, Rostec will help manufacture the Q400 turboprop medium range aircraft, reports Reuters.
Rostec chief Sergei Chemezov in an interview with the news agency said that the Russian conglomerate proposed establishing a joint venture with Bombardier to manufacture the aircraft, with investment in the project estimated to be around $100m.
Several aeroplane manufacturers, such as Boeing and Airbus, consider Russia to be an important market.
According to Boeing, over the next two decades, Russia and its neighbouring countries will take deliveries of 1,140 new aircraft worth $130bn, and Bombardier predicts this region would require some 460 70-seat airliners in the next 20 years.
In November 2012, Bombardier announced that it may launch the assembly of its Q400 aircraft in Russia and the company’s representatives had held talks with Russian-based firms.
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By GlobalDataThe company already manufactures the aircraft in Canada, Mexico, Morocco and Northern Ireland and the US.
Although Bombardier has been selling its aircraft in Russia, the launch of a plant for assembly of Q400 aircraft and production of
certain parts would enable it to boost its position in Europe, as well as bring down costs.
Bombardier is looking to compete with domestically built medium-range aircraft such as Antonov An-24s. Currently, the Q400 is facing stiff competition from ATR 72 in the international market.
The company has logged more than 460 firm orders for Q400 and its stretched version Q400 NextGen turboprops, with more than 40 operators worldwide using the aircraft.
Bombardier is exploring newer markets and intends to appoint a dedicated sales person to deal with the Japanese market in order to sell its new CSeries aircraft, which is expected to enter service in 2014.
Image: Bombardier has logged over 460 firm orders for Q400 and its stretched version Q400 NextGen turboprops. Photo: file image.