Air Transportation: The Source Of Last Resort For Rogue Nations

Archives

August 26, 2007: Russia's civil aviation manufacturing industry is struggling, but surviving. They manage that by selling aircraft to anyone, at bargain prices. For example, Iran just bought (or leased, actually) five Tu-204s for $40 million each. These 100 ton aircraft are roughly equivalent to the $65 million, 115 ton Boeing 757 (1,050 were manufactured between 1983 and 2005, when production stopped). So far, Russia has sold about a hundred Tu-204s, which entered service in 1989. Cuba has also bought Tu-204s, as have a number of cash-strapped countries that need to carefully consider price. The Tu-204 can be configured to carry freight or passengers. The Russian government has adopted Western style incentives, like leasing and generous financial terms. Added to that are typically Russian sales techniques, meaning that Russia becomes the source of last resort for rogue nations. Russian manufacturing standards have risen considerably since the end of the Cold War. Not quite as good as in the West, but good enough, especially when Russian aircraft can be had for about a third less than equivalent Western modes.

 


Article Archive

Air Transportation: Current 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 1999 


X

ad
0
20

Help Keep Us Soaring

We need your help! Our subscription base has slowly been dwindling. We need your help in reversing that trend. We would like to add 20 new subscribers this month.

Each month we count on your subscriptions or contributions. You can support us in the following ways:

  1. Make sure you spread the word about us. Two ways to do that are to like us on Facebook and follow us on Twitter.
  2. Subscribe to our daily newsletter. We’ll send the news to your email box, and you don’t have to come to the site unless you want to read columns or see photos.
  3. You can contribute to the health of StrategyPage. A contribution is not a donation that you can deduct at tax time, but a form of crowdfunding. We store none of your information when you contribute..
Subscribe   Contribute   Close