Procurement: July 23, 2004

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Peru is negotiating with Ukrainian companies to supply upgrades and repairs for its large fleet (nearly a hundred aircraft and helicopters) of Russian made equipment. Peru took advantage of post Cold War aircraft sales and picked up a lot of inexpensive Russian aircraft, including Su-25 ground attack and Mig-29 fighter aircraft. But these were bought second hand, and the user training and spare parts support was not adequate. Other combat aircraft, as well as helicopters and transports, were bought from Russia just before the Cold War ended, and technical support since then has been shaky. The aircraft have been falling apart, and the Ukrainian companies, which have been doing well upgrading and restoring to full use Russian aircraft, are offering a cost-effective solution. The Ukrainians are also interested in selling Peru new passenger and freight transport aircraft, and the Peruvians know that this kind of business would help guarantee satisfactory performance with the military aircraft maintenance contracts. Ukraine is taking advantage of the poor track record the Russian aircraft companies have in providing long term support for their military aircraft. The Russians are trying to clean up their act, but in the meantime, other countries with aircraft maintenance industries are trying to move in and get the business the Russians have lost. 

 


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