Russia: Engines to blame for Superjet delay

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Russia has indefinitely delayed deliveries of the Superjet 100 -- its first new civilian aircraft since the fall of the Soviet Union -- due to the engines not being ready, the head of their builder said.

Sukhoi -- best know for making fighter jets -- is developing Superjet 100 in partnership with shareholder Italian aerospace and defence group Finmeccanica SpA. The engines are being produced by Russia's Saturn with France's Safran, while Thales is involved in avionics.

"Sukhoi is in talks with the buyers about new timeframes for delivery of these planes. The engine makers have shifted the timetable of certification. Well, it turned out they were not ready," Alexei Fyodorov, head of Sukhoi owner United Aviation Corporation (UAC), told reporters on Monday.

"I think the problems were indeed technical -- a new engine is being developed. I do not know for what reason. Perhaps there were financial problems too."

Around 100 of the planes have been ordered, and Russian flag carrier Aeroflot is the first in the waiting line.

Last week, Industries and Trade Minister Viktor Khristenko said deliveries will start in the first half of 2010, marking a further delay on the original end-2008 deadline.

Russia is seeking to boost its manufacturing and technology sectors as part of a drive to reduce the economy's dependence on natural resources which made it especially vulnerable to the latest financial crisis.

The Superjet aircraft has been pitched by officials as the new hope for Russia's languishing aircraft manufacturers, whose production has been squeezed out by foreign plane makers such as Boeign and Airbus.

Superjet is a regional jet that can carry between 75 and 95 passengers. It made its maiden flight -- initially planned for 2007 -- in May 2008 and is still undergoing tests.

Separately, UAC's Fyodorov said his company expected revenues of 115-120 billion roubles for 2009, rising to over 150 billion roubles in 2010, and needs to restructure some 70 billion roubles (USD2.4 billion) worth of debt.

Following an additional share issue in October, the Russian state owns over 80 percent of UAC, state bank VEB has a further 11 percent and the rest is held by private shareholders.