Russia's largest commercial aircraft manufacturer Aviastar is bidding to carve out a niche in Asia by proposing to set up a joint venture aircraft assembly, marketing and maintenance centre in Taiwan.
The Russian firm, which already has a marketing presence in Taipei, aims to assemble the medium-range Tu-204 in Kaohsiung and promote it as a cheaper alternative to western aircraft in the region. Analysts believe Aviastar face an uphill struggle for sales.
During a visit to Kaohsiung Aviastar vice chairman Nikolai Katchalov invited Taiwanese investors to 'cash in' on the proposed joint venture project. Local authorities have already offered to provide a site for an assembly plan on reclaimed land to the south of the city.
Katchalov, whose mission included a number of Russian bankers and investment specialists, says the project would cost around US$72 million and could generate some US$360 million in aircraft leasing, electronics and telecommunications business.
Aviastar is the third aircraft manufacturer to attempt to set up an joint venture in Taiwan, following failed attempts by McDonnell Douglas and British Aerospace. And regional analysts hold out little hope for the latest proposed venture, despite a lower list price some 30 per cent below western equivalents like the B757 and A321. 'Even in the region's communist countries, airlines are clamouring to operate Western equipment and Russian aeroplanes do not have the best of reputations,' says a Taipei-based analyst.
Local airline officials also suggest there will be little interest in the Tu-204, and say it might also be difficult convincing Taiwanese investors to put money in the project.
Tom Ballantyne
Source: Airline Business
