OREANDA-NEWS. May 13, 2011. The Russian armed forces has ordered seven AN-140 turboprop regional aircraft,  Interfax reported on May 10 quoting Vyacheslav Bohuslaev, the Motor Sich’s CEO. Mr. Bohuslaev added that Russians ordered the transport modification of the aircraft (AN-140-100) turning down the idea of upgrading Russian IL-112 aircraft to military and freight purposes.

Millennium Capital considers the news as slightly POSITIVE for Motor Sich, as the Russian orders may bring another USD  14mn in revenue to the company. The order, however, will not trigger an upgrade to our mid-term sales projections as we believe that the government contract does not flag the return of broad interest towards the aircraft. We will stay cautious on AN-140 until we see firm orders from commercial airlines that do not look feasible unless pricing comes down.