OREANDA-NEWS. June 29, 2012.  General Agreement on Maintenance and Repairs of Turbomeca Helicopter Engines

1.       What is the scope of this agreement, its terms and conditions?

The agreement is aimed at providing qualified maintenance and overhaul services of helicopter engines. It involves maintenance services of Turbomeca’s Arrius 2G1 and Ardiden 3G engines installed on Ka-226T and Ka-62 helicopters provided within Russia and maintenance of Russian-made TV3-117 engine and its modifications, including VK 2500, outside Russia.

High quality engine maintenance services will ensure continuous operation of Russian-made helicopters across the globe, as well as sales growth resulting from increased availability of services.

2.      What is the procedure for helicopter maintenance services under the agreement?

Direct contractors for French engines maintenance and repairs will include JSC Helicopter Service Company and JSC Ural Works of Civil Aviation on the Russian side and a 100% Turbomeca-owned subsidiary established in the Russian Federation specifically for this purpose.

Helicopter Service Company will be responsible for providing Turbomeca engine maintenance for Russian military and government users. For this purpose, Turbomeca certifies JSC VSC as its authorized service center. Relations between JSC VSC and Turbomeca will be governed by a separate contract. JSC Ural Works of Civil Aviation will provide Turbomeca engine maintenance and repairs for Russian military and government users. Relations between JSC Ural Works of Civil Aviation and Turbomeca shall be governed by the License Agreement of Repair Contractor and Maintenance Support Agreement.

Turbomeca and its subsidiaries will be responsible for maintenance and repairs of Russian TV3-117 engines operated outside the Russian Federation.

 3.      What are the underlying documents for maintenance and repairs quality control?

They will include the rules and standards specifically contemplated in the license agreement.

4.   What is the duration of the agreement?

The agreement will be valid until December 2014. During this term, the parties will have to execute the license agreement on engine maintenance and repairs.

4.      What are the delivery dates for Turbomeca engines for Ka-226T and Ka-62? 

The first engines for Ka-226T are scheduled for supply to Russia in October 2012 and Ka-62 engines will be supplied in 2014.

 5.      What is the annual engine supply volume to Russia?

Provided commissioning the production line by 2018, the Ka-226T and Ka-62 engines supply may reach 100 units annually. As long as production cost per unit is about USD 17 million, the annual production is estimated at USD 1.7 million.