HAL-Sukhoi JV for passenger jets likely

Hindustan Aeronautics Limited (HAL) has evinced interest in exploring the possibility of forming a joint venture with the Russian Sukhoi aircraft manufacturer to produce a passenger jet.

"We are exploring the possibilities of participation. While trying for a joint venture for the jet aircraft, we are studying the viability of the project," senior officials of Bangalore-based HAL said here.

The officials were talking to a group of Indian newsmen at the MAKS 2005 airshow which concluded last week. It was the first time that HAL had put up its stall at the airshow.

Under the Russian Regional Jet (RRJ) programme, Sukhoi aviation holding is developing a family of jets to carry 60, 75 or 95 passengers. Co-designed by Boeing, the jet is scheduled to make its maiden flight by 2007 with deliveries set to begin in 2008, sources in the company's civil aircraft division said.

Sukhoi proposes to sell 800 jets by 2020, most of them abroad, they said.

HAL has already appointed SBI Capital as financial consultant to evaluate the viability of investing in the Russian-led consortium to manufacture a family of regional jets for the global market.

India has already expressed its intention to invest usd 100 million in the venture which expects to corner about 16 per cent (about 800 aircraft) of the total market share for the short haul aircraft.