June 16,2008:
Two years ago, China placed an
order for 38 Il-76 transport planes and Il-78s (tanker versions of the Il-76).
It was believed that China was paying close to $40 million per aircraft, but it
turned out that the actual price was half that. This has led to yet another
squabble between China and Russia, as the seller tried to get a higher price
after the deal was agreed to.
Inspired
by the recently retired American C-141, the Il-76 is actually manufactured in
Uzbekistan. That's because one of the Russian aircraft plants moved east during
the German invasion of 1941, ended up in Central Asia, a part of the Soviet
Union that became independent Uzbekistan in 1991. The Chkalov Tashkent Aircraft
Production Company was the only one still manufacturing the Il-76. Over 900
Il-76s were manufactured there over the last thirty years, with nearly a
hundred exported, so far, mainly to Cuba, Iraq, China, India, Libya and Syria.
However,
until this Chinese order came along, Chkalov was surviving by manufacturing
wings and other components for the An-124, An-70 and An-225 transports. In
addition, it made replacement parts for the Il-76 and Il-114 aircraft. The
Chinese order, however, proved more than the Chkalov firm could handle, even
though it had fifteen partly built Il-76s on the production line. So at least
60 percent of the Il-76 production was transferred to a Russian firm
(Ilyushin).
This meant
that the order could not be completed until 2013, rather than 2012. This move
indicated that the Russians believe the Il-76 has a future beyond this Chinese
order. Now the Il-76 will have two production lines, as well as some protection
against political problems in Uzbekistan (which needs the 18,000 jobs the
Chkalov operation creates, but you never know.)
The
Russians, however, were not as willing as the Uzbekis to lose money on the Il-76s
they will be producing, and are demanding that the Chinese pay a price that
will allow for a profit (like about twice what the Chinese are currently
contracted to pay). Negotiations have reached the point where the Chinese are
willing to pay more, but want guarantees that they will not get screwed on
quality and warranty service. There is also talk of changing the contract to provide
the new Il-476. This is basically an Il-76 with more modern engines,
state-of-the art electronics and numerous other improvements. This version can
carry up to 60 tons and is about 15 percent more fuel efficient. Russia wants to get some customers for the
IL-476, so a deal may be done with the Chinese.