Sukhoi Ditches U.S. Passenger Jet Project

Sukhoi Ditches U.S. Passenger Jet Project

Russia`s fighter-jet maker Sukhoi said Tuesday it was pulling out of a deal with
U.S.-based startup venture Alliance Aircraft Corp. to jointly produce its first
civilian passenger plane.

Sukhoi said in June that it hoped to begin joint production of the StarLiner by
2003. Alliance`s CEO Earl Robinson told Reuters at the time that a letter of
intent for 30 aircraft had already been signed.

Sukhoi spokesman Yuri Chervakov told Reuters that months of talks on a new
family of 50-110 seat regional airliners had failed to provide results and it
had finally decided to abandon the project late last week.

``We gave up on the project because we were not satisfied with the conditions
being offered,`` Chervakov said. ``We will not consider returning to it.`` He
gave no other details about the decision.

The programme would have added a fourth manufacturer of regional jets to a
burgeoning market dominated by Canada's Bombardier Inc., followed by Embracer
and Fairchild Dornier.

Chervakov added Sukhoi had not given up on intentions to produce a civilian
aircraft of its own. The firm is working toward beginning production of a
business jet by 2010.

/REUTERS/
www.avia.ru/english/