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June 16, 1997

MiG MAPO Has High Aims

Paris (June 16, 1997) -- In a brief conference today, Russian MiG MAPO officials reaffirmed the organization's position in the world market for both fighter planes and helicopters. Despite questions concerning shrinking defense budgets and government interference, MiG MAPO insists its lofty sales goals for the next two years are realistic.

Last year's sales figures for MAPO totaled $1.05 billion. The organization hopes to reach $7.1 billion for 1977 - 1999. It is not clear how such a dramatic increase will be accomplished.

MiG MAPO was formed 18 months ago under the Decree of the President of the Russian Federation. The organization currently includes 12 companies from both civil and military backgrounds, with 60,000 employees. Although part government owned, MAPO officials anticipate a steady decline in government involvement over time.

MiG MAPO representatives refuted claims that Russia's diminishing defense budget will result in a decrease in sales for its premier fighter, the MiG 29. MAPO dispelled rumors that the Russian government would not buy any more MiG aircraft until 2005, noting that although orders had decreased, their military units were still interested in "purchasing new products." As Sergei Mikheyev, newly appointed chairman of the board of directors for MAPO, states, "Our future is with domestic military projects."

Speculation also surrounds Russian government announcements that by 1999 there will no longer be any unitary organizations such as MAPO. However, MiG MAPO officials insist that the group will continue with the full support of the government.

The MiG 29 is currently on display at the Paris Air Show and remains the group's premier aircraft. The display version has been upgraded with new air-to-air missiles, air-to-surface missiles and bombs. The cockpit has also been reconfigured to provide added pilot comfort. The redesigned fighter demonstrates the capabilities of the organization to upgrade and modernize the aircraft to accommodate the modern market, a function for which MAPO spokesman say the plane was designed.

MAPO recently announced a $180 million contract with Iran. However, MAPO would not comment on contract talks with Bulgaria, a process that has been ongoing for quite sometime. Officials would only say that the technical aspects of the contract have been agreed upon, but the remaining issues depend on Bulgaria. Alexander Anikan, director of exports, followed by stating, "Many countries simple cannot afford fighters at this time." The organization hopes to continue to expand its service support business as well, which now accounts for 25 percent of total revenue.

Two programs that have long been considered dead seemed somehow to have been magically resurrected during the press conference. The highly-anticipated MiG 35 model is currently in the testing phase, according to MAPO, but officials would not say when they expect to publicly unveil the aircraft. In traditional fashion, representatives stated that, for upcoming projects, "When they are ready, you will see them.

Similaryly, MiG MAPO's Ivan Boutko told journalists that MiG's Article 1.42 aircraft has already flown, despite persistent reports from within Russia that the program is doomed due to lack of finances and domestic demand. The most any report has ever suggested before this was that the aircraft was completing ground testing with fast taxiing. It has been widely expected that the aircraft would someday join the Buran in a theme park near Moscow.

While journalists might have been surprised by the pronouncements about the two fighter programs, there remained among them a secret wish to see the two aircraft in flight at a future Air Show. There have even been suggestions that the 1.42 would fly at this August's Moscow Air Show. That thought alone is almost enough to make you book tickets.


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