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NPO Saturn and Snecma Moteurs create a joint company for the development of SaM146 engine

Farnborough, July 21, 2004

NPO Saturn and Snecma Moteurs have made an important step in their collaboration by creating a joint venture which will be in charge of the management of the SaM146 Propulsion System program for the Russian Regional Jet (RRJ). The new company called PowerJet, will be in charge of the entire SaM146 program management, including design, production, marketing and customer support and services. PowerJet will have two operating entities, one in France and one in Russia. It will capitalize on the industrial capabilities of the two parent companies to optimize the Propulsion System program process.

"PowerJet offers a major opportunity for the Russian aviation industry, at a time when it is ready to reenter the global regional transport market," said Yuri Lastochkin, Chief executive officer of NPO Saturn.

Snecma Moteurs Chairman and CEO Marc Ventre added: "PowerJet consolidates the partnership between Snecma Moteurs and NPO Saturn. With PowerJet we are in a position to exploit the expanding regional market which will continue to grow rapidly over the next two decades."

Sukhoi selected the SaM146 Propulsion System, developed by Snecma Moteurs and NPO Saturn, to power the new Russian Regional Jet (RRJ) aircraft family in April 2003. The RRJ is being developed by Sukhoi Civil Aircraft with support from Boeing. Sukhoï plans to deliver from 800 to 1,000 RRJs until 2022 and has just announced the signature of an agreement for the purchase of 50 RRJ-95 aircraft by Siberia Airlines.

The SaM146 will power all versions of the RRJ – 60, 75 and 98 seats, basic and long-range – providing commonality that will give operators substantial savings. Major airlines worldwide have already expressed interest in this new regional aircraft.

To complement their industrial collaboration, NPO Saturn and Snecma Moteurs will create a joint production company, which will make components for the SaM146, as well as parts and modules for other engines manufactured by the two companies, such collaboration in production of commercial engine parts having started since 1995.

Construction of an open-air test stand for the SaM146 development program has started. It is located at NPO Saturn’s test center near Rybinsk. This 20 million dollar facility will handle both performance and certification tests. It will be among the world’s most modern installations of this type and will play a major role in engine development.

PowerJet - 2, boulevard du Général Martial Valin – 75015 Paris - France