Russia and the UnitedStates have decided to postpone plans for joint production of the second generation SPS-2supersonic jet. American Boeing has withdrawn from the SPS-2 project until at least 2020.Russia will be unable to realise the project alone due to heavy financial requirements,the Economics Ministry said.

NASA has already spent $1.6 billion on the SPS-2 project. With Boeing'swithdrawal, there is no other American company with the technology to participate. TheRussian Tupolev Design Center, Gormova Institute and Central Aerodynamics Institute alsoparticipated in the project.

The future of the unique Tu-144ll supersonic laboratory used for theproject has not yet been decided, the Tupolev Design Center said.

Military Plane Producer To Become Joint Stock Company

Flagship Russian militaryplane producer MAPO is to become a joint stock company. The company will be restructuredin line with a government resolution from February 2, and the necessary documentation forthe creation of a joint stock company will be submitted to the Economics Ministry by theend of March.

The restructuring is the initiative of First Deputy Prime Minister YuryMaslyukov. It will be carried out under close government supervision, Baranov said. Thecreation of a MAPO joint stock company is proof that economic reform in Russia is gainingmomentum as it reaches more important producers, Baranov said.

Currently 12 companies are included in the MAPO structure. In additionto aviation construction companies MiG and the helicopter producer Kamov, the companycontains design bureaux, avionics producers and producers of jet engines and otherequipment.

The company's main products are MiG-29 fighter planes and Kamovhelicopters.

Aviakor To Deliver 10 An-140 Planes To Yakutia

The Samara aviationcompany Aviakor is to deliver 10 newly developed An-140 passenger planes to Sakha Airlinesin Yakutia by 2004, Aviakor Commercial Director Vladimir Ryzhkov said. Under the proposedagreement Sakha Airlines will pay one percent of the overall cost of the contract, whichAviakor will use to begin work on the order. The project will receive financial supportfrom the regional administration. The Samara plant is currently prepared for the serialproduction of the new An-140, certification of which will be completed in the second halfof 1999. The cost effective An-140 is designed to carry 52 passengers and can travel 1,500km without refuelling. Before the financial crisis the An-140 cost $7 million. But it ispossible that the price has now increased.