Big deal: 20 Sukhoi Superjets to fly in Mexico

A Russian Sukhoi Superjet 100 in Aeroflot livery comes to land ahead of the Farnborough Airshow 2012.

Mexico's Interjet airline has taken up an option to buy 20 Sukhoi Superjet 100 (SSJ-100) planes at the Farnborough air show.

­Superjet International has signed a contract worth $700 million with Interjet to supply it with 20 SSJ-100s said Interjet Chairman Miguel Alemаn Velasco at a press conference at Farnborough.

He said the plane's quality and price were the key factors for the purchase.nterjet originally planned to buy 15 Super jets but later decided to sign up for an additional five.

Velasco also said that the decision to purchase additional Sukhoi planes was not affected by the May crash of a Superjet in Indonesia.

The plane crashed into a mountain during its first demonstration flight from Jakarta, killing all 45 people on board.

The latest investigation report show the crash could have been caused by the carelessness of a ground controller.

However Armenia’s Armavia has decided against buying a second plane, saying it will purchase Airbus and Boeing instead.

Armavia took delivery of the first Superjet 100 in April last year  and began commercial flights immediately. It was supposed to buy a second at the end of the year.

“Armenia is not going to buy it,” the Armavia’s spokeswoman Nana Avetisova said without giving a reason. However, some think it could be the airline has financial problems.

The Sukhoi Superjet is also operated by Russia’s Aeroflot. The airline says it is only using four of its eight brand new Superjets because of problems with the plane’s air-conditioning system.

Sukhoi has received over 200 firm orders for Superjet 100 airliners. At the 16th International Economic Forum in St. Petersburg in June

Russia’s Transaero signed a $212 million deal with Sukhoi for 6 Superjets-100.

The Superjet 100 is a short-medium haul passenger aircraft capable of carrying up to 100 passengers for up to 4,500 kilometers.

It is built as a joint venture between Sukhoi, and the US and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace and Honeywell.

In 2012 Sukhoi plans to supply a total of 20 SSJ planes to countries like Indonesia, Laos and Mexico and to Russia’s Aeroflot and Yakutsk airlines.

Transaero buys Sukhoi planes

Russia's second-biggest airline is buying four Airbus A380 superjumbo planes worth $1.7 billion at list prices, and has placed an order for Russian-made Superjet-100s.

­Deliveries will begin in 2015 said Transaero CEO Olga Pleshakova. The long-haul A380 jets can carry up to 700 passengers, will operate on Asian, Central American and European routes, she said.

Transaero also agreed to buy six Sukhoi Superjet-100 planes, with deliveries in 2015-2017, worth $212.4 million, and also signed an option to acquire 10 more.

The plane, built using Western technology, is Russia's first civil aircraft designed after the fall of the Soviet Union.

A Sukhoi Superjet crashed during a demonstration flight in Indonesia last month killing 45 people, which industry experts said could hamper the plane maker's plans to secure more orders.

However, the airliner had no apparent technical problems, United Aircraft Corporation President Mikhail Pogosyan said on Thursday.

“According to the available data… there were no failures in the systems’ operation,” he said, adding that preliminary analysis of the on-board flight recorders has been completed.

Indonesian and Russian officials have confirmed the aircraft experienced no technical problems up until impact, but insisted it was still premature to say if pilot error caused the crash.

(Would YOU fly in a Russian made airplane?)

Guns for buddies: US weapons sales surge overseas

US foreign military sales have shot over $50 billion. Another record-breaking year is expected thanks to US ally Saudi Arabia, which accounts for three-fifths of the sum.

­"We have already surpassed $50 billion in sales in the fiscal year 2012," Andrew Shapiro, assistant secretary of state for political-military affairs, told journalists on Thursday.

Though it is three months till the end of the fiscal year, the figure already shows a 70 per cent increase over government-to-government military deals in 2011. Last year also set a record for the US with sales at some $30 billion.

“The sale to Saudi Arabia was very significant,” said Shapiro. The $29.4 billion deal finalized in December included 84 new fighter jets and the modernization of 70 old jets.

Former Canadian diplomat Peter Dale Scott told RT that Saudi’s big contribution to Washington’s revenues may be explained by the long standing “arms for petrol” relations between the two countries.

“During the oil price hikes of 1971 and 1973 the US negotiated an agreement to pay Saudi Arabia higher prices for crude, on the understanding that Saudi Arabia would recycle the petrodollars, many of them through arms deals,” said Professor Scott. “So recently the imports of American hardware to Saudi Arabia have grown significantly.”

The record-breaking figure also includes the sale of the Joint Strike Fighter to Japan, which is valued at approximately $10 billion, according to the State Department.

As for direct commercial sales, whereby companies sell directly to foreign governments as opposed to government-to-government sales, an official report released the previous week only accounts for 2011. That year brought US contractors some $44 billion with top customers including Jordan, Japan, Israel, Afghanistan and Pakistan.

How to join the US gun club

Shapiro also pointed out that weapons sales are licensed “to serve foreign policy interests” and brought up the trend of tying defense contracts to diplomacy. Countries willing to buy from the US have to be sure “about the nature of the relationship” with Washington.

“When a country buys an advanced US defense system through our foreign military sales, direct commercial sales or foreign military financing programs, they aren’t simply buying a product. They are also seeking a partnership with the United States. These programs both reinforce our diplomatic relations and establish a long-term security relationship,” said the official.

Can this mean that a country importing US weapons may fall under America’s influence?

“Yes, this link may be correct,” observed Professor Scott. “Hosni Mubarak’s Egypt, for instance, was the third-largest recipient of the US aid, which arrived in the shape of finances and arms. In return, Cairo granted security in the region, which first meant acceptance of Israel.”

Whether 2013 see a further increase in foreign military sales is “too early to predict,” says the US State Department

The US is expected to continue expanding into key markets, including India, which is considering a $1.4 billion deal for 22 Apache helicopters. The US Defense Security Cooperation Agency is also eyeing military sales of more than $1.1 billion to Qatar and Oman, reports ArabianBusiness.com. Qatar is considering purchase of Black hawk helicopters and missile-warning systems, while Oman might be buying missiles and military training kits.

Free weapons for Russia’s backyard?

However, it appears that some Asian countries can get US weapons for free, a report in the Russian daily Kommersant reveals. The Pentagon is engaged in talks with Kyrgyzstan, Uzbekistan and Tajikistan to hand over some of their military hardware after NATO troops quit Afghanistan in 2014.

This would mean distributing armored vehicles, tank trailers, tankers, medical equipment and communication tools – everything which is not worth sending back home due to high transport costs. Pakistan, affronted by continuous drone strikes, has pushed up fees from $250 per container to $5,000.

The US reportedly intends to give away some of its equipment for free, while some of it is to be left behind for secure storage, as it may prove to be of need later – for new operations in Afghanistan or Pakistan or other Central Asian countries.

Kyrgyzstan has confirmed negotiations are under way, but officials do not believe they will get anything valuable.

“This is done to study the three countries leaders’ reactions as well as the reaction of the Shanghai Cooperation Organization and Collective Security Treaty Organization,” an unnamed official in the Kyrgyz Defense Ministry told Interfax news agency.

Meanwhile, the prospects of finding US military hardware in neighboring countries have reportedly thrust Moscow into “utter bewilderment.”

“This kind of scenario is totally unacceptable for Russia. It would contradict our arrangements with Central Asian partners and violate our agreement within the Collective Security Treaty Organization,” a diplomat told Kommersant.