RUSSIA - Apr. 12 - Apr. 13 - Boeing Deal.

The Aviation and Space Agency and Boeing Co. agree to begin a study on producing regional commercial jets for domestic sale and export. The deal will also cover a wide range of joint initiatives in space, commercial aviation and technology, as well as air traffic management and increased procurement of aerospace materials. In an interview on Apr. 12, Boeing CEO Philip Condit said the company had spotted a potential niche in the Russian market: smaller jets for use in far-flung regions. The challenge will be making them at a cost airlines can afford in this highly competitive market. "It's an opportunity", he said, adding regional planes are "likely to be a very high demand item in Russia, so you have a built-in market to start with". (The aircraft manufacturing industry plunged deep into recession in the early 1990s when government orders for military and commercial planes dried up. At present, the industry remains clogged by dozens of unprofitable producers and small, cash-strapped regional airlines, many of which cannot afford to buy new planes. As a generation of aging jets retires, the more than 200 domestic airlines will need new planes for their fleets). Boeing will work with a group of Russian design companies to determine whether a new regional plane made domestically could compete at home and abroad. Boeing would contribute leasing services and its knowledge of the world market as well as help with certifying the planes to international standards, currently a problem for the producers looking to export.