Irkut says in talks with China about JV

By John Bowker

FARNBOROUGH (Reuters) - Russian aircraft manufacturer Irkut said on Monday it was in talks with China over a possible passenger airline joint venture as it begins developing its $6 billion MC-21 civil aircraft project.

Chairman Alexey Federov told reporters that the group -- majority owned by Russia's United Aircraft Corporation (UAC) -- was in discussions with China about collaborating on the project, although it was too early to say whether the talks would lead to a firm deal.

"So far it is a Russian project, but in the near future maybe it is possible to establish a joint venture," he said at the Farnborough Airshow via an interpreter.

He added that deals could also be signed with suppliers looking to contribute to the building of the three-model family, which is expected to launch by 2015.

"We will invite global players ... for all aircraft systems," he said, adding that Britain's Rolls Royce was on the list of contenders.

The MC-21 marks an expansion by Irkut from military to the civil aviation market, which it hopes will account for around half of its business by 2025. Federov acknowledged the firm was unlikely to be able to challenge industry leaders Boeing and EADS, but could become a "third player".

"We would look to gain up to 10 percent of the global market, including the Russia market," he said.

The draft design of the aircraft is expected later this year or the beginning of 2009. Around half the funding is coming from the state.