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Russian-U.S. Small Airliner Planned

MOSCOW (Reuters) - Russian aircraft designers Sukhoi and Ilyushin are working with Boeing Co to design and produce a locally built short-haul airliner by 2006, a Sukhoi spokesman said Monday.

Yuri Chervakov told Reuters the first 'Russian Regional Jet' would roll off the production line in 2006 and is due to receive its Russian and international flight-worthiness certificate the same year.

The venture, to be financed equally by the three companies, is scheduled to be discussed by Russian President Vladimir Putin and President Bush when they meet in Russia on May 23-26, Chervakov said.

But work on the plane is already well under way, and the three firms are planning to announce in June the results of a tender competition to produce engines for the jet, he said.

The airliner, seating 55, 75 or 95 passengers depending on the variant, will be produced in Russia and will have a range of up to 3,750 miles.

Chervakov said world market demand for the plane was estimated at 600 to 700 aircraft but declined to say what the price tag would be. Russian media have put the cost of the project at $500 million.

The global market for airliners seating few than 100 passengers is already very well supplied, partly because many countries have seen it as a way of getting into the industry without taking on the bigger manufacturers Boeing and its arch rival Airbus SAS .

Embraer SA of Brazil and Canada's Bombardier Inc both offer products, as does the insolvent German-American company Fairchild Dornier.

China has a plan for its own tailor-made regional jet and the Russian plane designer Tupolev has another.

BAE Systems Plc , a big British defense company, gave up on the market late last year and closed its regional-jet production line.

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Jet Delta's Big Flies

Romania is #1

I think this will be good for Russia's airline industry.