MOSCOW, October 23 (RIA Novosti) - Russia's United Aircraft Corporation has bought a 100% interest in the MiG aircraft making corporation, UAC said on Friday.
UAC was established in 2006 to help overcome the crisis in Russia's aircraft industry, and incorporates commercial and military aircraft makers including Ilyushin, Tupolev, Sukhoi, Antonov and Mikoyan, as well as companies involved in distribution, including Aviaexport.
Prime Minister Vladimir Putin earlier said MiG Corp had sustained losses of some 11 billion rubles in 2008, with its debt running at 44.8 billion rubles ($1.25 billion).
Apart from the ongoing recession, the MiG corporation has been hit by Algeria's decision to tear up a $1.28 billion contract to buy 34 MiG-29s, signed in 2006, over the planes' "inferior quality." The 15 planes were sent back to Russia.
The corporation also has a substantial debt to suppliers, in particular engine makers and missile manufacturers - reportedly more than $80 million.
Last year, MiG, along with other "strategic" companies, was promised funding through the government's anti-crisis package, specifically firm production orders from the Russian Air Force.
