Company Vice President Sergei Mashurov said "serious analysis by specialists at Energiya, one of the project's main participants," preceded the decision to begin work. The analysis showed the project was technically feasible and commercially viable.

The first stages of designed on the Vozdushny Start complex resolved the most difficult task: finding a safe method for "drop-launching" rockets from the An-124-VS "Ruslan" carrier.

The first Vozdushny Start launch could come in late 2002 or early 2003, he said.

Design and testing will cost about $100 million. The company plans to raise financing from organizations interested in using the system to launch payloads. Talks are under way with numerous companies in the U.S., Europe, Southeast Asia, and elsewhere.

Vozdushny Start officials believe the company's know-how and other intellectual property is worth roughly $50 million.

Those that provide financing in the initial design stage will receive launch services at minimal prices, he said.

A launch on the Vozdushny Start system will cost roughly $20 million. The company will be able to handle 9 - 11 launches a year, a pace that would allow it to recoup initial expenses in three to four years.

Vozdushny Start includes the Ruslan An-124 heavy transport carrying the Polyot rocket. Once Ruslan reaches the required height and speed, it drops the rocket, whose engines ignite roughly five second later.

The system will be able to launch payloads of up to 3.6 tonnes to altitudes as high as 10,000 kilometers.

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