Island.

The Republic's national airline is to `land' a dozen brand-new Boeing jets in the biggest-ever single sign-up to Bermuda's Aircraft Register.

It is the first time the former Soviet Union national airline has registered planes on the Island -- worth around $400,000 a year to Government.

A total of ten Boeing 737-400s and two of the new 777s will join the Bermuda Aircraft Register after the American manufacturers pioneering deal with its ex-Cold War rival.

And another $200,000 in annual fees will be in the air headed to Bermuda when the Russians register four more aircraft -- 767 models -- from the world's biggest plane builder in 1999.

Yesterday Transport Minister Wayne Furbert -- who sealed the deal last week with Aeroflot's chairman Valery Okulov, the son-in-law of Russian president Boris Yeltsin -- said: "It's a great coup for Bermuda.

And he said he was confident more of the carrier's 300 planes would be registered with Bermuda's unique VR-B mark on the tail as the Russians replace their fleet of ageing ex-Soviet planes with modern models from the west.

Mr. Furbert said: "It's the first time Boeing have ever delivered to Aeroflot and certainly the largest number of aircraft to have been committed to the Bermuda Register at one time by a single company.'' And he added: "Aeroflot's confidence in selecting Bermuda as the jurisdiction for the registration of these aircraft is an endorsement of our good reputation and high standards with respect to our legal, financial and aviation regulatory structure.

"And as other jurisdictions see this kind of transaction, they will be looking very closely at Bermuda.'' Mr. Furbert praised the work of Director of Civil Aviation Herman Tucker and his team for a year's hard work bringing the new registrations to Bermuda.

The move lifts the Bermuda Aircraft Registry to a sky-high total of 126 planes -- a nine percent increase at a single stroke.

The sale and lease deal was struck in a unique Russian/US/Bermuda link-up brokered by American bank EXIM and thrashed out by the Transport Ministry team.

It is understood the Russians were happy to buy aircraft from the US -- but were reluctant to register them there for reasons of national pride.

And the bankers -- aware of Bermuda's solid reputation as a Registry -- suggested the Island as a legal home for the Boeings.

Mr. Tucker said: "We're delighted to have these aircraft -- the Russian authorities seem to be pleased by Bermuda and we've worked very hard.

"If it hadn't been acceptable to the Russians it wouldn't have happened. They had to buy into Bermuda.'' And he said the Russians were so impressed with the Island's standards, it was possible they could consider registering their entire Western fleet in Bermuda.

Mr. Furbert was at the official handover of the first of the 737s to Aeroflot in Boeing's Seattle base while he attended the RIMS insurance conference in San Diego.

Mr. Furbert said the deal was a classic example of the global economy in action -- with Bermuda coming out a winner.

He said: "Here we have countries and companies coming together, building partnerships for a common cause and for the betterment of the whole.

"We live in a global economy -- no longer is it `me in my little corner and you in yours'.'' "Bermuda is proud to be part of this partnership and we wish Aeroflot and Boeing all the best as they build their future together.''