Airfleet_01_2015 by Николай

№ 1. 2015 № 1. (107) 2013

new chief for United aircraft

1.2015 (107)

CONTENTS Headline UAC and India . . . . . . . . . . . . . . . . . . . 4 Residual value of Superjet . . . . . . . . . 6

General Director Valeriy Stolnikov Deputy General Directors Aleksey Leonkov Inna Illarionova Iliya Kolikov Editors Vladimir Karnozov Vladimir Maksimovskiy Egor Dakhnov Commercial Director Pavel Gerasimov Finance Director Ekaterina Raikova Marketing Director Anton Vozhevatov Designers Arthur Yegorov Aleksey Pirozhkov Timofey Babkin Olesya Timofeeva Konstantin Soldatov Photos in this issue Vladimir Karnozov, Vladimir Maksimovskiy, open sources and courtesy of advertizing companies

Civil Aviation Country suffers, Aeroflot grows . . . . 10 Aeroflot takes foreign pilots . . . . . . . 16

Airshows HANNOVER MESSE 2015. . . . . . . . 18 JetExpo’2014. . . . . . . . . . . . . . . . . . 20

Air force Russian air force ready for any eventuality. . . . . . . . . . . . . . . 26

Space activity The reform of space industry . . . . . . 28

Sales team: Yuri Moschenskiy Oleg Zavgorodniy Aleksey Yashin Vladimir Neminovich

High technologies

Circulation: 10000

perspective development . . . . . . . . . 34

The magazine is registered in the Committee for Press of the Russian Federation. Certificate № 016692 as of 20.10.1997. Certificate № 77-15450 as of 19.05.2003.

New strategies of

Industry India to produce Mi-17, Ka-226 . . . 40

MTA engine maker turns 75 . . . . . . . 44 Profitable MiG . . . . . . . . . . . . . . . . . . 48 More work for Ilyushin . . . . . . . . . . . 52

In brief Elektropribor in Kazan In 2014, Elektropribor JSC increased its revenue by 17,6%. The company successfully completed a two-year contract for the state defense order. The result is positive, and has been achieved without increasing staff, only due to the introduction of new technologies. The contract will be extended for another year.

Com equipment for Su-30 Representatives of the United Instrument-Making Corporation and the Indian Air Force will discuss the possibility of upgrading the communication equipment of Su-30MKI fighters, and issues of communication systems at Aero India 2015 exhibition. Number of these fighters in Indian service exceeds three hundred units.

ESA will continue to use Russian rockets The European Space Agency plans to launch one of its remote sensing satellites using Russian Rokot launch vehicle in autumn 2015, said the head of the agency, Jean-Jacques Dordain. Eurockot company signed a contract with the European Space Agency to launch two satellites Sentinel-3A and Sentinel-2B from the Plesetsk cosmodrome , established within the European project Global Monitoring for Environment and Security "Copernicus." Launch of one of these devices is planned for the third quarter of 2015, the second - in the first quarter of 2016. Rokot launch vehicle was developed in the MV Khrunichev Design bureau on the basis of a twostage RS-18 ballistic missile and designed to launch satellites weighing up to two tons into low Earth orbit.

Stamps for VSMPO-AVISMA VSMPO-AVISMA Corporation has leaned about 50 new ways of stamping. Those products are aimed for being equipped by Boeing and Airbus aircraft. The corporation provides almost all types of aircraft, helicopters and engines production with titanium alloys and takes part in a number of Russian projects, such as SSJ-100, MS-21 and PD-14 engine.

Rogozin visited Tactical Missiles Corporation Deputy Prime Minister Dmitriy Rogozin visited Tactical Missiles Corporation. He also took part in a conference, dedicated to prospects of development of the corporation. Conference was also attended by S.P. KOROLEV Rocket and Space Corporation «ENERGIA».

RD-181 Rocket engines for United states Sciences Corporation David Thompson signed a direct contract to supply RD181 rocket engine to the US. Contract amount is about 1 billion dollars. Russia will supply 60 RD-181, with first two engines to be received in June 2015. RD-181 is specifically designed for use on the launch vehicle Antares, and will give possibility to deliver to the International Space Station and low orbits significantly more payload. RD-181 uses modern materials, new technical and design solutions, thereby it was managed to increase engine power up to 186 tons. RD-181 is a modification of the RD-191, applied on Angara launch vehicle . The contract was signed for supply of engines and design support of the project: fire President of S.P. KOROLEV Rocket tests, installation of engines, preflight and Space Corporation «ENERGIA» Vladimir Solnchev and CEO of Orbital preparation and others.

In brief Positive feeback for NPO Saturn engines Сustomers have positive feedback on NPO Saturn supporting airworthiness of D-30KP-2, one of the bestselling Russian engines. Local and foreign customers intend to continue operating aircraft powered by D-30KP series engines by 2030-2035. Today, the main task for is to solve issues related to ensuring the airworthiness of existing engines and improving their performance. The volume of capital repairs of D-30KP-2 in the near future will be more than 100 engines per year.

Indonesian Air Force wants more Sukhoi FIGHTers

The Indonesian air force expressed its interest in replacement of obsolete U.S. built F‑5 figther aircraft by the Sukhoi Su‑35 state-of-the-art multirol fighter aircraft attributed to generation 4++. This was stated by the Indonesian air force commander Vice-Marshal Agus Supriatna. He expressed a hope that the government will support the intent of the military towards acquision of the Su‑35. "Our military forces need more modern aircraft fighter of 4 ++ generation" – the commander stated. Agus Supriatna said that the Su‑35 fully meets the requirements of the Indonesian Air Force to modern fighter aircraft. He expressed a hope that the country's leadership would make positive decision of purchasing Su‑35 to ensure the safety of Indonesia. "We hope that our technicians will not have any problems with using these aircraft," – said the commander. Nowadays, authorities of the Armed Forces of Indonesia are considering several candidates to replace the F‑5. This is Russian Su‑35, European Eurofighter Typhoon, Swedish SAAB JAS‑39 Gripen and American F‑16 Block 52+. Air Force of Indonesia also posseses Su‑27SK and Su‑30MK2 fighters. As reported, the Ministry of Defence of Indonesia and Rosoboronexport signed a contract worth $ 470 million for the purchase of Russia's six Su‑30MK2 multi-role fighters in December 2011. The first two aircraft units under 2011 contract were received in February 2013. The second pair of Su‑30MK2 were delivered in May 2013. Final party of two Su‑30MK2 Russian multi-role fighters were delivered in September 2013 from Russian airbase to Indonesian Air Force "Sultan Hasanuddin" on the island of Sulawesi. Thus, the contract has been fully executed. Fighters joined the 11th Squadron RAF Indonesia, which has 5 single-piloted Su‑27SKM and 11 double-piloted Su‑30MK2. Earlier, in 2003–2010 years, Indonesia has already acquired five Su‑27SK and Su‑30MK2 fighters. The Su‑35, Su‑27SK and Su‑30MK2 aircraft are in production at the Komsomolsk-on-Amur Aviation Production Organization (KnAAPO) belonging to Sukhoi company (a member in the United Aircraft Corporation).

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”Proton-M” put Inmarsat-5F2 into orbit Launched on February 1 from the Baikonur Cosmodrome "Proton-M" launch vehicle successfully put communications satellite Inmarsat-5F2 into orbit for leading global mobile satellite communications operator Inmarsat (UK). It was the first with the launch of "Proton-M" in 2015 and 402nd flight in its overall history.

Second Tu-214R reconnaissance aircraft ready Second prototype of the Tupolev Tu214R recce aircraft has been towed to the flight test station. This is another milestone for the respective program. The Tu-214R (also referred to as "Product 114") is an electronic and opto-electronic reconnaissance aircraft developed on the platform of the Tu-214 narrow body jetliner. The Russian Defense Ministry awarded Tupolev a contract for two such aircraft in late 2013. The Tu-214 is a popular platform with various governmental structures. Their orders eanables KAPO plant in Kazan to continue production of that type.

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UAC and India The Fifth Generation Fighter Aircraft and the Multirole Transport Aircraft are among the most challenging programs for the new UAC president Yuri Slyusar. Growing dissatisfaction in the corridors of power with the way these and other important international aeronautics programs have been managed are believed to have been the main reason for change at the top of the Russian aircraft manufacturing industry. Few weeks after the December visit of president Vladimir Putin to New Delhi, the council of directors at United Aircraft Corporation (UAC) assembled to vote for relieve of 58 years old Mikhail Pogosyan from his duties. The directors selected 40 years old Yuri Slyusar as the new UAC president. He previously served in the capacity of deputy minister for industry and trade, with his responsibilities covering aircraft manufacturing. Introducing the new boss to UAC employees, deputy PM Dmitry Rogozin happily observed that the corporation is competitive in the domain of combat aircraft. “But this industry shall fly on not one but two wings, so we need to raise the second one”, he added. Civil aircraft production will be “main challenge” for UAC: “We must win the market for domestic flights back from the foreign manufacturers. It must be ours, so that we then can launch offensive for new, competitive markets”. In Rogozin’s view, Yuri Slyusar is “young, ambitious and skilled enough” to accept all challenges. It is interesting to note that the key members of UAC council of directors are those who accompanied Vladimir Putin on his visit to New Delhi in December. Dmit-

ry Rogozin, deputy prime minister responsible for the country’s military-industrial complex. Denis Manturov, minister for industry and trade. Yuri Borisov, deputy minister of defense, responsible for new equipment acquisitions. The Russian government controls all but 6% shares in the United Aircraft Corporation directly employing about 90,000 people. There was a reason for replacement of an old school top manager with a representative of the younger generation. President Putin has spent much effort on talking his Indian and, more recently, Chinese counterparts into joint aviation programs. Even though the FGFA, MTA and ShFS (a 300 seat wide body jet) were agreed upon at the top political level, they have made little progress on that of the industry. As the West strengthens the regime of sanctions against Moscow over the latter’s actions in Ukraine, relations between Russia and her main client states became more important for the Kremlin. The latter wants to give a strong boost to collaborative efforts with India and China. Previous UAC chief was hardly the man who could manage them in a good way. Pogosyan made a good carrier at Sukhoi. He rose from an engineer to general manager in 1999. Soon after becoming the top manager at the world-famous combat jet maker, Pogosyan began to steer towards the West, encouraging European (as well as US) vendors to embark on modernized and new aircraft from Sukhoi company. In a relatively short time he emerged a strong advocate for joint projects with the West. Pogosyan urged the Kremlin to sup-

port a very ambitious project of the Russian Regional Jet 95‑seat jetliner (RRJ‑95) project, later rebranded into the Sukhoi Superjet 100 (SSJ100). European and US vendors, including Safran, Thales, Alenia, were invited to participate, and many agreed (Boeing agreed, too, but after several years of serving as a consultant, quitted). This project, too, demonstrated some success by winning European Aviation Safety Agency’s type certification and winning orders of not only local carriers, but also those in Mexico, Indonesia and Laos, where the type carried passengers in service with, accordingly, Interjet, Sky Aviation and Lao Central. In the end, however, the SSJ100 has not become a success commercially despite massive cash injections from the government and big national banks. As the West tightens up the regime of sanctions, the Superjet’s window of opportunity closes. The Kremlin demands from the industry to come up with alternative projects that would be less dependent, or better, not dependent at all, from U. S. and EU technologies and vendors. In this new situation, joint programs with China and India, and, possibly, Iran, can provide vital alternatives. Since Russia is clearly ahead of the aforementioned countries in the field of aeronautic technologies, and so pretends for the role of the main partner on an aviation program, the Asian participants are expected to carry the most of the financial burden. In 2013, UAC income rose by 29% to Rouble 220 billion (in the times when Rou-

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ble to dollar exchange rate was about 32:1), and yet the corporation made losses of 12.41 billion. As of November 2013, UAC debt obligations exceeded 260 billion Rouble. Last year, the income rose further, to 285 billion (the value of the Rouble fell twice in a year, so UAC earning in hard currency), and yet the corporation is still making losses. The bad performance is due to the poor Superjet sales, and also to the fact that UAC has been borrowing money for technical renovation of its factories. In January, minister for economic development and trade Denis Manturov said that although the government will continue to fund UAC programs, and “make every effort to keep funding promised earlier as planned“, it is ought to attract more of commercial financing elsewhere. Since the U. S. and EU economic sanctions are meant primarily to close access for Russia to borrowing capital on the western financial markets, UAC can only go to Asian investors instead. China is now considered the main source to borrow the money from, as well as the main market for aircraft that would be developed jointly with the local industry. Speaking to the media on January 19, Yuri Slyusar said that nowadays the Russian industry works “in the conditions of severe limitations” to do with finance as well as access to certain markets. Among priorities he mentioned the Superjet and MC‑21 next-generation narrowbody airliner. “This year of 2015 is going to be a decisive one… generally for the corporation. The moment of truth on our civil aircraft programs is coming. This will be to do with further development of the Superjet program and the MC‑21. We expect the rollout of the first operable prototype of the MC‑21, the core project for the civil part of the Russian aircraft manufacturing industry”. SCAC sees a market for Superjet in India, with a hope to sell up to fifty aircraft here by 2030. Demonstrators have been on display in the country for several times, including at the commercial aviation show in Hyderabad. Same day the president Putin travelled to New Delhi aboard the giant Il‑96–300 quad, a Sukhoi Superjet A I R F L E E T

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100–95B VIP flew the same route. It covered the distance of 4,738 km between the airports of Vnukovo and Indira Gandhi in six hours and five minutes. The Superjet carried a number of governmental officials including Denis Manturov, Yuri Slyusar and Mikhail Pogosyan. Some of them took part in the presentation of the airplane to representatives of several Indian ministries. Last year Vladimir Putin and Narendra Modi discussed the Fifth Generation Fighter Aircraft (FGFA) on two occasions, at least. This reflects the fact how significant this program is for both of our countries. FGFA is, effectively, an Indian air force version of the PAKFA (Russian abbreviation for Perspective Aircraft Complex for Frontal Aviation) developed by Sukhoi to Russian air force specification. Russian air force commander Gen. Victor Bondarev confirmed plans for PAKFA entry into service in 2016. Everything on the top political level is understood to have agreed upon. A joint group of Indian and Russian engineers is at work. Russia’s United Aircraft Corporation (UAC) expects the total orders from Russia and India for PAKFA and FGFA to exceed 400 aircraft. In January 2015, the Indian defense minister touched on the current situation with modern fighter aircraft for the Indian air force. Manohar Parrikar expressed willingness to speed up development of FGFA, so that “the new fighter enters service with the Indian air force much earlier” than previously planned entry-into-service (EIS) in 2024–2025. India has plans to assemble 127 airplanes at Hindustan Aeronautics Limited (HAL) Nasic Division. In addition to the aforementioned FGFA, India is also seeking to obtain 126 Medium Multirole Combat Aircraft (MMRCA). Dassault Aviation of France came first in the international competition, but a firm contact is not yet signed. On the theme of MMRCA, Manohar Parrikar was quoted as saying that if no progress is achieved during the protracted negotiations with Dassault Aviation of France, his country may instead buy Russian jets. Parrikar called them “a viable alternative”.

Yuri Slyusar President of United Aircraft Corporation Date of birth: 20 July 1974. Graduated from the Moscow State University named after M. V. Lomonosov in 1996, with a degree in legal matters. In 2003 Yuri Slyusar completed a postgraduate school in the Academy of Nation’s Economy at the Russian government and acquired a PhD in the economics. In parallel with the scientific studies, he worked in a number of commercial firms, before accepting the post of commercial director at the Rostvertol company, a big industrial company specializing in manufacture of helicopters. In 2009 Yuri Slyusar became undersecretary at the ministry of industry and trade of the Russian Federation. Next year he was appointed director of the ministry’s department on aviation industry. From 2012 Yuri Slyusar served in the capacity of deputy minister for industry and trade. On January 19, 2015 he was elected president of United Aircraft Corporation and chairman of the corporation’s executive board.

India has been a long-standing customer for Russian weapons. Official figure for India’s intake of Russian weapons is 57 billion dollars. Last year Rosoboronexport’s deliveries amounted to over 3.6 billion dollars. Codeveloped programs like FGFA and MTA help Russia secure Indian market for longer. If these fail, a blow on the Russian positions in the Indian market for defense equipment will be really strong. The new head of UAC has to watch this carefully. Vladimir Karnozov

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Residual value of Superjet

The Russian government is expected to introduce an additional set of measures to boost sales of the Sukhoi Superjet 100. This time this is to be done through guarantees on residual value of such aircraft on the secondary market.

January 2015 will long be remembered as “all change” time for Russia’s United Aircraft Corporation (UAC). In the middle of the month minister for industry development and trade summoned journalists in Moscow to confirm long-going rumors about Mikhail Pogosyan to be relieved of his duty as UAC president. On January 13 Denis Manturov told the media members that his close fel-

low – deputy minister Yuri Slyusar – is being recommended to UAC shareholders. Five days later the man was elected to the post by the council of directors of the corporation. Among those who attended the event and took part in the elections were the following prominent figures. Dmitry Rogozin, deputy prime minister responsible for the country’s military-industrial complex. Denis Manturov, minister for in-

dustry development and trade. Yuri Borisov, deputy minister of defense, responsible for new equipment acquisitions. Even though their personal presence was not really required, since the voting could have taken place through faxes and letters, these four rather influential men decided to be present in person on such an important moment in UAC history. It took the directors less than ten minutes to conclude the business that

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brought them together. Some chose to speak briefly to a handful of journalists eagerly awaiting them in the premises of Ilyushin design house main building where the council was held. Acknowledgement and initiative Two weeks later the new UAC president summoned selected journalists and spoke to them in a more relaxed atmosphere. Yuri Slyusar acknowledged some problems with the Superjet. The first one is to do with “white tails”. In the past few years, there were many cases when intended customers refuse to accept Superjets built for them. The recent example is UTair. The airline declared its intent to take twenty or twenty four. But this intended customer ran into economic problems in late 2014 and cancelled the deal with SCAC. “We hope that these airplane will go to Aeroflot”, Slyusar said on 29 January 2015. He thanked the Russian flag carrier for being ready to accept twenty airframes intended for UTair in 2015-2016 timeframe. “For us, it eases the matter a lot”. On the production plans for the factory in Komsomolsk-upon-Amur, Slyusar said that the plan is to assemble 44 Superjets in 2015. “Last year they made 37 aircraft, and managed to sell 27 [meaning deliveries to airlines and SJI – V.K.]”, Slyusar said. “From the past year, we still have ten airplanes unsold, but it seems we have found the customer for them”, he added. Sukhoi Civil Aircraft Company (SCAC) used the event to let the media members the following information. In order to promote sales of the Superjet, whose marketing campaign has been rather unsuccessful, UAC has asked the Russian government to introduce a new set of measures that would ease the matter. The corporation seems to have managed to win approval from the Kremlin. A number of new measures are soon be taken so as to reduce financial risks for Superjet’s manufacturer and operators. The core measure is that the government would guarantee residual value of used Superjets. According to SCAC, this would enable it to arrange an affordable lease rates for the airlines. A I R F L E E T

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As it was stated on January 29, the Russian government has agreed to allocate Rouble 1 billion for support of the Superjet project in 2015. The money will go to UAC Capital, a UAC subsidiary now undergoing a set-up procedure. The new structure will manage so-called “Superjet residual value fund” to be run with help of government’s subsidies. The fund is to provide compensations should the market value of the airplane comes below a published prognosis line at a time when a new lease contract with intended operator is being prepared. The mechanism of Superjet sales support is expected to be in place till 2025. Indonesia’s PT Sky Aviation It must be noted that the new measures of governmental support to the ailing Superjet program announced in the late January 2015 come in addition to ones introduced earlier. The Kremlin has long kept in the Sukhoi twinjet. At one time, this program was pictured as the only one on the horizon that is able to restore Russia’s presence in the market for commercial airplanes.

The Kremlin has been supporting Sukhoi in many ways. For instance, governmental grants on the aircraft development and design rectification are now supplemented by attractive financial packages from Kremlincontrolled VEB bank to foreign airlines willing to operate Superjets on lease terms. In late 2012 VEB approved two major financial programs for the Superjet. The first one, worth US dollar one billion, was to help the manufacturer clear outstanding debts. The second one, being a US dollar 2.5 billion credit line, was to support sales of newly built Superjets going to foreign airlines. SCAC has long claimed that the Superjet 100 offers a level of technical sophistication that surpasses that of any Western regional jet on the market. In the years of 2012 and 2013, the Russian government and large national banks made a series of moves to encourage Superjet exports. As part of these efforts, government-controlled Vnesheconombank (VEB) invented a new scheme to support export sales of the Sukhoi Superjet 100. This scheme promises to place the Russian Regional Jet (as it was called before being renamed into the Su-

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perjet) on equal footing with Western models in terms of financing cost as well. Such a claim was made in January 2013 by VEB deputy chairman Alexander Ivanov. “Our ultimate goal is to make Russian aerospace and financial products competitive in the global market,” Ivanov stated. He called Sukhoi “a long-standing partner” of his Kremlin-controlled bank, with whom it “has spent two years structuring the workable aircraft sales system support.” The new scheme has been trued on Indonesia’s PT Sky Aviation. This carrier signed for 12 Superjet 100-95Bs at MAKS 2011 airshow. The carrier accepted its first Superjet in December 2012, and a second such aircraft in the middle of last year. Third airplane came in late December 2013. Ivanov described the mechanism under which Sukhoi supplied the three aircraft as “a complex credit and lease scheme.” The bank granted the airline a credit worth $80 million on a 12-year term to cover most of the purchase. Export insurance comes from Exar, the Russian agency for insurance of export credit and investment. While declining to reveal the exact interest rate charged by VEB, Ivanov insisted it needed to be “quite competitive” given the “competing environment of the fast-growing Indonesian market.” Russian bankers managed to arrange good terms “because we have good insurance for the political and economical risks from Exar,” he added. A special branch of VEB Leasing specifically established “in the region” as a tool of convenience managed the delivery of the airplanes. Should the airline not pay rentals on time and default happens, we can take airplanes back rather quickly and efficiently,

for subsequent placement with another carrier,” insisted Ivanov, who explained that the scheme uses elements of both financial and operating leases. “The credit and lease scheme we worked out is the one that minimizes risks for the leading funding institution. Aircraft are registered locally in a way that creates best conditions in terms of country-to-country relations.” Sadly, the Indonesian carrier did not deliver. Under economic pressures, it stopped flying and had to return its aircraft back to the lessor. This was a sad and bitter news not just for the manufacturer and the lessor, but also for the Kremlin itself. Indonesia seems to be a tough place for Superjet to survive. The program has had three big failures out there. First, the cancellation of contract for such aircraft by Kartika. Second, the crash of RA-97004 on May 9, 2011. Third, the grounding of Superjet fleet by PT Sky Aviation. It has been rumored that these failures produced “enough is enough” sort of thinking in the corridors of power. Consequently, Superjet’s farther Mikhail Pogosyan lost his position as UAC president on January 19, 2015. At the same time, there is some positive outcome of the Indonesian experience for the future of the Superjet. It now has a workable scheme of funding. One may find applications in the Asia-Pacific region and beyond its borders. Mexico’s Interjet Unlike Indonesia, Mexico has been performing much better for the sake of the Superjet’s success on the commercial airline market. Sales there are made through Superjet International (SJI). Based in Venice,

SJI is the Western sales and support arm for the Sukhoi twinjet. Interjet accepted two Superjets in the summer of 2013 and added two more by year-end. Initial Superjet operations with Interjet demonstrated decent utilization rates “out of the box”, averaging at 300 hours per airframe in a month, an excellent figure for new-for-airline regional jet type operating relatively short routes. This is on the par with previous Aeroflot achievements to do with its best airframes in the fleet (328 hours for RA89010 in October 2012). As of January 2015, twelve Superjets were in operation there. Two more aircraft were in Venice, with preparation to delivery later in the first quarter of the year. Another pair was under customization there. Five more aircraft were undergoing flight tests and upgrades as necessary before ferry to Venice for customization. It makes twenty one aircraft altogether. The firm contact in place covers only twenty. It seems SCAC decided not to wait for a follow-one to be formally awarded, and proceeds with assembly of additional aircraft for the Mexican operator. Closer to the year-end, Interjet declared its intend to award SJI a follow-on order for ten additional Superjets. Reportedly, the move received council of directors’ endorsement in the late 2014. The Interjet airplane, featuring a cabin conceived by Italian design house Pininfarina, holds 93 seats with a 34-inch pitch. Mexico City-based Interjet has so far placed orders for twenty aircraft. Deliveries under that contract are expected to be complete by summer 2015. According to VEB, this bank took part in arranging the deal between SJI and Interjet, in which France’s Natixis acts as the lead financier. SACE of Italy and Coface of France provide insurance, both in cooperation with VEB. With French, Italian and other EU manufacturers participating in the project as vendors and suppliers, European banks and insurers expressed eagerness to fund the deal. (Western content on an SJI-supplied Superjet exceeds 60 percent; some sources give it at 73%)

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Mikhail Pogosyan The syndicate provided its first credit to the airline on December 19, 2012, marking the first time a Russian bank took part in such an international collaboration, albeit with a rather small share: VEB provided about $6 million. The deal covers just one airplane, but plans call for it to serve as a model for funding the remaining aircraft later this year. According to Ivanov, VEB’s involvement will grow as more airplanes are delivered; Interjet holds firm orders for 20 airplanes and options on another 10. “Our participation means that Russia is taking the project seriously,” said Ivanov. “For the Western banks this is important and comforting. In the end, we have a workable solution where every participant is happy.” Export sales generate cash flow that help the bank recoup its earlier investments. Ivanov says: “From our viewpoint as the main financier, the more Superjets that get delivered, the more services its manufacturer renders to airlines, and the sooner our earlier-made investments pay off. In that case the whole project gets clearer to us.” Savings Bank Whereas VEB remains the main source of funding for the Superjet sales and for assuring debt obligations amassed by SCAC, there is one more financial institution that is helping the ailing manufacturer. In October 2014 Russia’s largest bank declared its intent to fund the Superjet program through opening of a credit line up to US dollar 600 million. The respective statement was made with a rider that the conditions are quire severe. To receive an initial tranche of 240 million, SCAC had first to obtain reA I R F L E E T

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spective approval from the council of directors at Sukhoi (the parent company, which specializes in combat jets). For the credit line to be raised up to 295 million, SCAC needs to obtain respective guarantees from the Russian government (which are to have reflection in the state budget 2015 with respective allocations). Finally, the whole sum of 600 million can only be available if the manufacturer fulfils its promise to deliver at least 45 aircraft in 2015 and sign new delivery contracts with airline customers for placement of 56 aircraft in 2016. Such conditions set towards SCAC are easy to explain. The company has amassed debt obligations of about two billion dollars. SCAC income in the first half of 2014 amounted to 180 million. Over that period, the manufacturer made loses of 144.1 million. In addition to the poor financial performance, there are some doubts about the real solvent demand for the Superjet. The first such aircraft entered revenue service in April 2011. This was msn 95007 that went to Armavia. Shortly after, this airline returned it back on the ground of poor technical performance. Second customer – Aeroflot – took ten aircraft in 2011-2012. After months of initial operations, this airline demanded that all ten be taken aback by the manufacturer and replaced by bettermade ones with teething problems cured. Out of 24 Superjets assembled and flown in 2013 (against 12 in 2012), only a dozen went to airlines before the year expired. Since them Sukhoi has always had a number of “while tails” and used aircraft taken aback from Armavia, Aeroflot and other airlines not satisfied with their manufacturing quality and technical performance.

Assembly of airframe no.100 commences Despite teething problems, the Superjet is steadily making its way. In early 2014 the number of Superjets assembled and flown approached 50, of which 20 were with airlines. The last day of January 2015 was market by SCAC facility in Komsomolsk-uponAmur starting assembly work on airframe no. 100 in frame of its Superjet production program. Second quarter of 2015 is said to be witnessing the roll out of the 100-th Superjet out of the final assembly workshop. According to SCAC, five Superjets were made in 2011, twelve in 2012, twenty five in 2013 and 37 in 2014. The manufacturing capacity is said to have been raised to fifty already. The company has plans to assemble sixty aircraft annually starting in 2016. Such a rate would render Superjet production profitable and help the maker pay off large debts amassed during aircraft development and production set-up. According to Sukhoi’s own figures, in 2012 the maker was selling airplanes at 20.5 million dollars whereas manufacturing costs amounted to 28 million. As the Superjet manufacture accelerates, the gap shall be closing and, at some point in time, the process will be generating a profit. Governmental grants on the aircraft development and design rectification are now supplemented by attractive financial packages from Kremlin-controlled banks to foreign airlines willing to operate Superjets on lease terms. In the foreseeable future, the main markets for the Sukhoi twinjet will be Russia’s domestic one and that of friendly countries representing the developing world. As per orders from the “bona fide” customer from the West, the issue remains open. Vladimir Karnozov

Civil Aviation

Country suffers, Aeroflot grows “Buy Russian” calls from the Kremlin make the matter of Superjet new purchases expedient. In foreseeable future Aeroflot is likely to grow the share of indigenous aircraft types to about half of its inventory. The sharp fall of the prices for fossil fuel, US/EU sanctions on the pretext of Kremlin’s support to the Donbass rebels fighting Ukrainian army causes stagnation of the Russia’s economy and gross domestic product (GDP) to decline. We well know that passenger traffic depends on GDP. So, one might have expected the national flag carrier and the country’s main gate airport to earn less. On the contrary, both Aeroflot and Sheremetievo demonstrated profitable growth in 2014 and are all set for further rise. Statistics prepared to January 29 meeting of Aeroflot’s control board indicate that the group’s profit increased by 6.5%, to Rouble 236.7 billion, and that the group (built around the core business by inclusion of several airlines) maintained its market share, at 30.2%

(by passenger traffic, which was 87.7 million passengers for the whole of Russian air transportation market). A good news is that the flight safety factor rose to the healthy 99.972%. This despite the fact that Aeroflot is a launch customer for the Sukhoi Superjet 100. The airplane is still in the period of infancy and is still suffering from teething problems inevitable for any brand-new type of modern aircraft. At the year-end, Aeroflot had sixteen Superjets in its 150-unit-strong fleet. Sheremetievo On December 9, Sheremetievo served its 30-million passenger in 2014, in anticipation that the traffic over the entire year will come to 31-31.2 million. Last year, the airport served 29.5 million, of which 21 million on Aeroflot flights.

Aeroflot provides 75% of passenger flow through Sheremetievo (numerically about 23 million in 2014), and 80% with airlines that are members in the Aeroflot group (over 2 million in 2014). In 2024 Aeroflot predicts 47 million traffic via Sheremetievo and nearly 50 million with the associated airlines. The national flag carrier drafted “Expansion program 2015-2024”. It was submitted to the Russian government (which holds just over 50% in Aeroflot) for approval in the middle of the past year. The approval was granted, which means more funding can be made available through Kremlin-controlled banks. This enables both Aeroflot and the main airport it operates from to launch a next phase of their expansion and renovation.

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A word from airport administration Andrei Nikulin, deputy general manager of the airport administration, told Air Fleet the following. “The airline’s program is based on a prediction that it would grow 12-14% annually mostly on the account of the domestic flights. The international sector is likely to stay flat. Regardless of the global politics, we expect that the inner traffic will show some considerable up-rising”. He further said: “Aeroflot, the ministry for transportation and transport commission to the Russian government ask us for some actions for greater capacity. To capture the anticipated passenger growth, we plan construction of additional passenger terminals.” At the insistence of Aeroflot and the Russian government, Sheremetievo launched a major renovation commenced in 2008; since then its nominal annual capacity grew from 11 million to 35 million travelers. Major milestones were the following. The Terminal C became operational in 2007, followed by Terminal D in 2009. Same year a major reconstruction of Terminal F went to a close. Finally, Terminal E became available in 2010. This completed the first big program on the airport’s infrastructure.

In 2018 Sheremetievo expects 50-52 million passengers. Long-term airport expansion plans call for its passenger handling capacity to be increased to 64 million by 2030. Due to the location of the runways and the availability of territories for new constructions, lands to the north of the existing two parallel runways are chosen for the next phase of infrastructure expansion. A dedicated company has been established to undertake construction of Terminal B1 with annual passenger capacity of 15 million. The cost is estimated at US dollar 300 billion, completion is due in 2018. To interconnect the existing and projected terminals on the southern and northern sides, an underground “crossterminal passageway”, worth US dollar 330 million, has been approved for construction, with completion in 2018. Falling Rouble makes selection of local builders a natural choice, and yet the planned “cross-terminal passageway” and underground trains to be operating between terminals (through an underground tunnel) will be purchased from a foreign specialists since Russia lacks experience in this field. Besides, foreign expertise in trains is needed for projects on expansion of railway link to the city. Today, AeroExpress trains to the airport

coming from the city center are already overcrowded in seasonal traffic peaks, carry 5 million whereas nominal capacity is 3.8 million, Nikulin says. A new runway and autobahn For a long time Sheremetievo has been looking for a third runway. The biggest problem - that with availability of land – was overcome past year; and a sufficient swat located outside of the [older] airport fence, to north-west of it, is being acquired and formally attached to the airport. According to Nikulin, construction of a new 3,200-m-long runway has been launched. The builders pledged completion in late 2017, but the work is somewhat behind the original schedule so 2018 looks like a more realistic target. The third runway will be located in parallel to the existing two ones (whose too close a separation prevents them from being used simultaneously) so as to provide independent takeoff and landing operations. Today, at season peaks, the airport registers 48-50 aircraft movements an hour. The third runway will enable to increase the figure up to 100-110, according to Nikulin. The Moscow city and highway to Sheremetievo are infamous for big traffic jams. This issue is now eased a great deal by the opening of a new 12-lane autobahn M-11 on December 23, 2014. “The new autobahn will bring a portion of fresh air to the airport and support our profitable growth”, according to Nikulin. Besides, business aviation travelers coming to the aforementioned facilities by car will benefit from a program on renovation and widening of a motorway going to the airport from south-east. “Together with the new Moscow-St. Petersburg autobahn, this will make an easy road access, especially to Terminal A”. Nikulin also mentions an increase in helicopter services from Terminal A into Moscow city and nearby dwelling points after recent easing of the city overfly rules for rotorcraft. Competition Even though the aforementioned Aeroflot and Sheremetievo expansion plans have found support in the Kremlin, these

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Andrei Nikulin are facing some competition from the side of Domodedovo airport and airliner operating out of it. The two airports are responsible for about 84% of all passenger traffic via so-called Moscow Air Knot. Domodedovo, with 30.76 million in 2013, is ahead of Sheremetievo by passenger numbers. The third airport, Vnukovo, served 10.2 million last year. Whereas Domodedovo and Vnukovo place focus on tourist and domestic services, Sheremetievo and Aeroflot are keen to develop their image as service providers primarily to business travelers. “By far, Aeroflot targets the business traveler”, Nikulin confirms. In the past two years Aeroflot largely transferred its tourist charter business to Orenbourg Airlines while its image as a premium class carrier. Even though Aeroflot and Sheremetievo are independent businesses (ignoring the fact that the airline is a shareholder with 9% in the airport), Nikulin says services to the flag-carrier “have always been the top priority and shall be”. Business aviation Whereas Aeroflot scheduled flights remain the top priority for Sheremetievo, and the second importance is given to the increase in belly cargo handling

capacity to one million tons a year (in 2016-2017), the business aviation also gets into the top three targets for the Moscow’s most famous airport. Andrei Nikulin gave example of Terminal A as a proof of the administration’s commitment to business aviation. Effectively an FBO, the Terminal A became operational in January 2012, boasting a three –thousand-square-meters terminal with 75 thousand passengers nominal annual capacity, complete with 16 thousand square meters hangar floor space and apron of 23 thousand square meters. Nikulin pictures the Terminal A as “the most modern business aviation center in the whole of Russia”. “Right now, we cannot afford much of further development in the bizav sector”, Nikulin carried on, “That will change soon after completion of the third runway in late 2017 – early 2018. As soon as the runway goes into operation and the immediate needs of Aeroflot in extra airport capacity are met, we will turn our attention to the business aviation again”. Unlike Vnukovo (that serves many domestic flights and is a preferred destination for business jets), where the whole of the airport’s business aviation business is concentrated in the hands of VIP-Port company running Vnukovo-3 “business

Vitaly Saveliev aviation center”, Sheremetievo maintains a competitive environment. There are two independent FBOs in the airport. One is operated by Avia-Group, - it runs the aforementioned Terminal A (north-east corner). Second FBO is run by PremierAvia Group – that’s another “business aviation center” erected at the turn of the century by Avcom (north-west corner). Besides, there is the VIP lounge occupying a whole wing of the passenger Terminal B and a separately standing Lukoil general aviation terminal. Both facilities being available for on-call requests for business jet flights. “So, we have created a competitive environment”, Nikulin stresses. Aeroflot fleet grows As of third quarter of 2014, Aeroflot group operated 253 aircraft, including 150 with the core company, of which 182 on operating lease terms. During the entire 2014, Aeroflot group enlarged its fleet by 22 aircraft, the core company’s inventory rise by twelve jets. It took delivery of 17 Airbus and 18 Boeing narrow body jetliners, and six Boeing 777-300ER intercontinental wide body twins. Adding brand-new aircraft went simultaneously with return of older jets back to leasing companies. Five Boe-

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ing 767-300ER, six Airbuses and five Boeing 737s were taken out of the fleet as their lease terms expired. Furthermore, the carrier returns three more Airbuses and three MD-11 freighters under agreement with their owners before the lease term expired. In 2014, the local industry provided only six new Sukhoi Superjet 100 hundred-seat jetliners. At the same time, six Tupolev Tu-204-300s previously operated by Aeroflot group member Vladivostok Airlines, has been return to their lessor, Ilyushin Finance Company (IFC). Besides, the carrier terminated commercial operations on the Ilyushin Il-96-300. One of six big quads in Aeroflot fleet was sold to IFC (which subsequently placed it with Cubana de Aviacion). Five more await new owners. Today, Aeroflot fleet is dominated by Airbus and Boeing twins. But this may well change in the future. There are four A I R F L E E T

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big reasons to assert that. First: having secured strong positions on the international flights’ market, the carrier and the affiliated airlines are now set their eyes on the domestic one, which has long been suffering from a lack of their proper attention. Second. Serving the very promising domestic market demands other types of aircraft – smaller and less expensive. Third factor is the restrictions on capital hire in the West because of the US/EU sanctions against Russia. Foreign capital was always the driving force behind Aeroflot acquisitions of new Airbus and Boeings. The last, but not at all least, factor is the Kremlin’s push for reviving civil aircraft production at United Aircraft Corporation’s (UAC) factories. Contact for additional Superjets Past autumn, Aeroflot director general Vitaly Saveliev said the airline’s indig-

enous type fleet is to rise to one hundred units. Out of the one hundred indigenous type aircraft, Aeroflot plans to have a 50/50 split between the Sukhoi and Irkut designs. This means fifty Superjet large regional aircraft and fifty MC-21 next-gen narrow body jetliners. Saveliev’s words were soon supported by a preliminary deal signed with Sukhoi Civil Aircraft Company (SCAC). It calls for acquisition of twenty additional Superjets to the thirty such aircraft already ordered. Speaking at the signing ceremony, Saveliev said the following. “Today, Aeroflot signs a major contract on acquisition of as many as twenty Sukhoi Superjet 100 aircraft. Through this deal we will increase the number of indigenous aircraft in our fleet to fifty. Therefore, this contract carries a considerable impact on the production of indigenous airplanes in this country”. He made a point that this deal with SCAC follows the general trend for replacing foreign products with Russian substitutes, as President Putin commands. “Let me stress that Aeroflot is a socially responsible company. Our plans are tightly linked to the task that our country is setting before itself. We are not just making a move in support of the local aircraft manufacturing industry. We are making very lucrative investments into the future of our country. Aeroflot shall render the Russian citizens to fly on Russian airliners”. Some industry experts commented on the Superjet contact. They insisted that

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the Sukhoi twin fits well into Aeroflot’s new strategy with focus on expansion of domestic services. Depending on cabin configuration, it seats from 87 to 103 passengers, or 20-30 less than the popular A319, effectively the smallest jetliner in the Airbus product range (the A318, which does not sell these days, is now of no account). For newly open routes a smaller jet is better from the viewpoint of operational economics. Aeroflot is set to use the Superjet in the role of a route opener. After being opened and wormed up, they will see a 150-seat narrowbody replacing a hundred seater. The MC-21 is just fine to do that. If the Irkut jetliner becomes available as promised in 2017, it will prove its suitability for the purpose. UAC new chief on Superjet The national flag-carrier is likely to take some of the Superjet aircraft having been built under order from UTair (for 24 Superjets, signed in 2010), after the latter ditched its earlier fleet renewal plans due to financial troubles the carrier experiences. Aeroflot signed preliminary agreement on twenty Superjets in late January as a sign to show its readiness to enlarge its combined order for the type to fifty. There are six Superjets still bearing UTair livery at the manufacturer’s base in Zhukovsky near Moscow awaiting a new customer. “We hope that these airplane will go to Aeroflot”, UAC president Slyusar said at his press conference in Moscow on January 29, 2015. He thanked the Russian flag carrier for being ready to accept the whole of twenty airframes being built under now-defunct UTair order in 2015-2016 timeframe, noting that some will even take in the 103 seat configuration, as per the original contract. “For us, it eases the matter a lot”, he continued, noting that it otherwise be difficult to place already-built aircraft “as is”. Aeroflot is yet to sign a firm contact, but Slyusar hopes it is going to happen soon. Meantime, Sukhoi has plans to deliver 44 Superjets this year, with shipments from its factory in Komsomolsk-upon-Amur.

“Last year they made 37 aircraft, and managed to sell 27 [meaning deliveries to airlines and SJI – V.K.]”, Slyusar said. “From the past year, we still have ten airplanes unsold, but it seems we have found the customer for them”, he added. Besides, there are eight more Superjets of the Aeroflot-Light version that the manufacturers has taken aback from Aeroflot as a part of the deal on replacing them with newer airplanes built to “Aeroflot-Full” standard. These have undergone maintenance checks and are on sale. Superjet’s performance Needless to say that everybody interested in Superjet has been watching how the plane performs in Aeroflot service. The Russian flag carrier became Superjet’s launch customer in December 2005, when it signed a contract for 30 aircraft. SCAC insists that that time the agreement was for a single-class cabin seating 98 passengers. Later on the carrier made decision to alter the cabin layout. It chose one for 87 passengers: 12 business and 75 economy. Besides, there were some changes specified to the avionics package.

These changes in the specification required time as the airplane was being re-configured. To keep the deliveries going per earlier agreed schedule, the sides reached a special agreement. First ten Superjets would deliver in Light version and be later replaced for Full. Deliveries to Aeroflot began in mid2011, with four airframes in that year. Then six more followed in 2012. These saw only a short use because of the many teething problems. In two and a half years Aeroflot performed over 16,000 revenue flights on the type. During 2013 there were three cases in which an individual Aeroflot airframe had 300+ FH in a month (304 and 307.5 for RA89008 in June and October and 301 for RA89009 in October). At the same time, the Russian flag carrier’s Superjet fleet average is merely 146 hours (2011-2013) due to a mix of teething problems and the continuing dispute on the roles to be played by the airline, aircraft manufacturer and service providers in relation to Aeroflot Superjets. By comparison, the monthly utilization for Aeroflot

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Airbus narrow body family averages at nearly 400 FH. Statistics available from the carrier indicate that the active fleet of four “Light” and two “Full” Superjets (as of late 2013) was demonstrating an average monthly utilization of about 200 FH per operable airframe. Only four aircraft were typically available for revenue services at a time due to technical and managerial reasons. According to the airlines’ safety report 2012, ten Superjets making 8% of the fleet were responsible for 40% of all technical snags. Out of ten Superjets that Aeroflot received in 2011-2012, six were withdrawn from the airline’s fleet during 2013 (RA89001 with 2824 flying hours (FH) onwing, RA89002 2775, RA89003 3855, RA89004 3358, RA89005 2705 and RA89006 2047). Once again, the official reason for withdrawal was that the aircraft’ cabins were made to “Light” interior standard while the customer wanted “Full”. Superjet “Full” Sukhoi promised to provide seven “Full” aircraft for replacement in 2013 but A I R F L E E T

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managed only four, the last one on December 31, 2014. The airline issued a press release on that occasion. It states that the RA89022 with 12 business and 75 economy class seats has a maximum range of 2,400km. The doc contains this: “Thanks to the SSJ100, Aeroflot has a tool to materialize our strategy for making ourselves a global network airline and to strengthen our leadership in the domestic air transportation market”. The Full version differs from Light in having an improved Flight Management System (cured of some early glitches) and a weather radar with wind shift detection capability. It also carries more cameras for cabin surveillance and separately controlled lighting systems in the business and economy cabin sections. Also, there is an additional working place for a steward at the optional kitchen at the back of the service zone. There are individual fresh air outlets for each passenger, missing in the Light version. The Superjet in Full version comes with three toilets, four kitchen modules and a number of additional conveniences missing in the Light configuration.

On the eve of Farnborough’2014 air show, the Russian flag-carrier accepted tenth Sukhoi Superjet 100 in the Full version. The Superjet delivered on 26 June bears registration RA-89027. It carries the name of Vasily Borisov, a distinguished World War Two pilot. With that, Sukhoi Civil Aircraft Company (SCAC) completed the replacement of earlier delivered ten aircraft in the Light version for those in the Full configuration. By the end of 2014 the manufacturer promised to deliver eight more Superjets to Aeroflot. Since revenue operations commenced, the Russian flag-carrier performed over twenty thousand revenue flights lasting more than 30 thousand hours. The Superjets perform scheduled services inside Russia and also into twelve foreign countries in Europe. As of January 2015, the actual number was sixteen. This makes Aeroflot the largest Superjet operator. This title the Russian flag carrier is likely to carry in foreseeable future. Vladimir Karnozov

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Aeroflot takes foreign pilots

Aeroflot received more than 800 applications from foreign pilots, or more than ten per vacancy. Most came from the Czech Republic, Germany, Italy and Spain. To date more than 40 applicants have passed initial selection and testing procedures. Klaus Rohlfs, a German citizen, was welcomed by Aeroflot in September 2014 as the first non-Russian pilot to join the Russian flag-carrier. Two more candidate captains—from the Czech Republic and Germany—were said to have completed their registration formalities. Both turn up at the ceremony of Klaus Rohlfs’ induction ceremony in Moscow. Aeroflot’s management sees recruitment of foreign pilots as a “transitional” measure to help reduce Russia’s shortage of flight personnel. “Today is a historic day,” said Aeroflot general director Vitaly Saveliev. “For the first time in Russian history, a foreign citizen will captain an Aeroflot airplane. This is an important step; now that we are able to employ captains from outside the country, we can bring through substantially greater numbers of Russian pilots, who will gain experience for their captain’s exams by flying with their foreign colleagues as copilots. Despite some slowdown in 2014, the Russian aviation market is continuing to grow, so demand for pilots remains strong.”

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The Air Code, whose latest edition came out in 2006, has been amended (its Article 56 in particular). Starting in late July, it permits civil aircraft operators, be companies or privately-held entities offering commercial services, to man the crews with not only Russian citizens but also foreign nations. For the latter people the doc specifies two cases. A foreigner can be in the cockpit for checks on his professional skills provided all other crew members are Russian citizens. A foreigner can also be in the cockpit should he or she has a legal contract to work in the capacity of a crew commander. The No.115 Federal law regulating status of foreign nations is to have article 14 amended so as to permit a foreigner to have a captain’s job in the case the respective contact is signed within a five-year period since the new law coming into effect (i.e. late July 2014 onwards). The law gives Russian government some rights. The cabinet of minister is entitled to set upper limits for the number of jobs to be taken by foreign nationals and their upper ratio in relation to locals working for a particular aircraft operator, as well as to determine conditions on which job contracts can be made. A government order allows the nation’s carriers to recruit as many as 200 foreign citizens every year in total. It is expected that the first flow of foreign pilots will mostly consists of expats and passport holders of former Soviet states – all with good command of Russian language. Besides, a small relative portion may well be “bona fide” foreigners with no ethnic or language roots to Russia especially when “out of the country” operations on imported jets are concerned, most notably business aviation aircraft. Since the new law opens the door for commanders only, other crew members can only be Russians. This will certainly ensure safety in a way that commands from the ground and communications with passengers onboard are properly understood in the cockpit. Scheduled airlines say that they are keen to employ foreigners especially those who can be instructors to copilots. A number of operators report that they have many Russian copilots in need of experienced captains with instructor skills who would A I R F L E E T

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help with their careers. Various sources estimate shortage of airline pilots in Russia at 1000-1400. The new law will certainly help amend the situation. At the same time, local trade unions maintain heavy pressure on the Russian government and airlines demanding the new law to have a no or limited impact on employment of the locals. Their view is that the use of foreign nations can only be to speed up the process of making Russian copilots upgrade to captain’s level, and not to replace them with “cheap labor”. On average, Russian pilots – especially captains qualified in Air-

bus, Boeings and large business jets - are better paid than their foreign colleagues due to the skilled pilot shortage and so-farprohibiting laws. Aeroflot chief pilot Igor Chalik told us in 2012, that the number of aviators employed by Aeroflot that time was 1650 captains and co-pilots. He further said: “We feel shortage of experienced captains… this deficit applies only to the Airbus A320 family. If an Airbus captain flies 90 hours a month, its monthly income comes to Rouble 400,000”, which by the summer 2012 rate was 12 thousand US dollars.

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India will show it's best technology

on HANNOVER MESSE 2015

This year India is the official Partner Country at HANNOVER MESSE 2015 (13-17 April 2015), the world's largest industrial exhibition. 10 leading international exhibitions within the HANNOVER MESSE 2015 will demonstrate the latest technology used in the industry, including aviation, aerospace technologies, automobile engineering, etc. There were three main reasons to choose India as the official Partner country: the rapid growth of the Indian economy, long-term constructive relations between European and Indian businesses, positive experience of India as a partner country at HANNOVER MESSE 2006. It is expected that in Hanover Indian experts will present their latest developments in various fields (including aviation and space), and will be ready to get information technologies that may be used in the growing economy of India. Presentation of India as a partner country took place in Berlin in February as part of HANNOVER MESSE Preview.

HANNOVER MESSE 2015 brings together all the main topics related to the industrial chain in one place: from individual components to fully computerized plants. Such topics as Industry 4.0, energy efficiency and lightweight construction will be discussed at the exhibition in various forums, and experts will directly talk about these issues with exhibition visitors as well. Thus, the exhibiting companies will be able to gain direct access to new markets and the ability to release their products and solutions. India has been named the official Partner Country at this year’s edition of the world's leading industrial trade fair. Together with German Chancellor Angela Merkel, Prime Minister Narendra Modi will officially open HANNOVER MESSE 2015 on the evening of 12 April, then take part in the traditional opening day tour on 13 April. India's role as the Partner Country at HANNOVER MESSE underscores the new Indian Prime Minister’s ambitious economic course. Under the slogan of "Make in India", Modi is promoting the modernization of India's factories and infrastructure and greater foreign investment in local production. Modi is convinced that production industries form the backbone of the Indian economy, and to develop that backbone, the emerging Indian economy has an active interest in German infrastructure, research and technology. India has just been designated the official Partner Country at HANNOVER MESSE 2015, putting this vast nation of more than 1.2 billion inhabitants squarely in the spotlight at the world's leading industrial exhibition. "India is an emerging

economic giant which is going to open up enormous sales potential for our German and international exhibitors at HANNOVER MESSE" (Dr. Jochen Kockler, member of the Deutsche Messe Managing Board). At the same time we will be offering even more exhibitors from India access to new global markets. Ultimately all our exhibitors and visitors as well as the trade fair venue of Hannover will benefit equally from the participation of this attractive Partner Country. Boasting an average annual growth rate of 10 percent over the last 10 years and with current growth running at around five percent, India is one of the world’s fastestgrowing economies. To stimulate growth the country is opening itself up to further foreign investment, having decided to modernize its infrastructure and industrial plant and equipment. Last year alone, the German federal government promised some one billion euros worth of loans to India — funds which are to be used primarily in the area of energy efficiency, renewable forms of energy and the sustainable use of natural resources. With a trade volume of 16.1 billion euros, Germany is India’s leading trading partner within the EU. The German trade surplus of approximately 3.4 billion euros (2012/13) reveals the high level of Indian demand for capital goods in particular – above all for machines, which constitute some 33 percent of Germany’s total exports to India. Based on a survey commissioned by the German-Indian Chamber of Commerce, German enterprises are expecting a medium-term increase in exports to India thanks to the business-friendly pol-

icies of the country’s newly elected government. India's most recent participation as Partner Country at HANNOVER MESSE 2006 inspired some 350 Indian exhibitors and 5,700 Indian attendees to make the trip to Hannover. Last year’s event attracted the participation of 122 exhibitors and 2,400 visitors from India. "Having India as the Partner Country will allow us to greatly expand those figures," (Dr. Jochen Kockler). Particular attention to Indian participation in HANNOVER MESSE 2015 was paid in Berlin on HANNOVER MESSE Preview, where the largest industrial fair this year's World was presented. “Is my organization ready for the fourth industrial revolution? That’s the big question that CEOs and plant managers are currently asking themselves,” — remarked Dr. Jochen Kockler. The fourth industrial revolution – aka Industie 4.0 – will bring major change to energy systems and industrial production models. In factories, there will be a shift away from mass production as customers increasingly demand customized products – albeit at the same low prices they currently enjoy for mass-produced

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goods. And energy grids will need to become smarter so that they can optimally balance and deploy available power, gas and heat capacity from a wide range of sources. The answer to these challenges is Integrated Industry – the intelligent digital networking and integration of industrial systems and processes. Integrated Industry is about enabling machines and workpieces to communicate with one another. This, in turn, will allow entire production lines to autonomously and dynamically re-configure themselves, thereby rendering smallbatch and one-off production in largescale plants commercially viable. Dr. Kockler: “Industry is in the early stages of a revolution known as Industrie 4.0. It’s a phenomenon that has skyrocketed to the top of the agenda in industrial thinking over the past two years. Meanwhile, there is an enormous information vacuum, and most companies still don’t know what they need to do in order to be ready for Industrie 4.0. What they need to do, of course, is form close networks with all stakeholders involved in their production processes. HANNOVER MESSE 2015, with its lead theme of ‘InA I R F L E E T

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tegrated Industry - Join the Network!’, will show them how.” The key challenges of the fourth industrial revolution – such as achieving universal standards for machine-to-machine communication, maintaining data security and finding new business models – can be mastered only through collective endeavor in networks. This requires effective dialogue and cooperation between the mechanical engineering, electrical engineering and IT sectors. The enormous potential that all sectors of industry can unleash through this sort of integration will be on show at HANNOVER MESSE 2015. Visitors to the fair will witness digitally networked production plants, smart grid technologies, ingenious new production processes, such as 3D printing, and next-generation industrial robots live in action. They will see collaborative robots with sensor systems so advanced that they can work right alongside their human counterparts without any safety barriers. And they will see IT-based automation solutions that will bring fundamental change to all infactory processes. Also on display will be smart technologies that manage and co-

ordinate power, gas and heat networks so that capacity can be balanced and optimally deployed across the entire energy system. What’s more, visitors will be able to watch as additive manufacturing systems (3D printers) make individualized products right before their eyes. These technologies and themes will be explored in even greater depth in the 1,000-plus supporting forums and guided tours on offer at the fair. HANNOVER MESSE will also examine the social and political dimensions of Industrie 4.0. That’s because the primary impact of the changed work processes and new, data-centric business models sparked by Industrie 4.0 will be on people. Kockler: “In order for Industrie 4.0 to be a success, it needs broad-based acceptance by trade unions, lawmakers and society generally. We therefore encourage industry stakeholders to use HANNOVER MESSE as an opportunity to engage in constructive dialogue and hence foster openness and transparency on all matters relating to integrated industry.” Elena Stolnikova, «Promishleny ezenedelnik», Berlin – Moscow

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JetExpo’2014 Administration of Moscow Vnukovo airport, where JetExpo’2014 is held, used that opportunity to inform the show visitors and participants that its branch “the business aviation center” Vnukovo-3 firmly keeps its title as the busiest business aviation airport not only in Russia but the whole of Europe. According to the administration’s statistics made public during the show, Vnukovo-3 served 19,437 paired business jet flights (with 133 thousand travelers aboard them) last year. That is nearly same figure as in the pre-crisis year of 2007 (19,491 flight pairs; passenger number was 103 thousand then), when the Russian economy and air travel flourished. And that is five times more than ten years ago, when Vnukovo-3 had just begun operations.

By comparison, all other Moscow airports served about nine thousand business jet flights last year. Sheremetievo, Domodedovo, Ramenskoye and Ostafievo combined generate business jet traffic nearly three times less (than Vnukovo). Further rise will depend on how the national economy, relations with the West and Ukraine be developing – other factors is overshadowed by the general situation in the economy and the politics. “Unfortunately, we are not expecting a rise in our figures at the moment”, Georgy Sharov, general director of the Vnukovo‑3, told the media on the eve of the show. “Yet we do everything we can to keep our leadership in the Russian market”, he added. Expansion plans goes mostly in the direction of helicopter operations. Vnukovo administration predicts within three years the number of rotorcraft flights to and from the airport is expected to rise by 30–40%. The rising solvent demand by business travelers in rotorcraft services is explained by the fact that a number of helipads are now available in the city of Moscow and in the Moscow Region area, and this renders this sort of transportation convenient. To capture the growth, Vnukovo administration is plotting a comprehensive solution, with construction of a separately-standing helicopter terminal, hangars and a technical services center. Vitaly Vantsev – effectively the owner of the airport – emphasized his efforts in the rotorcraft domain. “We have declared

our intent to construct a heliport. It shall be a logical continuation of our Vnukovo‑3 business aviation project. Construction commences this year; I am sure we can complete it within couple of years. With the heliport ready, we can give our clients the possibility to use helicopter transportation at maximum, and derive more gain and convenience from it”. Vantsev does not think that every businessman with a personal or hired jet at Vnukovo‑3 will be jumping on the new rotorcraft opportunity. “Our passengers shall have a multiply choice of how to get to the airport. Today they can do it in a helicopter, they can do it by road, and they can do it by rail. Most prefer road, and there are three federal highways by which you get to Vnukovo. This is the only airport in the whole of Russia with that convenience”. With more bypass roads interlinking these motorways under construction, the accessibility of Vnukovo shall further improve as the drivers can evade traffic jams, which often cause unspeakable pains to Moscowites. “Surely, the improved helicopter services we are going to provide are mostly for business aviation travelers”, says Vantsev. But he then makes a rider that there is an idea to connect Vnukovo and Sheremetievo by a rotorcraft service. “Today, I have some difficulty in imaging how we can justify a regular helicopter service between Moscow airports. We need to do a research into target audience, what frequencies shall be and if there is a possibility for regular flights

on a timetable. The information we have is not sufficient to make a prognosis, not very much so a decision”. The only media briefing at the entire threeday JetExpo’2014 was made under initiative of AKAI, Russian acronym for Association of Aviation Interior Companies. “One of the top priorities now is to reduce Russia’s dependence on global market’s conjuncture, and on western suppliers”, said the association’s president Vitaly Romanyuk who also work in the capacity of general manager at Vemina Aviaprestige company. In the sphere of VIP aircraft, this can be done through local making of VIP conversions of in-production passenger jets and maintaining earlier imported western aircraft with help of local industry and vendors. Romanyuk said Vemina Aviprestige and its industrial partners have installed their VIP interiors into 85 converted VIP jets and Mi‑8 series helicopters. The company expands its workshops in Moscow Sheremetievo airport where it serves Aeroflot’s Airbuses and Boeings. Its strategy calls for gradual expansion of approved works done under the already won EASA Part 145 certificate and EASA Part 21G one which it hopes to get by the year-end (to increase supply of parts to manufacturers and MRO stations). Romanyuk says the association members are proud with the work done on the RA97009 on display at JetExpo’2014. Under insistence of the aircraft owner Rostec, Aerostyle (an AKAI member) acted the lead

Airshows

contractor for the interior work, with several Since previous JetExpo, “much work was association members working on sub-condone” on shaping VIP interior solutions for tacts. “We are ready to make same kind the MC‑21 next-gen narrow body jetliner of work on many more Superjets, including being developed by a UAC member Irkut. those destined for the Ministry of Interior “We believe that this airplane should be and the Ministry for Emergencies”. available, from the very start of shipments, The immediate goal is to form “a limin both passenger and VVIP configurations. ited series edition of seven to ten Superjet This would ensure a larger backlog for the 100–95B VIP aircraft”. These would mostly project at the critical stage of entry-intogo to government structures and large corservice”, Romanyuk says. porations like Rostec. These have broadly To be able to offer airframers a modern – similar requirements and expectations from and a complete – package, the association their Superjets. And expect synergy and members expand the area of their experother effects (from the aforementioned batch) tise in composite and other modern materithat would reduce the cost per each aircraft als, in-flight entertainment and life-support conversion by 1.5–2 times (compared to systems. Vemina Aviaprestige alone is the RA97009). The local interior specialists half-though its investment program 2010– believe they can do same work as prominent 2016 aimed at modernization of its producEuropean colleagues at charges 50% less. tion base worth Rouble 200 million. “Our After the aforementioned “limited edition”, goal is to squeeze out US- and EU-made VIP configured Superjets will go to foreign systems and items that did not come to customers who might love to have the same expectations of the VVIP aircraft user during sort of luxury as the Russian government operational service on some local aircraft”, members. To beat would-be competition, says Romabnyuk hinting at the systems local interior specialists are ready to proonboard the Il‑96–300 VVIP conversions vide comprehensive solutions so that preoperated by the flight department serving dominantly Russian aircraft get available on President Putin and his ministers. the global market at lower rates. They see Having earned a good reputation on the competition coming from Airbus Corporate global market for jetfighters, Sukhoi is all set Jets and Boeing Business Jets, but the main to expand into the market for VIP converrival is Embraer Lineage‑1000. sions of regional aircraft. At JetExpo, the

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famed airframer demonstrated the MSN 97009. It is the first airframe originally built and flown as a hundred seat passenger jet, but recently reworked into “Superjet 100–95B VIP”. This machine is displayed right in the middle of JetExpo’2014 outdoor space, occupying the best place the show organizers could offer, making jealous all other manufacturers exhibiting on the 9‑th event on the roll at Moscow Vnukovo airport’s business aviation zone. On previous occasions, this “best place” was given to Lineage‑1000, Airbus Corporate Jetliner or Boeing Business Jet. About fifty Superjets have been built so far, but the active fleet is just a fraction of that. Many early-built aircraft have been taken aback by the manufacturer for various improvements and forthcoming placement with other customers. These “other customers” are meant to be various governmental structures willing to have a luxury jet for transportation of their leaders with comfort levels comparable or higher to those of purposely built super midsize and large business jets. About a dozen of early-production Superjets are available for that kind of conversion. The RA‑97009 sets a good example how an original asset with limited value can be turned into something suitable for VIPs.

Airshows

The placement of that aircraft to the central place at JetExpo’2014 came with a heavy verbal support from big figures in the Russian civil aviation community. For the first time, JetExpo saw head of Russian civil aviation authority – “The Federal Agency for Aerial Transportation” – giving attendance. “It is the ninth such event in Vnukovo‑3, but the first such when the most modern Russian business jet is displayed in the flesh. It is also the first time when the head of the federal agency and the head of United Aircraft Corporation are present in person”, said Vitaly Vantsev, the co-owner of Vnukovo, de-factor the man in full control of the flourishing big-city airport. In his turn, Alexander Neradko, the incumbent head of Russian civil aviation authority, addressed the gathering with the following words. “Business aviation has become an important sector of our industry. More and more people make use of privately owned airplanes and helicopters and thus explore many benefits the business aviation is famous for. Please note that this show sees for the first time the head of United Aircraft Corporation. He has not just given attendance. He brought an indigenous business jet Russia, a first ever deliverable business jet made in this country. We want that the Superjet in the VIP version will find a prominent place in the system of the global aviation industry among other famous brands of the world”. UAC president Pogosyan said that September 4 is an important day for him personally, as he acted the initiator of the Superjet program in the late 1990s. “The airplane we demonstrate here is intended for our launch customer, Rostec corporation, to be used on VVIP transportation flights. Business aviation develops fast, and we offer it our newest products, the Superjet and the MC‑21 which we also work on. We believe that these airplanes will take an important place in the world’s business aviation. The product UAC brought to JetExpo’2014, gives a new boost to development of world’s business aviation. With that, JetExpo strengthens its position as one of the premier business aviation shows round the world”. Later on, interacting with the journalists, Pogosyan give the price: the

SBJ such as that on display is offered for 50 million dollars, which is roughly twice as much for the basic passenger jet version seating 96 passengers. President of Russian business aviation association Valery Ochirov described the Siperjet as “the first indigenous jetliner made after the Soviet Union had gone. This product has incorporated many modern technologies, and uses numerous vendor items from world’s best suppliers. This brings Russian aviation to a new height, a much higher level of technology. We hope that this project will be a success story”. Ochirov told AIN that success of the Superjet in the business aviation markets will depend on assessment of that product by its first user – Rostec and other governmental structures and also on the assessments of foreign specialists. “Many of such specialists are here, at JetExpo. If their assessments are positive, then commercial structures will consider the SBJ. Our association will monitor the situation, how this and other SBJ be performing in service with the launch customer. I do not exclude the situation when our association members be considering SBJs for the fleets of their own”. Vital interests of the local business aviation in this country are promoted, lobbied and defended by RUBAA, acronym for Russian United Business Aviation Association. We were able to spoke RUBAA president to Ochirov on some important issues. What is the hottest discussion topic for the association members today? Ochirov answers that everybody is concerned about the recent negative tendencies in the national and European economies. These have entered a slump, with GNP often floating between –1% and +1.5%. This darkens prospects for the business aviation industry and prompts its players to plan and execute survival measures. “The economics is the paramount issue now”, he insists. To make Russian business aviation a more economically stable and better-surviving mechanism, a set of balanced, carefully through-out measures is needed. “Today, the situation [in the national economics and that of the national business aviation] is more or less stable, without big gaps. To make our industry healthier, we need to

continue implementing best European practices regarding conduct of flight operations, ATC, flight safety management, airport services and customer support”. He insists that the aforementioned issues are interconnected and thus need a complex, systematic approach. RUBAA is ready to render assistance to the government bodies dealing with those issues at a higher rate than ever before, mostly by sharing expertise of its members that have long been in business. “Everybody understands the need for urgent improvement of our [national] aircraft registration system”, he carries on, but observes that respective steps are simply impossible to make in the view of legislative weaknesses and shortage of skilled cadre at the governmental agencies involved. “Better management of our air register” is needed, following the clear command from the Kremlin to speed up transfer of Russian-owned aircraft registered elsewhere into the national register. The current system is simply not able to handle many requests at a reasonable time, too cumbersome and a go-slow. “Here, Russia needs to learn more from the foreigners here as well”, Ochirov says. He also sees the need to expand functions of Rosaviatsiya, the local civil aviation authority operating as a part of the Ministry of Transportation. “I am a member in Rosaviatsiya’s Public Council. There are some quick actions needed to be done by Rosaviatsiya [notably, to do with aircraft registration system], but because of the multi leveled command-and-control system of the ministry these are simply impossible to make”. Ochirov reminds of the much-publicized fatal accident of Tatarstan Airlines Flight 363, a Boeing 737, at Kazan International Airport on November 17, 2013. Among other things, the findings indicated how important is economical safety of aircraft operators. “We must move to a new level of regulatory practice in this field. Aircraft operators must accept a much higher level of financial transparency. A lack of clarity in this field is fraught with danger to air transport users. If an operator’s economy suffers, its flight operations must be temporarily stopped. There must be a red line drawn by the authorities before operators performing financially bad”.

Airshows

Vitaly Vantsev and Georgy Sharov He suggests that the civil aviation authorities mush monitor financial situation with aircraft operators and if one of those experiences notable financial difficulties, it shall be given a [ten days] warning that unless there is no improvement, than [say, a monthly] ban be imposed by the authorities on its flights. Ochirov says that prior to the ill-fated Flight 363, Tatarstan Airlines had amassed big debts, which led to unpaid salaries to pilots, technicians and maintainers. “This contributed to such grieve consequences” as loss off many lives and darkening image of whole Russian civil aviation. Even though that case was with a scheduled passenger airline, the business aviation should also learn this lesson, according to RUBAA president. JetExpo’2014 provided a convenient platform for Avcom and Rostec to anA I R F L E E T

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Valery Ochirov nounce their joint project on setting-up a new FBO at Europe’s longest runway in Zhukovsky. Privately held Avcom and Russian Technologies state corporation (Rostec) teamed up on this project a year ago. Avcom president Eugeny Bakhtin, who previously created fully-fledged FBOs in Moscow’s Sheremetievo and Domodedovo airports spoke at Business Aviation Forum 2014. It was the first public presentation of the project. Rostec acts via its branch TVK Rossiya (Russian acronym for Transport and Exhibition Complex “Russia”) that owns land and buildings at the Ramenskoye aerodrome near the town of Zhukovsky, south of Moscow. That aerodrome has served as Russia’s primary aircraft flight-test station since 1930s and became famous for biannual MAKS airshows held there since early

1990s. Ramenskoye is also famous for Europe’s longest runway in excess of five kilometers. Last year the landowner made a pact with Avcom, under which a patch of land at the huge aerodrome’s southeast corner to lend to a specially created joint venture with the business aviation company – “the International Center of Business Aviation” (Russian acronym MTsDA). Bakhtin pictures the JV as “a promising private-public partnership which shall provide exemplary technological schemes and solutions to do with serving private, corporate and governmental aircraft”. Among other things, it will be used to conduct some activities to do with general aviation. He insists that the strict security regime at Ramenskoye is only for the good of business travelers “who want to fly safe

Airshows

and discrete”. TVK’s area of responsibility covers land and airport related issues, getting government and authorities’ approvals when necessary, as well as making VIP flight charters, hangarage and related services easily accessible for various public structures headquartered in the area. Avcom’s job is to create the FBO to latest international standards and make it run smooth. The FBO project is a part of the bigger one aimed at creation of so called National Aircraft-building Center (a UAC business unit). Bakhtin says that whenever possible restoration of old buildings and facilities are preferred over all-new construction. A part of apron, some taxi ways and parking lots as well as “few small buildings for operations and formalities including a small terminal” are already available and occasions business jet flights are made using those. Today, the area of apron and parking is 25,000 square meter large. The hangarage is 3,500 square meters big and sized for Bombardier Challenger 850s. When the FBO is complete, it will have 35,000 square meters of apron and parking. It will also have two separately standing hangars each big enough to house a Boeing Business Jet or a Tupolev 204, with a total space of 5,500 square meters. “In fact, the immediate requirement was for a Superjet and a Gulfstream G650 – both in the fleet of our partner – but we decided to make it bigger to cater for future expansion”. The hangarage is intended for both aircraft storage and maintenance work. Ramenskoye airport’s code is UUBW, or Uniform Uniform Bravo Wisky. Bakhtin stresses that “Bravo Wisky” ending reflects the Russian national character. In his mind, this increases the new FBO’s attractiveness to many local businessmen. The top-notch MiG performer Marat Alykov, born 1959, is appointed general manager at the International Center of Business Aviation (ICBA), a joint venture of Rostec (acting via TVK “Rossiya”) and Avcom. ICBA leads the effort on creating a top-standard FBO at Ramenskoye aerodrome in Zhukovsky near Moscow. The place is well known to Alykov, a resident of Zhukovsky, who performed hundreds of

test missions from the Ramenskoye in the cockpits of various MiG since 1987 when he worked for the famed design house named after Artyom Mikoyan and Mikhail Gurevich. Marat Alykov began his flying career with the graduation from the Russian air force’s flight school at Kacha in 1980. He flew 214 combat sorties in Afghanistan in 1983–1984. He qualified as test pilot in 1987, after a course at the Test-Pilots School in Zhukovsky. Alykov made its mark in Russian aviation through the work done in frame of the MiG‑29SM, MiG‑29SMT, MiG‑29UBT, MiG‑31 (mod.) and MiG-AT programs. His demonstration flights in a MiG‑29 and a MiG AT aircraft stunned public at Le Bourget, MAKS and other big air shows round the world. On May 31, 1998 he won the nation’s top state award, becoming a Hero of the Russian Federation. Subsequently, he was decorated with a Golden Star (no. 452) “for courage and heroism demonstrated during flight testing of new aircraft”. Among other decorations, he won Medal of Courage and the Order of the Red Banner, as well as the title of “Honored test pilot of the Russian Federation”. Having completed his flight-test career in 2005, Alykov underwent an educational course at the Russian Academy of the Governmental Service to the President of the Russian Federation. He has a PhD in Economics. Even through Moscow now has many FBOs, there are some difficulties in having your jet operating. This applies to some well-off Russians. Well informed sources in RUBAA told us that the fleet of the Gulfstream G‑650 in the hands of local billionaires have reached four – judging by the type movements in Russian airspace and airport parking information. Of those one aircraft “is firmly on the ground”, as the sources put it. That particular airframe belongs to billionaire Gennady Timchenko whose wealth is estimated by a two digits figure when measured in billions of US dollars. As JetExpo’2014 opened on September 4 his airplane continued to stand still, our sources confirmed. Month ago Timchenko gave an interview to a

local wire agency stating that Gulfstream refused to provide services regarding to his G‑650 shortly after the US government published, on March 17, a list of Russian politicians and entrepreneurs allegedly involved in the campaign on “Russification” of “annexed” Crimean peninsula. Timchenko told journalists that the manufacturer “simply terminated carrying out its obligations taken at the times the airplane had been purchased”. Gulfstream no longer supplies spare parts and prohibits the use of onboard navigation systems, which “makes it impossible to fly that airplane”. The billionaire further grumbled that the US governmental structures prohibited the manufacturer to communicate in any way with him and his representatives regarding other US-built airframes in his fleet and on order. “Surely, I can order a charter but that is not always convenient”. The big jet, with the list price in excess of US dollar 64 million, is said to be operated by Airfix Aviation, a company registered in Finland and under control of Timchenko’s structures. At JetExpo’2014 a business aviation industry insider told AIN that as of this time little is known about the billionaire’s intentions regarding the future of that airplane – one of the very first deliverable examples of the type. It is widely suggested that Timchanko is likely to sell his Gulfstreams out and replace them with Russian-made aircraft. Few Tupolev‑204 narrow bodies have been converted in VIP jets and in use by national banks on longhaul missions including across Atlantic. But since Timchenko is not only refused support of his Gulfstreams but also banned from entering US and EU, he no longer needs range. Therefore, it has been expected that he would take a Sukhoi Business Jet. A deliverable example with luxury interior from local interior specialist Aerostyle it can cost as much as US dollar 50 million, according to president of United Aircraft Corporation Mikhail Pogosyan. Without extra fuel tanks the aircraft is able to reach as far as Irkutsk in Siberia with twenty people on board when operated from Moscow. Such was the requirement of Rostec, the owner of the Superjet 100–95B VIP registration RA‑97009 on display at Vnukovo. Rostec

Airshows

general director Sergei Chemezov does not need the range either – he has also been given a travel ban by the western powers on the same grounds as Timchenko. The case with Timchenko’s jet is, surely, painful to the reputation of the famed US airframer. But what can it possibly do? Nothing, since the matter is to do with the big politics. Staring from the turn of the century, Gulfstream exhibited at each and every JetExpo. To the ninth show in Vnukovo the US manufacturer brought three jets, a G‑650, a G‑450 and a G‑280. Trevor Esling, Gulfstream’s senior vice president for international sales, told us: “I am sure we could have brought more if we had had more airplanes available. We are here with the three aircraft because Russia is an important market for us. We wanted a big presence at this show”. Russian entrepreneurs were among early customers for the company’s flagman. “That is why we flew a G‑650 prototype to Moscow in January 2013, shortly after certification”, Trevor Esling said. “One of the very first deliverable airplanes went to a Russian client. There are several G‑650s operating in Russia already.” Response from Russian customers “is not different from other areas’ reception; we have enjoyed fantastic response from our customers in different parts of the world”. The backlog for G‑650 exceeds 200 airplanes, he added. Another show participant, the G‑450, “has been very successful in Russia”. The smallest of the three is not so much so, but “we are beginning to sell G‑280 into Russia and CIS”. Trevor Esling agrees that smaller jets are more difficult to sell here. “The Russian marker is a lot like the Chinese market because the way both developed. And the way the market developed was that those who could afford a bigger jet went forward and bought the largest airplanes they could”. Even though the G‑280 generates less Russian interest, there is a reason to show it along with the bigger jets at JetExpo’2014. “Like any other global manufacturer, we want to sell worldwide, not just into Russia. There are some show visitors from other countries”. Cessna has managed to sell a number of Citation X into Russia, which A I R F L E E T

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Marat Alykov and Eugeny Bakhtin Esling uses as an argument that the market does exist for the G‑280 also. Commenting on the recent trend for expansion of local capabilities in aircraft maintenance, Trevor Esling says that although it is “always possible” to have more MRO in Russia to do work on Gulfstream aircraft. But the manufacturer’s strategy is to expend that capability in Moscow through Jet Aviation. He makes a point that technical performance of Gulfstream jets make them able to cover large distances “so that our airplanes are over the place”. Some aircraft registered elsewhere “travel long distances into Russia”. Hence with, there is always a need for manufacturer’s support to various Gulfstreams coming to Moscow including smaller models “because there are many of those in Western Europe”. The manufac-

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turer thinks that “some capable local MRO specialists could succeed” in mastering work on the US-made jets, but Gulfstream prefers to expand MRO capabilities in Russia through Jet Aviation – “We’d rather not authorize warranty work to be done by somebody else”. Because many aircraft coming to Vnukovo are operated by companies headquartered in the European Union, they need maintenance to done by EASA authorized stations, which is also a factor. Wrapping up, Trevor Esling says: “It is always good to come to Vnukovo. A lot of our customers visit the show, so it is important for us to show our presence here. We want to continue to sell into Russia”. Vladimir Karnozov

Air Force

Russian air force ready

for any eventuality

Using the occasion of the Russian Air Force Day on August 12 to meet with the media, the commander Gen. Victor Bondarev confirmed that earlier this year the Russian defense ministry placed order for sixteen MiG 29SMT multirole lightweight fighters (fourteen MiG‑29SMT single seat aircraft and two MiG‑29UBT twinseaters). The contract value is in excess of Rouble 17 billion. Delivery is due within “2–3 years”. These will supplement 28 such aircraft already in service. Bondarev further stated that the contract for MiG‑35 be signed later this year. The air force will continue upgrade efforts on the MiG‑29 fleet so as to keep ageing airplanes in service for another 10–15 years “and maybe more”.

Deliverable examples of the Sukhoi fifth generation fighter PAKFA (manufacturer’s designation T-50) shall come to the Russian air force in 2016. Today, one airplane belonging to the industry already flies with military pilots at the controls in GLITS, a flight-test and armament trials center at Akhtubinsk AFB, South Russia. Concept of combat aircraft with forwardswept wings continues in development, and Bondarev suggested it will soon emerge in the form of a development prototype. At the same time, plans for a light strike aircraft on the Yak-130 jet trainer platform were dropped. Maiden flight of the PAKDA next-gen strategic bomber is expected in 2019, and production start in 2021-2022. According to Bondarev, flight test shall be complete in 2023, enabling entry-into-service later that year. The commander confirmed that the new bomber will be subsonic. It shall eventual-

Air Force

ly replace the Tu-95 and the Tu-160. In a recent interaction with the media, head of Russia’s United Engine Corporation was quoted as saying that the PAKDA’s engine is to be developed on the base of the Tu-160’s NK32 “second edition” motor and use its gasgenerator. ODK intends to invest its own money into the project in addition to the approved governmental funding of Rouble 8 billion. Bondarev expects deliveries of Il-76MD90A strategic airlifter to commence later this year, under the contract for 39 quads due by 2020. The air force also expects to get some airframes out of the recent governmental order for 14 new Il-96 jetliners, all due by 2024. The military applications would include air tanker and transport roles, Bondarev said. The Russian air force will continue to build up its forces in the Arctic region. Temp and Rogachevo aerodromes have been re-opened, and work is in progress in Tiksi, Anadyr and Vorkuta. “We must withhold that region. Almost 49% of the Arctic territory must belong to Russia, and we shall defend it”, Bondarev said. Plans call for a complete radar coverage of Russia’s northern regions. A new interceptor shall replace the MiG-31, the one that often serves as a flying radar to keep the airspace over the vast northern territories under Russian air force control. The new interceptor shall be developed by the end of the current Armament Program ending in 2020. Plans call for replacement of the whole MiG-31 fleet by 2028. Addressing the theme of the civil war in the neighboring Ukraine, Bondarev suspected that Ukraine had received supplies for Su-25 attack aircraft “from a third country”. This resulted in rather big number of such aircraft operating now instead of 12-15 it used to be. The Russian air force commander suggested that Ukraine operate Su-25 beyond their service lives, thus putting pilot lives in danger. High attrition rates during the war in eastern Ukraine he attributed to “lowest pilot skills”. Many missile hits could have been avoided if the pilots had practiced evasive maneuvering. Weeks after Bondarev spoke to the media, some more news came to do with the Russian air force. At the Girdoavi-

asalon’2014 (the Saloon of Hydra Aviation) the Russian defense ministry awarded Irkut a follow-on order for seven Sukhoi Su-30SM twin seat fighters for the Naval Aviation, a part of the Russian Navy. The respective documents were signed on September 5 by deputy defense minister Yuri Borisov and Irkut president Oleg Demchenko in presence of minister for industry and trade Denis Manturov. According to the minister, the contractual sum comes to Rouble 13 billion. In his turn, Borison said the recent contact is for a second batch of the Su-30SM aircraft placed by the Russian MoD in the interest of the Russian naval aviation. “The Su-30SM is a modern multirole aircraft that can be used against aerial, ground and sea-going targets. It can considerably boost the potential of the naval aviation”, Borisov was quoted as saying. The most recent order increases the total orderbook for this model to 72. Initial contract for 30 units was placed in March 2012, followed by a second one for same quantity at the year-end. Of the 72, the Air Force is getting 60 and the Navy 12. The September 2014 contract comes with option for ten more aircraft and is timed to the eightieth anniversary since foundation for IAZ, Russian acronym for Irkutsk Aviation Plant. To-date, the enterprise has shipped 29 Su-30SMs to the Russian defense ministry. This year Irkut is to deliv-

er 15 Su-30SMs, according to Irkut’ IAZ plant general manager Alexander Veprev. Russia’ Naval Aviation accepted its first batch of three Su-30SMs in June-August this year. The navy has plans for a total of sixty such aircraft. Navy’s and Air Force’s aircraft have been operating out of Akhtubinsk, Lipetsk, Donma and Eyisk AFBs. In September reports came that a number of Su-30 jets was deployed to Crimea. They are stationed at the Belbek air base near Sebastopol, the one much featured during the process of the peninsula changing hands in February-March 2014. In the tenure of Ukraine, Belbek housed MiG-29 fighters and antiaircraft defense units and was sieged by proRussian troops until the peninsula went under the complete control of Russia. The Sebastopol city governor Sergei Menyailo confirmed that “the Su-30 jets are already here”. Local sources give the number of Sukhoi jets in Crimea at 20. Along with Irkut-made Su-30SMs, the Russian air force operates a lesser number of KnAAPO-built Su-30 and Su-30M2 jets for a total of less than fifty. The Russian government has announced plans for Belbek to be a joint-usage aerodrome with both military and civilian jets operating out of it, for which the aerodrome will undergo reconstruction and expansion. Vladimir Karnozov

Space activity

The reform of space industry:

stage Two

January 22, 2015 Russian Space Agency held a meeting of the Commission on the reform of the rocket and space industry in Russia, chaired by Deputy Prime Minister Dmitry Rogozin. Before that, during a meeting with Russian President Vladimir Putin, Prime Minister Dmitry Medvedev had submitted proposals to optimize space industry business processes. It was decided to create a State Corporation on the basis of the Russian Space Agency and the United Rocket and Space Corporation (URSC). At the commission meeting, which was attended by the heads of enterprises, Roscosmos and the URSC, Dmitry Rogozin presented Director General of the URSC Igor Komarov as head of the Russian Space Agency. Speeches were made by Dmitry Rogozin and Igor Komarov. These performances represent the most important aspects of the reform of the Russian space exploration.

Dmitriy Rogozin's speech Good afternoon, colleagues! Our meeting is focused on two issues. The first relates to the development prospects of the Russian Federal Space Agency and the United Rocket and Space Corporation. The second issue is the relevant

appointments that accompany this field of work. These issues were discussed yesterday by President of the Russian Federation and Chairman of the Government. This is the beginning of the second phase of a deep reform of the rocket and space industry in

our country, associated primarily with the decision by the government to establish Roscosmos State Corporation. Iâ&#x20AC;&#x2DC;d like to introduce you the new head of the Federal Space Agency Igor Komarov. Prior to joining the United Rocket and Space Corporation, he was deputy head

Space activity

Dmitriy Rogozin: “Talking about international cooperation,

despite prevailing political conjuncture, we need to continue mutual work in space with all the leading technological powers. In fact, if not in space, where this interaction is still possible?„

of the Russian Federal Space Agency and the main developer of the ideology of the first phase of reforming space industry. The results of the first stage of reform First of all I’d like to say about the results of the first phase of the reform, which affected primarily industry itself. What has been done for the previous short period after the decision on the establishment of the URSC was made? Firstly, stocks of rocket and space industry facilities were estimated. About 30 companies’ stocks were contributed in the capital stock of the Corporation . A Corporation strategy until 2025 is developed, currently reviewed by the Government of the Russian Federation and will be approved soon. We are implementing a recovery program for one of the largest companies in the industry, the Khrunichev Center. It was in a difficult financial and technological situation. Together we were searching for solutions, primarily financial. This also applies to our actions on issues related to the existing facilities configuration, upgrading their technological base and ensuring tight product quality control. In fact, our support of the Khrunichev Center resulted in the success of the two phases of flight tests of a new Angara launch vehicle of light and heavy classes. URSC developed a program of transformation for all large integrated structures of the Russian space industry, introduced a unified system of corporate governance by the board of directors and completed preparatory procedures for state enterprises corporatization. We completed estimation of the necessary resources for the reform and launched a program of strategic transformation of instrument and engine - building companies. We introduced a single economic model of A I R F L E E T

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collecting and evaluating information, including performance indicators and started optimizing non-production costs. We implemented a program of monitoring our financial flows in accordance with the criteria of the financial soundness of banks and the optimization of the structure of bank accounts of enterprises. We created central treasury, which monitors realtime 80% of businesses and corporations. Our experts estimated time and cost of the upcoming Federal Space Program projects, analyzed their competitiveness level. We performed an audit of technology and quality management system on enterprises and compiled database of basic capacities and assets of enterprises, while presenting a plan to improve existing standards. We have begun to address the priorities of improving the quality and reliability of space rocket technology. We are completing the establishing of a common components procurement center of for our enterprises. We are going to eliminate current feudalism-like situation when companies make quite the same products in parallel. We conducted an audit of security systems to provide comprehensive information protection. Human resources program is approved. In particular, by 2025, it is planned to triple productivity with twotimes increase in real wages. An organization of corporate academy to train employ-

ees and improve their skills is in preparation. I want to remind you that we already made very important personnel changes, especially in the Khrunichev Center, in the Rocket and Space Corporation «Energia» and “Russian Space Systems” corporation. The second stage of the reform Why is it necessary to start the second stage of the space industry reform? We planned it for a long time, but assumed that it must begin right at the end of the first stage. However, in the current situation in the country and economy, we need more hard and courageous decisions. Therefore, the second stage of the reform will affect the entire control system of the Russian space industry. It is necessary to reform it in such a way as to obtain the necessary centralization of resources and decision-making. That is why the State Corporation is the best form in the current economic and political situation for reform considering goals of maintaining and strengthening the position of our country as a leading space power. What are we going to do? We are going to create a management center of the reform. We need to unite the reform of science and the transformation of production. The State Corporation should develop a customer – company relationships and be responsible for the quality of products throughout the supply chain. The

Dmitriy Rogozin: “Until now, we have been keeping superiority in the

market of space launches, but the main economic benefits, as well as political effect, we would obtain mastering the whole range of space activities„

Space activity

Dmitriy Rogozin: â&#x20AC;&#x153;So, there are three tasks we give to the new State

Corporation. The first task is creating high-tech, efficient working industry, which will be based on modern science opportunities. The second problem is extracting maximum benefit for our entire country from space activities. The third objective is restoration of Russia's leadership in spaceâ&#x20AC;&#x17E; State Corporation will create new opportunities for the development of science and technology. Talking about international cooperation, despite prevailing political conjuncture, we need to continue mutual work in space with all the leading technological powers. In fact, if not in space, where this interaction is still possible? In an increasingly competitive environment, we must aim to increase the share of Russian space activities market by increasing the competitiveness of products and modern production organization. Until now, we have been keeping superiority in the market of space launches, but the main economic benefits, as well as political ef-

fect, we would obtain mastering the whole range of space services. What do we need to ensure the implementation of the plan to create a State corporation? First of all, we are waiting for Federal Space Agency to make the draft law on the State corporation Roscosmos and pass it to a Government for approval. Naturally, all the features of the space industry there must be taken into account, but also we don't quite need to reinvent the wheel. We have an example of the success of the State Corporation "Rosatom", and this experience may be used. Certainly we need to complete all the work on the first stage on the "Vostochny" cosmodrome. This largest building site is a

national mission and should be completed in a timely manner. Now the most difficult stage is completion of major construction works, delivery and installation of technological equipment for the launch of Soyuz rocket, to be held in December 2015. I would like you to identify one person who will be responsible for coordinating the activities by the Russian Space Agency to ensure the coordinated work of industrial enterprises for the timely installation of equipment at the launch site. A very important task, which the Government expects in the coming months, is completion and submission of the Federal Space Program. First of all we are interested in plans for a human space exploration. We had enough debates. We need specific proposals, because we need to focus national budget on high priority areas that will give the country tangible results. We must decide the fate of the ISS, deep-space research and fundamental scientific researches. The Government expects from rocket and space industry companies an unconditional implementation of the state defense order. We are waiting for proposals for the development of dual-use technologies as well. Separate issue is finance. We insist that Roscosmos would make things clear in this area, we want to see the transparency of the whole financing of the Russian space industry and the efficient use of those extra-budgetary funds, which are raised thanks to active participation in the international space market. So, there are three tasks we give to the new State Corporation. The first task is creating high-tech, efficient working industry, which will be based on modern science opportunities. The second problem is extracting maximum benefit for our entire country from space activities. The third objective is restoration of Russia's leadership in space. There are a lot of problems, and these problems will require Igor Komarov and his colleagues an extremely smooth and joint work. We have no time to lose, we have to implement two-phase reform of the most complicated and highly technological Russian industry, which is the rocket

Space activity

Igor Komarov: “If we talk about the State Corporation, it pri-

marily means the centralization of decisionmaking, simplification of procedures for their adoption, the concentration of all kinds of resources and the personification of the responsibility for such decisions„

and space industry: industry reform and the management system reform. Igor Komarov's speech The second stage of the reform of the Russian space industry began yesterday. In my opinion, the second step is important because the space sector reform should cover not only the industry, but also other key areas of space activities, such as research, definition of objectives, terrestrial infrastructure. In this regard, I think that the creation of the State Corporation is an important and necessary step. In the near future we will develop a plan to create a State-owned Corporation and submit it to the Government. Nowadays we have to work quickly, we do not have to carefully build consensus and taking into account all the possible interests. Of course, it is necessary to make informed decisions, but we can not spend much time to make them. If we talk about the State Sorporation, it primarily means the centralization of decision-making, simplification of procedures for their adoption, the concentration of all kinds of resources and the personification of the responsibility for such decisions. With regard to the key powers of the State Corporation, they must be largely similar to the powers of Rosatom, whose operating model has proved its effectiveness. Among the powers it should be, as we believe, the right to develop and submit draft normative legal acts in the field of space activities to the authorities, as well as the right to carry out legal regulation in this area. In addition, we need the powers of the chief administrator of budgetary outlays and revenues . Also, we should have the right to develop state space programs, have the position of the customer for these programs and an authority for state procurement. In A I R F L E E T

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addition, we need the owner powers of both stock companies, transferred to the state corporation, and federal property, including state companies’ property. As for the Russian Federal Space Agency, in the future it functions should be passed to the State Corporation "Roscosmos". Legal registration of the State Corporation, in our opinion, should not take more than six months.

In the current period, the main task will be ensuring the continuity of management and control, legal registration of the State Corporation. The main task of the Russian Space Agency for 2015 is to ensure the implementation of Government orders on time and with proper quality. In particular this applies to defense contracts. The strategic objective is to provide long-term development of the industry. In

Space activity

Igor Komarov: â&#x20AC;&#x153;I believe that large-scale projects in the field of

manned space flight should be implemented taking into account the possibilities of international cooperation, since they have significance for all of the mankindâ&#x20AC;&#x17E;

this regard, we need to rework the Federal Space Program for the period of up to 2025. This is necessary due to changing circumstances, the need to clarify the priorities. First of all is the need to fill the orbital constellation, increase its efficiency. And it requires the formation of scientific and technological potential to create new generations of satellites, upgrading their manufacturing technologies. In a short time it is necessary to elaborate a strategic program of unmanned space exploration as well as the deep space exploration. We have begun to analyze the stability of the enterprises in the implementation of public procurement in changing environment. We need to assess the impact of currency exchange rate and an increase in interest rates of debt financing on the financial situation of enterprises, the program of modernization, the cost of their products. We need to submit specified draft Federal Space Program and the Program of spaceports development until May, 2015. Long-term prospects of space activities include program of development of deep space, launch vehicle of superheavy class project, the issue of establishing a national manned space station. I would like to say that these decisions should be based on well-thought account of economic situation reality. There should not be projects at any cost. They should give the maximum cumulative and long-term effects for our economy. First of all, itâ&#x20AC;&#x2122;s related to high-tech and research. I believe that large-scale projects in the field of manned space flight should be implemented taking into account the possibilities of international cooperation, since they have significance for all of the mankind. About the construction of the Vostochniy cosmodrome, I would say that in the coming days we will study all the material on this subject and will be ready to take all measures to organize the execution of all the plans in proper time. The strategic objective for the space industry in Russia can be only to increase its competitiveness. Not only in terms of capturing a bigger share of the global space market, but also in the sense of parity and superiority over geopolitical partners in terms of tactical and technical characteris-

Space activity

tics, features and space technology. To do this, we need to develop a strategic program to of industry transformation, which will address the harmonization and reduction of variation at the level of final products in order to optimize our costs in the development of satellites, launch vehicles and other products. We need to implement the principles of platform and modular design, the unification of onboard service hardware and payloads. Also, we need to perform a serious work on electronic component base, hardware and software interfaces. The second direction is an optimization of production facilities and transition to new production technology. This is a very difficult task, but decisions on it must also be taken in the near future. We must put facilities on a new technological order. We see what is happening in the world with increased competition - a reduction in cost, and we also have to reduce it. But the development of industrial assets can not be done without serious support of scientific and technical institutes. Development of existing and creation of new, powerful and wealthy industrial centers of both fundamental and applied research, providing them with a direct connection with practical research teams and design bureaus of industry lead developers is necessary. This relationship should be implemented through a system of mutual R & D works as well as through technology platforms, which are organizational and technical tool for research and development groundwork in defined areas. It is necessary to reinforce all the problems with human resources. And the State Corporation is to provide centralized training system for employees, because training issues should not bear on facilities themselves alone. If we talk about the structural reform of the industry, we defined the industry part of it in the Strategy, approved by URSC Council,

Igor Komarov: “We should have a minimum of bureaucracy, without duplication of functions of the control structure, companies and organizations„

and then we are going to make changes in the terrestrial infrastructure. Here we must to reduce the cost of ownership of infrastructure and the cost of launching the payloads with a strict compliance with the equipment quality and reliability requirements. Another big area is a structural reform of sectoral institutions, the establishment of effective industrial research centers focused on their tasks and closely associated with the industry. Control structures of the State Corporation should not be based on the principle of

Igor Komarov: “The strategic objective for the space industry in

Russia can be only to increase its competitiveness„

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a large bureaucratic machine. We should have a minimum of bureaucracy, without duplication of functions of the control structure, companies and organizations. This is possible when a serious authority will be delegated by the control center to the enterprises. The strength of our State Corporation will be in strong companies and branch institutes. Staffing level of control structure must be less than of Roscosmos and URSC total now. With regard to openness and interaction with society, we understand that the centralization of authority is a serious responsibility, but this must be accompanied by the transparency of the State Corporation activities. In this regard, we suggest the creation of a public council, interaction with the expert community. Vladimir Maksimovskiy

High technologies

New strategies of

perspective development Concern Radio-Electronic Technologies acts so as to ensure profitable growth of the Russian electronics industry Last year, Concern Radio-Electronic Technologies (Russan acronym KRET) celebrated its fifth anniversary. Today, it unites nearly a hundred enterprises and organizations specialized in development and production of military and civil radio-electronic products. Established in 2009 as an integrated structure for coordination of activities with the Russian electronic industry, KRET has demonstrated remarkable achievements in development and production of state-of-the-art avionics, identification friend-or-foe and electronic warfare systems. In summer 2014 KRET introduced a new concept of equipment development, which involves a transition from supplying individual components to providing integrated solutions for the customer. Vladimir G. Mikheyev, adviser to KRET first deputy general director, spoke to Air Fleet on recent developments and achievements.

Q. Mr. Mikeyev, please remind us of how KRET began its activities, how it managed to consolidate a number of enterprises under one banner? – Today KRET exercises control over 97 enterprises that are specialized in development and production of avionics for the various military and civil aircraft. Surely, there are certain managerial difficulties, not only because of the wide range and volume of production, but also because of vast geography of companies located across this

big country, from St. Petersburg to Stavropol, from Smolensk to Vladivostok. Nevertheless, our actions have been successful. Today, KRET is not a giant state monopoly, but an effective structure that can offer comprehensive solutions in all areas – both military and civil, including avionics and cybersecurity. On outset, KRET paid much attention to three key areas. First one: electronic warfare, which refers to the aviation, naval and terrestrial components. Second: identification friend or foe. Third: measuring equip-

ment, cables and connectors. By the way, development of connectors is a very interesting area of our work, although it may look simple enough. Modern wires and connectors can be recognized as separate minicomputers and signal amplifiers that do not just connect individual blocks and boards, but integrate them into complex, comprehensive systems, capable of operating on a higher level. Another important trend has been and remains means of measurement. Nowadays,

High technologies

to create any modern system, we need high-precision equipment. Among KRET members there are some well-established enterprises, which not only produce hightech equipment, but also act as general representatives of world’s leading OEMs in this area. When making steps aimed at development of our corporate structure, we strived to achieve a complete production cycle, starting from a design from scratch to mass production of end-products, customer service and after-sales support. Requirements for quality of our products are always very high. For example, among customers for a whole range of KRET metrological equipment there is the Russian Defense Ministry represented by the Metrological Service of the Armed Forces of Russia. It goes without saying that such a customer put down most strict requirements of them all. Almost all companies in our corporate structure have their own laboratory group, various test stands, shielded rooms, anechoic chambers and so on. That is, the specific conditions of production to ensure the highest accuracy of the electronic parameters. Inspections and tests are mainly designed for the concern recommendations. All the standards we produce ourselves – frequency standards. I want to stress one point. Setting up production of modern high-tech equipment, able to compete with global OEMs on quality and price, is meant to enable us develop dynamically and effectively interact with local and foreign customers – all of this gives KRET a position from which height it can play an active role in modernization of the Russian electronic industry and be a prominent supplier in the domestic and international markets. Q. Please tell us about your product range. Is it wide enough? – Today, we design and manufacture nearly all electronic components for aircraft. We do produce a complete range of avionics. Our products include: radar stations of all known types, all kinds of sights, television and laser designators/rangefinders, ultraviolet and infrared reconnaissance and targeting systems, weapons conA I R F L E E T

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trol systems, fuel systems, various sensors. All kinds of recorders (so-called "black boxes") in all classes and types, ranging from those that are installed on large aircraft and compact unmanned air vehicles. Everything that is found in the cockpit of a modern aircraft, from multifunctional liquid crystal displays, indicators, head up displays and other means of presenting information to the pilot, all sorts of backup devices, all the knobs and control instruments. Q. Are you a bona-fide “original equipment manufacturer”? Do you develop your products in house? – Yes, we develop every single product in house, all of them! This statement is true in any given direction, including radio-electronic warfare, avionics, ports, commutators and others. There is a number of scientific research institutes in our corporate structure. They are specialized in working our requirements to brand-new equipment and products, and in finding out what technologies need to be matured to proceed from experimental specimens to deliverable products in numeric production. Our design houses carry out development work closely with companies that make prototypes and mature them so that are fit to mass production. Then a specimen for production, a prototype passes manufacturer’s and then state acceptance trials, it receives "O1" (initial production clearance) and heads to a production plant. By the time it reaches it, that plant is already prepared for its production, with all technologies mastered so that it can launch serial production shortly. We try to act so that the production chain doesn't have a long preparatory phase to limited or series production. Q. In what areas of avionics, KRET successes are particularly apparent? – We can rightfully be proud of our achievements in many areas of avionics. For example, so-called BINs, non-based inertial navigation system, which has ordinary mechanical inertial horoscope in its composition, laser gyro, GLONASS satellite-aided global navigation system, measuring angular coordinates, acceleration sensor and so on. Astro-navigation devic-

es which enable the aircraft to navigate by the stars and accurately determine the position of the aircraft in the air. Radars broad spectrum of classes and types. All that controls the aircraft, weapon guidance systems, laser sights, as well as all sorts of multifunction displays. In general, we work with all flight control systems. Everything related to the fuel pump and other systems needed for control of aircraft in the air are the area of our specialization. The whole range of equipment items is developed by our concern, if we're talking about avionics. All of these products are of the highest quality. Things change. Nowadays, pilot’s helmet is not just a means of projection for the pilot’s head. Today, it can be described as a device for positioning the pilot inside the cockpit, because it displays all the information necessary for him to control the aircraft in the air. Moreover, the helmet is an interactive tool: the program monitors the pilot, his reaction, position of the eyes, etc. If the pilot observes a particular portion of the screen, then, accordingly, the entire aircraft avionics is at this point the search space purposes, their classification, and so offers weapons system to be used. Pilot only needs to approve or adjust offers, made by computer. Q. Can we say that KRET can manage all things in developing a "brain" and all the "nervous system" of aircraft? – Surely, you can! In fact, we actually create all the receptors. Each aircraft has up to several hundred different sensors: temperature, vibration, acceleration, direction of air flow, pressure above the wing, under the wing, inside the wing, etc. And all of this is necessary to control an aircraft in the air. Plus, accordingly, we develop on-board computers, to which all information from sensors is fed. Typically, there are several on-board computers, and they control aircraft systems in general and they control the aircraft in the air. In particular, flight logs, which in the past have been hand-writed, are now replaced by an electronic library. During the flight, if something goes wrong, pilot can request all the technical description of the aircraft

High technologies

and recommended algorithm of actions to help in a difficult situation. Q. What can you say about man-machine interaction? – The most important, but also the most vulnerable link of the plane is a pilot. He must be cared for! He needs to be provided with an air-flow for breathing, be set in the condition of right temperature, be protected from overloads and so on. Today, the pilot’s job is not as it used to be. He does not fly his aircraft as such. Nowadays, each flight of a combat jet is prepared well before engine is started, entire flightpath is pre-determined from start to finish. Before climbing into the cockpit for takeoff, the pilot repeatedly checks his actions on the flight simulator, not only to do with flying an aircraft, but also targeting, weapons release and so forth. Performing these tasks without appropriate avionics is simply impossible. Because, as they say, the pilot only has only eyes and ears, whereas his aircraft has a whole lot more. The pilot may find and identify a target with his own eyes at a distance of, say, 3.5 kilometers, whereas his aircraft’s radar "eye" can detect that target at a distance measuring in hundreds of miles. Due to all kinds of television, laser, infrared and ultraviolet systems, which also are monitoring the situation, a comprehensive picture is displayed on the electronic maps of the area. The pilot finally sees the synthesized image, which additionally includes readings of all required devices. Modern piloting is a result of an integrated combination of features of the pilot and the aircraft. We have prepared several proposals for a combined or integrated equipment for unmanned aerial vehicles (UAVs). UAVs

are not the future but the present-day reality. We feel quite confident in this area: KRET prepared proposals for the composition of avionics for different types of UAV shaped for various applications, with various weights and sizes. Q. What can you say about your work in the domain of electronic warfare (EW)? – This is one of the most important areas. The race in such technologies has long been underway. We always had to deal with the world's most challenging opponent in the form of NATO member states with all their technology and innovations. At the same time, Russia is recognized throughout the world as a prominent manufacturer of most advanced and powerful means of electronic warfare. In terms numerical, our country is a world leader on EW equipment. Throughout the history of EW, our opponents have always had a hard time trying to outdo the Russians. This is because we have been following a triple reserve approach: that is, we study the potential enemy, determine the necessary level of EW and add another 10– 15 years in the future development. Equipment shaped in a way like this goes into production and proves its merits in service. All of our modern electronic warfare means made for use on airplanes and helicopters, including export options, for a variety of parameters are often ahead of similar samples that are produced in other countries. Q. Do you export EW equipment? – USA does not sell their modern means of electronic warfare: they understand that there is always a possibility that such equipment can be used against them. We have

been working with a phased array, multiple beam antennas, even when there was not such a name. We called them "multibeam antenna arrays with strong ties" for quite some time. That time we heard that this is just a dream that cannot come true, cannot be materialized in hardware. But we did manage to produce them twenty years ago! We produce them now; we know how and what can be exported to satisfy customers and not to create problems to the armed forces of our own. Q. KRET is known as the developer of unique recognition complexes. Is that right? – Yes it is. Production and improvement of means of identification friend or foe (IFF) is an important area of our activities. Today, our products are the world's best hardware and software systems that automatically determine ownership of objects on a "friend or foe" principle. Q. How active KRET participates in import substitution programs? – Our main customer is the Russian Defense Ministry. About 70% of our production volume (or a little more) goes to this main customer. The latter has set forth an important requirement, that we use only Russian-made components. A prototype can have some imported chips, transistors, concrete blocks and instrument. A production sample, which is going into numeric production, shall be made from of locallymade components only. Considerations of national security demand that. That is, the main requirement of our main customer, being the Ministry of Defence of the Russian Federation, is for locally-made equipment,

High technologies

whose production does not depend on the politics and its influence on the international trade. Q. Please share with us some information on KRET activities in 2014? – The past year was quite successful for us. Our income (revenues) amounted to 105 billion rubles, or 27.7 billion more than in 2013. The aggregate net profit of KRET was 8.5 billion rubles, which is 1.9 billion more than previous year. More than a third of revenue in 2014, the Concern received from sales of innovative products. By the end of 2014 the indicator of profitability of the concern's net profit was 8.1%, significantly higher than Russian peers working in the defense industry. The share of military products in the structure of consolidated revenues was 82%. We recall for comparison that in 2009, when our company was established, the total revenue amounted to a total of 18 billion rubles, and net profit – 300 million rubles. – Can you tell us more about your work to fulfill the state defense order in 2014? – By the end of 2014, company's revenue from obligations under state contracts has grown by more than 40% compared to the same period of 2013, while the volume of production amounted to 60.4 billion rubles. Within the framework of the state defense order KRET completed more than 180 R&D projects. Only in the last two years, the Russian Defense Ministry was handed over with nine fundamentally new types of complex radar surveillance, control and suppression. Airborne defense systems we make can improve the survivability of combat aircraft of different types by 25– 30 times. Q. Can you tell something on specific deliveries in 2014? – During 2014, KRET fulfilled contracts on supply of latest electronic warfare systems that belong to families "Krasuha" and "Khibini". We also shipped "Vitebsk" airborne defense systems for airplane and helicopters, "Richag-AB" systems for helicopters complexes, as well as “Garmon” smallsized mobile radars and IFF means. In total, KRET companies delivered A I R F L E E T

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about 500 units of weapons systems, military and special equipment (AMSE). Our products have been proclaimed a success at the III International Forum "Engineering Technologies 2014". KRET won diplomas "For the creative design of the pavilion" and "High quality product presentation." To speed up serial production of advanced models of civil and military products, during 2014 KRET has launched 14 key projects worth 22.9 billion rubles, some of them to do with creation of large research and production clusters. Q. What's your corporate policy? – Throughout 2014, we continued optimization of the control loop of KRET assets. The concern now controls 97 enterprises of the Russian electronic industry. In the period 2011–2014 we acquired a number of new core assets. We managed to put an end to some conflicts in a number of subsidiaries through the establishment of a strong corporate control and appointment of new CEO. In particular, KRET consolidated direct control of 93.26% in "Phazotron-NIIR". The latter is world-famous developer and manufacturer of airborne radars for combat jets. Our activities have resulted in an average 30% rise of the market value for "Signal", "Radiopribor", "Techpribor" Ulyanovsk Instrument Design Bureau and "Phazotron-NIIR". These five are our new assets. Last year, KRET began reformatting portfolio of its assets. Our goal for 2020 is have a corporate structure formed up of 71 member enterprises, all specialized and economically strong. Besides, KRET has plans to gain control over 13 more companies, and increase its stake in two more companies. Such large-scale rearrangement of assets needed to get rid of non-core property assets, the proceeds from the sale of which will be forwarded to accelerated development of KRET key enterprises and innovative developments in the interests of the country. In eight subsidiaries strategically important companies KRET already launched a program of financial recovery to prevent bankruptcy. For these purposes, in accordance with the order of the Government of the Russian Federation, we were granted with 2.8 billion rubles.

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Q. What are your plans towards 2015? – In 2015, by expanding the share of civilian products and increasing export, we expect to increase our turnover up to 114.4 billion rubles. Now we are completing consolidation of the industry, modernization of production and implementation of the new development strategy with a view on the markets of civilian products. All this will let KRET not only to cope with the peak load period under the state defense order, but also to stay competitive among technology companies after 2020. Q. In 2014, KRET introduced a new concept of its development strategy until 2025. What are its main provisions? – Being the leader in the Russian market of military and civil electronics, KRET annually develops and manufactures latest exclusive EW systems, defense complexes and avionics, increasing country's defense and security capabilities, ensuring the development of the Russian defense industry. The implementation of the renewed concern strategy streamline business processes and improve financial discipline of enterprises, which let us to fulfill all obligations under the state defense order in time and ensure rapid import substitution in the defense industry. Under the new concept of development, 140 billion rubles will be spent on re-manufacturing technological base of the concern. Emphasis will be placed on increasing the share of civilian products, as well as on the transition from supply of individual components to complex solutions. KRET will be able to achieve high levels of capitalization, competitiveness, as well as financial, technical and technological independence from its competitors. It is expected that by 2025 our total revenue will grow by more than three times in comparison with 2014, and will be about 326 billion rubles. The total net profit will be increased by more than five times, reaching 31 billion rubles. Only for the next 10 years, the market value of KRET is to be increased by 3–5 times. We aim at 300 billion rubles. For this purpose, the company has plans to significantly increase its financial performance.

Airshows

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Industry

India to produce Mi-17 and Ka-226 helicopters The Russian Deputy Prime Minister Dmitry Rogozin who accompanied the Russian President Vladimir Putin to India on December 11 has said that the two sides has reached â&#x20AC;&#x153;the understanding to assemble 400 advanced Kamov-226T helicoptersâ&#x20AC;?, as well as unspecified number of Mil Mi-17s. 42

Industry

If India does go for license production of Kamov and Mil rotorcraft, it will be another major step strengthening the Indo-Russian cooperation in the spheres of defense and aeronautics. “Following the in-principle agreement reached by India and Russia for the production of Russian helicopters in India, both sides are carrying out discussions to work out the details to quickly conclude a deal. Initially the helicopters will be used to cater to the requirements of the Indian armed forces and only after that will exports happen”, The Hindu wrote. The newspaper suggested that the inprinciple deal with Russia “effectively means that the Utility Helicopter deal which was earlier cancelled as a global tender and changed into “Buy and Make” category under the Defence Procurement Procedure (DPP)”. Sources in the Defense Ministry told the media that the details of the deal are being worked out. Talks are ongoing to determine which public and privatelyheld companies would be involved in the materialization of respective contracts yet to be signed. The public sector giant Hindustan Aeronautics Limited is believed to be a major player. Private sector is also likely to be involved.

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Mil Mi‑17 Even though the Kamov designs emerges first in the topics, the decision for license production of Mi‑17 may well be of even higher importance for the future of rotorcraft production in India. Interacting with the media in December, deputy PM Rogozin stated that India is seeking rights for license assembly of Mi‑17, a popular model of the medium-to-heavy helicopter with many in Indian service already. “On the operational front Russian choppers are known for their ruggedness and Indian Armed Forces have been using them for decades which will help in their quick integration. Russian Mi‑17 choppers are the mainstay of the Indian Air Force used in diverse roles from search and rescue to VIP transport”, the Hindu wrote. India operates about 250 Russian-made rotorcraft. These are employed on governmental roles including combat and training, searchand-rescue, medical evacuation and natural disaster relief operations. Last year the Russian Helicopters exported 3,500‑th Mil Mi‑17 family helicopter assembled at its factory in Kazan, the Kazan Helicopters. The jubilee machine went to India. At AeroIndia’2013 the local sources said that at that point of time the order was 80 firms and 59 options. It seems that since February 2013 till mid-March 2014 India ordered 12 additional Mi‑17V5s. The customized Indian Mi‑17V5 features the KNEI‑8 glass cockpit and PKV‑8 autopilot, making India the first international customer for the glass-cockpit version.

Rosoboronexport won Indian MoD contract for 80 Mi‑17V5s in 2008 and firmed up options for 71 more in 2012–2013. As we understand the situation, India has decided to partly convert the order so as to have a dozen of Mi17s in VVIP version for the Indian government transportation. Such a decision would seem logical after the deal with AgustaWestland on AH101Ws had been cancelled on the charges of corruption/scam. Light Utility Helicopter The aforementioned Ka‑226T falls in the category that has long been interested to India. For a decade the country has been seeking a deal with established foreign collaborators on a rotorcraft project. It was referred to as the Light Utility Helicopter (LUH). Almost all prominent OEMs with suitable products in the given class took part in the competition. The latter’s rules tended to change as time went. At some point of time, the Bell 407 and the Eurocopter AS550 Fennec were believed to be front runners. A year ago the Airbus Helicopters (Eurocopter was such renamed) looked, technically and politically, like most probable winner in the then-ongoing international tender. But this competition for the right to supply 197 LUH rotorcraft was soon cancelled. Instead of buying such rotorcraft from a foreign manufacturer, India decided to make them locally. Respectively, New Delhi started looking for rights on license production of

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Alexander Mikheyev General Director of Russian Helicopters Mr. Mikheyev was appointed as General Director of Russian Helicopters JSC in September 2013, has been a member of the Board of Directors of Russian Helicopters JSC since 2008. Alexander Mikheyev joined Rosoboronexport in 2001. He worked in the capacity of Chief of the Department of Export Air Force special equipment and services. Later he became Deputy General Director. Mr. Mikheev was born in 1961. He graduated from the Moscow Institute of Civil Aviation in 1985, with a degree in "operation of aircraft", in 2005 - postgraduate from the Military Academy of the General Staff of the Armed Forces, in 2006 - Finance Academy under the Government of the Russian Federation, "Finance and Credit", candidate of Economic Sciences. He was awarded with the Order of Honor, the medal "For Services to the Motherland» of II degree.

four hundred helicopters. Under the Defence Procurement Procedure (DPP), the respective deal falls under “Buy and Make” category. New Delhi’s December decision in favor of the Kamov Ka‑226T was driven by the desire of the local industry to take a prominent position in the market for modern rotorcraft in the class of 3–4 ton maximum takeoff weight (MTOW). The Ka‑226 features coaxial rotors and easily changeable/altogether removable cabin module. One of such modules can accommodate seven passengers. Another such available is a medical cabin for treatment of ill or wounded, and their evacuation to a hospital by air. The current production version of the Ka‑226 comes with suffix “A”. This version is already in service with a number of Russian governmental structures and fossil fuel companies. The Ka‑226A is powered by RR Allison 250‑C20R/2 motors. The version with “Т” suffix is a newer one. The latter “T” points at the version with the more powerful Turbomeca Arrius 2G engines each developing 670 hp. Due to the French engine’s higher power, the rotorcraft’s MTOW has been increased from 3.4 to 3.6 tons. The Russian Helicopters company says that the Ka‑226T passed all flight tests required to achieve certification. The certificate is expected to be awarded in the first quarter of 2015, – possibly right in time for Aero India 2015. There are some other candidates among engines to power the Ka‑226. One of those is the VK800 from Klimov. In Russia, the Ka‑226 manufacture line is up and running at the Russian Helicopters’ factory in Kumertau. Since 2005, deliverable chopper came off the production line in two versions, sometime referred to as the Ka‑226.50 and Ka‑226.80, both with Allison 250‑C20R/2 motors. Shipments took place to the Police, the Federal Security Service and the Russian air force (the latter uses them chiefly as trainers, as a first step to prepare flight school students to flying heavier Ka‑50/52 choppers). Reportedly, one Kamov went to Ukraine and another to Lithuania. Besides, there is a contact from GazpromAvia on 18 Ka‑226Ts in a customized version.

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The Russian Helicopters The recent New Delhi’s decision in favor of Ka‑226T and Mi‑17 license production is a big win for the Russian Helicopters. The latter is a holding structure uniting all Russian design houses and manufacturing plants that are specializing in rotorcraft development and production. The company reported revenues for 2013 at Rouble 138.3 billion. This is a substantial 10% rise to the previous year. Sales of helicopters generated 115.8 billion, while services brought another 29.6 billion. EBITDA rose by 27% to Rouble 26.3 billion. The profit went to 9.5 billion, +1.3% above the previous year. In 2012 this structure delivered 290 rotorcraft, and generated revenues of Rouble 125.7 billion. The following year deliveries went down by 15 units, to 275 helicopters. The production run amounted to 303. Nine types of rotorcraft were shipped to customers in ten countries. The backlog at the yearend was 808. “The Russian Helicopters company continues in development as a modern, highly efficient and dynamic company. We managed to deliver everything under the earlier won governmental contracts, continued supplying foreign customers, and produced dozens of civilian helicopters for local and foreign customers”, says Alexander Mikheyev, the general director. “Our main goal now is to actualize some new projects whose foundations have been laid during the past few years”, he carries on. “Technologies and scientific industrial potentials make their headway. We consider the Russian Helicopters to be a highly innovative company… These days, almost every aviation firm works in the conditions of the open market, competing and cooperating with various companies overseas. Noone can afford standing still. To maintain momentum, we need international partners for cooperation”. ProVen workhorse Mi-8/17 series is not only a living legend of national helicopters manufacturing, but also one of the most promising and developing projects of Russian Helicopters. Over many years of operation the helicopters of A I R F L E E T

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this series showed themselves to the best advantage, having rightfully earned the title of "living legend". Why “living”? Because the new aircraft units successfully continue the glorious history of this family. MI‑171A2 is one of the priority projects of the Russian Helicopters company. This helicopter is being designed in close cooperation with helicopter operators and sets new standards for the middle class helicopters. A Tremendous potential, laid by developers in the design of Mi‑8/17, along with a heavy upgrade will allow this aircraft to stay on the market for at least another 20 years, thereby continuing the history of illustrious family of Mi‑8’s. Mi‑171A2 is designed on base of Mi‑171A1, which is commercially available today at Ulan Ude

aircraft factory. The new helicopter introduces main advantages of the Mi‑8/17 and the latest developments in the field of materials science, monitoring and control systems. The aircraft is equipped with more powerful VK2500 PS03 engines capable of 2400 hp at takeoff, and 2,700 hp at emergency flight conditions. Flight performance of the helicopter such as velocity (up to 280 km/h), hovering ceiling of 4,000 m., load capacity up to 5 tons have been improved too. And, of course, the helicopter offers the highest level of reliability, safety and comfort. The Important competitive factor, the balance of quality and price, shows that this aircraft has a bright and solid future. Vladimir Karnozov

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MTA engine maker turns 75

Russia’s design house working on next-generation large turbofans celebrated its platinum jubilee on December 8, 2014. Among Aviadvigatel’s projects there is the PD-14M engine for the Multirole Transport Aircraft (МТА), a joint project by Russia and India. Perm-based Aviadvigatel acts the head contractor on development of the PD‑14, Russian abbreviation for Perspective [also, Perm’s] Engine with thrust of 14 tons. The PD‑14 is advertised as being comparable in performance to the Pure Power family of Pratt&Whitney’s Geared TurboFan (GTF) and CFM International’s LEAP, both in the same class of thrust. The PD‑14M is a higher-thrust version, at 16 tons.

Speaking to the media on December 8, Aviadvigatel general designer Inozemtsev stated that the duopoly of Boeing and Airbus is “making preparations” to “fiercely fight off” the new entrants to the narrow body jetliner market – Russia’s Irkut with MC‑21, China’s COMAC with C919 and Canada’s Bombardier with C Series. He further stated that the recent agreement by Moscow and Beijing to jointly develop

and co-produce a next-gen wide body passenger jetliner could render another serious blow to the duopoly. Inozemtsev sounded as though this may well prompt US and EU into expanding the current sanctions regime against Russia and her industry in an effort to prevent unwelcome challenges to the established western manufacturers. The tightening regime of US and EU sanctions against Russia makes the Perm-based

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design house “prepare for worst”. Even though Washington and Brussels lay no claims to any of Russian aero-engine specialists, Alexander Inozemtsev made it certain that such claims may well appear sooner or later. Political context As an example of US politic and economic action in the sphere of commercial aviation, he gave the case of US Department of State threatening action against Russia and involved manufacturers on the sale to Iran of Tupolev‑204 jetliners powered by PS‑90A2 turbofans. The pretext was that the aforementioned 16‑tonne engine from Aviadvigatel and Perm Motors had been created using technologies, expertize and funding from Perm’s then- shareholders and industrial partners United Technologies and Pratt&Whitney. That time, the Kremlin subdued to the US pressure and cancelled the deal. In the new reality, Putin’s administration is likely to press on with similar deals “insulting” US. More than just that: the Kremlin is now up to expanding technical and industrial cooperation with China and Iran to the levels unseen before, since it cares less for the US reaction to such developments. The month of September 2014 brought the news of Moscow preparing a new offer to Iran on the matter of PS‑90A-powered Tu‑204. There is a possibility that this theme will be discussed when Vladimir Putin visits Tehran later this year. The Russian president accepted the invitation in late January, when speaking to Iranian envoy Velayati. The ground for a fruitful visit was prepared by defense minister Sergei Shoigu who spent a couple of days in Tehran. On January 20 the minister applied his signature under a new agreement on cooperation between the two countries in the sphere of defense, which he called “theoretical base” that needs to be filled it with “some real projects”. When in Tehran, Putin is expected to bring these “real projects” onto negotiating table. The aforementioned Tupolev jetliner powered by Perm engines may well be one of those. Current production PS‑90A The baseline 16‑tonne PS‑90A – a predecessor to the PD‑14 now in developA I R F L E E T

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Aviadvigatel general designer Alexander Inozemtsev, a member in Military-Industrial Commission Mikhail Kashtan and United Engine Corporation director-general Vladislav Masalov ment – won certification in 1992. Since then less than 300 deliverable examples have been assembled for installation on the Tupolev‑204/214, Ilyushin‑96 and –76 (mod.) aircraft. This figure compares to over 25 thousand CFM.56 series engines, the most successful western design in similar class of thrust. Perm barely survived. Badly-needed funding came largely in the form of substantial orders for industrial turbines using PS‑90A/A2 core. These have been placed by prominent Russian fossil fuel companies. Since 1992, Gazprom and other oil&natural-gas giants have taken delivery of over eight hundred industrial turbines built to Aviadvigatel designs, with 70% for gas-pumping and the rest for electric power generation. Today, the PS‑90A family (including PS‑90A2, PS‑90A3 and PS‑90A76 versions) remains the only commercial turbofan by Russia’s design and make. In the past two years, Russia’s governmental structures have made commitment to about 400 more PS‑90A-series motors, largely for the Il‑76MD‑90A (Il‑476) strategic airlifters, whose productions is getting momentum at

Aviastar factory in Ulianovsk. China operates a fleet of Il‑76 airlifters and wants to supplement it with at least fifty more examples. According to Inozemtsev, Perm companies are bidding with a PS‑90A2‑corebased industrial turbine in the Russian government tender for modern highly-effective electric power stations to be used in a modernized power system of the Crimean peninsula. The manufacturers expect a large order for these turbines with profits outweighing possible US/EU suctions on political pretexts to do with the “Crimea annexation”. In future, Crimea may get more advanced power station using the PD‑14 core. The PD‑14, an engine for MC‑21 The Russian government has been funding both the MC‑21 next-gen narrow-body jetliner and its PD‑14 turbofan according to its commitments made earlier, general designer Alexander Inozemtsev told media during December 8 press conference. Investments made insofar accounted for Rouble 28 billion, out of 85 billion promised in total for the PD‑14 effort. Aviadvigatel leads the development, re-

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ceiving work packages done from other Russian design bureaux in Moscow, Rybinsk, Ufa and other cities. Manufacture of components is being set at ten plants. Perm Motors has recently started work on setting up a final assembly line. The engine no. 6 is to be the first PD‑14 to be assembled not at Aviadvigatel (as previous examples), but Perm Motors. Its assembly is to commence later this month. Three operable PD‑14 examples have amassed “several hundred working hours” at test-benches. A fifth example has been assembled on December 11, and towed from the assembly site to the testing rig. By the year-end, engine no. six had been assembled. The first engine for flight tests – seventh by count – shall become available in March so as to fly on an Il‑76 flying laboratory mid-summer 2015. Between 5.5 and 6 thousand test-hours are needed to achieve Russian certification, Inozemtsev estimated. Type certificate is expected sometime in 2017 for an initial version of the airplane with Pratt&Whitney 1400G motors. This shall enable first PD‑14‑powered MC‑21 to fly by the end of that year. EASA certification would be obtained later “if necessary”. Ukrainian participation Ukrainian participation in the PD‑14 effort is still welcome. Yet the Kremlin wants to make sure that there will be no technological dependence. “We must rely on our own resources when it comes to high technologies”, Inozemtsev commented. Aviadvigatel had considered replacing a Russian-designed combustor found in the experimental PD‑14 engines by a Ukrainian design with

somewhat better performance. The Ukrainian combustor from Ivchenko-Progress and Motor Sich passed initial tests in thermal baro-chamber of Russia’s Central Institute for Aviation Motors (CIAM). The hardware is being returned to Ukraine with a number of comments how to improve characteristics and eliminate deficiencies found. Tests are to resume in the spring, and, if successful, could lead to installation of the Ukrainian combustor into a PD‑14 demonstrator. Meantime, Russia’s own combustor design has incorporated a number of improvements “so that it is now close in performance to the Ukrainian one”, Inozemtsev insisted. However, the Russian side remains interested in keeping Motor Sich on the list of PD‑14 industrial partners “mostly because of its large manufacturing capacities”. Should Motor Sich stay with the program, it may help increase production rate and achieve a lower unit cost, Inozemtsev said. As per high-technologies, Russia’s institutes of applied science and engineering organizations are able to provide top-notch technologies for the modern commercial engines themselves, he insisted. A matter of independence Tightening regime of U. S. and EU sanctions against Russia makes her advance hightech programs in civil aviation so as to reduce dependence on imports of Boeing and Airbus jetliners, and to work out the technology for sale into China, India and other customers of Russian aviation equipment. A completely indigenous version of the twin jet – with avionics from KRET and PD‑14 engines – is sometimes referred to

as MC‑21.RU. Its certification should take a year, with deliveries expected to commence in late 2018 or early 2019. EASA certification would be obtained later “if necessary”. So far, the focus of the PD‑14 program has been firmly on working out and perfecting technologies, making and testing engine demonstrators. “Time has come to start the technical renovation of the manufacturing sites”, Inozemtsev says. Parts production is being set up at ten factories across Russia, with final assembly at Perm Motors. The key challenge is to make PD‑14 deliverable examples affordable through use of highly efficient production based on high-tech machinery. So far most of the much needed advanced manufacturing equipment came from EU, but the falling Rouble and tightening high-tech export restrictions urges to reconsider procurement plans for more of locally made machine tools. Power for Sino-Russian joint projects China has been an enthusiastic buyer and user of Russian engines since the industry of its own could not produce hardware with similar performance, most of all in-service reliability. The AL‑31FN series engines manufactured by Moscow’s Salut plant power the J‑10 lightweight fighter and the RD‑93 from Klimov and Chernyshev propel the FC‑1 exportable fighter in Pakistan air force service as the J‑17 Thunder. Inspired by the big sales of the aforementioned aero-engines, Russian makers are seeking ways to talk the Chinese side into using their most advanced designs on next-genera-

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tion aircraft to be developed jointly by Russia and PRC. A turbofan for the jointly developed commercial wide-body jetliner would have a thrust in the range of 35–40 tons. Aviadvigatel is offering the PD‑14’s core increased by 1.5 times to serve as gas-generator for the engine of this would-be new aircraft. The design house says it can complete documentation package in three years, with count starting upon PD‑14 certification. Besides, the PD‑14 core is offered as the most critical part of the PD‑12V high-output turboshaft to power the Sino-Russian nextgen Heavy Lift Helicopter with lift capacity similar to that of the existing Mi‑26, the world’s largest serially produced rotorcraft. The PD‑14 and PD‑12V technologies, engineering solutions and hardware items may also be used in a next-gen turboprop that may power a Sino-Russian regional airplane to be developed on the platform of the 64‑seat Ilyushin‑114. Finally, PD‑14’s core is proposed for the PD‑14M engine for the Multirole Transport Aircraft (МТА), a joint project by Russia and India. So far, the focus of the PD‑14 program has been firmly on working out and perfecting technologies, making and testing engine demonstrators. “Time has come to start the technical renovation of the manufacturing sites”, Inozemtsev said. Perm companies have been actively purchasing and installing newly acquired manufacturing equipment, mostly imported from European Union. According to Aviadvigatel general designer, the key challenge is to make PD‑14 deliverable examples affordable through use of highly efficient production based on hightech machinery. With Rouble’s exchange rate falling to Euro (and US dollar), the grand total of required expenses in the Russian national currency has been growing. Inovemtsev says that purchase of Russian manufacturing equipment becomes more attractive, but the local makers could not provide the whole list of required machine tools with performance comparable to Europe’s best. At the same time, local makers have improved their offering in the past six-seven years since the PD‑14 R&D effort was launched.

VLADISLAV MASALOV General Director of United Engine Corporation Born in 1970. In 1992 he was graduated from Financial and economic department of State Financial Academy of Russian Government with qualification “financing and loan management”. From 1992 to 2004 he occupied various managerial positions in a number of financial and industrial companies and banking institutions. From 2004 to 2005 – deputy Chairman of Absolute” Group, LLC. From 2005 to 2009 – Managing Director of group of companies ISK Gletcher, LLC. From 2009 to 2010 – deputy Managing Director for economy and financing, deputy Managing Director – director for economy and financing of NPO Saturn. Since 2010 – acting Managing Director of FSUE “NPC “Salute” for gas-turbine engineering”, Managing Director of FSUE Gas-turbine Engineering Research and Production Center “Salut”. Since July 2012 – General director of United Engine Corporation.

Vladimir Karnozov A I R F L E E T

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Profitable MiG

Speaking to the veterans and employees of the Mikoyan design bureau on the occasion of the famed fighter house’ platinum anniversary, General director – General designer of Russian Aircraft Corporation “MiG” Sergei Korotkov said the year of 2014 was profitable for the organization. The very fact of the MiG company emerging with a profit is important. Few other members in the United Aircraft Corporation (in fact, only one more, Ilyushin Finance Co. lessor) can claim a profitable nature of their activities. The reason has been that the industry borrows much money on a large scale for renovation in the view of big orders from both the Russian ministry of defense and abroad. In 2013, UAC income rose by 29% to Rouble 220 billion (in the times when Rouble to dollar exchange rate was about 32:1), and yet the corporation made losses of 12.41 billion. As of November 2013, UAC debt obligations exceeded Rouble 260 billion. Last year, the income rose further, to 285 billion (the value of the Rouble fell twice in a year, so UAC earning in hard currency), and yet the corporation is still making losses. Notwithstanding, if Korotkov’s words on Mikoyan profitability is true, this is a big achievement for the company. A higher-speed interceptor Last year, there were several occasions when top industry officials spoke of RAC MiG working on upgrade of in-service MiG-31 high speed interceptor and development of its new versions. The MiG31 is an evolution of the MiG-25, whose airframe is built with a large share of steel and other construction materials able to withstand high heat from air traction at high speeds. Both types share the same fig-

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ure for restriction of their top speed in level flight at Mach number 2.83. The aforementioned aircraft can hold that speed for a long time, which has been proved during their flight-test program. Aviadvigatel general designer Alexander Inozemtsev is among those who spoke about the above said programs. Speaking to media on different occasions in April and December 2014, he said that such a wouldbe MiG-31 successor would be able to attain “higher speeds”. “It is better not to make use of the old [design], but rather develop a new one”, Inozemtsev stated, when relating to the issue of the MiG-31 successor and its powerplant. The latter is the Aviadvigateldesigned D-30F6 augmented turbofan. Production of the D-30F6 terminated in the early 1990s. Some fifteen hundred engines remain in the Russian defense ministry stocks including operable aircraft. A number of the new engines to be ordered by the Russian defense ministry may not be sufficient to make it a profitable business for the manufacturer. To make ends meet, the engine makers in Perm are working with Gazprom fossil fuel giant so as to increase a total production run through addition of industrial turbines on the aero-engine’s core. Gazprom has already signaled its intent to procure two hundred gas pumping units based on the core of the D-30F6 engine. The need for higher-powered, yet relatively compact, industrial turbines is driven by Gazprom’s desire to increase pressure in the pipelines to 140 atmospheres. For two and a half years, Aviadvigatel has been working on making a new industrial turbine with output of 34-40 MWt on the D-30F6 core. “It fits very well into Gazprom plans for the high-pressure pipelines and for work in a distributed power generation system. They are going to place order for two hundred such turbines”, Inozemtsev said. Since 1992, Gazprom and other oil&natural-gas giants have taken delivery of over eight hundred industrial turbines built to Aviadvigatel designs, with 70% for gas-pumping and the rest for electric power generation. So far, however, their output power averaged at 18-25MWt. The need for higher power core that both Russian air force and fossil fuel companies A I R F L E E T

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want, seems to have justified the return of the D-30F6. Sometimes a would-be successor to the MiG-31 is referred to as the MiG-41. But this designation is not yet made official. RAC MiG general director – general designer Sergei Korotkov once mentioned it during his interview with a Russian reporter. Upgrades for the big MiG-29 fleet Over eight hundred MiG-29s are operated outside Russia in up to thirty countries round the globe. With older MiG models taken into account, the number of states operating them rises to fifty. This creates a big market for modernization and upgrades, says Vladimir Barkovsky, director of RAC MiG’s design house named after Atryom Mikoyan. “There is quite a few MiGs still in operation throughout Eastern Europe”, he says. Poland, Hungary, Bulgaria, Slovakia fly MiG-29s; Romania and Serbia still run MiG-21s alongside with the MiG-29. Roughly, their number comes to a hundred aircraft, and some are expected to serve till the middle of the next decade. Says Barkovsky: “We are present in almost all of the [East European] projects [on support and upgrade of these MiGs]. Regardless of political situation, MiG operators strictly follow safety procedures… To do so they need to cooperate with the type developer and maker. Hence, Europe remains the area of our presence”. Lifetime is 30 years normally with possible prolongation up to 40 years, depending on wear and tear. Klimov RD-33 engines powering these MiG-29s are overhauled and repaired in

Russia. “This is not just the question of money, but also that of our overwhelming experience supported by world-wide statistics. RAC MiG and Klimov follow everything that happens to MiGs round the world and introduce measures accordingly in order to improve safety”, he explains. In addition to customer services and spare parts supply, RAC MiG also does some work in Eastern Europe to do with modifications and upgrades. This has involved installation of precise navigation systems from Sagem, Thales aiming system and helmetmounted sights, as well as data-link and radio communications from French and other European firms. “We have also worked with BAe Systems of UK and Rockwell of US on MiG-29 upgrades”, Barkovsky says. Companies from Frence, Italy and other European companies are also involved in MiG upgrade work in certain Asian countries, such as India. This keeps them staying with RAC MiG. “The most important for us now is to boost production of our new aircraft, as a measure to keep in the marketplace… Mid-life upgrade and modernization are, in fact, for the same purpose”, according to Barkovsky. “For a while, our new aircraft came out in small quantities… Today, MiG production is getting momentum. This means the MiG company does have the power, it does have resources and the footprint. We are striving to keep our place in the global market”. Indian air force Bisons A big portion of the Indian air force inventory is made up by MiG-21 and MiG-

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winner through the capability to enable its pilot to open fire before his opponent. The replacement of the older RP-22 radar with the more recent Kopyo from Phazotron-NIIR has significantly enhanced the Bison’s capability to wage air combat. The upgraded MiG can now fire at the enemy with the RVV-AE air-to-air missiles able to destroy hostile aircraft in beyond-visualrange (BWR) engagements.

29 aircraft. India placed order for MiG21F aircraft back in 1963, with the shipment commencing next year. Later on, more recent versions of this aircraft find their way into this country by way of direct deliveries from Russian factories and by being assembled locally at HAL MiG Division at Nasik. A number of line squadrons still operate these aircraft. This means that the MiG-21 has served the Indian air force for over fifty years! The Indian air force organized a special venue to commemorate the long and eventful career of the MiG-21 in its service. Among the many who received an invitation was RAC MiG General director –

General designer. Sergei Korotkov attended the event. He said he enjoyed a every friendly atmosphere at one of the Indian air force stations. Korotkov recalls that many Indian pilots and maintainers spoke highly of the Russian fighter. A number of surviving MiG-21bis aircraft has recently been upgraded into the MiG21bis UPG standard. It is also referred to as the Bison. “Old by gold”, the upgraded MiG-21 represents a difficult opponent to any of the western fighter designs due to the Russian little jet’s very small size. In a simulated air combat with other aircraft types, the Bison, with its small cross-section and a modern radar, often emerges the

Indian air force MiG-29UPG In addition to the MiG-21bis upgrades, India undertakes a similar program on nearly seventy in-service MiG-29s. These undergo modernization and refit into the MiG-29UPG standard. The latter is broadly similar to the MiG-29SMT in service with the Russian air force. Up-gradation of in-service aircraft of the Indian air force involves removal of the older N-019 radar with Cassegrain parabolic antenna. In lieu of the N-019, the MiG29UPG has the more advanced Zhuk-ME radar with a slotted antenna. Having completed work on several Indian aircraft, RAC MiG now supplies India with kits for same kind of work to be done locally. The rate of aircraft upgrade work is understood to be going at a rate of a dozen units annually. “Everybody now calculates how expensive the operations over the whole lifetime would be. The hardware itself must be attractive, but it becomes even more attractive in the case it comes in a complete package with aftersales support. The latter also requires funding. That’s why everybody is calculating what the overall costs would be”, the RAC MiG General Director – General designer was quoted as saying. “Fighters stay in service for 30-40 years. Hence with, calculations should be made for the whole duration of the lifetime expectancy. Low operational costs, maintainability and the ability to absorb changes easily is the key to customer’s purse”, Sergei Korotkov carried on. The MiG-29SMT is a single-seat multirole frontline fighter outwardly differing from the Classic MiG-29 having two fuel tanks bolted to the upper fuselage, 1400 liters in the middle one and 480 liters in the other, closer to the tail. Special coatings absorbing radio

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emissions reduce effective radar cross section down to less than one square meter. Dial instruments gave way to a glass cockpit with state-of-the-art navigation and aiming systems enabling use of many precision-guided munitions. Historically, the SMT aircraft delivered first to Eritrea and Yemen; Algeria received a quantity but rejected them.

sioned. This shall open “a new perspective” for the manufacturer and help the Russian air force to better balance its fleet by way of additional lightweight fighters. The MiG35 is a land-based derivative of the MiG29K/KUB deck fighter with the PhazotronNIIR Zhuk-MAE active phased array radar replacing mechanically-steered Zhuk-ME. Even though the MiG-35 is a very much potent multirole fighter with its AESA radar and many other advanced systems and weapons, it is often competing with less advanced but cheap MiG-29s on the ground of costs.

Russian air force orders for MiG-29SMT The Russian air force already operates 28 MiG-29SMT fighters acquired in 20092010. “These aircraft have gained a good reputation among the servicemen as they have a much expanded arsenal of guidA complete package ed munitions to be used against aerial and for the Indian navy ground targets”, Sergei Korotkov commented. India continues in the role of main exIn the spring of 2014, the Russian Airport customer for RAC MiG. There is an orcraft Corporation “MiG” won a new order by the nation’s defense ministry for 45 der for fourteen MiG-29SMT single seat MiG-29K/KUB deck fighters. These are inmultirole fighters and two MiG-29UBT tended for the Indian navy air arm. Today, operational trainers with delivery due by more than half of these aircraft are already the end of 2016. The deal is valued at in service in India. Rouble 17 billion. In June 2014, after ten pilots qualified in Signing the document, deputy defense “from the deck” operations, the Indian navy minister Yuri Borisov said: “this order shall began flying its MiGs from the deck of the make the manufacturer feel more secure INS Vikramaditya aircraft carrier of Project and look into the future with greater hopes… 11430. Purchased from Russia, the ship arthe order shall also provide a good starting rived at the Karwar naval station in Janupoint for setting up production of the newer ary 2014. aircraft such as the MiG-35”. INS Vikramaditya complete with its air Talks on shipment of about forty MiGwing of MiG-29/KUB fighters and Ka35s for the Russian air force are ongoing. If 31 helicopters, is, in a sense, a complete they come to fruition, a production run of package from the Russian defense industry, about a hundred such aircraft can be enviwith RAC MiG, Kamov and Sevmash beA I R F L E E T

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ing the three leading companies behind the deal agreed between India and Russian fifteen years ago. On the Christmas eve, Sevmash - Russia’ largest dockyard with workforce of nearly 24,000 - celebrated its 75-th anniversary since foundation. The company is based in Severodvinsk, with its core business being nuclear submarines, with over 130 built so far. Today, Sevmash focuses on the Project 955 Borei-class vessels each armed with sixteen intercontinental ballistic missiles, and the Project 885 Yasen-class fast-attack submarines armed with cruise missiles. The Russian navy has already accepted three of Borei hulls and one of Yasen, deliveries continue. Surface combatants are represented by the Admiral Nakhimov heavy cruiser now undergoing a major refit and modernization under 11442M. Respective order came from the Russian defense ministry in 2014, in the view of completion in 2018. Work on the cruiser began after completion of the INS Vikramaditya, which left Severodvinsk a year ago. Having won big orders for submarines, does Sevmash have an interest in follow-on projects to do with aircraft carriers? Sevmash general director Mikhail Budnichenko believes that his enterprise’s experience in this field is beyond doubt. “No other enterprise in the whole of Russian shipbuilding industry has experience of making aircraft carriers”, he insists. Budnichenko reminds that construction of the shipyard in the month of Severnaya Dvina river began in December 1939 with the purpose to have here a big enterprise specialized in large surface combatants. The first hull laid down here was that of a battleship. By the middle of 1950s the dockyard completed 46 warships including a pair of cruisers and twenty destroyers. “Only after that this enterprise was re-oriented towards nuclear powered submarines”, he says. Mikhail Budnichenko insists that Sevmash still has the ability to make first-class surface ships for the Russian navy and foreign customers. If these customers ask the enterprise to make some surface combatants, “Sevmash shall be ready to accept respective orders”. Vladimir Karnozov

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More work for Ilyushin United Aircraft Corporation (UAC) held a meeting of its board of directors on January 19, 2015. The place, chosen for this assembly was rather symbolic: Ilyushin design house located in the heart of the Russian capital city. The directors appointed Yuri Slyusar to the position of UAC president. Speaking to a handful of media members few minutes after his appointed, the new UAC chief made a special point on military airlifters. He stressed that the work on production preparations to mass production of those “has been on for several years now” and that “several” types of airlifters are on the plan. This, apparently, applies to the Il‑76MD‑90A strategic quad, Il‑112 tactical turboprop and the Indo-Russian Multirole Transport Aircraft (MTA), sometime referred in Russia as the Il‑214 (version for the Russian air force). “Today, we discussed the projects being carried out by this design house. It employs about five hundred aircraft designers, whereas the projects that are assigned for it require fifteen hundred aircraft designers. In other words, to fulfil all the work assigned, the company shall increase its engineering workforce by three times. Surely, this is not possible to do that overnight. Hence with, the task before me and [UAC and Ilyuhsin’s management] is to make maximum possible using those human resources that we have today”.

Multirole Transport Aircraft The aforementioned Multirole Transport Aircraft represents a next generation of military airlifters. Its maximum payload capability is set at 20 tons. Preliminary work on the new aircraft done by Ilyushin engineers resulted in a sketchy design of a high-wing airplane with two high-bypass turbojet engines on under wing pylons, and a big rear ramp. Its maximum takeoff weight was estimated at 65 tons, the cruise speed at 800 km per hour at heights up to 12,000 meters, and range at 2500– 2700 kilometers. A baseline agreement between India and Russia on MTA joint development was signed in September 2010. That time each side promised to invest 300 million dollars in R&D and preparations to serial production. That time, the Indian representatives spoke of an initial batch of 45 such aircraft for the Indian air force. The Russian defense ministry indicated a need for one hundred such machines for the air force of its own. The choice of engine is yet to be made. Russia’s Aviadvigatel design house offers the PD‑14M with the thrust of 16 tons. It is an up-rated version of the baseline PD‑14 that is currently undergoing bench testing in Perm in preparation to flight tests on a test-bed. The PD‑14 is selected for the Irkut MC‑21 next generation narrow body jetliner in the class of Airbus A320 and Boeing 737 families.

Strategic airlifters and AWACS The baseline Il‑76 took to the air for the first time in 1971 and entered service three years later. Its production run at the TAPO factory in Tashkent came to a thousand units. Among other nations, the type continues in service with the Russian air force (up to quarter a thousand) and the Indian air force (16 Il‑76MD airlifters, 6 Il‑78MKI air tankers, and three AI AWACS aircraft). Work on a modern version of this well-proven aircraft with a high reputation for ruggedness and performance, commenced in earnest in 1997 and won governmental approval in 2006. First operable Il‑76MD‑90A assembled at UAC’s Aviastar-SP factory in Ulianovsk made its first flight in September 2012. Next month 2012 the Russian defense ministry awarded UAC an order for 39 Il‑76MD‑90A heavy airlifters, thereby becoming a launch customer for this aircraft. Deliveries are due through 2020. The contract value was given at Rouble 140 billion, which that time converted to 4.5 billion dollars. This rendered one aircraft to cost 115 million dollars. The Il‑76MD‑90A with a maximum takeoff weight of 463,000 lb features a brandnew avionic set and four PS‑90A76 engines each developing up to 35,300 lb of thrust. It is capable of transporting a payload of 114,500 lb over 2700 nautical miles.

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As of Aero India 2015 opening, Ilyushin and Aviastar-SP completed four Il‑76MD‑90A airframes, including one for structural and fatigue testing. Other three are operable. Flight tests completed so far provided the necessary support for the type production program which is currently unfolding in Ulianovsk. One of the above mentioned three operable aircraft is now with Beriev company. The latter is responsible for the Russian MoD program on airborne early warning and control aircraft. Beriev took delivery of an Il‑76MD‑90A on November 21, 2014. This airplane is intended for conversion into a flying radar. Early February 2015 brought a news from the Russian defense ministry. A representative of the ministerial press office told the media that an operable example of the A100 AWACS aircraft on the Il‑76MD‑90A platform shall commence flight tests later this year. These will take place at GLITS, a specialized MoD establishment located in the town of Akhtubinsk, south of Russia. The A100 is also referred to as the Premier, and has an powerful radar with an active phased array antenna. The Russian air force expects deliveries to commence in 2016. Another recent news to do with this program came from the Ministry of Finance. It says that the ministry has issued state guarantees in excess of Rouble 1 billion to provide the necessary insurance for the credit agreement between a commercial bank and UAC branch dealing with cargo aircraft and military airlifters. The credit makes it possible to fulfil obligations

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that the industry took under the contract for Il‑76MD‑90A aircraft from the defense ministry. According to Novikombank, it takes part in structuring finance packages for the industry with a commitment exceeding Rouble 4.5 billion. Il‑112 tactical airlifter First information about development of a brand-new tactical airlifter dates back to the turn of the century. Intially, the project was known as LVTS, Russian acronym for Light Military Transport Aircraft. It would have a payload capability of six tons, high-mounted wing with two turboprop engines and a cargo ramp in the rear fuselage. At some point in time, Ilyushin accepted the role of LVTS project leader, with its design being referred to as the Il‑112. During a press tour of TsAGI, the Central Avia Hydra Dynamics Institute on the Christmas eve of 2008, the media was shown a scaled model of this airplane made for wind tunnel tests. Couple of times, the defense ministry provided and then terminated funding for this program. Last year, Ilyushin has been ordered to resume the Il‑112 project so as to have two prototypes flying in 2018. According to local media reports dated 2014, MoD has agreed to provide extra Rouble 8 billion (US dollar 222 million). This sum is thought to be enough for completion of design documentation and production preparations. In the second half of the past year, deputy prime-minister Dmitry Rogozin confirmed that the Il‑112 and Il‑114 are back, after talks with Antonov on the An‑140T

had stalled. The Il‑112 will go into production at the VASO plant in Voronezh. VASO general director Sergei Yurasov confirmed that the talks on making a pair of Il‑112 prototypes – one for ground testing, the other for flights – are ongoing. Development of suitable turboprop engines for the Il‑112 is the responsibility of Klimov company in St. Petersburg. The company has many times reported about newer, more powerful and matured versions of the TV7–117 developed previously for the Il‑114 passenger aircraft. Among those there are the TV7–117SM and Bogatyr. Developed in the late 1980s – early 1990s, the baseline TV7–117S was in a limited production and saw some revenue service on handful examples of Il‑114 passenger aircraft. The Russian engine has demonstrated lower fuel burn than Pratt&Whitney Canada’s PW127H on the westernized Il‑114–100 certified in 1999. But the Klimov’s motor has also showed lower reliability and on-wing lifetime in Il‑114 revenue service. Developing a newer version of that engine is something Klimov is doing now. Success of this effort is a key to the success of the Il‑112 and Il‑114. As it stands now, the Il‑112 and “reworked” version of the Il‑114 for production in Russia would share onboard systems and powerplants. This makes both projects more economically viable. Speaking of military prospects for Ilyushin turboprops, it must be mentioned the design house has developed the Il‑114MP, suffix for “Maritime Patrol”. This aircraft is intended for the Russian navy. It can loiter for 8–10 hours 300km off base, carrying 1.5 tons of droppable acoustic buoys and depth charges. This version is outfitted with a modern search-and-attack set including a search radar, a magnetic anomaly finder, a thermal imager etc. The Il‑114MP is intended to supplement and then replace the ageing Il‑38. The Russian navy has plans to rework about thirty Il‑38s into Il‑38N version with the Novella-P‑38 ASW set. Ilyushin holds an initial contract for five Il‑38N aircraft, first of which was delivered to the customer on July 15, 2014.

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Dmitry Rogozin Il‑114 regional turboprop This aircraft was developed to a 1987 specification issued by the government of the Soviet Union. First flown in 1990 and certified in 1997, the plane confirmed its design targets, including the ability to transport 64 passengers 900km. A handful of Klimov-powered Il‑114s served with Uzbekistan Airways (1998–1999) and Vyborg (1999–2010). Whereas the Il‑114 appears to be relatively slow, with 500–520 km/h maximum cruise speed, it is also rather fuel efficient. At speed of 480–490 km/h the aircraft shows 0.94–0.97 km per kilogram

of fuel burnt, compared to 0.74 for the ATR72–600 with same passenger cabin dimensions (and 0.68 for faster-flying Q400NextGen). The Franco-Italian aircraft can seat up to 72–74 passengers in high density cockpit layout, while the Ilyushin can take only 64 (in a cockpit with similar dimensions) due to current certification restrictions. Ilyushin’s empty equipped weight, at 16 tons, is three tons above that of the Franco-Italian design. This reduces range with a full cabin to 900–1000 km, twice less than the competition. The bigger wing (81.9 square meters against ATR72– 600’s 64) retards the Il‑114 in cruise flight but gives it superb loitering capability at slow speeds, thanks to a record Cl/Cd ratio, up to twenty. The Il‑114 was in production at the TAPO plant in Tashkent, capital of Uzbekistan Republic. About twenty airframes have been built from early 1990s, production discontinued couple of years ago to due the Uzeblistan government decision to change TAPO’s specialization. Seven Il‑114–100s with Canadian engines, US-made propellers, APU, avionics and interiors remain in revenue service with Uzbekistan Airways. These have reportedly shown annual utilization of 1,800 flight hours, barely sufficient to generate a profit. Reworked Il‑114 After much discussion, both in public and behind closed doors in the corridors of

power, the Kremlin has made decision in favor of reworking Il‑114 into a more commercially viable aircraft and setting up its manufacture in the territory of the Russian Federation. Deputy prime-minister for military industrial complex Dmitry Rogozin acts the driving force behind the new Il‑114. A important decision in favor of the Il‑114 was made on September 9, 2014, when he chaired a big meeting of government officials with various ministries and industrial structures. “The meeting […] approved of Il‑114 production restart. Ilyushin design house is ready to accept the work”, Rogozin commented. He stressed that the effort requires “a complete digitizing” of the original drawings after “a deep modernization”. General manager Aleksei Gusev declared Aviacor’s intent to accept the work. The Aviacor plant in Samara is not a member in Russia’s United Aircraft Corporation and instead run by the Russian Machines privately-held corporation. The owners and the Samara regional administration are ready to invest into the Il‑114 project. The local authorities have promised “1–1.5 billion Rouble into Aviacor modernization”, according to Samara governor Nikolai Merkushkin. A great total of investments into the Il‑114/Aviacor project is estimated at 8–12 billion Rouble. Rework of the original drawings and their digitizing would take another 3–4 billion. The biggest issue to do with the air-

Industry

plane is its power plant. Only one Russian airline – Vyborg – operated TAPOmade Il‑114 commercially, taking a pair of reworked aircraft previously operated by Uzbekistan Airways. Revenue flights lasted from 1999 till 2010, when the company disbanded, leaving both aircraft parked at Pskov airport after TV7–117S engines expired their lifetimes (several examples have logged little over two thousand FH each). The only TV7–117SM-powered airplane still operating belongs to Radar-MMS radar company, serving as a test-bed for radio-electronics. Il‑96 widebody quad Ilyushin made its way to the pages of history with development and introduction into service of three Russian wide body transports, each with four engines under the wing. The Il‑86 with 350 seats is optimized for relatively short domestic services. About one hundred were built in the 1980s and early 1990, and flew commercially on a number of routes linking Moscow to Kransnoyarsk, Novosibirsk, Saint Petersburg, Tashkent and so on. Some of these big jets are still in service, including a commandand-control version sometimes referred to as the Il‑80. Until recently, the 260‑seat Il‑96–300 is an intercontinental airliner in service with a handful of commercial airlines. It also serves as the VVIP jet for the president of Russia and his ministers. This airA I R F L E E T

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plane provided the base for extendedfuselage Il‑96–400M with US-made Pratt&Whitney engines that won US FAA certification back in 2005. A freighter version of the bigger aircraft with Russianmade PS‑90A1 turbofans is designated the Il‑96–400T. It underwent operational trials and, earlier this decade, carried out revenue operations with Polyet airline. January 2015 brought some news about a new application for the latter airplane. VASO factory in Voronezh has completed an Ilyushin Il‑96–400VPU for SN FSB, the special assignment department of the Federal Security Service. This is the first of fourteen big Ilyushin quads that the Russian government is set to procure in 2015– 2024 timeframe, including 11 for the ministry of defense. Of those, three or four are rebuilds of used Il‑96–400T freighters, the rest being newly made aircraft. The aforementioned Il‑96–400VPU is a dedicated aerial command and control aircraft, a rebuilt of the Il‑96–400T freighter registration RA‑96104 assembled in 2011 for Ilyushin Finance Co. (IFC). The latter leased the plane to Polyet, but took it aback with three more such aircraft after the airline ran into financial troubles. Worsening economic situation in the Russian airline industry (due to US/EU sanctions and the fall of the Rouble) made the lessor seek customers among government structures, in which it excelled. Early last year IFC made a statement about having

placed the RA‑96104 with an undisclosed governmental customer and ongoing work on refit of the aircraft at VASO before delivery. The plane resumed flying in November 2014 with a distinctive satellite communication antenna on the upper side of the rear fuselage while keeping remains of the old Polyet’s livery. The remaining three Il‑96–400Ts in the inventory of Ilyushin Financ Co. are understood to follow the same road. Redundant freighters are likely to be rebuilt into variants specified by governmental customers. New applications for Il‑96 In January the Russian defense ministry awarded United Aircraft Corporation (UAC) a contract for two Il‑96–400TZ aircraft. The last letter in the suffix (Z for “zapravshik” meaning “tanker”) indicates a new role of the dedicated freighter. Statement from MoD says that the new tankers shall be able to transfer over 65 tons of jet fuel at a point 3500 km off base. They shall be equipped with containerized UPAZ‑1 universal apparatus already in use on the Il‑78/78M aircraft, being standard air tankers of the Russian air force. A relatively small number of larger and longerlagged Il‑96–400TZs would primarily serve strategic bombers on long-hour patrols far off the national border. VASO general manager Sergei Urasov told Russian journalists in May 2013 that

Industry

his factory’s Il‑96 line is loaded to capacity for anther ten years predominantly by state defense orders. He further said that three Il‑96–400T rebuilds on firm order should be ready for delivery in early 2015. Reportedly, one aircraft would be a command post for the minister of defense. Two more are intended for the air detachment serving president of Russia, which already operates four Il‑96–300PU aircraft and await a fifth in late 2015. The Il‑96–300 version with maximum takeoff weight of 240–250 tons preceded the Il‑96–400 stretch whose MTOW is boosted to 270 tons, and the range to over twelve thousand kilometers. Meantime, sources in the Russian airline industry indicate that most of the Il‑96 quads previously operated by Aeroflot and other commercial airlines are most likely to make their way into Russian governmental service. Airframes unworthy of a factory rebuilt will be dismantled for parts to support operational aircraft. The only possible exception to this general rule would be a couple of ex-Aeroflot jets that may find their way to Cuba, the only foreign operator of the type. On the Christmas eve the intergovernmental commission for trade, economic and scientificresearch cooperation between Russia and Cuba provided a place for signing of a preliminary contract between IFC and Aviaimport S. A., which places an Il‑96– 300 with the Cuban national carrier. Delivery is due in the second quarter of 2015, and will increase Cubana de Aviacion’s Il‑96–300 fleet to six aircraft. IFC-owned Il‑96–400T widebody freighters previously operated by Polyet airline are prepared for conversion from the factory’s configuration into a multirole aircraft version. These are to be employed by Russian governmental

structures on roles similar to these being played by the similarly-sized Airbus A330 in service with governmental structures in Europe. One Ilyushin quad from IFC’s fleet has been already contracted. Two more are in the process of being contracted. Aeroflot and IFC have agreed on transfer of two used Il‑96–300 quads previously operated by the Russian flag-carrier as part of a broader agreement in regard to Vladivostok Avia. The latter operated six Tu‑204–300 twinjets on lease from IFC before becoming part of Aeroflot with subsequent cancellation of revenue services under the code of its own. “The agreement has been approved by shareholders of Aeroflot and our company. I hope to finalize the deal shortly”, Roubtsov says. After overhaul and mid-life modernization the big Ilyushins will go to an airline already operating the type. A 300‑seat widebody from COMAC/UAC The Il‑86 and Il‑96 development, production and revenue flight experience provides a solid base for future programs in the domain of next-generation passenger aircraft of high capacity. One of such is known as the Russian acronym of ShFS. It stands for Widebody Aircraft, a joint 50/50 project between Russia and China. This project has been agreed on the top political level during Putin’s visit to China last year. Design proposals to what the ShFS could be, have been under study at UAC for several years now. The corporation is yet to make decision which of its design houses to be named as the project leader. Ilyushin is the most likely candidate, since no other of Russian design houses has had nothing that would match Ilyushin’s experience on the Il‑86 and Il‑96.

Yuri Slyusar addressed the issue at this first press conference in Moscow on January 29, ten days after he replaced Mikhail Pogosyan in the capacity of UAC president. He said that UAC prepared and submitted to the Russian government for consideration “a business concept” of the new aircraft. Sketchy design is to be ready in July 2015. The project requires US dollar 13 billion investment, as per September 2014 calculations. UAC president gave this figure with a rider that “it needs to be re-calculated due to the recent changes in currency exchange rates. The fall of the Rouble could render the project less expensive”. A joint working group of Russian and Chinese specialists has been set up. “Our colleagues from COMAC show a big enthusiasm towards this project and take every effort to develop it”, UAC president stated. According to earlier released information, the ShFS shall transport 300 passengers 5,000 km (2,700 nm), and be optimized for relatively short domestic routes within China, notably in the socalled Eastern Delta of Beijing, Shanghai and Guangzhou. Rollout is expected in 2021, certification in 2022–2023, series production start in 2025. The Russian side pictures ShFS as a next step of Ilyushin Il‑86 and Il‑96 evolution, whereas the Chinese are using the Boeing 787 for reference. Russia’s Aviadvigatel is offering an engine for the new aircraft which is a 150% scaled up version of the 14‑tonne PD‑14 turbofan now undergoing bench trials. The PD‑14 is intended for the Irkut MC‑21 next-gen narrowbody airliner that is to have its rollout late this year and take first flight sometime between April and June 2016. The share of composite materials in the airframe structure is 50%, titanium 15%. Under plan, the Russian partner would supply wings with whilst COMAC be making fuselages. Wing is to be made of composite materials, span is about sixty meters. First wing specimen is likely to appear in 2020. Vladimir Karnozov

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