Russia/CIS Observer, 26

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Russia & CIS Observer

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QUARTERLY

SU TO BSC se D A R I B e p. Y ! E 6

â„– 3 (26) september 2009

Russia & CIS Observer

№ 3 (26) september 2009

from the publisher of

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23 • AEROSPACE INDUST RY

Ka-52 helicopter will start

Russia/CIS Observer Quarterly is produced by: Publisher Evgeny Semenov Editior-in-Chief Maxim Pyadushkin Art Director Andrey Khorkov Director, Marketing & Advertising Konstantin Rogov Commercial Director Sergey Belyaev Translated By: Andrey Bystrov, Alexey Rybak All rights reserved.

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Return of the heavy transports..............2

radar trials..........................................15

Interview with Alexey Fedorov,

Air Force shows first Yak-130 ............16

president of United Aircraft Corp.........4 Unmanned strike ..............................16 Urals titanium for Boeing 787 ..............6 Turning to the East ..............................7

• AIR TRANSPORT

Ka-226 prepares for tender ..................7 Interview with Alexander Rubtsov,

Russian airlines’ operational results

general director of IFC ........................8

for the first half of 2009 ......................17

Russian industry faces government support ..............................................10 French power for Mi-34s....................10

• BUSINESS AVIATION Off-road business jet ..........................20 United lobbyists ................................20

• DEFENSE New face of Russian Air Force............12

• SPACE BUSINESS

Russia’s 5th generation fighter is expected to take off this year ..............14

Angara getting ready for launch ..........22

Visit our website at www.cis.ato.ru RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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A E RO S PAC E I N D U S T RY

Return of the heavy transports Commercial use of the transport aircraft with the ramp cargo door, initially designed for military operations, had allowed the Russian airlines to develop a new segment in the cargo market: transportation of heavy and oversized cargo. This segment proved to be the most resilient in the current crisis. However, the danger lurks within: production of ramp aircraft in Russia has practically ceased, and the life span of the current fleet is limited. In August some documents were signed what could positively influence the fate of the Russian ramp aviation.

Alexey Sinitsky irst of all, rehabilitation of Antonov An-124 Ruslan super heavy airlifter production had gained momentum. Vice president of Russia’s United Aircraft Corporation (UAC) Victor Livanov, Antonov Design Bureau general designer Dmitry Kiva and VolgaDnepr Group president Alexey Isaikin had signed the technical requirements for the development of An-124-100 modernized version, potentially to enter series production. The aircraft’s loadlifting capacity will increase from 120 to 150 tons, flight range with maximum payload will reach 4,000 km, and the crew number will be reduced to 3 persons. Avionics and a number of systems will undergo deep modernization.

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So far the potential customers for the new Ruslan include: Volga-Dnepr with 40 aircraft, Polet Airlines with 15 aircraft, Ukraine’s Antonov Airlines with 9 aircraft; several more An-124s could be purchased by Western airlines. Besides, the Russian Defense Ministry, currently operating 9 An-124 aircraft, may also place an order. Col. Gen. Alexander Zelin, Commander of Air Force, and Lieut. Gen. Vladimir Shamanov, Chief of Airborne Troops, had confirmed the interest towards An124. The exact needs of the Ministry of Defense and civil airlines are to be determined by the end of the year. According to some data, the Russian military may order as much as 60 aircraft.

“According to our estimates, over $0.5 billion is needed to resume the production of these aircraft at AviastarSP, — says Alexey Fedorov, UAC presi-

dent. – Currently no one except the government is able to invest such an amount into this project.”

Aircraft modernization according to the new requirement may cost up to $180-200 million. However, Antonov Design Bureau general director Vladimir Korol says that conducting the modernization along with the restoration of the series production will allow to avoid overly high starting costs, and the first aircraft can be completed in just two years. The production can start with the use of the in-process stock at the Ulyanovsk Aviastar-SP plant while the modernization efforts should be gradual and based the already certified An-124-100M-150 version with 150 tons capacity, upgraded avionics and a number of other enhancements (three aircraft of this type are operated by Ukrainian Antonov Airlines).

An-124 enjoys considerable market demand even without modernization, and the sale of the first and subsequent aircraft will allow to finance fur-ther modernization without inhibiting the program as a whole.

“In almost 20 years of commercial operation An-124-100 became an in-

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Russian Air Force may become the launch customer for the modernized An-124 strategic air-lifter

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RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

dispensable instrument of integrated industrial logistics of ultra-heavy and oversized cargo.

No existing cargo aircraft has such capabilities”, says Alexey Isaikin, head of Volga Dnepr Group, the world’s largest operator of Ruslans.

According to Vladimir Korol, during the An-124 production restoration it is worthwhile to retain the same cooperation scheme that existed when the production ceased: the fins, engine mount beams and nacelles are to be manufactured in Ukraine, while production of the rest of the fuselage and the wings, as well as the final assembly, are conducted in Ulyanovsk.

Even under the most favorable scenario, production of the super-heavy transport aircraft at Aviastar-SP will not resume until 2012-2013.

Projects old and new

Marina Lystseva

A E RO S PAC E I N D U S T RY

Positive changes have emerged in the fate Antonov An-70 transport

Two more documents signed in August during MAKS-2009 air show near Moscow can radically change the fate of the Antonov An-70 transport aircraft. Earlier, due to a number of factors, work on this unique aircraft has practically ceases, and in 2007 Russia had made a loud statement on its exit from the Russian-Ukrainian medium transport aircraft joint development program. However, the contract was not formally terminated due to an unresolved issue of penalties.

At MAKS Russian Minister of Defense Anatoly Serdyukov and his Ukrainian counterpart Valery Ivashenko had signed a protocol, confirming the parties’ agreement to continue joint work on the An-70 program, including the financing of the aircraft’s government tests and developing it up to production prototype stage. In theory, the aircraft can be taken into service by the armies of both countries.

Besides, Antonov general designer Dmitry Kiva and Volga-Dnepr’s Alexey Isaikin had signed an agreement of intent to develop and market the air-

craft’s commercial version — An-70T. Volga Dnepr will be one of the launch customers while the delivery of the first batch of 20 aircraft is to start in 2013. According to Isaikin, An-70T will fill the same niche among 40-ton aircraft as An-124 currently does in its own category – transportation of special and human aid cargo. Dmitry Kiva said that the aircraft conforms to ICAO Chapter III requirements, while pro-peller-fan powerplant ensures 2530% less fuel consumption compared to similar turbojet engines. He added that An-70 features twice less the purchase and operational costs compared to the European A400M aircraft, which is yet to conduct its first flight (A400M cost is estimated at 145 million euro). Besides fuel efficiency An70’s advantages for commercial operations include a large cargo cabin. An70 features 47 tons maximum capacity and 425 m3 cargo cabin volume, compared to 37 tons and 340 m3 declared for A400M. Of course, completion of An-70 tests will only allow to discuss potential mil-

itary and civil orders and series production. Russian companies will handle approximately 80% of the project. According to the initial plans, Omsk-based Polet facility was to become the lead manufacturer, with center wing section to be produced in Novosibirsk and the wing itself in Voronezh. It is obvious that involvement of these facilities in Sukhoi Superjet 100 and Antonov An-148 projects will put these production cooperation plans under review.

Antonov also continues work on the ramp transport modification of the An-148T. The aircraft is to feature 15 tons maximum capacity and 1.4 thousand km range (2.9 thousand km with 10 tons payload). This aircraft can be used in commercial operations and humanitarian missions.

Russian manufacturers also speed up modernization and production of ramp aircraft. The UAC development strategy through 2025, adopted in 2008, involves, besides the superheavy An-124, production of the heavy Ilyushin Il-476 transport with 60 tons capacity (Il-76 modification with PS-90A-76 engines, new avionics and other upgrades), medium-class MTA transport aircraft (joint Russian-Indian project) with the capacity of 20 tons and 2.5 thousand km range, as well as the light turboprop Il-112 aircraft with 6 tons capacity and up to 5 thousand km range.

To a certain degree, all these projects have commercial capabilities. Il-112 cargo cabin is designed with the possibility of using international-standard trays, although demand for the transportation of small size cargo on relatively small distances is modest. The close relative of the future Il-476, the Il-76TD-90VD aircraft, had already demonstrated its commercial efficiency in the Volga Dnepr fleet (currently the airline employs two aircraft of this kind, with three more under construction on Tashkent aircraft plant).

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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A E RO S PAC E I N D U S T RY

State-sponsored consolidation The Russian aerospace industry continues its consolidation effort under the umbrella of United Aircraft Corporation (UAC). This year UAC plans to get control over the new assets – MiG jet maker and Kazan KAPO production facility. The consolidation of the aircraft industry will be completed later with the merger with Myasishchev Design Bureau and the Gromov Flight Research Institute. The UAC President Alexey Fedorov tells Russia & CIS Observer reporter Polina Zvereva that while the economic downturn has affected airlines’ purchasing power and the UAC has revised its production plans, state funding for key commercial programs has been preserved in full.

Marina Lystseva

— Could you comment on the prospects for improving the corporation’s financial standing?

— The UAC’s financial structure has changed significantly since its creation.

Our first budget, in 2007, equaled some 2 billion rubles. Last year it exceeded 24 billion rubles [about $770 million]. Much of that money was invested in civil aviation programs, in order to improve the liquidity of the VASO and Aviastar-SP production facilities.

It funded the R&D and retooling effort for the Tupolev Tu-204 and Antonov An-148 production programs, and developed the prospective MS-21 airliner project. Over 9 billion rubles was spent on the purchase of Irkut Corporation shares from the private sector.

This year the UAC plans to preserve the general budget parameters, but we will be spending exclusively on our core business activities. Some of the money to be raised through issuing additional shares will be channeled into the restructuring and recovery of those of our enterprises which have been hit especially hard by the crisis.

We have launched an effort to optimize the cost structure. Our aim is to cut the overhead costs by at least 10%.

We are planning to reduce the cost of

— It is more than three years since the launch of the UAC. How complete is the corporation's organizational structure today?

— The UAC development schedule, approved by its board of directors in 2008, has three phases: reorganization and crisis management (2007-2010), evolution of existing projects (20102015) and further progress within the newly created structure (2015-2025).

We are still in phase one. Going forward, the business management of the commercial and transport aviation segments will be given to UAC – Civil Aircraft Managing Company and the UAC Transport Aircraft company, respectively. The military aviation segment will be consolidated. The groundwork for that process is now being laid by UAC senior vice-president [and a head of Sukhoi] Mikhail Pogosyan, who has been appointed general director of MiG Corp.

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materials and components by 10% for the civil aviation segment and 5% for military aviation.

— In what way has the downturn affected the UAC? — The effect on our long-term plans is insignificant because our major shareholder is the government.

The aerospace industry in general, and the UAC companies in particular, are viewed as a top priority of the state investment and innovation policy. The amount of federal investments in various aircraft construction programs has more than doubled since 2007. Now, in crisis times, these investments have temporarily supplanted some of the so-called ‘extra budgetary’ sources previously available to the industry. This enables the UAC to keep the key programs on schedule. For example, the amount of funding for the Sukhoi Superjet 100 and MS-21 programs are actually growing. In other words, the crisis has not caused the UAC to revise its long-term strategy and global development objectives.

Unfortunately, I cannot say the same for our short- and mid-term plans. The UAC board of directors in late April revised the 2009-2012 production program due to the slump in airlines’ purchasing power, liquidity shortages and a reduction in the size of retooling investments. We hope the government will help us overcome these problems.

A E RO S PAC E I N D U S T RY

Urals titanium for Boeing 787 n July, world’s largest titanium producer, Russian VSMPO-Avisma Corporation, and Boeing launched a joint venture named Ural Boeing Manufacturing (UBM) in Verkhnyaya Salda.

The new plant will do initial machining of titanium forgings that are used for production of Boeing 787 airliner. The new JV will receive the titanium forgings from VSMPO-Avisma located in Verkhnyaya Salda while the final machining of the components will be done at the plant of Boeing in Portland in the US and at plants of other subcontractors.

The annual output will correspond to the production program of this airplane.

Boeing and VSMPO-Avisma announced the plans to set up a joint venture in 2006, but they were shaped legally a year later — in July of 2007

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each partner received a 50% block of shares in the new company. Boeing does not disclose investments in the joint venture but experts point out that

the economic standpoint.» From the technological standpoint one of the advantages is recycling of titanium shavings from machining at VSMPO, which «allows creation of a closed-cyTitanium components for cle chain of suppliers for mainDreamliner are machined in tenance of production of titaniRussia’s Verkhnyaya Salda um forgings and other kinds of products.» During machining of titanium semi-finished products in the US it was necessary to bring the remaining material to one of the local machining contractors.

European aircraft manufacturer Airbus did not announce plans to set up a joint venture with investments in such production facility VSMPO-Avisma yet but in April the airmay amount to about $100 million. craft maker signed a framework agreePress secretary of Boeing Russia ment on purchase of titanium worth $4 Dmitry Khrol explains, «The advantage billion until 2020. Under this contract of the joint venture’s location in Russia VSMPO-Avisma will supply round and is machining of components in the flat rolled titanium, as well as forgings vicinity of the titanium production for all existing models of Airbus includsource, which is more beneficial from ing А350XWB.

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A E RO S PAC E I N D U S T RY

Turning to the East Maxim Pyadushkin

ussia is still waiting for its chance to join Europe’s Future Transport Helicopter (FTH) program, but may instead develop a similar heavylift rotorcraft together with China.

According to the Russian Helicopters holding company, the contacts with Eurocopter on FTH program have been suspended after it became clear that the European manufacturer was hoping to develop the 36-ton helicopter jointly with a US partner. Spe-

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cific mention was made of Sikorsky, which is currently working on a heavylift project of its own — the CH53K helicopter. Russia, for its part, was offering to supply the European partners with the expertise gained from the development of the 56tonnes Mil Mi-26 — the world’s heaviest rotorcraft to date.

At the same time Russia stands a good chance to join China’s program to create a 35-ton Advance Heavy Lifter helicopter that is currently gaining pace, says Russian Helicopters di-

rector Andrey Shibitov. Russian and Chinese specialists are already looking into possibilities of cooperation in this area and conduct the associated research. According to Shibitov, the conceptual design phase will be finished this autumn.

Russia’s greatest challenge in working with China will be the preservation of intellectual property. “We have studied this issue thoroughly and are now ready to word the relevant agreement in such a way as to eliminate the risks,” Shibitov says.

Ka-226 prepares for tender Maxim Pyadushkin

he Russian Helicopters holding company is re-engining the Kamov Ka-226 light rotorcraft in order to win the Indian army tender for 197 light utility helicopters. Until now, the type has been equipped with two Rolls-Royce Allison 250-C20R/2s. Kamov expects the more powerful Turbomeca Arrius 2G2 gas-turbine powerplant to dramatically increase the helicopter’s hover ceiling, expand its payload capacity and improve the hot-and-high performance envelope.

Russian Helicopters and Kamov contracted Turbomeca in January 2009 to develop a variant of the Arrius 2G1 for the Ka-226T helicopter. The engine has a take-off power of 537 kWt (730 hp) and a maximum continuous power rating of 475 kWt (622 hp). The Helicopter Servicing Company, a subsidiary of the Oboronprom corporation, has signed a contract with Turbomeca for the delivery of the first 2G1 batch.

The first flight of Ka-226T with the French engines took place this summer.

The rotorcraft climbed to 7,000 m, but according to the designers, it’s capable to reach higher altitude. The Russian Helicopters says that the new engines will enable Ka-226T to be operated in mountain regions and in subtropics.

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The French engines will give Ka-226T the ability to be operated in mountain regions and in subtropics

The Turbomeca-powered helicopter may be certified in Russia at the end of 2010. Russian Helicopters also work to certify Ka-226 and Ka-226T modifications in India. Series production of the modernized helicopter will be established at Kumertau Production Aviation Enterprise.

According to Russian Helicopters director Andrey Shibitov, the Indian tender is going to present a significant challenge.

The US manufacturers have acknowledged this by withdrawing their bids. “So far we are answering all the questions of the tender commission and supplying the documents they request,” he says. “I believe our chances to be fairly high.”

Winning the tender may boost the Ka226T’s popularity abroad, but Russian Helicopters also hopes to attract domestic orders. “As for Russian customers, it is my hope that Gazpromavia and UTair Aviation will take a closer look at this helicopter,” Shibitov says. In 2004 Gazprom placed an order for 22 Ka-226 rotorcraft.

The Russian gas monopoly needs these helicopters to monitor its gas pipelines. At Gazprom’s request the special Ka-226AG modification with improved avionics adapted for operation in harsh northern condition has been developed. According to the Russian Helicopter, the deliveries of Ka-226AG to the gas giant continue despite earlier delays.

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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A E RO S PAC E I N D U S T RY

Facing the hard times — How has the aircraft leasing market changed over the past year?

— Lessors are now in a very difficult situation. Passenger and freight traffic [in Russia] has declined by some 2530%, driving down airline profitability and the need for additional throughput capacity. Also, [one of IFC clients] KrasAir Airlines ceased to exist last year and Aeroflot-Cargo cancelled its order for [three] Ilyushin Il-96-400s. We were forced to repaint the aircraft and hand them over to Polet Airlines.

What makes the situation worse for lessors is the unavailability of ‘long money’. Long-term bank loans have all but disappeared from the domestic leasing market since last September. We hope to get several such loans from large Russian banks in the near future, but it’s easier said than done. A number of banking institutions have found themselves in a tight spot following the bankruptcy of KrasAir, so they are now much stricter in their lending requirements. The difficult financial situation at [another Russian aerospace lessor] Finance Leasing Company has also played a part in discrediting leasing companies in the eyes of banks. It sometimes takes us up to six months to get a loan.

IFC currently needs to refinance the short-term construction loans for several aircraft. Specifically, we have to get long-term loans for five Tupolev Tu204 airliners delivered to Red Wings and three Il-96-400s delivered to Polet.

We also have to secure funding for the Antonov An-148 production program.

We hope this problem will be solved by the end of the summer.

— What are IFC’s planned deliveries for next year?

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There are currently five Tu-204SM aircraft under construction for an Iranian carrier. Early next year we are to deliver one Tu-204100 to North Korea. There are plans to deliver Tu-204 and An-148 airliners to the Russian presidential air detachment. Apart from that, we hope to lease out a couple of aircraft to a potential new customer in the Middle East.

— At MAKS 2009 air show you displayed the An148 regional jet in Rossiya Airlines livery. Do you believe this aircraft to be a rival of another Russian regional program — the Sukhoi Superjet 100?

As for the Superjet 100, I do not think it is a rival to the An-148 because [in terms of seating capacity] the An148 ends where the Superjet 100 starts.

Rather, they complement each other, and not only where capacity is concerned but also in terms of operational performance. The An-148 is specially designed to operate from unimproved airfields. We are working to turn it into an all-weather airliner capable of both IFR and VFR landings in poor visibility. Category IIIA landing trials are underway and we expect to end up with a truly all-weather airliner. For this, we will need an infrared synthetic vision system.

How many An-148 orders do you have at the moment?

Rossiya has six on order and an option for another six. I hope that the first three of the firm deliveries will be made this year, followed by three more during

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

Marina Lystseva

The financial crisis is forcing carriers around the globe to adjust their fleet expansion plans and cancel aircraft orders. Russian lessor Ilyushin Finance Co. (IFC) lost two clients even before the recession struck, but talking with the Russia & CIS Observer IFC General Director Alexander Rubtsov is convinced his customer base will soon grow back.

2010. At MAKS Atlant-Soyuz Airlines firmed up a purchase 30 An-148s. Polet and Moskovia Airlines are each planning to buy 10 An-148s. Saratov airlines and Vladivostok Air is also in the list.

Equador’s Icaro airline signed a MoU for 2 aircraft. In the next 15 years we expect to sell 350-400 of the type and 50% of all sales may be to foreign customers.

— What is your outlook on the production volume and the ratio of domestic and foreign sales for the Tu-204SM model?

I think that by the time the [new Russian] MS-21 airliner is available, 100 to 120 aircraft of this type will have been built. The Tu-204SM will be available until 2018-2020. We expect to sell 40 to 50 examples in Russia and 7080 in Latin America, the Middle East, South-East Asia, and Africa.

This interview was prepared

by Polina Zvereva

A E RO S PAC E I N D U S T RY

Russian industry faces government support Maxim Pyadushkin

enerous state funding has so far protected the Russian aerospace industry from the economic downturn. According to the Ministry of Industry and Trade, in the first seven months of 2009 commercial aircraft output declined by just 2.4%. Such decline is explained by the slippage of delivery dates and delays with the certification of new aircraft as well as by the increase of production expenses for assimilation of new technologies.

Russian manufacturers built 24 civil aircraft in January-July 2009, including 7 commercial airliners, says the ministry’s report. These included two Tupolev Tu204 for Russia’s Red Wings Airlines, two Tu-214SP single-aisle airliners and оne Ilyushin Il-96-300 widebody for the Russian presidential air detachment and two Beriev Be-200 amphibians.

In the first half of 2009 two Tupolev Tu-214SP airliners were handed over to the Russian presidential air detachment

UAC

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Representatives of Russia’s United Aircraft Corporation told Russia & CIS Observer about two more aircraft delivered in 2009: Tu-204CE freighter was handed over to Cubana de Aviacion while another cargo modification – Il96-400T went to Polet airlines. But these aircraft were assembled in 2008.

Irkut Corporation representative told Russia & CIS Observer that there were

French power for Mi-34s Polina Zvereva

n August France’s Turbomeca signed a MoU with Russian Helicopters company to supply new engines for the Mil Mi-34S2 Sapsan light helicopter. Dmitry Rodin, director of the Mi-34 production resumption project at the Arsenyev-based Progress plant, says the S2 variant with its Turbomeca Arrius 2F turboshaft engine will be priced at slightly more than $1 million. This makes it one of the most affordable rotorcraft in the three-tonne MTOW class. The Mi-34S2 is seen as a rival to the Eurocopter EC120 and the recently unveiled Robinson R66.

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The re-engined Mi-34S2 will be one of the cheapest light helicopters in its class

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indeed two nearly completed Be-200s at the Irkutsk-based IAPO production plant. However, further work on these aircraft has been suspended ever since the customer — the Russian Ministry of Emergency Relief — stopped funding their construction.

Russian rotorcraft manufacturers built 62 Mil Mi-8/17 family helicopters during the first seven months of the year.

The Mi-34S2 is expected to receive CIS-wide certification in 2011, followed by a production launch in the same year.

Rodin says talks with potential customers are under way.

Russian Helicopters will bid for a Rosaviatsia Federal Air Transport Agency contract to supply 20 training helicopters to the Omsk aviation technical school.

It is planned to build a total of 150 helicopters within five years of the production launch. Most will be sold in Russia, although Russian Helicopters is equally interested in foreign customers. Rodin gives a very cautious sales outlook for the USA and Europe, where he says there are protectionist import duties on rotorcraft of this category. He names Asia, South America and Africa as much more promising markets.

Developed in the 1980s as a training and aerobatic helicopter, the Mi-34 was originally powered by the M-14V26V piston engine. Series production was suspended in the early 2000s. Rodin believes the project to resume Mi-34 production will cost tens of millions of dollars.

Apart from the Mi-34S2, Progress will also build the piston-powered Mi-34S1 fitted with one M-9VF engine. The Mi-34S1 will be priced at about $600,000, but will be more expensive to operate due to the higher price of the fuel it requires. In the future Mi-34S2s may be re-engined with Ukrainian Progress Ai-450 turbine designs, which could further reduce their price.

DEFENSE

New face of Russian Air Force Maxim Pyadushkin he Russian Air Force has started a massive renovation of its fleet. According to the service’s plans, by 2020 the share of new and modernized aircraft should reach 70%. For this purpose the Air Force are increasing the procurement of new equipment and continue to upgrade the existing inventory. The goal of this effort is to make the service more compact in size, but far more effective.

In August the Russian military placed the largest order since the early 1990s, signing contracts for delivery of 64 Sukhoi fighters. Under the deal, in 2009-2011 Sukhoi jet maker will hand over to the Air Force 12 Su27SM single-seat fighters and by the end of 2011 – four Su30M2 double seaters. In 20102015 the manufacturer will deliver 48 Su-35S multirole combat aircraft.

The decision to increase the procurement for the national air force was first revealed in May 2009, during Prime Minister Vladimir Putin’s visit to Sukhoi’s primary production enterprise KnAAPO. According to Sukhoi CEO Mikhail Pogosyan, these orders will ensure the workload of the company’s production facilities and shift the Air Force’s priorities from modernization to purchase of new aircraft. This is also the successful completion of Pogosyan’s years-long efforts to sell the Su-35 – originally developed as an export aircraft – to the Russian Air Force.

The jet was initially offered as Fyodor Borisov

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an interim solution until Russia’s fifthgeneration fighter, currently under development at Sukhoi, is operational.

But Pogosyan said in June 2009 that production of the two similarly-roled warplanes would run in parallel for about a decade.

The Su-35 is a thoroughly upgraded development of the Su-27 multirole fighter. Sukhoi says the incorporation of fifth-generation technology gives it an edge over same-class aircraft. It is fitted with a new avionics suite built around an integrated digital aircraft control system, the Irbis passive electronically-scanned array radar and a pair of NPO Saturn Product 117S vectored-thrust engines each producing 14.5 tons of thrust.

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Sukhoi says the two Su-35 test aircraft have by mid-2009 accumulated over 100 flights. Static tests are set to be completed this year, followed by superagility trials. The flight-test phase should be finished in 2011.

The Air Force Commander Gen-Col Alexander Zelin also announced that his service would take into service MiG-35S fighters soon. Like the Su35, the MiG-35 is a transformational redesign of the original MiG-29 aircraft that introduces extended range, increased combat payload and an active electronically scanned array (AESA) radar. It was developed to take part in the Indian Air Force’s tender for 126 fighters under its MMRCA program.

MiG press-secretary Elena Fedorova told Russia & CIS Observer that the number of MiG-35s to be acquired by the Russian Air Force is still being discussed, but aircraft are already included in the defense procurement program through 2020. But the Air Force’s chief of armaments Maj-Gen Oleg Barmin warned that the order may be placed if only the MiG-35 development costs are not included in the price of the aircraft as it was with the Su-35s.

Meanwhile the Air Force is already renewing its fleet of MiG-29 light fighters. In December 2008 it signed a contract for delivery of 28 MiG29SMT aircraft — a modernized version of MiG-29 basic variant with ground attack capabilities. These aircraft were

The purchase of 48 Su-35 fighters is the Air Force’s largest order since the 1990s

initially assembled for the Algerian Air Force, but rejected by the customer in 2007. Nevertheless Barmin characterized SMT version as “a very successful modernization variant of MiG-29”.

This year the Air Force reportedly expects to get the first modernized MiG29UB two-seaters also rejected by Algeria.

Another important program for the Air Force is modernization of MiG-31 interceptors. The service received the first upgraded MiG-31BM aircraft in 2008. They have new onboard equipment, improved radar and satellite navigation and are able to use new guided weapons. According to Zelin, the Air Force plans to have 9 squadrons of modernized MiG-31s with total of 108 aircraft.

The Air Force will also modernize its strategic bombers. Zelin mentioned that Tupolev Tu-95MS, Tu-160 and Tu-22M3 heavy bombers will receive upgraded avionics to be able to use precision weapons. Simultaneously the military are preparing their requirements for the next generation strategic bomber that, according to the Commander, will be more effective than existing aircraft. It is expected to use wide range high-precision strike weapons what combined to new combat capabilities will enable to fulfill the deterrence tasks by completely new methods.

The fleet of military transports is to be drastically renewed within the next decade, says the Air Force strategy. As Alexander Zelin explained, in the next years Antonov An-22, An-12 and An26 airlifters will be withdrawn from operations. In the heavy class, the Air Force will focus on modernization of An-124 and Il-76 aircraft. The first prototype of Il-76MD-90 with improved cockpit avionics and new PS-90 engines is expected to start trials in 2010 while the production of the new version is to start in Ulyanovsk-based Aviastar facility in 2011. The Air Force plans to order about 40 aircraft.

An-26 is to be replaced with the new Ilyushin Il-112V light transport with payload of 6 tons. It avionics suite is developed on the basis of Kotlin-Novator

Leonid Faerberg

DEFENSE

The Air Force plans to improve its air lifting capabilities with the order for about 40 modernized Il-76MD-90 transports

Kupol-3 digital flight control and navigation system and will be common with those at new Il-76s. The Air Force expects that the first test aircraft will roll out next year while the flight trials are to start in early 2011. Zelin said that the initial order from the Air Force may include more than 70 Il-112 aircraft, but more orders may be placed by other military services and Russian government bodies. According to the representatives of VASO plant, where Il112V is expected to be assembled, the first aircraft may start operations in 2012.

The replacement for the medium class An-12 will be the new multirole transport aircraft (MTA) jointly developed by Russia and India. The two partners are expected to set up a joint venture that will deal with the development and production issues. According to the designers, the MTA development will be finished by 2015-2016, while the first prototype may take off in 2014.

With the cargo compartment twice the shorter than at Il-76, MTA will be capable to carry up to 18.5 tons of payload. According to intergovernmental Russo-Indian agreement, the Russian Air Force promised to buy up to 100 MTAs. The expected order from the Indian Air Force is smaller – 45 aircraft.

Increased procurement of the new and modernized aircraft is supported by

new orders for air launched weapons.

In August the Air Force and Russia’s Tactical Missiles Corporation (TMC) signed a contract, valued at 6 billion rubles (about $190 million) for delivery of 14 types of weapons for engaging airborne and land and sea-based targets in 2009-2011. The new TMC missiles will be installed at new-purchased Su-35S fighters and modernized MiG-31BM interceptors.

Both the military and TMC didn’t specify what kind of missiles are in the list, but Zelin mentioned Kh-31 (AS17) anti-radar missile and Kh-35 (AS20) anti-ship missile. The TMC representative explained to Russia & CIS Observer that the order also includes new types, first unveiled at MAKS2009 air show held recently in Zhukovsky, near Moscow. There TMC showed Kh-35UE modification with the range doubled to 260 km as well as short-range RVV-MD and mediumrange RVV-SD air-to-air missiles. The official weapons list of Su-35 also includes the following TMC’s products: R-27, R-73 and RVV-AE air-to-air missiles, Kh-29 and Kh-59MK land attack missiles and KAB-500 and KAB1500 smart bombs. The Air Force Commander explained that his service will also purchase air-launched weapons from other Russian manufacturers adding more than 20 new types to its arsenals.

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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DEFENSE

Almost ready for flight Russia’s 5th generation fighter is expected to take off this year Maxim Pyadushkin he first flight of the PAK FA (T-50) tactical fighter, the fifth-generation replacement for Russia’s Su-27 fleet, was officially postponed for a few months compared to the previous expectation, but the government and military officials assure that the development is under way. In August both Gen Col Alexander Zelin, Commander of the Russian Air Force, and Mikhail Pogosyan, head of Sukhoi jet maker that is a lead contractor under PAK FA program, said the new aircraft will make its first flight by the end of the year. The previous deadline announced by Zelin at the end of 2008 was this year’s Air Force Day, celebrated on 12 August.

Now the Commander confirmed that one prototype, assembled at Sukhoi’s KnAAPO facility in Komsomolsk-onAmur, has already been delivered to Moscow and started static tests. The

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flying prototype is expected to be rolled out in November.

Although the PAK FA program is kept classified, some details about the future aircraft were revealed during MAKS 2009 air show, held in Zhukovsky in August. Alexander Zelin told that the first prototype will start flight testing powered by a pair of NPO Saturn 117S engines. These powerplants, a further modification of AL-31 engines uprated to 14.5 ton thrust are now installed at the new Su-35 multirole fighters. He explained that the initial prototypes of new engine for T-50 are being designed at the moment by NPO Saturn and MMPP Salyut companies.

More progress is reported on T-50’s avionics suite being developed by Avionica Concern. The company’s head Givi Djanjgava explained that two avionics kits for T-50 are ready and they include six-processor computer, visualization tools and flight instrument system. The suite will be installed at T50’s first flying prototype in September while now the company is working on the software package for the first flight. According to Djanjgava, the new avionics will give T-50 network-centric capabilities, enable it to use new weapons and make the pilot’s work easier with graphic indication.

At MAKS 2009 air show Tikhomirov’s NIIP unveiled a fullscale active phased array antenna, it develops for T-50. Unlike the other Russian AESA radar – Zhuk-AE developed by Phazotron-NIIR for MiG-35 fighter, in Tikhomirov’s antenna the transmit/receive (T/R) modules are hidden inside the array.

ATO

In August Tikhomirov’s NIIP for the first time showed AESA radar for T-50 fighter

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RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

Anatoly Sinany, Tikhomirov’s chief designer, told Russia & CIS Observer that T-50 AESA radar will have 1,500 T/R modules, produced by Iztok company from Fryazino, near Moscow.

Now the first prototype of T-50’s Xband radar is passing a bench tests. According to NIIP, the second prototype for ground testing is to be assembled by the end of this year. The AESA radar for the first T-50 flying prototype is expected to be ready only in mid-2010.

Besides X-band radar, Tikhomirov’s NIIP also showed an L-band active phased array that is believed to be installed on the leading edge-flaps of the future aircraft. This L-band radar should also be installed at Su-35 fighter.

So it looks like the first flight ‘postponement’ doesn’t indicate a delay in the overall program. Previously, Sukhoi and state officials have said 2015 will be the year the fifth-generation fighter enters service with the Russian Air Force.

In June Sukhoi’s Pogosyan reported that T-50s will be procured by the Air Force in parallel with the Su-35s. At MAKS 2009 Sukhoi and the Air Force signed a contract on delivery of 48 Su35 that should be completed by 2015.

This might imply that the next-generation T-50 design will be subjected to protracted testing before the military gets a final product with the required performance.

The Air Force Commander also mentioned the two-seat version of T-50 which he tentatively named as T-50UB (Uchebno-boevoy, combat trainer).

Zelin explained that this modification will be developed jointly with the Indians. India joined PAK FA program in 2007, when it was assumed that Sukhoi and Hindustan Aeronautics (HAL) would develop a fifth-generation fighter for the Indian Air Force on a parity basis.

Arbalet for Alligator

DEFENSE

Ka-52 helicopter will start radar trials Maxim Pyadushkin he government trials of Russia’s new attack helicopter – Kamov Ka-52, dubbed Alligator, will be finished in 2010, promised the Air Force Commander Col. Gen. Alexander Zelin in early August. In September the helicopter should start flight testing with its new onboard Arbalet radar station.

The twin seat Ka-52 was developed in the early 1990s on the basis of the singleseat Kamov Ka-50 Black Shark assault helicopter after it became clear that Russian Air Force want to have a new assault helicopter with two pilots, so Ka-50 is losing to Mil Mi-28N. The first Ka-52 prototype made its maiden flight in 1997.

In 2003 the military selected Mi-28N as a main attack helicopter obviously because of its better armor protection.

Although Ka-50 has armor equal to the Mil machine, Kamov designers had to sacrifice it developing Ka-52 in order keep the take-off weight at 10,000 kg mark. The Kamov designers admit that Ka-52’s pilots have protective armor only from the back of their seats.

But the Air Force found a special role for the Kamov helicopter. As the Air Force’s Chief of Armaments Maj. Gen. Oleg Barmin explained that Ka-52 is suited more for combat missions in urban terrain and in mountains as well as for air surveillance and target detection.

Kamov designers stress that Ka-52 is not a simple two-seat modification of the Black Shark but a deeply modernized version. The helicopter is powered by a pair of new Klimov 2500 hp VK-2500 engines. Agility is achieved by the use of coaxial rotor design. It enables the helicopter to fly sideward with a speed of 80 km/h and backward at 90 km/h. Coaxial rotors also increase the vertical speed and the helicopter’s ceiling because, as one

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Leonid Faerberg

The Russian Air Force will use Ka-52 attack helicopter for combat missions in urban terrain and in mountains as well as for air surveillance and target detection

of Kamov designer explained, the lack of tail rotor allows to direct all power of the engines to the main rotors. During the flight tests Ka-52 demonstrated a vertical lift speed of 30 m/s.

The Alligator is armed with 30-mm 2A42 gun and 12 Vikhr (AT-12) laserguided antitank missiles. The Kamov designers say the next step may be the introduction of new Hermes-A ATGMs with self homing device that has a range of 1520 km compared to 10 km at Vikhr. But the military is likely to unify the weaponry with Mi-28N and to use radio-guided Ataka-V missiles. Ka-52 can also carry 4 Igla-V or 2 R-73 air-to-air missiles as well as 80-mm unguided rockets.

Ka-52 completed the first phase of the government testing at the end of 2008. At that time the military approved the production of pre-series batch of 12 helicopters at Arsenievbased Progress facility. According to Barmin, the exact number of helicopters to be purchased through 2020 is to not specified yet, but initial plans calls for more than 25 rotorcraft.

So far the main disappointment for the military was the lack of Arbalet radar station at Ka-52 prototypes. Now the prob-

lem is solved as the first radar was to be installed at the helicopter at the end of August. According to the PhazotronNIIR Corporation, the designer of Arbalet, the delays was caused by the decision to relocate Ka-52’s GOES electrooptical sensor system in the nose cone what takes some space earlier assigned for Arbalet antenna. So the Phazotron specialists have to lift the antenna in the upper section of the nose cone and make its shape more elliptical, explained Phazotron chief designer Yury Gouskov.

“Now the radar bean became wider and is capable to cover broader area”, he told.

The 8-mm wavelength Arbalet unified radar can detect and track moving tanksized targets at up to 30km away. It can also detect airborne targets including planes, helicopters and missiles. The Arbalet will be integrated into a new Argument-2000 onboard navigation and flight and weapons control complex that enables the helicopter to operate roundo-clock in all weather condition. Ka52’s communication system enables to exchange the information and distribute targets between other helicopters of the group on the battlefield turning the Alligator into a command aircraft.

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

15

DEFENSE

Air Force shows first Yak-130 Maxim Pyadushkin

he program of Russia’s new Yakovlev Yak-130 combat trainer is moving into the production phase. At MAKS-2009 air show, held in August in Zhukovsky, near Moscow, the Russian Air Force displayed its first series production Yak-130 trainer. This aircraft, assembled at Nizhny Novgorod’s Sokol plant, made its maiden flight in May. The first batch of 12 Yak-130s was ordered in 2005. According to the Air Force Commander Col. Gen. Alexander Zelin, now the procurement plans already include 72 aircraft that will replace the aging fleet of Soviet-ear Czech L-39 trainers.

The new jet trainer was developed by the Yakovlev Design Bureau, which later merged with the Irkut Corporation. In 2002 the Russian Air Force chose Yak-130 as its new jet aircraft for basic and advanced pilot training. It is equipped with a glass cockpit and a re-programmed fly-by-wire system that can replicate the characteristics of various Russian generation 4+ fighters as well future Sukhoi T-50 fifth generation aircraft.

The first Yak-130 trainer for the Russian Air Force was displayed at MAKS 2009 air show

Unmanned strike

Robert Hewson and Maxim Pyadushkin

he Russian Air Force is interested to have new unmanned aircraft in its inventory, said Gen. Maj. Oleg Barmin, the service’s chief of armaments, in August. He explained that together with the fifth generation fighter, being developed now by Sukhoi, the Air Force plans to take into service a new unmanned combat aerial vehicle (UCAV) that will

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ATO

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It can also carry up to 3 tons of combat load. Besides the training purposes the Air Force plans to use Yak-130 as a light attack aircraft. As Zelin explained, it will be able to use guided weapons against ground targets.

Meanwhile, three Yak-130 prototypes continue their government trials. The first phase – testing with standard weapons, including short-range R-73 (AA-11 Archer) air-to-air missiles, 80 mm air-to-ground rockets, air bombs and 23-mm gun pod – was completed in May. Now the prototypes have moved to the second phase that includes trials with an expanded weaponry list. This is expected to be completed this year.

Besides the Russian Air Force Yak-130 already has a foreign customer. At the end of August the first export version of the trainer, assembled for Algerian Air Force, made its maiden flight at Irkutsk aviation facility, a subsidiary of Irkut Corp. This is the second production site for the Yak-130. According to the Irkut Corporation, the deliveries of 16 aircraft, ordered by Algeria in 2006, should start next year.

The company also notes that this trainer is the first Russian production aircraft built with the full use of digital technologies. In Nizhny Novgorod the digital technologies are used only for manufacturing certain assembly parts and components. According to Irkut, the use of digital technologies, coupled with lean management techniques, allows to improve the quality and to increase in the production rate of 25-30%.

Irkut’s president Oleg Demchenko points out that the Irkutsk facility is capable of rolling out 60 trainers a year, while the experience gained in digital technologies is important for the company’s plans to assemble Russia’s new MS21 commercial airliner.

be capable to use the same weapons as the future aircraft.

Among Russian aircraft designers only MiG Corp. is known to be involved in the development of UCAV. Two years ago it showed a full-scale engineering mock-up of a strike UCAV dubbed Scat. But since that time no progress was reported on the program.

Meanwhile Sukhoi General Director Mikhail Pogosyan said that a new unmanned combat aircraft could be

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

the first joint product of a unified MiG and Sukhoi. The two companies are moving towards a merger to form the single Combat Aircraft unit within UAC. Pogosyan says that discussions have already been held with the Russian Ministry of Defense regarding its operational concepts for UAVs, and Sukhoi is working on some relevant designs. “As soon as we have the Ministry’s final perspective,” says Pogosyan, “we will demonstrate our results.”

A I R T R A N S P O RT

Ever Fewer Passengers

Russian airlines reported about their operational results for the first half of 2009 Polina Zvereva ussian airlines lost nearly 20% of their passengers in the first six months of 2009.

None of the Top Five carriers succeeded in improving their 2008 results. This is unlikely to happen in the second half of the year as the summer period with increased air traffic is usually followed by decrease in demand in autumn. Taking into account the instability of the Russian economy and the strong expectations of the second wave of the financial crisis, this autumn could be worse for the local airlines than a year ago. The market has fallen back to where it was in 2007. So too have passenger load factors, indicating that as they have acquired new (mostly Western) aircraft, Russian airlines have optimized capacity by retiring obsolete Soviet-era airliners.

The five largest airlines continue to account for over 50% of all passengers flown by Russian carriers. In the first six month, Aeroflot has come out on top again despite a drop in passenger numbers from 4.4 million for the first six months of 2008 to 3.9 million. S7 Airlines, which had occupied the No. 2 slot for several years in a row, was overtaken by Transaero both in terms of passengers carried (1.88 million compared to Transaero’s 1.95 million) and passenger kilometers flown (4.33 million to Transaero’s 7.58 million).

Additionally, S7 lost its title as the largest carrier on domestic routes to Aeroflot. Overall, the airline saw a 30% decline in passengers. One reason for this was its recent fleet optimization effort, which saw S7 parted with all Soviet-built airliners. Another factor worth noting was the establishment by S7’s owners of a separate charter operation named Globus in 2008, which drew off

S7 Airlines, that used to be the second largest Russian carrier for several years in a row, was overtaken by Transaero both in terms of passengers carried and passenger kilometers flown

Fyodor Borisov

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a sizeable portion of the previous S7 customer base. In 2009 Globus more than quadrupled the number of passengers carried compared to 2008 while on domestic flight the number of its passengers skyrocketed by 31 times.

Rossiya Airlines moved to No. 5 ranking in terms of passengers carried, with a fall of about 20%. UTair that took the fourth place, turned out to be the only Top Five airline to not only end the first six months with nearly identical results to the same period in 2008 (losing just 5% of passengers and 0.1% of passenger kilometers), but to boost its passenger load factor by 4.5%.

Despite the general drop in demand, some individual carriers still managed to grow. Besides Globus, Orenair also strengthened its positions acquiring better share on the charter market.

Former large players in this segment are losing clients for a number of reasons.

The operation results of VIM-Avia airline were decreasing faster than the market in general while another carrier, Atlant-Soyuz that grew significantly in

the last few years, lost almost half of its passengers in the first six month of this year. One of the reasons for such slump may be unclear situation with the launch of Rosavia airline established by Russian Technologies Corporation on the remains of the bankrupted AirUnion airlines alliance. It looks like while Atlant-Soyuz that is expected to joint Rosavia, was busy taking the route network of the former AirUnion, tourist operators find other carriers for charter flights this summer.

Nevertheless the demand decline rate slows down what became more evident in July. According to the official statistics, in this month the decrease in passengers carried by the Russian airlines amounted only to 10.7% compared to the same period of 2008. In June the decline rate was 13.4% while in January-May it was 20%. Such results correspond with the global air transport market that also showed the lowest decline rate in July, according to the International Air Transport Association (IATA) statistics.

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

17

A I R T R A N S P O RT

Top 20 Russian airlines, by passengers carried and passenger kilometers flown in the first six month of 2009 Passengers carried Passengers, thousand

Passenger kilometers

Airline

Ranking in H1 2009 (H1 2008)

Change to 2008, %

Ranking in H1 2009 (H1 2008)

Passenger km, million

Change to 2008, %

Aeroflot — Russian Airlines Transaero S7 Airlines UTair GTK Rossiya Orenair Ural Airlines VIM-Avia Aeroflot-Don Vladivostok Air Globus Aeroflot-Nord Sky Express Atlant-Soyuz Red Wings KD Avia Nordwind Kuban Airlines Yakutia Airlines Kavminvodyavia

1 (1) 2 (3) 3 (2) 4 (5) 5 (4) 6 (14) 7 (9) 8 (6) 9 (10) 10 (17) 11 (32) 12 (13) 13 (12) 14 (7) 15 (22) 16 (11) 17 (*) 18 (18) 19 (21) 20 (19)

International and domestic routes 3,852.5 -12.15 1,950.9 -5.55 1,885.7 -32.95 1,437.3 -5.09 1,247.3 -19.31 630.1 +44.10 560.2 -12.49 513.5 -34.46 472.3 -16.85 461.2 +28.75 458.0 +355.44 456.8 +2.59 377.7 -22.84 364.7 -47.43 360.1 +60.77 352.8 -35.38 ** * 251.7 -21.38 251.5 +12.29 250.8 -5.48

1 (1) 2 (2) 3 (3) 5 (5) 4 (4) 6 (13) 8 (10) 10 (6) 14 (12) 7 (11) 9 (29) 16 (19) 18 (18) 13 (8) 12 (20) 17 (16) 11 (*) 22 (23) 15 (17) 19 (22)

11,337.9 7,584.5 4,332.0 2,306.2 2,545.9 1,982.4 1,512.6 1,142.4 900.7 1,580.0 1,217.7 635.1 548.7 1,001.7 1,032.1 607.1 ** 347.3 823.4 456.7

-10.78 -4.84 -36.48 -0.37 -22.99 +89.96 -9.15 -47.17 -18.15 +36.58 +361.64 +11.00 -9.93 -45.29 +92.95 -31.44 * -18.24 +28.76 -7.78

Aeroflot — Russian Airlines Transaero GTK Rossiya Orenair VIM-Avia S7 Airlines Red Wings Nordwind Atlant-Soyuz Ural Airlines Aeroflot-Don Globus Vladivostok Air KD Avia Moskoviya UTair Tatarstan Sky Express Kavminvodyavia Yamal Airlines

1 (1) 2 (2) 3 (4) 4 (11) 5 (6) 6 (3) 7 (14) 8 (*) 9 (5) 10 (8) 11 (7) 12 (17) 13 (16) 14 (13) 15 (18) 16 (15) 17 (12) 18 (*) 19 (20) 20 (29)

2,396.6 1,546.6 570.4 533.5 507.7 457.0 359.6 ** 326.9 290.7 261.0 163.6 161.1 137.0 107.4 100.3 81.1 76.4 59.3 48.8

International routes -10.14 -14.42 -28.51 +87.85 -15.19 -47.32 +65.47 * -52.11 -6.37 -22.55 +79.23 +41.03 -39.07 +45.60 -27.63 -71.19 * -11.06 +127.70

1 (1) 2 (2) 3 (4) 4 (10) 7 (6) 5 (3) 8 (13) 6 (*) 9 (5) 10 (7) 11 (11) 12 (16) 13 (15) 16 (14) 14 (18) 18 (17) 15 (12) 17 (*) 19 (19) 20 (27)

7,647.7 5,732.0 1,656.3 1,836.4 1,117.1 1,213.2 1,031.8 ** 895.8 881.6 592.8 444.5 427.9 206.1 287.2 150.1 213.3 153.3 142.7 127.4

-13.35 -17.20 -28.18 +120.98 -34.66 -50.52 +96.72 * -50.56 -16.43 -22.00 +78.61 +52.63 -37.32 +42.61 -35.55 -71.70 * -13.12 +140.94

Aeroflot — Russian Airlines S7 Airlines UTair GTK Rossiya Aeroflot-Nord Transaero Sky Express Vladivostok Air Globus Ural Airlines Yakutia Airlines KD Avia Aeroflot-Don Kuban Airlines Kavminvodyavia Gazpromavia Tatarstan Yamal Airlines Alrosa Dagestan Airlines

1 (2) 2 (1) 3 (3) 4 (4) 5 (6) 6 (11) 7 (5) 8 (12) 9 (*) 10 (8) 11 (15) 12 (9) 13 (13) 14 (10) 15 (16) 16 (19) 17 (23) 18 (17) 19 (25) 20 (31)

1,455.9 1,428.7 1,337.0 676.9 ** 404.3 301.3 300.2 294.4 269.5 238.3 215.9 211.3 210.6 191.5 165.6 153.6 143.9 104.5 97.6

Domestic routes -15.27 -26.54 -2.82 -9.49 ** +56.43 -38.44 +23.00 * -18.25 +19.80 -32.80 -8.55 -20.32 -3.61 +3.12 +5.27 -25.26 -16.50 +32.72

1 (2) 2 (1) 3 (3) 6 (6) 10 (14) 4 (5) 12 (11) 5 (7) 8 (*) 9 (10) 7 (12) 11 (13) 15 (18) 16 (17) 14 (19) 13 (20) 21 (26) 19 (23) 17 (22) 20 (27)

3,690.2 3,118.8 2,156.1 889.6 ** 1,852.6 395.4 1,152.1 773.3 630.9 783.7 401.1 307.9 293.9 314.0 344.1 154.7 176.0 248.0 162.9

-4.94 -28.59 +3.56 -11.01 ** +76.75 -35.09 +31.44 * +3.43 +35.80 -27.97 -9.54 -15.94 -5.14 +5.54 +14.80 -28.67 -15.54 +32.87

* Not listed in the top 35 for the H1 2008 ** No official data available at the moment of the issue’s release

Source: Russian Transport Clearing House.

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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B U S I N E S S AV I AT I O N

Off-road business jet Alexei Sinitsky

astering of series production of Anotonov An-148 regional jet in Russia, at the Voronezh VASO aircraft building plant, and growth in quantity of orders for this airplane also increased the interest of customers in the airplane’s VIP version, dubbed Antonov Business Jet or An-168. It is possible to attribute to its indisputable advantages a possibility of operation from any airfields including unpaved runways, availability of its own entrance stairs and a volume of the cabin big for business-class airplanes that allows having both convenient VIP configuration and spacious option for corporate transportation.

During MAKS-2009 air show in August, Russian Ilyushin Finance leasing company signed agreements to supply of 59 An-148 airplanes in various modifications including 30 firm orders. If all agreements of intent are transformed into firm contracts the portfolio of orders for An-148 will approach a figure of 100 aircraft.

Ilyushin Finance already has an order for five An-148 airplanes in VIP version

Atlant-Soyuz airline ordered five An-148 in VIP version in the framework of its contract for purchase of 30 aircraft of this class (the company plans beginning of operation of the business version in three years). Possibility of supply of two airplanes to the presidential aviation squadron and two airplanes to the government of Colombia is discussed too but these contracts are not signed yet.

United lobbyists n July two Russia’s professional bizav organizations, the United Business Aviation Association (UBAA) and the Russian Business Aviation Association (RBAA), announced a merger. The resulting entity will be known as the Russian United Business Aviation Association (RUBAA). The move was preceded by nearly a year of consultations. RUBAA chairman Leonid Koshelev says, “The establishment of a single business aviation association is a signal that the Russian industry is turn-

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ing into a serious player to be reckoned with, by both our European colleagues and the Russian civil aviation authorities.” He adds that from now on, national regulators should recognize business aviation as a separate sector from commercial aviation, and treat it according to its needs.

The RUBAA’s mission will include lobbying the government on issues such as customs restrictions, aircraft financing and state regulation of the industry.

Some serious progress has already been made. Customs duty on aircraft weighing 2 to 20 tons has been waived, and a

With the set-up of RUBAA, Russia’s national regulators are expected to recognize business aviation as a separate sector

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RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

Marina Lystseva

Anna Nazarova

law on aircraft ownership registration came into force on 1 September.

Koshelev notes however that, “it would be good to see the duty similarly waived on light aircraft” and large-cabin business jets such as the Gulfstream 550 and the Global XRS. Anther pressing need is for harmonization of Russia’s customs regulations on permitted periods of stay for foreign aircraft. Almost everywhere else in the world a clear limit is set on the number of days an aircraft is allowed to stay at that country’s airport before clearing customs. A similar limit should be codified in Russia.

Koshelev believes his association has to secure major breakthroughs on the customs and aircraft registration front before taking on the more complicated problem of state regulation in business aviation.

That issue, among other things, requires “the laying of the legal groundwork for the supervision over safety of corporate and private aircraft”. Work on this problem is impossible without first reforming the civil aviation authorities and harmonizing the Russian Air Code with ICAO recommendations, the US and EU aviation legal frameworks, he says.

Marina Lystseva

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S PAC E B U S I N E S S

Angara getting ready for launch Igor Afanasyev, Dmitry Vorontsov evelopment of the Angara space launcher is the largest Russian space project included in the Federal space program for 2006-2015. The significance of the project is underlined by the fact that its curator, first vice prime minister Sergey Ivanov, had called Angara the “project of state importance”. As of second half of 2009, it can be said that the work has entered the final stage, albeit not without some serious problems.

Research on the new heavy launcher, aimed to replace the Proton rocket, began back in the end of 1980s but was not completed due to harsh economic conditions. After the collapse of Soviet Union, The Russian Ministry of Defense had encountered difficulties in using the Baikonur spaceport on the territory of sovereign Kazakhstan.

Many manufacturers of components for space launchers, as well as the boosters themselves (e.g. Zenit-2), found themselves outside Russia. The country faced a real threat to lose independent access to space, especially regarding the geostationary orbit.

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In these conditions, in 1992 it was decided to start work on the Angara project: development of the most rational heavy space launcher to be used at the uncompleted Zenit-2 launch pad in the Russian spaceport of Plesetsk.

Khrunichev Center was declared the winner in 1994, with the project of Angara-26 two-stage booster with characteristic strap-on fuel tanks. The first stage was to feature an oxygenkerosene RD-171 engine developed by NPO Energomash, the second stage – oxygen-hydrogen engine designed by KBKhA. Both were modifications of the proven engines used on the ultraheavy Energia booster. The 640-ton rocket, launched from Plesetsk, could have carried 26 tons of cargo into the low-earth orbit. In 1995 it was decided to build the Angara launch pad on the new Far East spaceport of Svobodny.

Since the beginning the project ran into funding problems. In fact, it only presented interest for the Ministry of Defense, which was actually in need of a heavy booster. Russia’s Space Agency (Rosaviakosmos), on the other hand, was satisfied with the existing launcher line-up and did not want to get involved in a long-term project with unclear Angara family has a modular design based on Universal Rocket Modules

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prospects. In addition to that, the International Space Station project had changed the priorities of the Russian civil space authority. For a few years, Khrunichev Center had developed Angara on its own with limited participation of the Ministry of Defense.

In 1996-1997 the project had undergone radical changes. The use of hydrogen in the launcher’s main rocket was abandoned in favor of kerosene (although the heavy versions of Angara were still cryogenic), and the unification principle was introduced. During that period, a concept of the Universal Rocket Module was introduced. Approximately by 2001, Angara had gained its now-familiar technical shape. The unification principle was to reduce manufacturing costs for the launchers of various classes.

The space launcher

Currently the Angara family comprises four main models. They are modular and differ in the number and type of Universal Rocket Modules (URM).

The modules of both types are equipped with oxygen-kerosene engines: URM-1 with RD-191 engine developed by NPO Energomash, URM-2 with RD-0124A designed by KBKhA. The heavy Angara-5 version, needed by the Ministry of Defense and ordered in the first place, is in most demand. The light Angara 1.1 and 1.2 launchers are aimed to replaced the Kosmos-3M, Tsiklon and Rokot heptyl launchers. The Angara-3 niche is currently occupied by the Russian-Ukrainian Zenit launcher.

However, the Khrunichev Center management is optimistic about its prospects, certain that all members of the launcher family will find their place.

During the last 2-3 years Khrunichev Center had presented two more members of the family – Angara-5P and Angara-7. The first one was positioned as the prospective launcher for piloted

S PAC E B U S I N E S S

spacecraft to be used at Vostochny spaceport, but the contest was won by the consortium of TsSKB Progress, RKK Energiya and Makeev Design Bureau. Angara-7 is the most powerful launcher in the family. Depending on the modification, it is able to put 35-41 tons of payload into the low earth orbit and is designed for lunar piloted programs, heavy automated various-purpose satellites and interplanetary probes. The launcher comprises six URM-1s located around the new increased-diameter central module. The project is solely an initiative of Khrunichev Center and is not financed by the government.

The Angara development had allowed the Khrunichev Center to take part in three international projects. Since December 2004 the company, in cooperation with the Kazakhstan Republic, is working on the Baiterek program, involving Angara-5 commercial launches from Baikonur. Although the project is stalling due to insufficient funding, it still has good chances to succeed because it will allow both parties – Russia and Kazakhstan – to continue the joint use of Baikonur even after the Vostochny spaceport is commissioned.

The company intends to develop a family of light- and medium-class launchers for the Brazilian Southern Cross project. Prospects of this project, which is currently being negotiated, are unclear. However, the development of South Korean KSLV-1 (Korean Space Launch Vehicle), also based on URM1, has been completed.

Money and hardware

Beginning from 2004, the Angara program had gained stable financing, as well as high-level political support, and the launcher had finally gained shape.

The preparations for flight development tests of the launchers are to start in the end of 2010. The first launch of the light-class Angara-1 rocket is scheduled for the 1st quarter of 2011, with the first launch of the heavy Angara-5 version to follow in the 4th quarter of 2011. The booster assembled at PO Polet facility is to start in a year; the

The most important success of the year was the launch of South Korean KSLV-1 rocket, that has a first stage developed on the basis of Angara’s URM-1 module

company had joined the Angara family development project in 2009. Production of two bay types for the new launcher is scheduled to start in the autumn of 2009. Currently Polet is preparing for production and conducting technical modernization. 400 new jobs were created at the plant; delivery of 15 high-tech metal-processing centers is expected. Equipment setup and software installation is to be completed by the end of 2009. Overall, the plant is to use over 771.4 million rubles (about $25 million) of budget funds this year: approximately 310

million rubles will be allocated for equipment purchase, while the rest will be spent on reconstruction of production facilities. By 2015 the Omskbased plant is to produce 60 URM-1 modules for 10 heavy Angara-5 launchers and 10 light Angara A-1.2 launchers. In 2015-2020 the company intends to increase the production volume to 120 modules per year.

Other plants are also preparing for the project. In particular, Proton-PM will invest 4.5 billion rubles in Angara engine production, including 1.5 billion rubles in 2010-2011. The company

RUSSIA/CIS OBSERVER № 3 (26) SEPTEMBER 2009

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S PAC E B U S I N E S S

intends to create about 2 thousand new jobs in 2010-2015 at the plant.

Experimental testing of the RD-191 engine developed by NPO Energomash was practically completed in 2009. 9 development models and 16 test engines were assembled within the framework of the program. 101 static test firings were conducted, totaling 22094 seconds; maximum mean time per engine amounted to 3635 seconds. Currently RD-191 is undergoing finishing development and interdepartamental tests and are ready for shipment.

In 2009 RD-0124A engine had successfully undergone two lengthy static test firings. Construction of the Angara launch pad and technical facility is underway at Plesetsk spaceport.

Successes and problems

Successful development of the project is underlined by several events. First of all, on July 30 the long-expected static test firings of the complete URM-1 module started on the NITs RKP test bench. The tests, conducted according to the Angara-1 first stage flight sequence, were a complete success: all performance ratings were confirmed. Static test firings-2 – certification of the module for operation as an Angara-5 side thruster – are scheduled for autumn, to be followed by static test firings-3 to certify the URM-1 for operation as an Angara-5 main thruster. However, the most important success of the year was the flight testing of URM-1 on a South Korean KSLV-1 (Naro) rocket, launched in the end of

August. Although the booster did not put the satellite into orbit, the first stage, developed by Khrunichev Center, performed flawlessly.

Besides the successes, Angara project also faces serious problems, not least of all because of the economic crisis. During the visit of Russian Prime Minister Vladimir Putin to Khrunichev Center on March 18, Vladimir Nesterov, the company’s general director, had asked him for additional financing of over 10 billion rubles. The funds are needed to ensure the start of Angara development tests before 2011, as the underfunding in 2009 amounted to over 3 billion rubles.

Besides, due to the ruble devaluation, the company’s accounts payable had increased sharply: during 2008, dollar debt of Khrunichev Center had decreased from $740 million to $738 million, while the ruble debt had increased from 17 billion rubles to 26 billion rubles. Because of the lack of funding, some work is being delayed. In particular, static test firing of the complete URM-2 was not conducted yet; launch pad construction at Plesetsk is also delayed.

However, in the last few years the Russian government demonstrated increased attention towards the space and rocket industry, allowing to hope that Angara project will be completed, albeit later than planned.

The next steps

Full-scale operation of the Angara launcher is expected to start approximately in 2015. Light Angara-1.2 and

heavy Angara-5 rockets are likely to be used in federal civil and military programs, with the latter eventually replacing the current workhorse, Proton-M. However, operation of the medium Angara-3 launcher is likely only in unforeseen circumstances, such as the cease in Zenit-2 production.

Commercial future of the new launcher is much less clear. In order to succeed, it needs a long history of successful launches and acceptable cost – something which Angara will not have during the initial period of operation.

Besides, the international market of commercial launches will be filled with competitors – new modifications of European Ariane-5 and Chinese Great Journey-5. New players may also emerge: for example, U.S. SpaceX is offering a heavy Falcon-9 launcher at half the competitors’ cost. Japan is also aiming for this market, bringing the cost of its H-2B to the level of Proton-M. Internal competition also complicates matters. TsKB Progress had become the head developer of a new Rus-M rocket to be used at Vostochny spaceport. Features of the new rocket’s basic model allow it to compete with Angara-5. Besides, unlike Angara, Rus-M has a large potential for modernization, allowing to develop launchers with payload of 30-40, 50-60 and even 100 tons. Although the capacity of this launcher is somewhat lower, it will probably be cheaper and, unlike its competitor, will be able to be launched from any Soyuz launch pad in Plesetsk, Baikonur and French Guiana.

The test firings, conducted in July according to the Angara-1 first stage flight sequence, were a complete success

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