Russia & CIS Observer - june 2013 by ABE Media

Russia & CIS Observer № 2 ( 37 ) ju ne 2013

from the publisher of

Russia/CIS Observer is produced by:

Publisher Evgeny Semenov EditiorinChief Maxim Pyadushkin Art Director Andrey Khorkov

•AEROSPACE INDUSTRY

•DEFENSE

UAC sets sight on civilian markets ........2

Russia’s growing military expenses are

Russia works to develop new

a boon for the local aircraft

rotorcraft types ....................................4

Il-476 military transport Interview with Andrey Sharnin, deputy in assessment trials ............................16

Commercial Director Sergey Belyaev

general director of Progresstech............8

Advertising Manager Oleg Abdulov

Ilyushin Finance backlog set to grow ..10

Cover Photos Leonid Faerberg, Fyodor Borisov

New customers for Russian titanium ..10

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manufacturers ....................................14

Be-200 goes into military service ........16 •AIR TRANSPORT Russian fleets are growing but the

Alexey Grigoriev, general designer at

airlines’ profits stay low ......................17

Klimov Company, tells about new engines development ..........................12

•SPACE BUSINESS

Transas working on MALE-class

Angara first launch imminent ............20

UAS designs ......................................13

Russian heart for a US rocket ............24

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RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

AEROSPACE INDUSTRY

UAC sets sight on civilian markets The Russian manufacturer aims to cut losses and increase commercial sales

ussia’s United Aircraft Corporation (UAC) increased the proportion of commercial aircraft in its total output last year and intends to continue with this strategy. The corporation’s 2012 revenues amounted to 171 bln rubles ($5.5 bln), or 6% up on the 2011 results. Its EBIT reached 217 mln rubles and its net loss shrank 58% to 5.650 bln rubles. “Our key priorities in 2012 were to cut costs, modernize production capacities, and increase our operating margin,” says Vladimir Chirikov, UAC Vice-President for Economics and Finance. “The corporation’s main goal

plans to have brought the proportion of civilian products up to 20% in its total sales. This increase is expected to result first from the planned production ramp-up of Sukhoi Superjet 100 regional airliners, and then from the production launch of the Irkut MC-21 short- to medium-range passenger jet, whose market entry is scheduled for 2017. UAC is also studying the possibilities and market opportunities for developing new passenger aircraft designs. Commercial operation of the SSJ 100 continues to intensify both in Russia and abroad. Indonesian carrier Sky Aviation and the Laotian Lao Central started operating these airliners in early 2013. Deliveries to Mexico’s

Mexico’s Interjet should receive its first SSJ 100 this summer

for the next two years is to break even.” Chirikov notes that UAC’s revenue has grown by more than 70% from the 2009 level, while its net loss has decreased five-fold. The corporation expects to get over 220 bln rubles in IFRS consolidated revenue this year. UAC built 102 aircraft in 2012. As of 31 December, its firm backlog had exceeded 450 airframes. According to the management, the current development strategy calls for a sharp increase in the output of commercial aircraft. UAC 2

Interjet should begin this summer. There will also be new Russian operators for the type. The SSJ 100 production program is ramping up: 12 airframes were built in 2012 compared to just five the year before. Aeroflot, the launch customer for the SSJ 100 and Russia’s largest air carrier, took delivery of the first full-specification aircraft this May. The airline’s original order in 2005 was for what was known at the time as the standard specification (all-economy class seating 98

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

SJI

Alexei Sinitsky

passengers). The specifications were later revised, but in order to ensure seamless deliveries, the manufacturer stuck to the standard, or light, specification for the first 10 production airliners. These were to be eventually replaced in service with full-specification airframes, which feature an updated FMS, a windshear weather radar, and more comfortable passenger cabin. All of Aeroflot’s light SSJ 100s will have been thus replaced by April 2014. These examples to be returned to the manufacturer might be VIP-reconfigured and offered to bizav operators. The creation of the United Aviation Corporation in 2006 was instrumental in integrating the best practices of the Russian aircraft manufacturing industry under a single roof for the purpose of attaining competitive results in the construction and operation of military and commercial aircraft. UAC received the state-controlled shares in all the largest Russian aviation design houses and manufacturing enterprises. UAC sees its strategic mission in making it into the top three of global aircraft manufacturers by maintaining a balanced presence of its products in the three key aviation segments: commercial, transport, and military. By 2025, UAC-built aircraft should have secured 10% of the world market for commercial aircraft. “Ramping up series production helps us increase our efficiency and bring our costs down,” says UAC President Mikhail Pogosyan. “Our current backlog for military, cargo, and passenger aircraft allows for a higher profitability. We aim to overcome the restrictions imposed by the tough market entry conditions, and to develop successfully.”

AEROSPACE INDUSTRY

Russia working to develop new rotorcraft types Alexei Sinitsky, Maxim Pyadushkin uoyed by strong operating results, Russian Helicopters plans to further expand its products line. Up until now the corporation’s success has been mostly based on robust domestic and international demand for the Mil Mi8/17 family of heavy transport helicopters. Now Russian Helicopters wants to further improve its bestseller and introduce several new models. The corporation ended 2012 solidly in the black with 9.4 bln rubles (about $300 mln) in profit, or 35.2% up on the previous year. Its revenue stood at 125.7 bln rubles (+21% year-on-year). Revenues from helicopter sales amounted to 99 bln rubles; revenues from services and support stood at 18.4 bln rubles. Russian Helicopters explains its financial growth by a 10.7% increase in deliveries: 290 airframes of nine differRussian Helicopters

ent types were delivered last year to customers in 19 countries. The firm backlog had reached 817 helicopters by the end of 2012, worth a total of 359.9 bln rubles. The corporation reported several major orders last year from India, China and Brazil. Its 2013 plan for deliveries is thus completely secured by firm orders. The Russian manufacturer says its cost of sales amounted to 79.9 bln rubles (+26.3% year on year) last year, and that its operating expenses equalled 30.6 bln rubles (+18,2%). The solid financial indicators are also attributable to the fact that the company’s cash CAPEX decreased to 13 bln rubles (– 5.5%). In particular, investment in production facilities dropped by 16.4% to 7.6 bln rubles. Russian Helicopters is working to develop the latest iteration of the Mi8/17 family, to be known as the Mi171A2. The upgraded version is derived from the Mi-171A1 design, which is

Mi-171A2 modification will have an external payload capacity increased by 1,000 kg to 5,000 kg

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

currently in production at the UlanUde aviation factory, the corporation’s subsidiary, and has been certified in Russia and Brazil. The new helicopter’s range without auxiliary fuel tanks is expected to be 850 km, against the Mi-171A1’s 610 km. External payload capacity will be increased by 1,000 kg to 5,000 kg. The first Mil Mi-171A2 prototype may be unveiled at the MAKS 2013 air show outside Moscow in August. The airframe, referred to internally as OP1, is under construction in Ulan-Ude. The new aircraft’s rotor system is being tested on a dedicated flying testbed. Russian Helicopter reports good progress with the tests: vibration has been considerably reduced and the planned maximum speed of 300 km/h has already been achieved. Thanks to the use of advanced composite materials in the rotor system, the trials have demonstrated a 700-kg increase in main rotor thrust.

AEROSPACE INDUSTRY

Certification work is already underway and should be completed in late 2014. The Mi-171A2 is expected to go into series production in 2015. Russian Helicopters is believed to have received several commercial launch contracts; deliveries should begin in 2015 or 2016. Another new model to make an appearance at MAKS 2013 may be the 6.5-ton Kamov Ka-62 medium utility helicopter. Russian Helicopters hopes that one of the two Ka-62 prototypes currently being assembled at the Arsenyev Progress production plant will join the flying display at the air show. This would be the first public demonstration of the helicopter in flight. “The Ka-62 will be flying at MAKS if we are completely satisfied that it can perform a spectacular sequence,” says the Russian Helicopters’ general director Dmitry Petrov. “It is important that we demonstrate to our current and future customers what the new Russian helicopter is capable of.”

leonid Faerberg / Transport-Photo.com

The series production of new Mi-38 should begin in Kazan in 2015

French powerplant specialist Turbomeca has delivered 1,680-hp Ardiden 3G turboshaft engines to Russia to power the first Ka-62 prototype. Russian Helicopters says the engines have been successfully tested to validate the correspondence of their performance parameters to the design specifications. The first example of the transmission system designed by Austrian specialist Zoerkler should have been delivered in May. Russian Helicopters applied for national certification of the Ka-62 in late 2012; the process is expected to be completed by the end of 2014, followed by deliveries from 2015. The Ka-62 seats 12 to 15 passengers and can be used for VIP and shuttle services, freight transportation, emergency medical operations, and various other forms of aerial work. Among the launch customers is the Brazilian operator Atlas Tаxi Aеreo, which should receive the first of its initial two aircraft in the first quarter of 2015; deliveries will last until 2017 and may comprise a total of 14 airframes. Under the contract, Russian Helicopters and its regional partners will help set up an aftersales maintenance center for Russian-built rotorcraft in Brazil. Russian Helicopters also continues work on the new Mi-38 transport helicopter, which is aimed as a niche product between the Mi-8/17 and the giant Mi-26. The Mi-38 program has reached another milestone with the roll-out of the third prototype (OP-3) at the Kazan Helicopters facility. This airframe, the first one to be powered by a pair of Klimov TV7-117V turboshafts, will soon be handed over to the type developer, Mil Moscow Helicopter Plant, for flight tests. In the meantime, Klimov continues with bench tests of the new powerplant. Two TV7-117V test engines were handed over to Kazan in May for ground tests on OP-3. If the trials prove successful, the helicopter may enter the flight testing phase in July this year. The first two Mi-38 prototypes are powered with an alternative

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

powerplant, the Pratt & Whitney PW127XS. Kazan Helicopters is preparing to build the fourth Mi-38 prototype. The fuselage should be ready in the first half of 2013. Designated OP-4, the helicopter will differ from OP-3 in having larger windows and a crash-resistant fuel system by Aerazur. This will be the final Mi-38 prototype; it is intended for producing the final test data required for commencement of commercial operations. In addition to the four flying prototypes, a fuselage and sets of individual components have been manufactured this year for fatigue and other tests. The Mi-38 can carry 7 tons of payload externally. Series production should begin in Kazan in 2015. The Russian Ministry of Defense and several other domestic government agencies are believed to be interested in the type. Despite its primary focus on the larger types, Russian Helicopters may yet revive the program to re-engine the Mil Mi-34 light helicopter. The effort to develop the Mi-34S1 was suspended in 2012, following the corporation’s failed attempt to secure production of the M9FV piston engine at Voronezh Mechanical Plant. The Mi-34 s original M14V26V powerplant is considered to be obsolete. Roman Chernyshev, deputy general director for programs and projects at Russian Helicopters, said in May the corporation was in talks with a foreign piston engine manufacturer. Talks are also on with an investor over a launch order for the Mi-34S1. Final agreements may be announced this summer. According to Chernyshev, the idea to use the Turbomeca Arrius 2F gas-turbine engine for the Mi-34 has been scrapped following last year’s announcement that Russian Helicopters would be developing a new 2.5-ton light single helicopter in conjunction with AgustaWestland. Russian Helicopter expects the new design to go into production at the HeliVert JV in Tomilino outside Moscow. According to Russia’s Minister of Industry and Trade Denis Manturov, the new helicopter is expected to be certified in 2016.

AEROSPACE INDUSTRY

Going the extra mile for partners

Progresstech

For nearly 15 years, Progresstech Group of Companies has been providing engineering services to the world’s largest aircraft manufacturers. The company has evolved into a leader on the international market for intellectual services, with representative offices in the USA and other countries. Andrey Sharnin, deputy general director for business development and aerospace programs, told Russia & CIS Observer about the principles his company follows for mutually beneficial cooperation with its partners.

— Progresstech has long enjoyed worldwide recognition. What is the secret to the company’s success? — From the very start the Progresstech management’s strategy has been to integrate into international projects, with a special emphasis on building a team of professional engineers and introducing an efficient management system that would meet the international standards. This approach worked: within a short period of time we managed to strengthen our positions and receive the recognition of the global aircraft industry. One of our chief assets is a team of highly experienced and qualified professionals with a wealth of expertise in advanced methods of engineering. We offer a wide range of engineering services covering the entire product lifecycle, from conceptual design to aftersales support. At present we are involved in several different programs at once, working with virtually all the leading international aircraft manufacturers to create shortrange (regional), medium-range, and long-range airliners, as well as business jets and commercial helicopters. 8

— How does Progresstech manage to establish and maintain cooperation with so many partners? — Our approach to working with customers is based on the principle of complete transparency. We always aim to adjust our services to meet the expectations of our clients and help them achieve their objectives with minimum losses. This flexibility, combined with high results, unfailingly results in greater customer confidence and creates strong partnership ties. Geographic proximity to customers is also very important. Long-distance communication cannot replace constant physical presence and personal contacts. This is why we chose to open companies in the USA: first in Wichita and then, in September 2012, in Houston. This en-

ified specialists in Russia and the CIS. Apart from our operation we also conduct engineering work in Dubna, Russia, in Ukraine and Armenia. We have opened a center for composite materials and aircraft structure testing in Riga, Latvia. Our other approach is to offer joint solutions with strategic partners that have the specialist competences we need. We consider this to be a promising mode of cooperation with componentlevel manufacturers. Such joint solutions allow us to meet a broader demand, thus increasing our market competitiveness. One recent trend is that production processes get localized. For example, some of the Russian aircraft manufacturers are opening production facilities abroad in order to increase sales on the

The opening of companies in the USA enabled us to ascend to a whole new level of relations with our clients. abled us to ascend to a whole new level of relations with our clients, that of strategic partnership. — Progresstech positions itself as an engineering services provider. What else do you have to offer your customers? — The company’s development strategy includes plans to expand the range of services and break into new market sectors. Competent personnel are indispensable in achieving this objective. We are actively employing qual-

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

foreign markets. Progresstech can offer such companies an entire spectrum of services from infrastructure design to certification to assistance with process optimization. We are also prepared to offer our expertise to foreign businesses aiming to localize their production in Russia. If we continue to develop our business in accordance with the current global demand the by 2016 our engineering pool can exceed 2,000 people. This is the figure we are aiming for!

AEROSPACE INDUSTRY

ussian aviation lessor Ilyushin Finance Co. (IFC) will shortly add more than 100 aircraft to its backlog. In early June, the IFC shareholders approved the contracts to purchase 50 Russian Irkut MS-21 shortto medium-range airlines and 20 Sukhoi Superjet 100 regional aircraft, as well as 32 Bombardier CSeries jetliners. IFC representatives told Russia & CIS Observer that the SSJ100s are intended for an Asia-Pacific customer. More details of this deal are to be revealed at Paris Air Show 2013.

IFC finalized its MC-21 order in 2011. The company is likely to receive a mix of MC-21 variants powered by either Russian Perm PD-14 or Pratt & Whitney PW1400G engines, but the final choice will be made at a later date, says the IFC source. According to MC-21 developer Irkut Corporation, the aircraft is expected to enter service in 2017. As IFC CEO Alexander Rubtzov explained earlier, the seating capacity and performance of the Bombardier CSeries CS300 version places it between the

IFC delivered first An-158 to Cuba

SSJ100 and the future MC21. Although IFC became the first Russian customer for the Canadian type, placing a $2.5 bln order in 2011 with deliveries scheduled for 2015-18, these aircraft will be leased to airlines in the CIS and elsewhere outside Russia. In fact, IFC has been quite active outside its home country. In April this year, it delivered the first Antonov An158, a stretched version of the

An-148 regional jet, to the Cuban national carrier Cubana de Aviacion, the global launch customer for the type. Cubana will receive a further two such airframes this summer and has an option for three more. Cubana’s long-haul fleet is represented by Russian-made Ilyushin Il96 widebody and Tupolev Tu-204 narrowbody types, which were also delivered through IFC.

New customers for Russian titanium ussian metals specialist VSMPO-Avisma continues to expand its presence on the international aerospace market. A joint delegation from Chinese aircraft manufacturers Shanghai Aircraft Manufacturing Co. (SAMC) and COMAC visited VSMPO’s offices in May to invite the company as a partner on the program to develop China’s new widebody airlin-

er. This will be VSMPO s third commercial aviation cooperation project in China. The company started supplying titanium products for the COMAC ARJ-21 regional airliner program five years ago; last year, VSMPO and SAMC signed a 10-year contract worth in excess of $150 mln to supply titanium forgings for the COMAC C919 narrowbody passenger jet.

VSMPO-Avisma

VSMPO-Avisma produced 30,000 tons of titanium in 2012

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

VSMPO also expands cooperation with its longstanding partners Boeing and Airbus. Under a memorandum with Boeing signed last fall, the output capacity of the two partners’ Ural Boeing Manufacturing (UBM) joint venture is set to grow with the recent purchase of four extra pieces of machining equipment for Boeing 737 landing gear beams. Of the 30,000 tons of titanium produced by last year, VSMPO supplied 18% to Boeing. VSMPO supplies currently cover up to 40% of Boeing’s overall needs for this metal. VSMPO expects to earn $1.5-2 billion from Boeing contracts in 2013-18. VSMPO held cooperation expansion talks with Airbus this April. Like with Boeing, VSMPO aims to supply the

European manufacturer with increasingly more value-added produce, advancing in the level of machining from semi-finished goods to ready-to-use products. VSMPO’s shareholding structure changed in late 2013 as Rostec State Corporation sold 45.42% in the company to its management for an estimated $965-970 million. Earlier, the VSMPO management had purchased about 4.6% of the company’s shares on the open market. Both stocks were passed on to a joint venture between VSMPO (75% plus one share) and Gazprombank (25% minus one share). The JV currently controls 50% plus one share in VSMPO; Rostec retains a further 25% plus one share, while the remaining shares are traded on the open market.

ATO.ru

Ilyushin Finance backlog set to grow

AEROSPACE INDUSTRY

Breakthrough engine for new helicopters

Klimov

Last year brought a number of breakthroughs for the St Petersburg-based engine maker Klimov, a subsidiary of Russia’s United Engine Corporation (UEC). The company launched work to develop a new helicopter engine design. Alexey Grigoriev, general designer at Klimov Company and UEC deputy general director for helicopter engines, has told Russia & CIS Observer reporter Anna Nazarova about the manufacturer’s current and future powerplant programs.

- What has Klimov achieved in the past year and what are the company’s shortterm plans? - Our main achievement was to begin developing a prospective helicopter engine. This was preceded by a serious preparatory phase: we had worked together with industry institutes, in particular with the Central Institute for Aviation Motors, to define the concept of the future engine. I should note that we intend to implement unorthodox, breakthrough solutions in this powerplant, including changes to the Brayton cycle which is the fundamental principle of operation for gas-turbine engines. I am convinced it is time to offer a truly breakthrough product to the 12

market, one that would differ not only technologically but also conceptually from the existing designs. This year we expect to test some of the solutions which will be used in the future engine. - How is the TV7-117V engine progressing on its way toward certification? Which of the testing phases have been completed? - We have completed the endurance tests. By the end of the year we expect to have been through with the preliminary trials, including the flight tests, and moved on to the certification program. More than 10 TV7-117V examples are currently involved in the testing program, including several flight-test prototypes. Based on the preliminary testing results, we see no serious issues that could affect our timeline. We expect to have the engine certified in 2014. - What is the current status of the program to upgrade the VK-2500 engine? Have the testing results been any different from the design parameters of the VK-2500PS version? - As a little aside, I would like to say that the VK-2500 baseline continues in service successfully. More than 700 such engines are currently in operation, having clocked in excess of 500,000 hours. We are conducting two parallel upgrades of this design. The VK-2500P version is intended for powering military helicopters such as the Mil Mi-28 and Kamov Ka-52, whereas the civilian version, the VK-2500PS, will be installed on the new Mil Mi-17A2. They

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

are essentially the same, but the military version will undergo official trials in the interests of the Defense Ministry, including a volume of special tests, while the civilian powerplant will be subjected to certification testing. We have completed endurance tests on the new version and received approval for commencing the flight development testing phase. We will start test-flying the engine shortly in conjunction with Russian Helicopters. The testing results obtained so far coincide with the performance specifications; by year-end we should be able to supply the engine for official bench tests and for the beginning of certification work. - The VK-800V is the only powerplant design your company is developing from scratch at the moment. Could you comment on its progress? - The development effort is being hampered by the absence of a suitable helicopter. Russia historically builds helicopters in the 10- to 12-ton class. The VK-800V is intended for lighter, 4to 5-ton rotorcraft designs which have never progressed past the preliminary planning phase in this country. The performance characteristics we have achieved would make the engine competitive on foreign markets, but these markets are quite hard to get to. Nevertheless, since we are convinced that the project has a future, the VK800V design is currently involved in the program to create a prospective helicopter powerplant, which should be certified in 2016.

AEROSPACE INDUSTRY

Transas working on MALE-class UAS designs The manufacturer has won a Defense Ministry UAS tender for a 1-ton MTOW system and plans to develop a similar vehicle for civilian use

Denis Fedutinov t Petersburg-based Transas Group continues with the program to develop a medium-altitude, long-endurance (MALE) unmanned aerial system (UAS) for the Russian military. In parallel, the company intends to create a civilian unmanned vehicle in the same class. The company has prior successful experience as the developer and manufacturer of the Dozor and Filin UAS families, which are currently in service with commercial companies and government agencies. Transas won the Defense Ministry’s MALE UAS tender in 2011. The losing contenders were Russian defense and aerospace companies Vega Radio Concern and Tupolev. Little information is available about the program due to its classified nature. The only technical parameter known to date is the future vehicle’s MTOW of around 1 ton, suggesting that the Russian military would like to get a UAS similar in size to the General Atomics RQ-1 Predator or the IAI Heron. Like its foreign equivalents, the Transas MALE UAS is likely to have weaponry capability. This was earlier confirmed by the company managers, who said that the new system would be capable of flying all types of missions, including combat strikes. It has also become known that Transas intends to create a civilian MALE-class UAS. A feasibility study has reportedly been conducted to define the general specifications and aerodynamic characteristics of the aircraft.

Transas says its new civilian UAS will have an endurance of at least 24 hours

Transas

According to the information available, it will be a 1,200-kg MTOW twinboom, high-wing monoplane design with a high-aspect-ratio wing and an inverted-V tail, to be powered by a single piston engine with a pusher pro-

resolution aerial photography, multispectral imaging, laser scanning, meteorological measuring, radar sounding, and telecommunications. Transas says the new UAS will be suitable for a broad range of civilian ap-

Russian military would like to get a UAS similar in size to the General Atomics RQ-1 Predator or the IAI Heron peller in order to keep the operating costs to a minimum. Like most existing MALE-class UAS designs, the new Transas system will have an endurance of at least 24 hours. It is expected to be capable of fully automatic operation from take-off to landing. It is understood that the new vehicle will carry up to 300 kg of mission payload. This could include optical and IR sensors, as well as equipment for high-

plications, including ice, fire, and pipeline patrols, environmental and weather monitoring, SAR missions, and aerial support in disaster relief operations. According to Vladimir Voronov, head of the company’s UAS marketing division, the concept of the future civilian product may be presented to the general public at the MAKS 2013 air show in Zhukovsky, near Moscow, this August.

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

DEFENSE

Domestic demand

Leonid Faerberg / Transport-Photo.com

Russia’s growing military expenses are a boon for the local aircraft manufacturers but questions remain

Konstantin Makienko hroughout the first 15 years following the USSR’s collapse, the Russian aircraft industry was working almost exclusively for export customers. This resulted in a predominantly export-oriented development paradigm, with production programs and even R&D efforts driven mainly by foreign demand. It was largely thanks to their export potential that Russia developed such bestselling warplanes as the Sukhoi Su-30MKI and Su-30MK2, as well as the Mikoyan MiG-29K and MiG-29M. Since 2008 however, this paradigm has evidently been shifting towards a more traditional model in which the majority of the orders for military aircraft is generated by the national defence ministry. The first obvious signal of this shift came in the form of a major order for 32 Sukhoi Su-34 tactical bombers. The deal was struck in

December 2008, just four months after the five-day war against Georgia, which had seen Su-34s used for suppression of the Georgian air defense. The 2008 contract is estimated to have been worth 35-39 bln rubles ($1-1.2 bln at the current exchange rate). At around the same time, the Russian Air Force helped RSK MiG out of financial difficulties by agreeing to purchase the 34 MiG-29SMT/UBT fighters, which had been rejected in 2007 by their original intended customer, Algeria. Unofficial sources value that transaction at 20 bln rubles. Finally, in August 2009, the Russian Air Force ordered a total of 64 tactical fighters, including 48 examples of the newest Su-35S warplane which was still in testing at the time. Thus, even prior to the enactment of the armament procurement program for the years 2011-2020, the Air Force ordered a total of 130 fighters and tactical bombers within a period of under two years.

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

The adoption of the long-term defense procurement program led to more orders for Russian-made aviation equipment in the interests of the national military. The program is top secret, so the details of the planned purchases remain unknown. Nevertheless, occasional leaks make it possible to guess at the overall picture. Out of the total program budget of 19,500 bln rubles (about $620 bln), 4,700 bln rubles will be allocated for armament and equipment purchases in the interests of the Air Force. The program is believed to envisage the procurement of up to 600 tactical warplanes; in particular, 74 Sukhoi T-50 fifth-generation fighters (including 14 experimental and pre-production airframes), between 96 and 120 Sukhoi Su-35S multirole fighters, up to 150 Su-34 tactical bombers, up to 200 Yakovlev Yak-130 combat trainers, as well as newly-built upgraded Sukhoi Su-25UBM ground-attack aircraft and a significant number of military trans-

DEFENSE

ports. For example, it is believed that the program calls for purchasing up to 10 newly-built Antonov An-124 strategic transports, at least 50 Ilyushin Il76MD-90 tactical freighters, up to 70 Russo-Ukrainian Antonov An-70 transports, and a quantity of specialized aircraft based on the Antonov An148 and An-140 designs. Five firm orders are known to have been signed to date under the armament procurement program: three for Su-30SM and Su-34 warplanes, one for Yak-130 trainers, and one for Il76MD-90 transports (see the table). It is noteworthy that the Russian Defense Ministry ordered 152 tactical fighters and 39 military transports in 2012 alone. In this sense Russia is second only to the USA, and possibly to China. Compare these figures to the size of export orders received last year: 42 Su-30MKI fighters for India and four Yak-130s for Belarus. The structure and size of the current and potential domestic orders for military aircraft shed some light on the development priorities of the Russian Air Force. The service appears to be favouring speedy procurement of strike aircraft over re-equipment of its fighter arm. The contracts placed to date have been for 124 Su-34 bombers and only 108 fighters (48 Su-35S and 60 Su-30SM aircraft). One plausible explanation to this imbalance is the military’s vision of the most probable conflicts in which Russia may find itself involved. These include a resumption of large-scale military operations in the North Caucasus and a sharp worsening of the situation in Central Asia beyond 2014. Incidentally, according to the Russian media, the Georgian war of 2008 has not been the only conflict in which Su-34s were used in anger: aircraft of this type allegedly delivered surgical strikes against Salafi terrorists in Dagestan. Both in the Caucasus and in Central Asia, Russian military operations would primarily involve strike aircraft and transport aviation. In addition, the Air Force appears to realize the shortcomings of its fighter aviation in

countering US- and European-built warplanes: this task has been relegated to the Aerospace Defence Forces. The Russian military continues with the Soviet procurement tradition in ordering several different types of samegeneration tactical aircraft with comparable performance: the Su-34, Su35S, and Su-30SM. This is partially explained by the lobbying efforts of the respective manufacturers (Sukhoi in the case of the Su-35S and Irkut in the case of the Su-30SM, even though the Air Force might have preferred to buy more Su-34s instead). Another factor is the government’s desire to support the different aircraft factories across the country, thus preserving social stability. Deciding not to buy one of the three warplane types would immediately affect the respective major aircraft plant. The result would be especially drastic in the case of the Komsomolsk-on-Amur KnAAPO factory which, unlike the Irkutsk aviation plant, has no large export orders to work on. It is true however that the Air Force will incur additional expenses from operating three different aircraft types. One phenomenon worth mentioning is that the Russian Defense Ministry has started purchasing the export versions of military aircraft types. Very few modifications are being made to these airframes before they enter service with the national military; for the most part, they are limited to using non-downgraded weaponry. As a result, the Russian Air Force currently operates MiG-29SMT fighters equipped with the Sagem Sigma 95 navigation system. The avionics suite used in its Su-30SM fighters includes French-made navigation and visualization equipment, as well as an Israelimade HUD and digital map generator.

This new practice of procuring military equipment with foreign-made componentry signals a marked departure from the traditional policy of selfsufficiency. The Russian Air Force clearly favours the Su-30/35 family of fighters, which are more powerful than the MiG-29 family but also more expensive to operate. The armament procurement program does mention MiG-29s but no order has been placed so far. If such a contract does materialize, it will be thanks to RSK MiG s lobbying efforts, not because the Air Force really wants to reinforce its fleet of medium fighters. Interestingly, the Russian Navy holds a completely different opinion: it has been replacing its Su-33 carrier-based fighters with MiG-29Ks. Finally, some of the procurement plans related to military transport aviation are either completely unrealistic or too risky. This particularly concerns the proposed projects to be implemented in conjunction with Ukraine-based Antonov design house, which entail high political and organizational risks. For example, it would be physically impossible to build 70 An-70s until 2020 without first completing the aircraft’s testing program, agreeing on the terms and conditions of cooperation between Antonov and Russia’s United Aircraft Corporation, and organizing series production from scratch. The chances that An-124 production will be resumed are equally slim. It appears therefore that the current plans to re-equip the Russian Air Force, although reflecting the needs of that service, are largely based on an intricate combination of industrial, political and even transnational compromises. As such, they are ridden with a multitude of contradictions and risks.

Russian Air Force procurement orders placed in 2011-12 Type Manufacturer Quantity Year signed Delivery years Su-34 Su-30SM Su-30SM Yak-130 Il-76MD-90

Sukhoi Irkut Irkut Irkut Aviastar-SP

92 30 30 55 39

2012 2012 2012 2011 2012

2014-2020 2012-2014 2014-2015 2012-2015 N/A

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

DEFENSE

Russia’s new military transport in assessment trials

The Russian Air Force has ordered 39 Il-76MD-90A transport aircraft

ussia’s modernized Ilyushin Il76MD-90A military heavy-lift transport aircraft, also known as the Il476, completed the first phase of its assessment flight trials in May 2013. The aircraft is being developed in the interests of the Russian Defense Ministry. The first testing phase had commenced in Zhukovsky outside Moscow in March this year and was originally expected to comprise 22 flights of prototype 002. However, according to the manufacturer, 19 flights proved to be enough for the purpose. Ilyushin is now readying the prototype for the next phase. This will involve a further 60 flights, including missions

Ilyushin

Maxim Pyadushkin

to assess of the aircraft’s operational suitability in a variety of scenarios such as paradropping. After the trials have been completed, the Defense Ministry is expected to approve the launch of series production at Ulyanovsk-based Aviastar-SP, a subsidiary of United Aircraft Corporation. The Il-76MD baseline used to be built at the TAPO facility in Tashkent, Uzbekistan. Thanks to the improved wing and reinforced landing gear, the upgraded freighter’s maximum take-off weight has gone up from 190 to 210 tons; it also carries 60 tons of payload compared to the

baseline’s 47 tons. The original D30KP2 turbofans have been replaced with more powerful PS-90A-76 engines, resulting in better STOL performance. The first Il-76MD-90A prototype made its maiden flight on September 22, 2012. The Russian Defense Ministry has already ordered 39 examples of the Il76MD-90A for 140 bln rubles (about $4.5 bln), with deliveries through 2018. According to Ilyushin CEO and General Designer Viktor Livanov, a commercial version may follow after the domestic military order has been completed.

Be-200 goes into military service he Russian Defense Ministry is renovating its amphibian aircraft fleet as part of the ongoing massive re-armament effort. Under a contract signed in May 2013 with Taganrog-based Beriev, the military will receive six Be-200 jet amphibians between 2014 and 2016. The contract is valued at 8.4 bln rubles (about $269 mln). Beriev expects to secure a follow-up order for eight more such airframes. The Be-200 will become the first amphibian type to be procured by the Russian military

in decades. The aircraft on order are to replace the Defense Ministry’s fleet of Beriev Be12 turboprops, whose production ceased in the 1970s. According to available information, the new amphibians are planned to be deployed with two naval aviation units: on the Black Sea in Krasnodar

Be-200ES version can drop up to 12 cubic meter of water

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

Region, and on the Sea of Japan in Russia’s Far East. Either unit will receive one Be-200ES firefighting aircraft and two airframes in the Be200PS SAR configuration. The Be-200ES is powered by a pair of Motor Sich D436TP turbofans. It received a Russian type certificate in

Leonid Faerberg / Transport-Photo.com

Maxim Pyadushkin

2003. The aircraft’s MTOW is 40 to 42 tons, depending on whether it takes off from water or land. The firefighting version can drop up to 12 cubic meter of water. The Russian Ministry of Emergency Relief operates six Be-200ES amphibians; one such aircraft performs similar functions in Azerbaijan. In 2010, Beriev obtained an EASA restricted type certificate for the firefighting variant. According to the manufacturer, the Be-200PS SAR version differs only in the absence of onboard water tanks and associated scooping/dropping equipment.

AIR TRANSPORT

Sergey Sergeev

Fleets are growing but profits stay low

The 2012 performance results across the Russian air transport sector were largely defined by the state of the aircraft fleets and by the airlines’ financial situation. It transpires that, despite the carriers’ active efforts to acquire new equipment, their operating margins remain low. Alexei Sinitsky he air traffic growth observed in Russia over the past several years has been down to active fleet renovation and expansion efforts. Oleg Stradomsky, director of the aviation certification center at the GosNII GA state research institute of civil aviation, estimates that 133 passenger aircraft were added to the country’s overall fleet last year, including 114 foreign-made and 15 newly built Russian airframes. In all, 540 foreignbuilt and 50 new domestic passenger airliners were added between 2008 and 2012; the figures for commercial cargo aircraft were 14 and eight, respectively. The rotary-wing fleet has been expanding as well. Of the 121 helicopters delivered in 2012, mainly in the light category, 105 were of foreign makes and two represented new Russian designs. Stradomsky says the active Russian commercial fleet comprised 2,745 fixed- and rotary-wing aircraft as of January 2013, including 656 mainline and 294 regional passenger aircraft, 137 freighters, and 1,111 helicopters. The

share of foreign-built passenger airframes stood at 63%. The 656-strong mainline fleet includes 153 Russian- and 503 foreign-made airliners. The Soviet legacy is represented by 10 Ilyushin Il-62M, 36 Tupolev Tu154M, eight Tu-154B and 50 Yakovlev Yak-42 jets. Most of these will be retired in the foreseeable future. Modern Russian designs include 12 Il-96-300, nine Tu-204-100, eight Tu-204-300, 10 Tu-214, and 10 Sukhoi Superjet 100 jetliners. The number of SSJ 100s in operation is set to grow in the future, while production of the Tu-204/214 and Il-96 will most likely continue at a very low rate. The foreign-made widebody fleet in Russian operation comprises 24 Boeing 747s, 16 Boeing 777s, and 36 Boeing 767s, as well as 23 Airbus A330s and a single A310. The long-range narrowbody category is represented by 33 Boeing 757s. The medium-range narrowbody category, which is by far the most sizeable in Russia, consists of 60 A319s, 97 A320s, 37 A321s, 102 Boeing 737 Classics, and 74 Boeing 737NGs. In the first half of the 2000s, the 737 Classics formed the backbone of the

Russian narrowbody fleet but the balance has since changed: Russian carriers operate a total of 194 A320 family airliners and 176 Boeing 737s, only under 60% of them Classics. The radical renovation of the Russian regional airliner fleet, which currently comprises 294 airframes, is still on-going. Nearly 67% of the overall number, or 196 units, are Soviet-designed aircraft, including 46 Tupolev Tu-134s, 76 Antonov An-24s, 25 An-26-100s, and two An-38s; all these types will be retired eventually. New-generation Russian regional airliners are represented by 10 Antonov An148 jets and two An-140 turboprops. There are 98 foreign-made regional passenger airliners in operation: 52 Bombardier CRJ100/200 and three Embraer ERJ135 jets, as well as 15 ATR 72, 12 ATR 42, two Embraer EMB-120, three Saab 200, five Saab 340, and six Dash-8-100/200/300 turboprops. Massive fleet renovation is possible in this segment, provided that regional air services continue to evolve in Russia. The 137-ship cargo fleet consists of 121 Russian- and 16 foreign-made airframes. There are also 33 business jets in Russia, all of foreign designs. The financial state of many Russian carriers remains complicated, even though preliminary 2012 results indicate that the industry as a whole reached op-

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

AIR TRANSPORT

FIG. 1. AVERAGE COST OF COMMERCIAL AIR TRANSPORTATION IN RUSSIA, IN RUBLES PER TON-KILOMETER 40 International and domestic routes International routes Domestic routes

Rubles per ton-kilometer

35 30 25 20 15 10 5 0

2003

2004

2005

erating profitability last year. According to Alexandr Fridlyand, director of GosNII GA’s center for economic monitoring, analysis, and forecasts, the average operating margin across the sector stood at 0.1% in the first half of 2012 and 3.83% in the first nine months of that year. The 2011 annual margin had been negative at –2.8%. Operating revenues of the industry amounted to 470 billion rubles ($15 billion) in the first nine months of 2012, against 373 billion rubles over the same period the year before. Russian airlines make most of their profits from international services; the

2006

2007

2008

2009

2010

average operating margin on international routes was 5.6% in the first six months of 2012 and 7.9% in the first nine months. By contrast, the average margin on domestic routes has remained negative for at least the past 10 years. It stood at -8.2% in the first half of 2012 and 2.3% in the first nine months of that year. The explanation is that for Russian carriers, the average cost of air transportation on international routes amounts to 22–23 rubles per ton-kilometer, against 34-37 rubles for domestic routes. The combined annual turnover of the Russian air transport sector exceeds $19

2011

6M 2012

9M 2012

billion, of which sum around 60% comes from international flights. International passenger numbers are growing at around 30% a year, much faster than domestic services (about 8% annual growth). In other words, three out of each four new passengers board international flights. On the other hand, Fridlyand says, these «new» passengers are not actually new to air travel: analysis of travel documents indicates that only about 4 million Russians used air transport last year. The observed growth in traffic figures is chiefly down to the fact that existing air passengers have started flying more frequently.

FIG. 2. AVERAGE OPERATING MARGIN OF COMMERCIAL AIR TRANSPORTATION IN RUSSIA, IN % 15 10

5 0 –5 –10 International and domestic routes International routes Domestic routes

–15 –20

2003

2004

2005

2006

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

2007

2008

2009

2010

2011

6M 2012

9M 2012

SPACE BUSINESS

Angara first launch imminent Igor Afanasyev, Dmitry Vorontsov n the night of May 27-28, 2013, a train carrying the first Angara launch vehicle departed from Khrunichev Space Center for Russia’s Plesetsk Cosmodrome in Arkhangelsk Region. Deputy Prime Minister Dmitry Rogozin, who was overseeing the shipment at Khrunichev, commented on the event: “We have created a fundamentally new rocket; it is not just another modification of an existing Soviet design but the first truly Russian launch vehicle.” According to Rogozin, the rocket will now undergo a series of tests, even-

types: URM-1 lower stages and URM2 upper stages. The Angara motors run on environmentally friendly propellant consisting of liquid oxygen and kerosene. The family’s modular design will help keep the production costs down. Work on Angara began in 1991-92: the USSR’s disintegration had left Baikonur Cosmodrome in Kazakhstan, prompting Russia to seek independent access to space, primarily for military purposes. Khrunichev was selected as the Angara developer in a 1994 tender. In 1995, the project was authorized by a presidential decree as being “a matter of national importance”. However, no government funding was provided for

Igor Afanasyev

The last checks for Angara-1.2PP first and second stages before shipping to Plesetsk Cosmodrome

tuating in the first launch in April or May 2014. Great hopes are pinned on the Angara program, which should provide Russia with independent access to space. The Angara family consists of several classes of modular launch vehicles ranging in payload capacity from the lightest (represented by the first prototype that has been shipped to Plesetsk) to the heaviest. Each rocket comprises interchangeable segments of just two 20

its development so the target date of maiden launch (2005) proved impossible to meet. It was not until the mid-2000s that the program finally received enough development money. But then the 2008 economic crisis broke out, resulting in a string of delays to the first launch. The situation seemed all the more disappointing as the rocket was fully prepared for flight tests, as confirmed by successful test firings of the URM-1

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

stage in 2009 and of the URM-2 in November 2010. Moreover, examples of the URM-1 were used in three successful launches of South Korea s Naro (KSLV-1) rockets between 2009 and 2013. According to experts, the delays to Angara’s first flight were most likely caused by hold-ups in the construction of a dedicated launch pad at Plesetsk. Deputy Defense Minister Yury Borisov confirmed this theory on 6 May. One week later, Federal Space Agency head Vladimir Popovkin remarked: “The launch vehicle is ready. [The cause of the delays is that] special equipment has yet to be installed at the launch pad. In addition, back in 1995-96 it was decided — wrongly, as it now appears — to build the Angara launch pad on the basis of [an existing] Zenit pad. Owing to this, we have had to perform additional reinforcement work on the pad.” It should also be noted that no new launch sites have been built in Russia in the past 20 years. Much of the relevant expertise and supply chains have been lost, and some of the components envisaged in the original specifications for the Angara launch pad are no longer in production. In addition, preparations for Angara production were accompanied by massive retooling at several industrial enterprises. According to Vladimir Petrik, the director of Khrunichev s space rocket plant, it took his facility seven years - from 2004 to 2010 - to modernize its production capacities. All the primary Angara components are manufactured in Russia. Khrunichev builds the URM-2 and is responsible for final integration of the rocket. Khimki-based NPO Energomash supplies the RD-191 first-stage motors. Voronezh-based Konstruktorskoe Buro Khimavtomatiky manufactures the RD-0124 second-stage motors. Khrunichev’s Omsk-based

SPACE BUSINESS

subsidiary Polyot supplies the URM-1 compartments and propellant tanks. Moscow-based Academician Pilyugin Center supplies the control system. The design bureau of Moscow Power Engineering Institute provides telemetry equipment for the rocket. The complete manufacturing cycle takes about two years to complete. The Angara-1.2PP first-flight rocket consists of one URM-1 and one URM2. It will perform a suborbital flight with a mock-up payload on board to imitate the weight and size of a spacecraft. Yuri Bakhvalov, head of Salyut Design Bureau, says the date of the first flight will be chosen in November 2013, once the readiness status of the launch pad has become clear. “This will be followed by an extensive testing program and preparations for the first launch,” he notes. Production examples of AngaraA1.2, which is intended to replace the Rockot light rocket, will receive a modified second stage by 2015. As for the heavy Angara-A5 rocket, which is to replace Proton, the first flight prototype will be assembled this fall and then shipped to Plesetsk for flight tests. Its maiden launch is expected to take place in late 2014. The rocket will perform an orbital flight with a mock-up on board. It may be difficult to remain optimistic about Angara’s future in the face

Amur project. The amount of modifications required is insignificant; the rocket will have its payload capacity in-

of all the previous program hiccups, but there is actually hope that the flight test schedule will be met, especially given

Thanks to Angara’s modular design, a whole fleet of launch vehicles could be created to cover a range of payload classes from 3 tons to 25 tons that Rogozin, Popovkin, and Defense Minister Sergey Shoygu are now closely monitoring the development progress. At any rate, according to Khrunichev, the program is being sufficiently funded and continues according to the revised schedule. One important question is whether Angara will be able to operate from other cosmodromes. The latitude of Plesetsk is too high to make Angara launches to geostationary orbits more feasible than launching Protons from Baikonur. Up until 2012 it was believed that, after the flight tests at Plesetsk, Angara-A5 would be operated commercially from Baikonur and also from Russia’s new Vostochny Cosmodrome. The Baikonur plan was eventually scrapped for economic reasons, but the idea to use Vostochny for Angara launches is still pretty much on. An Angara-A5 version for Vostochny is currently being developed under the

Igor Afanasyev

The assembly of the URM-2 upper stage of Angara-5 heavy rocket

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

creased while retaining the main performance characteristics. In the future, a heavier-class KVTK oxygen-hydrogen booster could give Angara even greater carrying capacity: when launched from Plesetsk, it would be able to insert up to 4.6 tons of payload into geostationary orbits, or 1.5 times more than a Proton can carry. The modified Angara s payload capacity would be even higher if launched from Vostochny. Bakhvalov says development of the new booster may be completed in 2017. One of the most important missions for Angara vehicles operating from Vostochny will be to carry PTK NP new-generation piloted transport ships into space. The relevant version of the heavy rocket is designated AngaraA5.2. Khrunichev is considering developing even more powerful, super-heavy Angara variants that could be used in future lunar programs: the 35-ton Angara-A7 and the 50-ton AngaraA7B (for low-Earth orbits). Such a project however would require a separate political decision. Overall, despite certain criticism of the program, the Angara development team believes the rocket to be quite modern and have a market future. The designers say that, thanks to Angara’s modular design, a whole fleet of launch vehicles could be created to cover a range of payload classes from 3 tons to 25 tons. Things appear to be finally looking up for Angara, but Bakhvalov remains cautious: “Khrunichev will not celebrate until we have had a successful launch.”

SPACE BUSINESS

Russian heart for a US rocket Kuznetsov, a member of Russia’s United Engine Corporation (UEC)) in the engine tender under the Lockheed Martin Atlas-3 launch vehicle program. The tender was eventually won by another Russian engine, the NPO Energomash RD-180, but the Samara motors also found their market niche. Aerojet had purchased 70 NK-33 and 18 NK-43 engines; 36 NK-33s and 10 NK-43s were subsequently delivered to the USA, priced at between $1 million and $4 million per unit, along with a complete set of design documentation for both models and a license to build the NK-33 in America.

Igor Afanasyev, Dmitry Vorontsov t 17.00 local time on April 21, 2013, the first Antares expendable launch system lifted off from the MidAtlantic Regional Spaceport (MARS) on Wallops Iceland, Virginia. The rocket orbited the Cygnus Mass Simulator (the boilerplate payload simulating the mass of the Cygnus cargo spacecraft), along with four CubeSat miniaturized satellites. Antares’ first stage comprises engines based on the 40-year-old NK33 design developed for the Soviet lunar program. Antares has been created by Orbital Sciences Corp (OSC) as part of the NASA Commercial Orbital Transportation Services (COTS) effort to coordinate the delivery of crew and cargo to the International Space Station. On February 19, 2008, NASA awarded OSC with the $170 million COTS contract. The Antares system had cost OSC $150 million to develop. The main goal pursued by the Antares developers was a positive operating margin even at low utilization rates of two to four launches a year. From the very early stages of the program, OSC was aiming to make the maximum possible use of existing components. The first stage was developed by Ukraine-based Yuzhnoye design office from the tank section of the Zenit rocket. The US corporation ATK built the second-stage solid-fuel motor from the first stage of the MX ICBM. The most important solution however, the one that helped speed up the project significantly, was the use of two Aerojet AJ-26 liquid-fuel engines. In the early 1990s, the US rocket and mission propulsion house Aerojet General had acquired the right to use two rocket motor designs by Samarabased NPO Trud (now known as JSC

NASA/Bill Ingalls

The second experimental Antares launch is to take place this fall

RUSSIA/CIS OBSERVER № 2 (37) JUNE 2013

The Aerojet upgrade of the NK-33, known as the AJ26-62, slightly differs from the Soviet baseline: it now has thrust-vectoring capability; changes have been made to the layout of feed lines; the powder charges in the electro-explosive devices and the rubber components have been replaced. But the core technology is essentially of Soviet design. The potential of Antares proved to be so high that NASA decided not to wait for the testing phase: on December 23, 2008, OSC was awarded with the $1.9 billion Commercial Resupply Services contract to provide eight resupply missions to the ISS. Antares was the second successful commercial launch vehicle after the SpaceX Falcon 9 to be developed under the COTS program. The US private space sector has once again demonstrated its ability to develop mediumclass launch vehicles within short periods of time, while NASA regained the ISS resupply capability which it had lost with the retirement of the Space Shuttle fleet. The second experimental Antares launch, this time with an actual payload on board, should take place this fall. The first Antares launch became a milestone event for the Russian rocket propulsion industry. “The Russian NK-33 design has found its US customer,” said UEC General Director Vladislav Masalov. “In the near future it will be installed on a Russian light rocket. The Soviet-era designers left us so massive a reserve of research and technology solutions that even now, four decades on, we use powerplants from that era on modern launch vehicles. Apart from utilizing the existing motors, we are working to resume their production at a whole new level of technology. I am convinced that our designers and engineers are capable of achieving this.”

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