Aircraftindustry AeroIndia special

IRCRAFTINDUSTRY

Raj Kumar Singh:

FGFA will be a joint product

RUSSIA-INDIA: ideal partnership

AN-148:

Operator’s verdict

AERO INDIA SPECIAL

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©AIRCRAFT INDUSTRY • 2011 Magazine of the Union of Aviation Industrialists

CONTENT russian industry news ��������������������������������������� 2 tribune Russia-India: ideal partnership ����������������������� 10 PROSPECTS for INDO-RUSSIAN COOPERATION ���� 16 corporate Business Unit Integration �������������������������������� 20 Decisive time for UAC ����������������������������������������� 28 Aerocomposite spreads its carbon wings ��� 32 new projects MS-21: Russia’s leap into the 21st century ��� 38 An eye in the Indian sky ������������������������������������� 44 COMBAT AVIATION looking forward with confidence ��������������� 50 Russian Weapons sell well ������������������������������ 54 airline customers AN-148 proves worthy of Airline service ������ 62 SHARING EXPERIENCE �������������������������������������������� 66 customer support supporting an-148 ��������������������������������������������� 70 A Pilot’s Passion �������������������������������������������������� 74 partners BRAHMOS: a STORY of SUCCESS ��������������������������� 76 MALAysIAN interest ��������������������������������������������� 80

Editors: Konstantin Lantratov, Vladimir Karnozov Photos: Vladimir Karnozov Cover Photo: Vladimir Karnozov FGFA prototype: Courtesy of Sukhoi graphics: Greentowers CB, UAC, Irkut Union of Aviation Industrialists 101000, Moscow, Ulanskiy Pereulok 22, building 1 Tel.: +7 (495) 926 1420 Fax: +7 (495) 926 1421

Dear reader, Welcome to this special issue of Aircraft Industry magazine, prepared by the Union of Aviation Industrialists for the 2011 Aero India airshow.

Inside, you will find news and analysis covering individual enterprises that are members of our voluntary association, along with the contractors, partners and customers for Russian aerospace products.

Rather than limiting the scope of our publication, we decided to discuss aviation-related topics in a wider context.

Russia has become a part of the international community, and today is an important player in the world arena. Consequently, the country’s aviation industry is now seeking its role in the global division of labor – both in competition and cooperation with other countries, and in international alliances engaged in aircraft construction.

We have much to be proud of from our heritage: the entire world knows the names of Nikolay Zhukovsky, Andrey Tupolev, Sergey Ilyushin, Artem Mikoyan, Pavel Sukhoi, Alexander Yakovlev, Mikhail Mil, Nikolay Kamov and other outstanding Russian designers, engineers and scientists. Looking to the future, we have much to work on, as the Russian Federation’s President and Government have given us the task of making it to the top of the global aviation industry.

I hope that the Aircraft Industry magazine will contribute to this cause by helping its audience stay on top of key developments in Russian and international aircraft production, air transportation, and military aviation – in short, for every aspect of this industry. Our goal also is to spotlight the extremely exciting activities of our people, who today are responsible for realizing the dream of flying faster, higher and farther.

Alexey Fedorov President, Union of Aviation Industrialists, and President, Chairman of the Executive Board, United Aircraft Corporation

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RUSSIAN INDUSTRY NEWS SSJ100

January 17 Mexico’s Interjet airline signed a contract for the purchase of 15 SSJ100 in the 98 seat Long Range configuration, plus 5 options. Based on the price list, the overall order has a value of US dollar 650 million. The first deliveries are scheduled for the second half of 2012. Interjet is a 100% Mexican airline owned by Miguel Aleman family. With a fleet of 22 aircraft, Interjet today is the second airline in the Mexican domestic market. It operates from Mexico City’s International Airport and Toluca Airport towards the most popular business and leisure destinations. Along with the order, SuperJet International (SJI) announced the execution of a “SuperCare” agreement with Interjet for the after-sales support of its fleet of new Sukhoi Superjet 100 aircraft over 10 years duration. The agreement is a comprehensive “per-flight-hour” program developed by SJI specifically for SSJ100 aircraft operators. With this order in place, the SSJ100 backlog rises to 170 firm orders. Speaking to journalist on this occasion, Russia’s minister for industry and trade Victor Khristenko said that in the middle of 2011 he expects the Sukhoi Superjet 100 (SSJ100) regional jet to win approval by European Aviation Safety Agency (EASA).

“A renewed version” of the SSJ100 will be submitted to EASA for assessment. “We intend to go with the Superjet to the global market”, the minister said. Working on the SSJ100, Sukhoi has managed to increase the degree of its compliance to the European aviation standards to 85%.

Previously the figure was merely 15%, according to the

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minister. He further said that although the SSJ100 is “not a revolutionary project”, but it is at the same level with best examples available anywhere in the world. “Sukhoi has achieved a different kind of quality with SS100, and we will continue fighting our way forward”.

January 11 Installation of Antonov An-148 full flight simulator was completed at the S7 Group training center in Domodedovo airport. The simulator corresponds to Flight Training Device Level D, and is first such unit to have been designed and built in Russia. It comes with an advanced motion and visualization systems. The simulator was designed and built by Transas company based in St. Petersburg under contract with Ily-

An-148 flight simulator

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ushin Finance Company. Specialists of S7 Group, Transas and Ilyushin Finance are working together on final tuning of the simulator so as to complete its installation in January 2011 and render it fully operational the following month. The S7 Group training center will also have a number of other An148 simulators for training of pilots, cabin and ground crews.

A procedural training device is provided by Akko company for training of cabin crews. The whole set of the An-148 training devices shall be in place and fully operational in February 2011.

January 6 Tupolev General designer Igor Shevchuk passed away. His death was caused by a heart failure. Igor Shevchuk was born on 30 January 195. The whole of his career was with Tupolev.

Igor Shevchuk joined the design house upon graduating from Moscow Aviation Institute with a degree in aero engines. He Igor Shevchuk

December 31 Ilyushin Finance Co. (IFC) delivered nine aircraft to airline customers in 2010. The lessor plans ten deliveries next year.

The 2010 deliveries comprised five An-148-100V regional jets and one Tu-204-100V narrow body twin, as well as three used Tu-214s narrow bodies that were purchased on the secondary market. Plans for 2011 include a pair of Tupolev Tu-204 twinjets made by the Aviastar-SP plant in Ulianovsk, one Ilyushin Il-96-300 and one Il-96-400T widebody quads and five Antonov An-148s, all from the VASO plant in Voronezh. In addition to these Russian-made aircraft, IFC has plans to get one or two Antonov An-158 hundred-seaters from Antonov’s plant in Kiev, the Ukraine, and place them with Russian airlines. It is also possible that the first Tu-204SM, now under tests at Aviastar-SP, will have its trails completed by the end of 2011. In that case it may be purchased by IFC and subsequently leased over to an airline.

December 30 UAC held an extraordinary general shareholders meeting.

The issue of a related party transaction was put under the UAC’s shareholders consideration. UAC shareholders made a decision to approve the related party transaction, i.e. the conclusion of the agreement between the Russian Federation, Vnesheconombank and UAC on providing Government guarantees of the Russian Federation relating to bonded loan of UAC. The Government guarantee of the Russian Federation is provided to secure UAC’s bond obligations to pay par value of non-convertible interest-bearing bonds. Money raised through the bonded loan will be used to redeem the UAC’s and its subsidiaries’ debts in regard of the principal debt and interest. UAC and its subsidiaries had taken credits earlier from Sberbank, VTB Bank, Vneshekonombank to finance investment and main operation activities.

December 29 Russian air force has taken delivery of ten Mil Mi-8AMTSh helicopters assembled at Ulan-Ude Aviation Plant. The helicopters will be based in the Korenovsky region near Krasnodar,

accepted the position of director general at Tupolev in 1997.

The following year Shevhuk was elected chairman of the executive board. In 2001 he became General designer and President. Under his leadership and active participation in practical work (which was possible thanks to his education as an aviation engineer) a few of the aircraft models in this new civilian product line won certification. He devoted much time and energy to restoration of Russian strategic nuclear deterrent forces. In 2006 the Tu-160 swing-wing supersonic strategic bomber was officially accepted into service with the Russian air force. For his immense personal contribution into development of Russian aviation, Igor Shevchuk was awarded with various state orders, titles and decorations. For many of the Tupolev employees he was not merely their leader, but also a close friend, the person who shared their common views and their will to fight for the interests of the Russian aviation. Also, he was a good husband, father and grandfather.

Mi-8AMT

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south of Russia. According to a Russian air force spokesman, the ten helicopters were delivered as part of the air force modernization plan. Colonel Vladimir Drik said the Russian air force also expects new deliveries of Ansat-U training, Mi-28N and Ka-52 attack helicopters. The Mi-8AMTSh is further development of the Mi-8/17 family which form backbone of rotorcraft fleets in Russia and many other countries. This version features improved navigation and targeting systems for night flying and firing. The Mi-8AMTSh carries advanced guided and unguided munitions, guns and active self protection systems. It has a top speed of 260 km per hour and range up to 570 km. The Mi8AMTSh can transport up to 40 people or cargoes weighing up to four tons.

December 29 Tupolev Tu-204SM performed its maiden flight from the aerodrome of Ulyanovsk aviation plant with Victor Minashkin and Denis Vyazankin at the controls. Chief engineers Vladimir Salatov and Vladimir Filimoshkin were also aboard the airplane, to see to the test equipment. All systems were functioning normally during the flight. The Tu-204SM features advanced Perm PS-90A2 turbofans, improved navigation and radio communication set, and crew of two pilots. “Creation of the Tupolev-204 resulted from the huge and persistent work done by Tupolev together with its industrial partners and state establishments. It is a milestone for Russian aircraft makers”, said Alexander Bobryshev, Tupolev president and senior vice president with United Aircraft Corporation. He expressed satisfaction with the work that has been done on the Tu-204SM project. “I am sure that the Tu-204SM will provide a reliable platform for development of new passenger, cargo and special mission aircraft”, Bobryshev said.

Tu-204SM

December 27 UAC held a regular meeting of the Steering Group on Quality. The Steering Group was set up under the auspices of UAC and gathered together the authorized representatives of UAC’s subsidiaries. At the meeting its participants discussed the decisions of the UAC Executive Board on priorities in quality management for 2011-2012, the results of the work in this area and short-term plans to create the aviation enterprises’ quality guarantee system, as well as the issues of co-operation with suppliers. The Steering Group confirmed the necessity to introduce the AS/EN 9100 international quality management standard at all aviation enterprises.

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FGFA prototype December 21 Agreement on joint development of the Fifth Generation Fighter Aircraft (FGFA) was signed in New Delhi. Anatoly Isaikin, general director of Russian state arms vendor Rosoboronexport, applied his signature on behalf of the Russian Federation. The signing took place during the official vision of Russian president Dmitry Medvedev to New Delhi. The agreement calls for design work on the Indian air force version of the Sukhoi T-50. The latter is being developed for the Russian air force in frame of the project entitled “Future Aviation Complex of the Frontline Aviation” (Russian acronym PAKFA). The Indian air force version of the aircraft is expected to make its first flight in 2015-2016 timeframe. The draft design of this aircraft is estimated at US dollar 295million. The work shall be done within 18 months. The FGFA will be developed on the base of Sukhoi T-50, first prototype of which flew for the first time on 29 January 2010 and since then logged about forty test missions.

December 17 The Interstate Aviation Committee (MAK) has issued approvals for improvements of the factory’s Tu-204-100C that permit increase in the maximum takeoff weight up to 110.5 tons. The Tu-204-100C is a dedicated side-door freighter version powered by two Perm Motors PS-90A turbofans.

This airplane can now be offered to airline customers in two variants. One features maximum takeoff weight of 107.5 tons, maximum payload of 30 tons and maximum landing weight of up to 91.5 tons. Second version (reference Tu-204-100C-03) has 110.5, 30 and 93 tons respectively. Cargo versions of the Tu-204 is given permission for 17,500 flight hours, 8,000 cycles and calendar lifetime of 15 years, according to complimentary type certificate 233-Tu-204-120CE/D08 dated 15 December 2010. Besides, the certification authority has also issued certificate for the auxiliary power unit (APU) of the TA18-200 type, which is meant for installation of the Tu-204SM and other modern versions of the baseline jetliner. The APU maker, Aerosila scientific and industrial association, was awarded Certificate no. ST321-VD dated 16 December 2010. Separately, the certification authority has approved of changes in the TA12-60 APU that allows its operations up to 8,700 cycles and increase in the permitted altitude for idle and working

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modes up to 10,000m. In-flight starting is now permitted at the altitude of 7,500m. The respective complimentary certification document reference is 101-VD/D03 dated 16 December 2010.

Sergey Ivanov

December 16 UAC named best Russian aviation journalists of 2010.

The winners accepted their awards at the Aviation Press Club in Moscow. The journalists whose publications covered accurately and in full the Corporation’s activity in 2010 were awarded with presents and diplomas signed by UAC president Alexey Fedorov. The award winners of 2010 are: Konstantin Makienko, the Centre for Analysis of Strategies and Technologies, for best analytical articles and comments; Alexey Nikolskiy, business daily Vedomosti, for best coverage of state military orders and export orders issues; Ekaterina Sobol, www.avia.ru, as the best author in webmedia; Sergey Starikov, business daily RBC Daily, as the best journalist of dailies; and, Gleb Stoliyarov, Reuters, as the best reporter of the information agencies.

Ekaterina Sobol, Sergey Starikov and Alexey Fedorov

December 6 Dmitry Medvedev, President of the Russian Federation, Vladimir Putin, Prime Minister of the Russian Federation, and Silvio Berlusconi, Prime Minister of the Republic of Italy were shown the msn95005, a SSJ100 prototype, at Sochi airport. The msn95005 is similar to the standard production aircraft configuration and includes a complete passenger interior. The new regional airliner has been developed in partnership between Sukhoi and Alenia Aeronautica, a Finmeccanica Company. During their visit, the leaders of Russia and Italy noted the aircraft’s commercial potential in both the Russian domestic and international markets. SSJ 100 began route proving tests, entering the final stage of its certification campaign. The aircraft successfully conducted 14 flights on Moscow-Ufa-Moscow, MoscowOrenburg-Moscow, Moscow-Yekaterinburg-Moscow and Moscow-Chelyabinsk-Moscow routes.

November 26 United Aircraft Corporation’s headquarters hosted a regular Corporation’s Board of Directors’ meeting. Sergei Ivanov, Deputy Prime Minister of the Russian Federation shared this assembly. The meeting’s agenda included the issues on UAC development strategy on the period from 2011 to 2025, and on the progress of the UAC corporate restructuring. Also, the BoD examined the Tu-204SM, MTA and MS-21 projects.

The Board took into consideration the information on UAC corporate restructuring progress. Since the formation of the business units is one of the key factors to achieve the aims of the Corporation’s development strategy, the BoD commissioned the UAC Executive Board to further examine the issue on the Corporation’s business units formation principle and order. This issue along with the document on the Company’s development strategy from 2011 to 2025 will be on the agenda of the UAC BoD’s next regular meeting.

One of the first practical stages of the restructuring process is the reorganization of Taganrogskaya Aviatsiya and Beriev Aircraft Company by means of takeover of the first company by the second one. The BoD approved the reorganization procedure that provides for all registered ordinary shares of Taganrogskaya Aviatsiya to be converted into additional registered ordinary shares of Beriev Aircraft Company.

November 26 Absentee meeting of the Board of Directors of the Joint Stock Company United Aircraft Corporation (JSC UAC) took place. The Board of Directors approved of the placement of non-convertible interest-bearing 01 series bonds on the following terms: method of placement - public subscription; volume - 46,280,000 securities; par value – RUR 1,000; obligatory centralized deposit. The placement is made within the framework of execution of the decisions made by the Government Commission for the sustained development of the Russian economy chaired by the First Deputy Prime Minister of the Russian Federation Igor Shuvalov on UAC and

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its subsidiaries’ debt restructuring. The aim of the debt restructuring is to “freeze” a part of the aviation companies’ debt and decrease debt interest until 2019. Moreover, the meeting’s agenda included the issue of the date of the UAC extraordinary general shareholders’ meeting which was set to be held on December 30, 2010.

November 19 The PD-14 indigenous engine for the Irkut MS-21 next-generation narrow body airlifter requires Rouble 70 billion to be developed and put into mass production. This estimation was made by Alexander Inozemtsev, executive director and general designer at Aviadvigatel, the Perm-based company that develops the engine. Aviadvigatel will have to raise Rouble 35 billion using its own capabilities. This money is needed for setting up manufacturing line, and doing other preparatory work to enable PD-14 mass production. In its turn the Russian government agreed to provide Rouble 35 billion for the PD14. Minister for industry and trade Victor Khristenko said the Russian government will render support to the PD-14 project so as to have the engine certified by the end of 2013. The governmental funds will cover development costs of all major engine parts and modules, and associated technologies, as well certification in Russia and the west.

November 15 The Indian air force is expected to place order for an additional batch of forty Sukhoi Su-30MKI fighters. Speaking to the local media, Ashok Nayak, chairman of Hindustan Aeronautics Limited (HAL) company that produces these aircraft locally in India under the Russian license, said he expects the air force to award HAL respective contract for more Su30MKIs. Ashok Nayak further said that a total of 180 such aircraft have already been ordered from HAL. Of those, 105 aircraft have been delivered so far. First of HAL-assembled Su-30MKIs was rolled out in November 2004. Not long ago Indian defence ministry awarded Russian Su-30MKI manufacturers a direct contract for 40 such aircraft on top of the previously ordered. This follow-on order was formalized in the middle of the past year. The aircraft will be constructed

by NPO Irkut’s plant in Irkutsk and delivered to the customer through their developer Sukhoi and Russian state arms export agency Rosoboronexport. Today, the Su-30MKI is the best asset in the Indian air force inventory and forms the backbone of its fighter squadrons. The service often sends its Sukhoi fighters abroad for various international exercises involving US and Asian allies.

Su-30MKI

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November 13 United Aircraft Corporation has won the tender held by the Russian Ministry for Civil Defense, Emergencies and Elimination of Consequences of Natural Disasters (EMERCOM) to deliver two Antonov An-148 jets. The agreement on the delivery was signed by Alexey Fedorov, UAC President, and Rafail Zakirov, Head of the Department of Aviation and Air-Rescue Technologies Department of EMERCOM. The aircraft are to be supplied in 2012 and 2013. Prior to

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An-148

working out checks and methods that would enable Il-96 aircraft operators and MRO stations to assess condition of a particular airframe and make decisions for its further use on flight operations.

November 4 First deliverable SSJ100, the msn95007, flew for the first time with test pilots Alexander Ivanov and Alexander Kochetkov at the controls. During the flight that lasted three hours, the crew performed checks on engines, systems and onboard equipment. “This is a milestone. We will ramp up SSJ100 production. There are 17 airframes being assembled, five of which are at the final assembly shop,” said SCAC president Vladimir Prisyazhnyuk.

the delivery significant work will be done to develop special configuration layout of the aircraft to meet the Ministry’s requirements. They will be configured for multi-mission capability including medical rescue operations and passenger transportation. The Voronezh Aircraft Manufacturing Company (VASO) will produce the aircraft.

November 10 Central AeroHydroDynamics Institute (TsAGI) in Zhukovsky near Moscow completed fatigue testing on the Ilyushin Il-96-300 airframe for 40,000 flight cycles, which is twice the original design target for the airplane, at 20,000 flight cycles. The scientists are now processing information on cracks development. The work is being carried out in the view of further fatigue testing, to prove the Il-96’s airframe can withstand 60,000 flight cycles. A total of 5,000 sensors are placed in the zones with purposely inflicted damage, for research purposes. Cracks development is monitored by computer-aided system processing data coming from crack sensors. The testing is being performed on a purposely built test rig that allows simulation of various loadings that take place in real flights. The project is aimed at

October 28 Alexey Fedorov, President of the non-commercial partnership Union of Aviation Industrialists, and Victor Chuyko, President of the Association of Aero Engine Manufacturers, signed a cooperation agreement. The document is aimed at coordination of the joint actions to enhance the aviation engine manufacturers’ efficiency, development of the scientific and technical production capabilities of this segment of the aviation industry. The point of major importance is a joint work to ensure flight safety, as well as maintenance, repair and service support of engines.

October 27 United Aircraft Corporation of Russia and Antonov of Ukraine entered into the joint venture agreement today.

The treaty has been signed in the presence of the Russian Prime Minister Vladimir Putin and Prime Minister of Ukraine Mykola Azarov. It was signed by President of UAC Alexey Fedorov and Chairman of the Board of Antonov Dmitry Kiva.

“The joint venture between UAC and Antonov should become a platform for the Russian and Ukrainian aircraft industry teamwork, - stated Alexey Fedorov. - The primary goal of the enterprise is to coordinate our activities related to the jointly developed AN-series aircraft marketing and promotion

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including sales and after-sales service. Another important objective for the joint venture is to prepare further proposals for the Russian and Ukrainian aircraft industries integration”.

October 27 United Aircraft Corporation and State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” and State Company “Antonov” (Ukraine) signed the cooperation agreement. The agreement was signed by the President of UAC Alexey Fedorov, the Chairman of Vnesheconombank Vladimir Dmitriev and the President of Antonov Dmitry Kiva. The agreement is aimed at establishing partnership and developing long-term, efficient and mutually beneficial cooperation between the parties. According to the agreement the parties intend to implement investment projects aimed at design and manufacturing of high-tech machinery products based on the innovative technologies.

Moreover, the agreement will provide for development and organization of serial production of civil, cargo and military transport aircraft. The document foresees technological modernization of the aircraft producers in the Russian Federation and Ukraine; as well as development of aircraft post-sales service; support for the export of industrial products and services, and export diversification.

October 21 On October 21, 2010, Alexey Fedorov, UAC President, and Sven Morlok, Saxon Minister for Economic Affairs, Labour and Transport, signed two cooperation agreements at the UAC headquarters. They stipulate the principal agreements reached by the UAC President Mr. Fedorov and Saxon PrimeMinister Mr. Tillich at the meetings in April 2009 in Moscow and in March 2010 in Dresden to develop high technologies in aircraft engineering.

September 2 SuperJet International (SJI) and the US leasing company Willis Lease Finance Corporation signed today a Memorandum of Understanding for the purchase of 6 Sukhoi Superjet 100 (SSJ100) aircraft plus 4 options, for an estimated value up to US $300 million. The first delivery of these LR aircraft in the 98-seat configuration is scheduled for September 2012.

July 21 SCAC and «Gazprom komplekt» signed an Agreement of intent for the delivery of 10 Sukhoi Superjet 100/95 LR aircraft to upgrade the fleet of Gazpromavia airline. The order is valued at US dollar 323 million by catalogue prices. The document was signed by Vladimir Prisyazhnyuk, SCAC’s President and Igor Fedorov, CEO Gazprom komplekt. Under the Agreement signed, deliveries are scheduled to begin in 2012. On the same day SuperJet International signed an agreement with Pearl Aircraft Corporation for the sale of thirty Sukhoi Superjet 100 aircraft, plus fifteen options. The announcement was made today at the Farnborough International Air Show by Mr. Alessandro Franzoni, Chief Executive Officer of SuperJet International, and Mr. Jan Soderberg, Chief Executive Officer of Pearl Aircraft Corporation. Pearl Aircraft was advised by Aerbiz Business Consultants. Based on the price list, the order for the thirty aircraft is worth over US dollar 900 million. A day before Gazprom and Pearl the SSJ100 won one more important commitment. Orient Thai Airlines, a private Thai carrier, signed for 12 Sukhoi Superjet 100/95B with an option for 12 more due for delivery in 2011-2014. The document was signed by the Orient Thai’s Chairman of the Board Udom Tantiransongchai and the President of SCAC Vladimir Prysiazhnyuk.

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Vladimir Prisyazhnyuk and Mikhail Pogosyan

July 20 British AeroSpace, Defence and Security Industries (ADS) and Russian Union of Aviation Industrialists (UAI) signed a Memorandum of Understanding with the aim to foster mutual relationships.

Both organizations expressed their intention to intensify existing industrial and organizational cooperation between the industries of both countries, especially in terms of aviation standards, airworthiness regulatory frameworks, as well as in mutual business dialogue, especially regarding small and medium enterprises. Alexey Fedorov, President of UAI and Ian Godden, Chairman of ADS took part in the signing ceremony held in the Hall of the UK Partnership Pavilion Chalet row at the Farnborough Airshow. Fedorov and Godden stated: “The signing of this Memorandum puts cooperation of Russian aircraft enterprises with British partners on an international legal basis and therefore is an important step on the way to integration of Russian aircraft enterprises into the international aviation industry. This will also contribute to further expansion of cooperative relations between ADS and UAI members.” During the ceremony Alexey Fedorov said: “Ian Godden said he wears two hats, as Chairman of AeroSpace Defence Security and Chairman of the Farnborough airshow. I also have two hats. The first one is that of President and Chairman of the Executive Board of the United Aircraft Corporation (UAC). Here at Farnborough we are signing a first firm contract for the MS-21 with a Malaysian launch customer.

It is very symbolic to do this here, on the English soil. My second function and the hat that comes with it: I am President of the Union of Aviation Industrialists. Our Union has more than two hundred Russian aviation enterprises and institutes among its members.

One of our targets is to get integrated with European aerospace industries. We have already signed Memorandums of Understanding with German, French and Italian aerospace associations. And now, at Farnborough, we are singing one more with the AeroSpace Defence Security (ADS) of the United Kingdom. I think this is a right step in the right direction. Let’s apply our signatures!”

Ian Godden and Alexey Fedorov

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RUSSIA-INDIA: IDEAL PARTNERSHIP Konstantin Makienko The Russo-Indian military and economic relations take a special place in the whole system of the military and technical cooperation of the Russian Federation with other states. In the post-soviet era the significance of the Indian market for Russia in terms of political, military, and industrial and technological cooperation has exceeded the importance of all other markets including such a large market till recently as China. The Russo-Indian cooperation in military aviation undoubtedly represents the experience of the ideal partnership of the two great states in the modern world.

POLITICAL AND HISTORICAL CONTEXT First of all, it is necessary to point out an excellent harmony of the Russo-Indian military and economic ties. It is not so common that commercial interests of the arms exporters get along with the interests of the national military security. The classic in these terms example of internal antagonism can be given describing the Russo-Chinese relations in the area of military and economic cooperation. The Russian military felt sorrow for the massive deliveries of weapons and military equipment of the third and fourth generation to the Chinese People’s Liberation Army. They always tried to lower the technological level The President of India Pratibha Devisingh Patil and the President of Russia Dmitry Medvedev

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of military equipment sold to the Heavenly Empire.

At the end of the day, this has become one of the factors to restrict a large-scale military and technical cooperation with China. Observers usually underline that the Chinese military industry has reached the level sufficient to meet the needs of the Chinese army on its own. However there is another side of the question.

Notably, now, under the conditions of the government military orders and export portfolio growth, the Russian military and industrial complex does not so badly need to “invade” its great neigbour with modern arms.

This problem has never existed in the RussoIndian relations and it is unlikely to appear in the near future. On the contrary, the countries’ military, political and commercial interests complement each other remarkably. Apparently, no other country in the world but Russia appreciates so amiably the Indian military growth and its technological progress. The Kremlin is strongly interested in appearance of new poles of military and economic

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The Prime Minister of Russia Vladimir Putin and The Prime Minister of India Manmohan Singh power in the global context that will maintain their cultural identity and political subjectivity and will not become satellites of the only superpower in the world. The Indian positioning in the world fully meets the Moscow perception.

Both Russia and India face the necessity to take into account the risks posed by extremist Islamic groups, particularly by the Salafists, whose activities are coordinated on the international level. And all this makes the two countries become objective allies in the international counterterrorism fight. And, finally, both India and Russia cannot turn a blind eye to the skyrocketing military growth of China, which has ocean-wide length borders with the two countries.

In this respect, whatever progress India has in military and security industries, this progress will not affect the Russian security interests in any way. On the contrary, the strong and dynamically growing India corresponds to the Russian interests.

So, the basic assumption of the Russo-Indian military and technical co-operation is more than just favourable political, and in a qualified sense, military and political background. Moreover, the Russo-Indian ties are based on a concrete historic foundation, as the first contacts were established in the 1960-s. Soviet deliveries in particular provided for development

of the Indian armed forces. India also used Soviet weapons and military equipment during its conflicts with Pakistan, including the period of the triumphant war of 1971.

RUSSO-INDIAN MILITARY AND TECHNICAL CO-OPERATION: GENERAL CHARACTERISTICS First of all, it is necessary to point out the value of the Indian market for Russia. During 1992-2007 India firmly held the second

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place following China in terms of delivery volumes. On average annual India’s share in the total Russian export fluctuated between 25% and 30%. However, there were times, in 2003 for example, when India took the lead overpassing China (42% of Russian deliveries to India vs. 38% to China). Later on, due to the reduction of the Chinese import that has been remarkable since 2005, India became number one importer of the Russian weapons. So, in 2007 India accounted for 45% of all newly signed contracts and for 30% of all Russian deliveries. In 2008 New Delhi held the lead receiving a quarter of all Russian arms export.

Taking into account the fact that India accounts for a half of the Russian contractual obligations (about USD 16 billion of the total order portfolio of USD 32 billion), it is expected that the country will keep its first place in the Russian arms importers ranking in the near future.

As a matter of fact, quality of the Indian import is of greater importance. Due to a number of particularities of the Indian import, the military and technical cooperation with this country has a deep and positive influence on the structure of the Russian military and industry complex. These particularities include first of all extremely high technical requirements of the Indian military. Moreover, in the 1990-s it was a rule rather than an exception for India to sign contracts with Russia on the arms systems developed in accordance with Su-30MKI

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exclusive requirements of the Indian military. At the same time China massively imported serial production with insignificant changes. As a result, Indian import stimulated vigorous large-scale R&D by the Russian companies that in the end provided for developing higher technological and more competitive arms systems. Later on they have become bestsellers among the Russian proposals on the arms market. A striking example is the Sukhoi Su-30MKI fighter developed in accordance with requirements of the Indian Defense Ministry. Technical requirements of this task were on the highest possible level in the mid 90-s when the task was given. The Indian orders were decisive in the development of such arms systems as Talwar type guided missile frigates, URAN anti-ship cruise missile, Club missile attack system, and others.

Another particularity that differs Indian programs from the Chinese import is their long-term character.

The Su-30MKI program formally started with signing of the first contract in 1996 (indeed pre-contract joint work of the Indian army forces and the Sukhoi Design Bureau on the fighter started much earlier). At present it is being actively implemented and will end no sooner than by 2014 (and according to some analysts’ forecasts it will last till 2020 taking into account additional aircraft orders). These “long” contracts allow Russian companies to elaborate long-term strategies of their economic, financial and innovative development. It’s no coincidence that Su-30MKI program stimulated setting up of a new first-class aircraft manufacturing company – Irkut Corporation – that became an important part of the United Aircraft Corporation later on.

The third particularity of Indian orders is their big volumes. In this respect the Indian army forces have substituted the government orders for military and industrial production (the Russian army, on the contrary, did not place any significant orders for modern arms production till 2008-2009). Thus, in order to drastically renovate and modernize Russian Air Force it is necessary to buy 250-300 Su-30MKI/Su-35 fighters. However, at the moment 230 fighters of this type are ordered not by the Russian, but by the Indian Air Force. Let us notice that the French Air Force placed a relevant in terms of quantity order on Rafale fighters (France, Russia and India have similar opportunities in general to finance their air forces). Thus, it will not be an exaggeration to say that the Indian orders have been an equivalent of nonexistent internal national orders. Moreover, sometimes it seems that the Russian aviation industry has more confident and amicable relations with the Indian Air Force rather than with the Russian Air Force.

At last, it is necessary to point out such a feature of the Indian import as its addiction to buy “hybrid” internationalized weapons systems, i.e. in accordance with the Indian military requests subsystems of third party manufacturers are installed on aviation and maritime platforms. Thus, the Su-30MKI onboard

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equipment includes elements manufactured by the Indian, French and Israeli companies. French equipment is also installed onboard MiG-29K/KUB carrier-based fighters that are manufactured now for the Indian Air Force. India’s requirements to internationalize its arms supplies gave the Russian industrial companies an impetus to search for foreign partners first of all in France and Israel. The experience of international cooperation that the Russians got while carrying out Indian orders will be invaluable in the future.

The world progress in military area will inevitably result in globalization of military manufacturing and will force closed military and industrial complexes cease to exist.

RUSSO-INDIAN CO-OPERATION IN AVIATION INDUSTRY Common particularities of the Russo-Indian military and technical cooperation have become entirely obvious in the aviation industry. Indian aviation import has been large-scale; implemented programs are of long-term character; Indian technical requirements to ordered products are extremely high level and addicted to hybrid internationalized systems. At last, a new trend in military and technical cooperation has appeared which is to transform a commercial purchasing concept into an industrial cooperation pattern.

The largest projects of the Russo-Indian military and technical cooperation are as follows: • The program of deliveries and licensed production of the Sukhoi Su-30MKI multirole fighter.

At present, the total Indian Air Force orders reach 230 aircraft, of which more than 120 fighters have been delivered by the end of 2009 within the supply contracts of 1996 and 2007 and the licence agreement of 2000. The expectations are high that a new contract to buy 42 Su-30MKIs will be signed this year. Moreover, Russia and India will carry out a project on an essential upgrade of the aircraft that was developed 15 years ago. It is most likely that this upgrade will involve equipping Su-30MKI with active phased array radars. At present, the total value of the Su30MKI program reaches about USD 8 billion, and it will be carried out till 2013 (upgrade program excluded). The program of development, supply and setting up licensed production is the largest program not only in the Russo-Indian military and technical cooperation but in the Russian military export in general. It will not be an exaggeration to say that notably the Su-30MKI project has paid the biggest contribution to the development of the post-soviet military aviation while this contribution is even more important than big Chinese contracts of 1999-2002 to buy Su-30MKKs. • Upgrade of 125 MiG-21bis fighters to MiG-21-93 (MiG-21bis UPG and Bison in Indian terminology) worth about USD 600 million. The relevant

Delivery of the first Su-30MKI to the Indian Air Force, summer 2002 Then Irkut Corporation President Alexey Fedorov among other members of the Su-30MKI project, summer 2002

contract was signed in 1996, however its execution has been severely delayed. Due to the delays in carrying out the MiG-21-93 program India gave up on its initial plans to upgrade 60-80 MiG-21 aircraft of earlier versions in addition to 125 MiG-21-bis.

• Russia delivered 10 MiG-29 and MiG-29-ATC fighters worth USD 220 million in 1994-1995 mainly in order to compensate the loss of the Indian Air Force arising from the accidents and the catastrophes of MiG-29. In 1996 India considered an opportunity to buy another lot of 10 MiG-29SM. However, the contract has not been signed partly due to the necessity to concentrate the resources of the Indian Air Force on the implementation of the Su-30MKI programme.

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Mi-8

• According to a contract signed in 2001 India acquired six Il78MKI air-to-air tanker refueling aircraft in 2003 and 2004 (total amount of contract is USD 150 million). India bought the air-to-air refuellers to ensure long range combat capability and evidently initially the aircraft were designed to refuel Su-30MKIs. However it is known that the Indian Air Force has adapted Il-78MKI to refuel Mirage 2000H French fighters.

• Supply of three A-50I Airborne Early Warning and Control System (AEW&C) on the basis of Il-76 four engine aircraft equipped with Phalcon AEW radar systems. The total value of the contract is USD 1.1-1.2 billion, the Russian part of the contract is up to USD 300 million. At present, two aircraft have been delivered to India, and the delivery of the third plane is expected soon. It is known that the Indian Air Force would like to increase the number of similar systems in their disposal and that is why it is likely that India can place a new contract on delivery of three more A-50I AEW&Cs equipped with Phalcon AEW radar system.

• The long term Fifth-Generation Fighter Aircraft (FGFA) program is of the most importance. It was launched when India officially joined the Russian fifth-generation fighter program carried out by the Sukhoi Company. A relevant intergovernmental agreement was signed in 2007. As early as in 2003-2004 the Indian Air Force showed their interest in joining the Russian works on creation of the fifth-generation fighter aircraft. However until 2007 India favored another project of a light fighter developed by Russian Aircraft Corporation MiG (RAC MiG). Apparently, the Indian choice was strongly influenced by the position of the Russian Air Force that unequivocally supports the Sukhoi project.

• In 2009 a new powerful impetus was given to the Multirole Transport Aircraft (MTA) project designed to create a mediumrange transport aircraft to replace An-12 aircraft. The Russian side in the project will be represented by “UAC-Transport Aircraft”, and the Indian part – by Hindustan Aeronautics Limited (HAL). The direct financial sources of the project have been determined and the organization structure satisfying both parties has been set up to carry out the programme. The Indian Air Force has placed an order on 45 aircraft with an option for the same aircraft quantity. The number of aircraft ordered by the Russian Air Force is not disclosed, but the deliveries of the aircraft are included in the Government Arms Programme till 2015.

• In March 2008 RAC MiG signed a contract worth USD 885 million to upgrade 64 Indian MiG-29 fighter aircraft to MiG-29SMT/ATC. The contract is supposed to be fulfilled by 2012.

In addition to the above mentioned projects, large scale programs

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which are of great importance for the Russian industry, are carried out on behalf of the Indian Navy.

In February 2001 India placed an order to upgrade its five Il-38 Maritime Surveillance Aircraft to Il-38SD status. The upgrade provides for equipping this platform with the Russian newest Sea Dragon search and targeting system. The company executing the contract from the Russian part – “Leninets” holding company – delayed fulfillment of the contract and the first two aircraft were delivered to the Indian Navy only in February 2007. In October 2007 there were leaks that the Indian Navy rejects to accept these aircraft as they did not meet their requests. However, at the end of the day all technical problems were settled. Though with some delay the contract has been fully completed, and all five aircraft have been delivered to the Indian Navy.

It is expected that the Indian Navy can place a new order to acquire 5-8 aircraft of this type. The fate of this contract does not depend on Indian import of US-made Boeing P-8I Poseidon that is to replace heavier Tu-142 maritime surveillance aircraft.

The MiG-29K/KUB carrier-based fighter development and manufacturing programme is of great importance for the future of RAC MiG. The programme is carried out on behalf of the air group of the Indian Vikramaditya aircraft carrier and their national aircraft carriers Air Defense Ships (ADS). On January 20, 2004, India signed two contracts. The first one to refurbish and upgrade the “Admiral Gorshkov” aircraft carrier on behalf of the Indian Navy. And the second agreement worth USD 752 million is aimed at developing and manufacturing 12 new MiG-29K carrier-based fighters and four double-seat MiG-29KUB aircraft. As it was in the case of Su-30MKI, the Indian military insisted on installation of French components onboard MiG-29K. The most important of them are Thales helmet-mounted target indication and visualization systems and Sagem navigation systems.

In the autumn of 2009 the first aircraft of this type took off from “Admiral Kouznetsov” aircraft carrier and were later delivered to the Indian part. Later on, on March 12, 2010 India and Russia signed a contract confirming an option to deliver 29 more MiG29K worth USD 1.5 billion. Moreover, we can believe that the orders by the Indian Navy will not cease and they will acquire at least 20 new aircraft. The Indian import of MiG-29K paved the way to the Russian Navy’s orders which is expected to buy 24-26 carrier-based aircraft by RAC MiG to replace outdated Su-33 to build up a marine air group of the “Admiral Kouznetsov” aircraft carrier. Thus, the overall order portfolio for MiG-29K will include about 80 aircraft in the near future. This fact dismisses any doubts about the future of RAC MiG. RISKS AND CHALLENGES IN INDIAN MARKET At present we can assume that there are two key challenges regarding further prospects of the RussoIndian military and technical cooperation. In the first

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place, the competition on the Indian market continues to grow. In general the Indian market has always been open and competitive. However, in the 1960-70s the USSR’s dominating position on the Indian arms import market was undoubted.

The situation started to change in the 1980-s when France made large aviation technics supplies to India, notably of Mirage 2000H fighters, and Germany delivered a number of submarines. In the 1990-s Israel entered the Indian market. By present, Israel is the second largest arms and security technologies exporter to India challenging Russia as a weapons exporter leader. And, at last, it is expected that India will significantly increase its military orders in the USA. As a matter of fact, first contracts to buy C-130J Hercules military transport aircraft and P-8I Poseidon maritime patrol aircraft have already been signed.

The USA along with Russia are considered as possible winners of the Indian Air Force Medium Multirole Combat Aircraft (MMRCA) tender to acquire and start licensed manufacturing of 126 multirole fighters to replace the aircraft of the second and third generation used by the Indian Air Force. Thus, today all major world arms exporters excluding China are present on the Indian market.

The second challenge that Russia faces on the Indian market is the rapid growth of the Indian military’s requirements to the technological level of supplied weapons. By present Russian proposals have seemed to be the best in terms of value for money. Taking into account India’s restricted financial opportunities this factor has been by no means unimportant for New Delhi by the beginning of this decade. However, ten years of rapid economic growth significantly expanded New Delhi’s possibilities to acquire more expensive but more advanced weapons. The evidence of this fact is the acquisition of such an over-expensive system as Poseidon. We can expect that the Indian demand will at least partly shift to the top price market segment where the best in terms of technological advances products are sold. Meanwhile, Russia has the most competitive proposals in the medium price – medium technological level sector.

Despite all above-stated risks Russia apparently has reserved firm positions in a number of market sectors where its place is undoubted. First of all, it is Russia’s place in the market of heavy fighters of the 4+ and 5-th generation. Today it is absolutely clear that the Su-30MKI will be the basic aircraft of the Indian fighter fleet at least for another 30 years. Taking into account the launch of RussoIndian fifth generation fighter aircraft FGFA serial production by 2020, we can state that in the foreseen future the Indian Air Force heavy class fighter fleet will be formed by Russian-made and Russo-Indian aircraft.

MiG-29KUB

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PROSPECTS for INDO-RUSSIAN COOPERATION Vladimir Karnozov Q/A session with Raj Kumar Singh, Secretary Defence Production, Ministry of Defense, Government of India What are the main challenges for India, its defense industries and the armed forces in this century? How will India answer these challenges?

The Indian defense industry and armed forces have been continually adapting to the changing technological and security environment of the world in general, and with our neighbors in particular.

We face pretty much the same challenges as most other defense industries around the world: catering to the most technologically sophisticated requirements of our defense forces. With the large pool of technically-qualified human resources, we have constantly

Raj Kumar Singh

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tried to achieve self reliance in defense production and to equip our forces with state-of-the-art weapons and platforms.

What are the main achievements of the Indian defense industry and its aviation sector?

We have a very robust and strong defense industrial base. We make our own warships, tanks, guns, fighter aircraft, and other arms and ammunition.

Our defense industrial base is growing rapidly, and recently we permitted the private sector to enter the field of defense manufacturing. Hindustan Aeronautics Ltd. (HAL) has developed comprehensive capabilities in the design, development, testing, manufacture, repair and overhaul of helicopters, aero engines, avionics and aircraft accessories. Since the 1950s, a number of trainers, fighters and helicopters have been designed and developed by HAL. In addition, the manufacture of MiG series of aircraft under license from Russia enabled India to graduate into the manufacture of Sukhoi Su-30 aircraft under ToT. HAL’s development of the Light Combat Aircraft (LCA Tejas) and the Advanced Light Helicopter (ALH Dhruv) in cooperation with Indian R&D agencies and over 200 companies in the country indicates the synergy between research organizations and industry – which can result in state-of-the-art products.

Since its birth in the middle of the past century, the Indian aerospace industry has amassed a great technological and manufacturing potential, thanks to considerable investments of the government into self-reliant military production. How can this potential be used in the civil sphere, specifically civil aviation? How can Russian industrial partners help India in developing civil sectors of the hightech economy?

The Indian government is providing considerable support to the Indian industry to enter into the field of aeronautics. Information technology and software companies also have acquired exper-

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tise in these areas by undertaking work packages related to aviation design and optimization problems. Such expertise can develop into mutually beneficial relationships, and can be tapped for possible development of civil aviation projects in collaboration with Russian OEMs (original equipment manufacturers). The planned joint development of the Multirole Transport Aircraft (MTA) – an airlifter in the 20-metric ton category – with United Aircraft Corporation (UAC) as principal collaborator will strengthen India’s design and development capabilities for civil aircraft.

The private sector has been repeatedly encouraged by the Indian government officials to invest in defense-related production. What can the private sector add to the existing system? Will private business eventually take the lead in the sphere of Indian defense production?

It is our priority to develop our defense industrial base so that we can accommodate in-country production of the weapons and equipment required by our armed forces. In May 2001, the defense industry sector was opened up 100 percent for Indian private sector participation, with foreign direct investment of up to 26 percent. While the private sector is encouraged to enter defense production, capabilities in the governmental sector will continue to be maintained and modernized.

Defense Procurement Procedure (DPP) is coming in its third revision, starting with the updates

HJT-36 Sitara is to be powered

by Russian engine NPO Saturn AL-55I in 2006, 2008 and now in 2010. What are the key principles of the DPP, along with its main goals?

The Defense Procurement Procedure clearly lays down the methodology to be followed in defense acquisitions. It promotes transparency and provides a level playing field for manufacturers who clearly know the rules of the game – which cannot be changed midway. The document has spells out clear procedures that encourage foreign OEMs to collaborate with Indian companies in the manufacture of products indigenously.

Military-industrial cooperation between India and Russia began in the early 1960s. Soon it will be approaching a 50-year mark. What do you think were the most important elements that India has derived from this lasting cooperation?

The story of Indo-Russian defense cooperation is a saga of reliable friendship, mutual trust and support, which has helped India build the foundation for a robust defense industrial sector.

Su-30MKI

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PAK FA will provide the platform for development of India's FGFA

How do you assess the current state of the military-industrial cooperation with India and Russia?

The Indo-Russian defense cooperation is – and has always been – strong, to the mutual benefit of both the countries and their people. I would like this cooperation to continue.

How will the Fifth-Generation Fighter Aircraft (FGFA) project of India and Russia be structured and executed?

The FGFA is a joint development project in which we will have Indian and Russian designers and engineers working side-by-side

from the beginning until its completion. The FGFA will be a joint product whose intellectual property rights will be held fully and equally by both parties.

This is undoubtedly the most complex technological partnership between our two great nations. At the end of this project, we expect our designers and engineers to achieve the capability to design and manufacture future aircraft on their own. The special feature of Indo-Russian partnership is that it also seeks to develop capabilities in India.

Indian navy officers with Russian test-pilots at MiG-29KUB deck fighter 18 aircraft INDUSTRY Aero India SPECIAL

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The Multirole Transport Aircraft (MTA) project appears to be a difficult one to get off the ground – despite a good level of political support by both sides. What factors have hampered the MTA, and does this project still have a chance to succeed?

The inter-governmental agreement (IGA) for codevelopment of the MTA was concluded in November 2007. According to the IGA, the development was planned through a joint venture to be set up in India. Initially, the IGA included a provision for possible utilization of a portion of the Indian debt to Russia as part of its share in the MTA’s development. This clause was deleted in an IGA amendment signed in December 2009. Based on this amendment, the authorized organizations from the Russian side are the Federal enterprise “Rosoboronexport” and the joint stock company “United Aircraft Company (UAC) – Transport Aircraft” (UAC-TA).

The shareholder agreement, memorandum of association, articles of association and funding methodology were discussed during Russian team’s visit to India during December 2009. After signing the IGA, we were informed by the Russian participants that the process to obtain a formal approval from the Russian government for UACTA’s participation has been initiated. Furthermore, the Russians informed us that the methodology of funding needs to be reviewed in view of transfer of funds to UAC from Russia. These issues will be further discussed. Both parties have agreed to name the joint venture: “Multi Role Transport Aircraft Ltd.” a draft agreement for intellectual property rights has been handed over by India to Russia for study and further suggestions. Broad agreement has been reached on funding, authorized capital, the joint venture company’s management structure, etc. During a meeting of the IndoRussian Sub Group on Aviation in February 2010, a broad agreement was reached on shareholding structure.

The momentum given by both the Indian and Russian partners highlights the commitment of both the sides to this prestigious project. The procedural aspects, which needed to be fine-tuned before the project can be realized, have taken some time. However, this is a long-term project. The MTA is very much underway, and you will soon see tangible progress.

Defense Minister Arackaparambil Kurian Antony (center) and Raj Kumar Singh (to his left) at Russian stand during DefExpo'2010 ufacturing program in India. The familiarity of both sides with each other – along with a very strong will to succeed in realization of the project within the stipulated time schedules – helped in overcoming the initial difficulties by accommodating the viewpoints of both sides. The clarity in defining roles and responsibilities, as well as clarity in the commercial issues, helped in avoiding the usual pitfalls. Thus, these projects succeeded. We are ensuring that the MTA and FGFA projects would also be successful.

Despite its exemplary success, BrahMos remains the only prominent joint venture project involving the Indian and Russian defense industries. Can the BrahMos success lead to other applications in collaborative aviation projects between our nations?

You will soon see a BrahMos-like joint venture coming into being for the MTA. I am positive that the BrahMos joint venture’s success will be replicated in other projects too, further strengthening our long-standing friendly ties with Russia.

Multirole Transport Aircraft

The Sukhoi Su-30MKI combat aircraft project, and that of the BrahMos supersonic cruise missile, are widely considered as success stories. Why do you think these particular programs progressed so well compared to many other attempts, which have proved less successful?

The Su-30MKI project took off as a logical culmination of the conclusion of the MiG-27M man-

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corporate

Business Unit Integration Pavel Nakhodkin One of Russia’s major holding companies, the United Aircraft Corporation (UAC), is undergoing large-scale restructuring. The result will see three business units formed within UAC. These will be responsible for the development, production and operational support of military, commercial and special-purpose aircraft.

Count to three The procedure for establishing UAC’s business units was set in December 2009. According to UAC President Alexey Fedorov, three business units will be formed within the corporation: UAC – Combat Aircraft, UAC – Commercial Aircraft, and UAC – Special Aircraft.

The establishment of these units as part of the UAC corporate reThe President of Russia Dmitry Medvedev and President of UAC Alexey Fedorov in VASO workshop.

structuring program during 2010-2012 was approved at a session of the company’s board of directors in November 2009.

The creation of UAC – Combat Aircraft will be supervised by Mikhail Pogosyan, UAC’s First Vice President for Military Aviation and Program Coordination.

Pogosyan combines his post with that of Sukhoi’s General Director and the MiG Corp’s General Director/ General Designer. At present, UAC’s military aviation projects involve nine aircraft industry sites, which include four design bureaus and six production facilities.

The establishment of UAC – Commercial Aircraft will be supervised by Oleg Demchenko, UAC’s Senior Vice President for Commercial Aviation and the President of Irkut Corporation. The commercial unit currently consists of 10 companies, including three design bureaus and five production plants.

UAC – Special Aircraft brings together the resources of nine current companies, and will be supervised

by Alexander Bobryshev, UAC’s Senior Vice President for Strategic and Special Aviation, and President of the Tupolev Corporation.

The purpose of setting up these business units is the integration of the industry’s design and production potential to create advanced, internationally-competitive aircraft. The management of Irkut, Sukhoi and Tupolev have demonstrated their ability to successfully develop large-scale projects. However, the tasks set by UAC are fairly ambitious: to capture five percent of the global commercial airliner market by 2015 and 10 percent by 2025, while also retaining its current 12-15 percent share of the military aircraft market. The human resources and technical capacity of the three companies alone will not be enough to achieve these goals, which is why they are being reinforced with additional design bureaus and production facilities.

A truly united corporation UAC was set up by the government in partnership with private Russian aerospace business, primarily with the management of Irkut. The es-

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corporate

Mikhail Pogosyan

tablishment of UAC was officially approved on February 22, 2005, at a session of the State Council board in the town of Zhukovsky outside Moscow, which was chaired by Russia’s President Vladimir Putin. A non-commercial partnership called United Aircraft Consortium was then set up to prepare the establishment of a managing company and consolidation of the country’s aerospace assets within UAC. The partnership drafted a plan for setting up the corporation. The first phase envisaged the creation of a private-public consortium and its managing company, whose 25.5 to 51 share percentages would be controlled by the state. The second phase was supposed to involve the establishment of a corporate structure in the form of a holding company, with a single share for all companies that would form part of it. To this end, it was planned that the existing federal state-owned aircraft manufacturing enterprises would be transformed into joint-stock companies, with 25.5 to 51 percent of shares in the corporation remaining in the government’s hands.

However, that plan was heavily criticized by the relevant state agencies, primarily by the state law directorate of the Russian presidential administration. The main reason was a recent increase in the amount of state funding, which meant that UAC no longer needed to raise extra private investment to meet its short-term needs. The UAC establishment decree was correspondingly amended to bring the state share in the corporation up to “at least 75 percent of its authorized capital.” In that form, the document was signed by Vladimir Putin on 20 February 2006.

During the first phase of industry consolidation in October-November 2006, the corporation’s authorized capital was expanded mainly at the expense of state-owned shares in Russian aircraft manufacturing enterprises. Of all the non-government shareholders, only the private owners of Irkut were able – at the time – to transfer their shares into the authorized capital of the newly-created corporation.

The government came to control 90.1 percent of the new entity, with 9.99 percent retained by private shareholders. The UAC authorized capital stood at 96.72 billion rubles ($3.52 billion at the November 2008 exchange rate).

The second phase of UAC creation, originally planned to be completed by 1 April 2007, was supposed to consist of transforming two federal state unitary enterprises – MiG and the Kazan KAPO plant – into joint-stock companies. The government handed its en-

Oleg Demchenko Alexander Bobryshev

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Target structure of the corporation

JSC UAC Commercial Aircraft (Irkut)

Combat Aircraft (Sukhoi)

Special Aircraft (Tupolev)

Design Resources

Design Resources

Design Resources

Ilyushin Design Bureau

Yakovlev Design Bureau

Production Facilities

Aviastar-SP

VASO

Airbus Freighter Conversion GmbH

Finance Leasing Company

Sukhoi Design Bureau

Mikoyan Design Bureau

Production Facilities KnAAPO

NAZ Sokol

NAPO

MIG Production Affiliates

SCAC

SuperJet International

Tupolev Design Bureau

Beriev Design Bureau

Production Facilities

IAZ KAPO

Taganrog Aviation

MTA Ltd

Ilyushin Finance Co

Volga-Technoport

National Center of Aircraft Industry

AeroComposite

Gromov Flight Research Institute

tire interest in these companies over to UAC. In addition, it was planned that state assets (which for various reasons had not been transferred to UAC during the first phase) would be handed over in the second phase. Also, it was planned that UAC’s private owners would exchange their shares in the companies listed in the presidential decree of February 2006 for UAC shares.

However, the implementation of the second stage was delayed. The transformation of MiG and KAPO into joint-stock companies was not completed until 2008, with their shares handed over to UAC only in October 2009. Also, it was only in September-October 2009 that UAC issued an additional set of shares, which private shareholders in the corporation’s subsidiaries and affiliates could purchase in exchange for their own shares.

In the words of UAC President Alexey Fedorov: “In effect, we completed the process of accumulating all our assets only in late 2009. We could not have done it any faster for objective reasons. The process of turning MiG and KAPO into joint-stock companies turned out to be far more complicated than we had originally thought. Both of these companies had serious debts and, technically, could not join UAC without first going through a financial restructuring. Nevertheless, we have completed this work, and I see it as one of our biggest achievements in 2009.”

By that time, UAC had conducted three additional issuances of shares (in March and September 2008, and in August 2009) in the interests of the state, dur-

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MiG-29KUB ing which additional state-owned blocks of shares and budget funding went towards the corporation’s authorized capital. Finally, in late 2009 and early 2010, UAC’s authorized capital received more funds from the federal budget and an extra shot in the arm from Russia’s Vnesheconombank (Bank for Development and Foreign Economic Affairs). As a result, as of July 2010, UAC’s authorized capital stood at 174 billion rubles ($5.64 billion at the June 2010 exchange rate). The government’s share in it had dropped to 80.22 percent, Vnesheconombank’s share constituted 11.49 percent, and that of private shareholders was 8.29 percent.

In the future, UAC will continue to receive new assets. After they have been transformed into jointstock companies — and that process is now nearing completion — the Gromov Flight Research Institute and the Myasishchev design bureau will become fully controlled subsidiaries of the corporation. “The incorporation of Myasishchev into UAC may take place in 2011,” Fedorov notes. Myasishchev will become part of UAC – Special Aircraft.

In addition, UAC is in negotiations with the private owners of the Samara-based Aviacor factory about its joining the corporation. In November 2009, the UAC board of directors set the terms for Aviacor’s possible integration. “If the decision is taken and we agree with the current shareholders on such terms that will satisfy both sides, Aviacor will join UAC — Commercial Aircraft,” Fedorov said.

If Aviacor becomes a part of UAC, its main strategic tasks will be to organize series production of the Antonov An-140 turboprop and participate in the production of the Antonov An-148 and Ilyushin Il-

UAC – Military Aircraft Companies: Sukhoi Aviation Holding, Sukhoi Design Bureau, KnAAPO Komsomolsk-on-Amur Aircraft Production Association, NAPO Novosibirsk Aircraft Production Association, MiG Corp., Nizhny Novgorod Aircraft-Building Plant, Sukhoi Civil Aircraft, as well as their 46 subsidiaries and affiliates.

Operations: projects related to the development, preproduction, production and after-sales support of military aircraft in the front-line aviation segment.

Current projects: Su-27/30 (SM, M2, MK), Su-34, Su-35, MiG29, MiG-31, MiG-35, Yak-130 (the work done at Sokol), PAK FA fifth-generation fighter.

Non-core projects: Sukhoi Superjet 100 (whether or not the project will be handed over to UAC – Commercial Aircraft is to be decided after 2012).

Annual sales forecast by 2015: at least 150 billion rubles ($4.86 billion at the June 2010 exchange rate), with an average operating margin of at least 20 percent.

Development process: until at least 2013-14, this business unit will operate in the form of two independent integrated entities, Sukhoi and MiG, joined by design bureaus and production plants that have traditionally been operating in the relevant areas.

The parent company of UAC – Military Aircraft will provide consolidated planning, control and necessary coordination between Sukhoi and MiG, as well as centralized management for certain aspects such as marketing, finance and economics, procurement and after-sales support. It will also create conditions for unifying the management systems of the two companies. Sukhoi’s management system already has been chosen as a benchmark for this process, as it has proven its viability. The UAC – Military Aircraft parent company also will be dealing with the financial restructuring of debt-ridden assets. Sukhoi and MiG are expected to merge in the 2014 or 2015 timeframe, after they have balanced out their development levels.

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corporate

112. Looking forward, the plan is to use Aviacor as a basis for setting up a single spares part supply center for these aircraft types. In addition, the factory’s capacity could be used for the maintenance and servicing of UAC-produced aircraft.

Brave New World Having largely completed the consolidation of assets, UAC is now moving on to the next big stage, which involves forming its internal corporate structure. The main process ahead is to create the separate business units.

When the UAC concept was being developed, it was decided to shed the old management structure, under which each enterprise within the industry was a self-contained profit center. Instead, the new corporation was to be based on the concept of productspecific business units. The development of this structure envisaged the establishment and development of the UAC managing company as a capitalization center. In addition, this restructuring required a change in the forms of incorporation and corporate mechanisms of managing the companies that formed part of UAC in accordance with their roles and functions in the target structure.

Initially, the proposed structure was similar to that of Europeanbased EADS. It was planned to unite UAC assets into three subholding divisions: Civil Aviation, Military Aviation, and Transport & Special Aviation – each having a lead design bureau, a sales center, a central maintenance center and a number of assembly plants. In addition, it was proposed that the UAC structure would include global maintenance centers; component production groups with shared parts centers; testing, research and training centers; and design companies (including joint ventures).

“At the inception stage, we planned the establishment of three business units,” Fedorov explained. “However, the three years that it took us to create the corporation has prompted us to review that original concept somewhat. At first we were planning to set up the units for civil, military, and transport aviation, but it turns out we were overly idealistic. Our transport aviation is not yet ready to branch out on its own – Tu-204-100C

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UAC — Commercial Aircraft Companies: Irkut Corporation, Yakovlev Design Bureau, UAC – Civil Aircraft managing company, UAC – Transport Aircraft, Ilyushin Aviation Complex, VASO, Aviastar-SP, Tupolev units dealing with commercial aircraft projects, as well as their 31 subsidiaries and affiliates.

Operations: marketing of existing and future types of commercial and military transport aircraft.

Current projects: MS-21, An-140, An-148, Tu-204, Il-76, Il-112, Il-96, An-124, MTA, Airbus A320 passenger-to-freighter conversion, and production of components for foreign customers.

Non-core projects: export supplies of Su-30MKI/ MKM/MKA fighters and Yak-130 combat trainers (the commercial success of these programs should ensure the financial viability of Irkut and the business unit as a whole, at least for as long as it takes to prepare the MS-21 project for market entry).

Annual sales forecast by 2015: at least 120 billion rubles ($3.89 billion at June 2010 exchange rates) with an average operating margin of at least 5 percent.

Development process: The business unit will be created in the form of a multi-faceted integrated entity comprising a corporate center, a single engineering center and several production branches. Establishment of the business unit will consist in joint-stock companies joining the parent company, Irkut. Irkut has been selected for this role primarily due to its financial stability, good track record, and previous experience restructuring aircraft manufacturing companies, developing production facilities, managing costs, and building an efficient business.

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Tu-95MS both in terms of production capacity and its order book. The reason is very simple: all the new projects are in the process of getting started. Production of the Il-476 is just being set up, and development work on the Il-112 light transport aircraft has barely started.

The MTA medium transport aircraft project did not really get started until recently. That is why we decided to set up the three business units in a somewhat different configuration. The structure of UAC – Military Aircraft will remain virtually unchanged. Civil and transport aviation will be united in a single business unit, UAC – Commercial Aircraft. Strategic and specialpurpose aviation will fall under a separate business unit, UAC – Special Aircraft.”

The main purpose of these specialized business units is to transform UAC into an aircraft manufacturing complex that would meet the best international practices. This will involve the creation of a market capitalization center, streamlined financing within the holding company, and improved liquidity. In addition, UAC management believes this will improve the effectiveness of decisionmaking and implementation across the corporation, thereby improving its overall manageability.

At the same time, UAC’s production and technology model will improve, while its operational risks as a group of companies will reduce.

Restructuring and reorganization will be driven by the capitalization criteria. While the restructuring program will be run by the UAC parent company, the state will retain control over implementation of the corporation’s development strategy and priorities. Other important conditions for forming the business units include cutting restructuring costs and outsourcing non-core assets and functions.

The changeover program will consist of two phases. The first, to be implemented this year, will see a consolidation of the corporation’s core assets, and integration of managerial processes throughout its structure, with the use of corporate governance procedures. It is also planned to provide the business units with their individual development strategies, product range plans, supply chain models, technical development programs, financial models, financial and commodity flows – effectively consolidating financial resources and programs management. In parallel, the business units’ parent companies will be formed, together with associated project management systems, project teams, and facilities management systems; business processes will be regulated both within the separate business units and as part of the

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lish new entities (spin off non-core assets, establish centers of excellence and joint ventures), and sell shares in non-core companies to third parties.

“We expect that the establishment of these business units, with a full transfer of assets, will take place throughout 2011 and 2012,” Fedorov explained. “Of course, one would want to do it all faster, but asset transfer is a very laborious process. All the more so since most of our assets come from the state. This means that transferring them – even to our subsidiaries – equals asset divestment and requires a special government approval. Nevertheless, we already have handed control of the relevant assets over to Sukhoi, Irkut and Tupolev, which will be the core companies for the future business units.”

Yak-130 UAC – Business Units managing structure. Financial recovery programs for separate entities within the business units will be developed, and their implementation will commence. The ownership structure of UAC and its business units also will be transformed: a transfer of shares from UAC, between its subsidiaries and affiliates, will begin in parallel with their reorganization.

During the second phase, scheduled for 2011-12, the business units themselves should come into existence, receive the assets they are entitled to, and absorb the aircraft manufacturing companies assigned to them. The business unit-level development and production programs will start; the testing, fine-tuning and full-scale implementation of financial and commodity flows will take place, the development of centers of excellence will begin. Within the same timeframe, the financial restructuring of the companies forming part of the business units will be completed; design bureaus and production facilities will be reorganized; non-core assets will be spun off and surplus assets will be disposed of. The corporation will complete the tasks to consolidate assets, transfer shares, reorganize companies, estabTu-22M3

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UAC — Special Aircraft Companies: Tupolev section working on military projects, KAPO Kazan Aircraft Production Association, Taganrog Aviation, Beriev Aircraft Company, as well as four subsidiaries and affiliates of the business unit’s key companies.

Operations: development of strategic and amphibian aircraft, command & control aircraft, AEW&C and other special-purpose aircraft.

Current projects: Tu-22М3, Tu-95, Tu-160, PAK FA next-generation strategic bomber, special-purpose aircraft systems, Be-200.

Annual sales forecast for 2015: at least 20 billion rubles ($0.65 billion at the June 2010 exchange rate), with an average operating margin of 15 percent.

Development process: special-purpose aircraft are produced in small series and sold in small numbers. Therefore, this business unit will have no other choice but to focus on government contracts. It will be formed by way of the secondary entities joining the core business, Tupolev, which was selected for this role due to its extensive experience developing strategic and special-purpose aircraft. Beriev and Taganrog Aviation will merge in 2011, and will then join UAC – Special Aircraft as a single entity.

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Tu-160 The key UAV projects will be the responsibility of UAC – Military Aircraft. “I do not rule out the possibility of UAC – Special Aircraft taking on separate UAV segments too, since its lead company, Tupolev, has extensive experience, knowledge and advances in this area,” Fedorov offers. “UAC – Commercial Aircraft will also continue working in this field, because Irkut conducts independent work on light UAVs. However, the biggest and most complex UAV projects – strategic reconnaissance and unmanned combat aircraft systems – will be carried out by UAC – Military Aircraft. I think this work will benefit from the research and technical capabilities of both Sukhoi and MiG. It is quite possible that UAVs will be created by joint teams [of these two companies].”

The UAC management is not ruling out the possibility that, as separate assets are being incorporated into the three business units, some companies and products will be rebranded. Irkut, for example, is likely to be renamed after its business unit, UAC – Commercial Aircraft. By the same token, Ilyushin Aviation Complex was rebranded UAC – Transport Aircraft in August 2008.

Integration of individual assets into the business units is likely to result in the gradual demise of some Soviet-era aircraft brands. The Ilyushin brand is likely to be retained for projects related to military transport aviation, while Tupolev will probably be given a second lease on life by the UAC – Special Aicraft business unit. Irkut, for its part, will certainly face the choice of rebranding or keeping its established name. This choice is likely to present itself within the next year or two because the contract-signing process for Irkut’s flagship MS-21 project already is on its way. The prospective designation, which emerged during a government tender held back in the early 2000s, will hardly live long enough to see that aircraft hit the market.

UAC’s Capital Structure Vnesheconombank 10.60%

Private Shareholders 7.64%

Russian Federation 81.75%

IPO Prospects UAC’s next objective will be the establishment of a singleshare company. This will enable the corporation to prepare for an IPO. According to UAC management, the corporation should be technically ready for an IPO in 2012. However, a relevant decision will depend on the situation in the stock market.

As Fedorov says: “Our strategy envisages three phases of UAC establishment. I would sum up the current phase as formation and resuscitation. At this stage we require very strong financial support from the state. This is what is happening, in effect: the state is financing UAC directly, transferring money into its authorized capital and through federal programs. However, we cannot live like this forever and the state cannot keep giving us financial support indefinitely. The next phase should be an IPO, and entering the public stock markets. At that stage, financing will be mixed: we expect state support to continue but equal in size our own funding and investments coming from other sources. An IPO is a necessary step on this way, because we want to raise money for investment in our new programs. That phase is expected to last from 2011 to 2015. Then we should enter a stage when state support will be very modest and we will be making most of the money we need by ourselves.”

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Decisive time for UAC Interview with Alexey Fedorov, President, Chairman of the Executive Board, United Aircraft Corporation.

How has restructuring of the Russian aircraft manufacturers been going?

Now we are in the process of integrating and structuring the United Aircraft Corporation (UAC). This process focuses on absorbing all assets of the Russian aerospace industry enterprises that develop and manufacture aircraft. Figuratively speaking, until now we have been collecting all the stones that had been thrown before.

This year we actually commenced the process of building up inte-

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by Vladimir Karnozov

grated structures specialized on specific directions within the Corporation. Earlier we announced that UAC will have three divisions. The first one will lead all the projects to do with combat aviation, second with commercial airliners and third with special mission aircraft. The Combat Aviation division has two pillars. These are the companies that have long been specializing in tactical aircraft for frontline air

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force units: Sukhoi and MiG. This division also includes design bureaus and production plants that worked closely with those two companies. The division for commercial aviation is based on Irkut and Ilyushin, and includes other design bureaus and production plants associated with those companies. This division will be developing and producing aircraft for passenger and cargo transportation.

The special aircraft division will be focusing on long range bombers, airborne early warning and control aircraft, and other aircraft for special missions that use baseline aircraft models as platforms. Amphibious aircraft are also in the scope of its activities. The key companies in that division are Tupolev and Beriev. We are planning to complete formation of our desired corporate structure by 2011. Once the integration process is complete, the corporation, starting from 2012, will work basing on the firm foundations of these three divisions. Integrating Russian aircraft manufacturers is quite a complicated process even if we for a moment limit it to asset management only. It is rather difficult to merge all of these assets. But what is even more difficult is the process of putting together the teams of the managers who will lead those enterprises. It is quite a matter in itself. And it needs to be carefully addressed.

Please tell us about your plans to rationalize UAC’s workforce. Have you started this process?

Yes, we have started. And as of this time UAC member enterprises employ about 100,000 people.

Our target is to have some fifty thousand people by 2025. This means almost twice the reduction.

With that, the volume of sales should rise approximately five times. The key issue here is to increase the usage of our workforce. In plain words, one person should produce as much as ten times more than now. That commands a considerable increase in productivity.

How will you achieve such a huge rise?

All of our new aircraft models are designed using computer aided technologies. First of all, we master new technologies of aircraft design and development. This shall enable us to make effective use of brand-new, highly effective manufacturing equipment that is also based on digital technologies. We have already started a massive program for renovation of our manufacturing sites. Highoutput production tools are being purchased in increasing numbers. But this sort of equipment gives the highest effect only when modern digital technologies are used at all stages. In all areas of our activities (combat aircraft, freighters and passenger jets) we have “lead projects” that make intensive use of the most advanced technologies. In the case of combat aviation such as project is, surely, the PAK

Superjet 100 escorted by Su-35 and Su-30MKI FA. The Multirole Transport Aircraft (MTA) plays a similar role in the sphere of transport aviation. Major programs in the passenger aviation are the Superjet 100 and MS-21. We master new technologies and try new organizing structure while carrying out these projects.

It is exactly those cutting-edge technologies mentioned before, using which we aim to reach that ten-fold rise in productivity. Besides, we are implementing so called LEAN technologies, along with all sorts of other saving technologies. These should also help us increase productivity.

Are there potentially social problems that may arise from shrinking the workforce? Can it happen that some plants will close down?

We are not planning to close down any of our plants, but specializing a particular enterprise is something that is really necessary. Specialization of the plants means narrow focusing on certain type of production: making particular components or particular subassemblies, materials machining, etc. We are also using outsourcing mechanism by taking a particular working operation and placing it with another company which is a narrow specialist in the given area. In some cases particular work will go outside of the United Aircraft Corporation’s structure to a particular specialist.

What is the current situation with the Sukhoi Superjet 100 program? When can we expect its entry into service?

We are planning deliveries to airline customers to commence in February-March 2011. The Superjet goes through its paces.

On November 4, 2010, the first serial aircraft Sukhoi Superjet-100 performed its maiden flight. In December 2010 the SSJ began route proving tests, entering the final stage of its certification campaign.

After having received its experimental airworthiness certificate from AR IAC, the aircraft has successfully conducted 14 flights on domestic Aeroflot airline routes.

Obviously, this project suffered some delays to the delivery timetable announced by Sukhoi Civil Aircraft in December 2005, when Aeroflot placed its order. What shall be blamed for this?

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An-124 Ruslan escorted by Sukhoi fighters It is true that first deliveries slipped, but we have been working closely with airline customers. We continue talking to them on a regular basis and manage to find mutual understanding. Besides, the crisis helped us a little bit. Many airlines had drops in their passenger numbers. So they thought they do not actually need that many new aircraft immediately. Major problem was to get certification for the Powerjet SaM146 engine powering the Superjet.

The SaM146 is a brand-new type of commercial aeroengine; and our engine makers believed they can do better than they actually could. Finally, the engine won EASA certification in June 2010. Although somewhat late, it was a big achievement. That enables us, the aircraft makers, to complete our part of the work on the certification. When I was speaking about the terms of deliveries, I was quite sure in that, because of the progress we have recently had with the engine makers. One point to notice is that in our history we have never had such a close cooperation between the Russian engine makers and the foreign engine makers. The SaM146 is a particular project that actually does that sort of close cooperation.

Anyway, all these issues mentioned above have produced an effect on the SSJ100 schedule. Developing the MS-21, we chose another way. There will be two types of engines, so there is always a choice of engine supplier. The first type is from Pratt&Whitney, a PurePower derivate. The second option is a Russian engine, the PD-14 from Russia’s United Engine Corporation. We will be doing certification of the aircraft judging by the state of readiness with each of those engine types. The engines were selected by means of an international tender. Pratt&Whitney came first in that competition. Besides, the Russian Government program for development of Russian civil aviation provides for the development of this particular engine, the PD-14. Pratt&Whitney knows that the PD-14 is being developed; our agreement with Pratt&Whitney is that a certain amount of sales of the MS-21 aircraft will come with PW engines.

Please explain to our readers your sales strategy for the MS-21.

What’s new on that project?

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At the Farnborough 2010 Air Show the aviation public was provided with an opportunity to inspect a cabin mockup of the MS-21. It gave the show visitors some understanding of what this aircraft is going to be. We are working hard on that program.

A critical design review has been passed. Now we are proceeding with preparation of documentation for production. In 2010 we completed selection of vendors and we can say that the aircraft is pretty much defined in terms of onboard systems. This fact enables us to shift from general talks with airlines about the aircraft to offering a defined product to them. We already have some interest expressed in our new aircraft from domestic and international carriers, including those from Europe, Asia and even North America. Some airlines from these geographic areas participated in the process of shaping MS-21 as part of its definition. According to our business plan, two thirds of the MS-21 sales shall be outside of Russia.

In economic terms, how will the MS – 21 compare against new versions of the Boeing 737 or the Airbus A320 assuming they get new engines?

As of this time, neither Airbus nor Boeing have made their choice on re-engining their narrow body jetliners. Therefore it is not possible for us to be correct in evaluation of our aircraft against theirs. Although it is difficult to draw a comparison, I believe our aircraft shall be better because it is a brand-new design. The whole aircraft, including its systems, is shaped with optimization to the parameters of the new engines. Although we cannot precisely measure our advantage right now, we are pretty sure the MS21 will fare better.

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Is anything happening with Ilyushin-112 and Ilyushin-476?

Yes, there is something happening. We have completed preparation of manufacturing documentation for the Il-112. Production line at Voronezhbased VASO plant is being outfitted. Tooling is being purchased, made and installed. We are planning to complete the first operable prototype next year.

By the way, the Il-112 was developed from scratch on computer screens, using CAD/CAM technologies. Until recently, VASO has been loaded to capacity with setting up a production line for the An-148 aircraft and streamlining it. Starting from 2010, the plant has been making real progress with installation of production tooling for the Il-112.

The Ilyushin-476 will be produced by the Aviastar-SP plant in Ulianovsk. First operable prototype is taking shape. Subassemblies, sections of fuselage and wing are being manufactured. Maiden flight is set for 2011. Since this aircraft is a further evolution of the baseline model, the Ilyushin- 76, we do not expect flight tests to take a long time. Deliveries should start in 2012. Negotiations with potential customers are ongoing, both inside and outside Russia. Much depends on the Russia’s Armament Procurement Program.

Do you expect smaller freight companies place orders for this newer version of the Il-76?

Surely, we are counting on commercial airlines since the new version of the popular Ilyushin quad

is equipped with better engines and advanced avionics. The new version complies with the ICAO Chapter 4 noise requirements and other strictest ecological standards. So, the Il-476 will be allowed to enter European airspace and land at European airports without restrictions. The airlines can do their business using this aircraft for cargo transportation. A handful of Il-76s with PS-90 engines are already in service with Volga-Dnepr and other freight specialists. These aircraft have no restrictions for flights into European airspace.

The An-148 is now in airline service, and the first operable An158 was on display at Farnborough 2010. Does everything go well?

The An-148 production is ramping up at VASO. We delivered two airframes in 2009 and added five in 2010. We will deliver more in 2011, and then gradually rise annual production to 24 aircraft. We believe that is a sufficient number to meet the demand. As per the An-158, it is a stretched version of the baseline An-148. Its production is being set up in Ukraine. The Ukrainians have their own manufacturing capacities to produce the An-158 locally. There is a plan to gradually increase production of that type to 12 airframes a year. If we sum up figures for the whole aircraft family, the combined production output will amount to 36 units per year. That’s OK for our current estimation of the market demand. If it proves different, then we will address the issue again and adjust production rates. Production of the An-148/158 aircraft family has been developing in close industrial cooperation between enterprises of Russia and Ukraine. There is a unitary system for component manufacturing. When shaping the industrial model for this project, we have been trying to specialize each enterprise on certain type of production to achieve a higher manufacturing efficiency.

Pilots and high ranking members of the Russian delegation at Aero India 2009

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Aerocomposite spreads its carbon wings Pavel Nakhodkin The Aerocomposite center, which has been set up with the participation of United Aircraft Corporation (UAC) and the Sukhoi Company, is launching a project to manufacture composite parts for Russia’s future passenger airliners.

Composites are seen as a key to increasing the global competitiveness of the country’s aviation industry. Aerocomposite is planning to open one production facility for composite wings and wingboxes in the Ulyanovsk Region, while another is to be established in Kazan for high-lift devices.

The history of Russian composites Until recently, the use of composites in Russian commercial aircraft was quite limited. In the Tupolev Tu-204 medium-range airliner, manufactured by the Ilyanovsk-based Aviastar-SP, composite parts amounted to just 14 percent of the airframe’s structural weight.

The aircraft has composite high-lift devices – flaps, ailerons, spoilers – along with composite elevators, the rudder, access doors, floor panels and interior panels. Composites are being increasingly used in new Russian regional airliner designs. Composite parts account for some 12 percent of empty weight in the Antonov An-148-100V airliner, pro-

duced by the Voronezh- based VASO plant. Almost all materials used in this aircraft are of Russian origin. Its spoilers, ailerons and flaps are made of carbon fiber.

The radome, wing-to-body fairings, landing gear bays, and parts of the engine nacelles are made of fiberglass. The An-148’s elevator and rudder are of integral structural design and are autoclaved in one piece, complete with the primary structure.

Russia’s all-new Sukhoi Superjet-100 regional aircraft, designed by Sukhoi Civil Aircraft and produced at Komsomolsk-on-Amur’s KnAAPO factory, also makes extensive use of composites. It has composite flaps, ailerons, spoilers, rudder and elevators, wingto-body fairings, interior components, radome and various panels and access doors. All these parts are also manufactured at VASO. The SSJ-100’s nacelles,

Composites share in the combat and commercial aircraft design

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which are manufactured by the French company Aircelle, also are partially composite. The share of composite parts may grow in the future as new SSJ-100 versions evolve.

VASO has set up a dedicated composites facility that unites the factory’s previously unrelated divisions: the composites shop and the unit-level assembly shop. The new facility also includes its own engineering department for a fully autonomous production cycle. The production facilities are being modernized: VASO has purchased a prepreg cutting machine and laser projectors. Next to be installed is a third multi-axis machining center.

All this serves to demonstrate that until now, the enterprises in Voronezh, Kazan and Ulyanovsk have only been competent enough to manufacture light- and medium-loaded secondary structures for passenger aircraft, such as panels, high-lift devices, fairings, radomes, etc. As composites become more durable and their heat resistance increases, they will eventually become suitable for heavy loaded primary structures – including the wing and the empennage.

Aerocomposite’s new technologies The Irkut MS-21 midsize airliner, and the next variant of the SSJ-100, are to become the first Russian passenger aircraft to incorporate a high percentage of composite structures – up to 35-40 percent by weight. This percentage will be achieved through the use of composites in the wing, wingbox, tailplane, rudder and horizontal stabilizer to optimize the wing structure, reducing first of all the assembly’s labor intensity – thus cutting the production costs through the creation of integral structures. Instead of individual parts, the assembly shop will receive ready-made assembly units. Aerocomposite’s work in this field is fairly innovative for Russia.

Up to 35-40% of the MS-21 structural weight will be composites Aerocomposite plans to use a whole new approach in developing composite wings for the MS-21 and other anticipated aircraft types.

“UAC is embracing new technology: as part of the MS-21 program, we are working to create a carbon fiber wing that could also be used in all subsequent commercial aircraft of the UAC model range,” UAC President Alexey Fedorov explained. “Apart from the MS-21, we will put carbon wings on the future SSJ-100-based regional aircraft, and also on the short- to medium-range widebody airliners with seating capacities of 200 to 300 passengers. This is an across-the-board proj-

Composites application structure

by Industries In absolute Volume Total volume 8.2 million ton Wind power 3% Transport (including automobiles) 28%

Composites application structure

by Industries In Value Terms Total Value 58 billion Euro ($82 Billion)

Aviation 4% Ships 6% Tubes and reservoirs 7%

Transport (including automobiles) 24%

Wind power 6% Aviation 21%

Construction 18% Ships 5%

Construction 27%

Consumer Goods 9% Electrical Engineering and Electronics 16%

Electrical Engineering and Electronics 10%

Consumer Goods 10%

Tubes and reservoirs 3%

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by Premium Aerotec ect that will not be restricted to the MS-21 program, but also will serve all of our future commercial aircraft. I do not rule out that carbon fiber wing parts will also be used in military transport aircraft, in particular in the MTA airlifter that we now are launching jointly with India.”

Composites in global aviation The global aircraft industry makes extensive use of production processes for composite structures, which considerably improve an aircraft’s operational parameters. Experience shows that using carbon fiber composites is one of the most effective ways to reduce the weight of an airframe. This is why the amount of composites in modern aircraft is steadily growing.

The Boeing 777, developed in the first half of the 1990s, had only nine percent of its overall weight made in composites. Essentially, the only composite parts in this jetliner are its floor panels and the rudder. In the Airbus A380, the share of GLARE (GLAss-REinforced fiber metal laminate) structures amounts to some 25 percent by weight. The aircraft has composites that are used in the wing, wingbox, empennage and doors. In the allnew widebody Boeing 787, which first flew in December 2009, composites account for 50 percent of the structural weight. They will be used in similar, or more extensive, applications in Airbus’ new A350 XWB.

Computer view of a future plant on composite parts production 34 aircraft INDUSTRY Aero India SPECIAL

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Aerocomposite is turning into a testing ground for the development and production entry of new composite technologies. Until now, production of quality composite parts has mainly relied on autoclave curing, in which prepregs are subjected to heat and pressure in an autoclave to achieve the required shape and strength. This technology evolved back in the 1970s, but it is still widely used by UAC, Boeing and Airbus alike. However, as new, larger and more complex integral structures get developed, they are becoming increasingly difficult to cure in an autoclave.

This is why Aerocomposite – in an effort to increase the producibility and reduce the number of auxiliary processes – plans to abandon the costand labor-intensive autoclaving technique in favor of low-cost out-of-autoclave molding technology.

The industry is only beginning to adopt such processes. Their advantage is elimination of the need for huge and expensive autoclaves, as structures are assembled from dry materials and then subjected to vacuum and pressure treatment, with the introduction of a resin. The structure is then cured in an oven, or with an electrically heated form.

The process, therefore, contributes to significantly reducing the costs of tooling. There also are non-autoclaving processes in which the structure is pressed into a mold along with a resin.

The initial drawback of non-autoclaving methods was the resulting structures’ inferior strength when compared with autoclave curing. But as technology improves and the characteristics of resins become ever better, the strength of non-autoclaved composite parts is considered increasingly equal to those produced in an autoclave.

Carbon wings from Ulyanovsk In 2009, Aerocomposite began its search for a location to be used in the production of composite wings and wingboxes. Following a thorough consideration it was eventually decided to create a purpose-built production facility for this task. In late 2009, AviastarSP’s Block 1В was selected as the preferred location. Aerocomposite plans to commission Aviastar-SP’s Block 1В no later than 2014.

Aerocomposite On 30 December 2008, the UAC Board of Directors approved the corporation’s participation in setting up the Aerocomposite composites center. UAC contributed 48 percent to the center’s registered capital of 26 million rubles ($900,000 at December 2008 exchange rate). The rest came from co-founders: the Sukhoi company (26 percent) and Progresstech Group (26 percent). The center’s head office is in Moscow. Throughout 2010, the center will perform design functions. The enterprise is being financed by means of direct contracts with customers. Aerocomposite’s annual revenue should reach 1-2 billion rubles ($35-70 million) by 2013; as composite parts begin to be shipped to customers from 2014, the revenue is expected to reach 4-6 billion rubles ($140-200 million) annually.

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An-148 under pressure testing (to check for air leaks).

Airframe's yellow-green elements are from aluminium, grey are composites

Ilyushin’s experiment In fact, Russian airframers did experiment with larger composite structures at various points in time.

The Ilyushin Aviation Complex designed an allcomposite fuselage for its Il-114 turboprop airliner.

The prototype fuselage was filament wound at the Khotkovo, Moscow Region-based Central Research Institute for Special Machinery (TsNIISM). This experiment was suspended, however, as it was impossible at the time to accurately assess and validate the service life of such a structure. UAC and TsNIISM are now working together to improve the relevant technology and competence.

Production of composite parts for Il-96 at VASO

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Simultaneously, Aerocomposite has started work to set up a second dedicated enterprise for the production of composite high-lift devices. Several venues have been considered and the final choice was made in favor of KAPO. After the locations for both facilities had been identified, Russian design institutes were invited to come up with reconstruction plans for the AviastarSP and KAPO composite production shops. A relevant tender was announced in late June 2010. The bidders included the Moscow, Ulyanovsk and Kazan design institutes specializing in aviation plants.

At the same time, a tender was announced among foreign companies for providing engineering services at both facilities. The bidders include BRÖTJE-Automation GmbH, Comau France, ThyssenKrupp Krause GmbH, Diamond Aircraft Industries GmbH, Fischer

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Advanced Composite Components AG, and MAG Industrial Automation Systems.

The final choice of integrators for the Ulyanovsk and Kazan facilities must be made in 2011. The Ulyanovsk facility is planned to be deployed stage by stage. All potential contractors have been tasked to map out production for an annual output of 30, 70 and 100 sets of composite wings, wingboxes and empennage. Investment also will be evolved in steps.

The facility’s actual capacity will depend on customer demand. The launch customer will be Irkut Corporation, developer of the MS-21 airliner. Construction of the Ulyanovsk facility is scheduled to be completed in 2012. Investment in the project will amount to at least $250 million.

MateriaL issUes “Creating a composite wing for future Russian aircraft is a complex task,” Fedorov says. “Most advanced materials must be used in order for a carbon wing to have a true edge over a metal one.

No less crucial is prior experience of design and certification in this area. There are not so many companies in the world capable of designing composite structures and – what is especially important – having them certified to European and American standards.”

This is why, in parallel with the selection of engineering contractors, Aerocomposite is negotiating with international composites suppliers. Aerocomposite already has signed several contracts for composites, including direct agreements with Diamond Aircraft, Cytec and Fisher Composite. The contract with Premium Aerotec was concluded with assistance of Diamond Aircraft. Aerocomposite continues talks with hexcel.

Aerocomposite has been in similar talks with Russian composites suppliers, however so far none of the Russian companies has managed to deliver the material properties required for the MS-21 project. In the meantime, Aerocomposite will receive composite materials only from foreign suppliers.

The center has already begun work on composite structures for the MS-21. In October 2009 it signed a contract with Diamond Aircraft and Fisher Composite for the development of a prototype MS-21 composite wing. Aerocomposite’s current plan calls for building a full-scale MS-21 prototype wing in 2012, but a final decision will be made based on the prototype testing results. Further plans envisage production of the first sets of MS-21 wings, wingboxes and empennage in 2013. These sets will be used in static, fatigue and flight tests of the airframe. First flight of the MS-21 is set for 2014. There will be no interim aluminum-wing prototypes; the aircraft will fly with a carbon wing from the start. Deliveries are to begin in 2016.

SARAS aircraft airframe's composite rear pressure bulk head

Premium Aerotec demonstrates capabilies of textile technologies at ILA-2010 aero inDia sPeciaL aircraft inDUstrY 37

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MS-21: Russia’s leap into the 21’st century Sergey Kakhovsky All illustrations are courtesy of Irkut.

Russia’s MS-21 single-aisle medium-range aircraft has started to receive first orders with deliveries expected in 2016. This program’s commercial success is considered as the basis for a revival of Russia’s civil aircraft manufacturing and the future of the country’s aviation industry for years to come.

Inception Back in 2002, the Russian Aviation and Space Agency announced a tender for a short- to medium-range aircraft to replace the “workhorse” of Russia’s civil aviation: the 164-seat Tupolev Tu-154M. The winner, announced in July 2003, was the MS-21 project proposed by the Yakovlev and Ilyushin design bureaus.

These two were later joined by the Tupolev design bureau. Yakovlev was subsequently bought by Irkut Corporation, which became the MS-21 lead developer.

MS-21 is the Russian designation for the mainline aircraft of the 21st century. The MS-21 program was aimed at creating a family of short- and medium-range narrowbody airliners for the Russian and international MS-21 is the Russian acronym for Mainline airliner of the 21st century.

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commercial aviation markets. Its developers promised a step change in operating efficiency. The main task facing Yakovlev designers and their partners was a 15 percent cut in operating costs against existing equivalents: the Boeing 737NG and the Airbus А320.

To achieve this target, a number of innovative solutions were applied to improve the MS-21’s performance. For one, the share of composites was drastically increased, including an all-composite wing resulting in lower operating empty weight of the aircraft. Improved aerodynamic characteristics – in particular use of a high-speed wing – made it possible

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to increase the aircraft’s cruising speed to above Mach 0.8 (over 870 km/hr).

From the start the aircraft was envisaged as a twin-engined low-wing narrow-body with new generation engines set under the wing. The engine is to have a specific fuel consumption of not more than 0.5 kg/kgf×hr, and fuel efficiency of at least 17 g/pass x km.

The MS-21 was to meet the FAA-25/CS-25 requirements for the airframe; the FAA-33/CS-33 requirements for the powerplant; ICAO Chapter 4 standards for noise; and FAA-34/CS-34 certification for emissions.

The project originally called for three MS-21 models: the MS-21-100, with a seating capacity of 132; the MS-21-200 for 156 passengers; and the MS-21-300 for 174, all in a single-class configuration. It was also planned to build a freighter, the MS-21K, with a payload capacity of 17 t, and the MS-21KP passenger/ cargo combi. The McKinsey & Company consulting firm in 2003 estimated that 300-350 MS-21s could sell in the Russian domestic market.

Under the auspices of uac Meanwhile, November 2006 saw the establishment of United Aircraft Corporation (UAC). The integration of practically all of Russia’s aircraft manufacturing companies made it possible to focus efforts on projects that were of key importance for the country, including the MS-21. Following that – and throughout 2007 – the program was frequently discussed at meetings between UAC executives and the Russian President, Prime Minister and First Deputy Prime Minister. The prospective competitive aircraft, in the capacity range most popular with the market, finally received not only state support but also budget funding.

According to estimates by UAC President Alexey Fedorov, the MS-21 will cost $8 billion to make, $3.5 billion of which should come from the state budget. The rest of these funds UAC and Irkut are planning to raise in loans from private and state banks. Fedorov says full-scale financing of “Russia’s most ambitious civil aviation project” began in 2008.

The MS-21 project was revised in summer 2007 to bring it in line with the latest developments:

the share of composite materials increased to 40 percent of total structural weight, with all-composite wing, wingbox, empennage and some parts of the fuselage.

According to a MS-21 demand forecast released by Roland Berger Strategy Consultants in 2007, the total market for narrowbody aircraft in 2006-2025 would amount to 12,900 units. These would include 4,200 aircraft with a seating capacity of 125 to 150 passengers; 4,000 aircraft with a seating capacity of 150 to 175; and 1,800 aircraft with a 175 to 200-seat passenger capacity. Roland Berger suggested that the Russian aircraft manufacturing industry could claim 10-15 percent of the global market for medium-range narrowbodies. The consultancy drew a diagram showing that a 125to 130-seat airliner with a maximum range of 4,000 km, a 150-seater with a range of 4,500 km, and a 175-180-seater with a range of 5,000 km would each meet 99 percent of demand in their respective capacity segments.

The family will also include a 210-passenger MS-21-400 stretch.

That variant is viewed as a replacement for the Tupolev Tu- 204/-214 family.

These changes to the MS-21 project were made official in July 2007, when the Gate 1 milestone was passed with the approval of the project concept and business plan at a meeting of the UAC commission for civil aviation. Also at that time, the UAC Executive Board officially appointed Irkut as the MS-21 lead contractor. Following Gate 1, Irkut President Oleg Demchenko said that the total number of MS-21 aircraft to be produced might exceed 1,000.

The figure was a good match for the Roland Berger forecast.

From the outset, it was planned that the new aircraft would be developed in close cooperation with foreign suppliers. The main intrigue, of course, surrounded the engine. Following Gate 1, it was decided that the aircraft would have two engine options: airlines would be invited to choose between a foreign-made powerplant and a Russian product. Increasing the seating capacity to 210 passengers required a corresponding increase in engine thrust, from 11-13 tons to 13-15 tons. The Perm-based Aviadvigatel plant proposed a revised PD-14 engine. In 2008, the newly created United Engine Corporation (UEC) identified Aviadvigatel as the lead designer of the MS-21 engine.

Other participants in the PD-14 project were the Rybinsk-based Saturn plant and Ukraine’s Motor Sich and Ivchenko Progress enginehouses. The Russian government has agreed to invest budget funds in the PD-14 development and production: $500 million in 2009-11, and a further $1.2 billion for its certification program through 2016. The funds will be allocated as part of the federal program to develop Russian civil aviation.

Under the program, Aviadvigatel will create a new engine family in the 9-18 ton thrust range. Estimates indicate that the whole PD-14 family will be 10-11 percent more efficient than the CFM56-5B2/5B6

MS-21 specifications Model Seating capacity in single-class layout (32 inch seat pitch) Maximum take-off weight, kg.

Maximum payload, kg Normal commercial payload (in a single-class layout with 32 inch seat pitch), kg Normal commercial range, km.

Cruise speed, km/h

MS-21-200 150 64.320-68.220 18.900 15.000 3.500-5.000

MS-21-300 181 72.420-76.850 22.360 18.100 3.500-5.000 850

MS-21-400 212 80.240-87.320 26.500 21.200 3.500-5.500

Source: Irkut Corporation

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The MS-21 family will enable airlines to optimize their fleets both in terms of passenger capacity and through the availability of several variants for each model and the V2524/2533 engines. Aviadvigatel plans to build a PD-14 demonstrator in 2011.

Foreign participation By approving budget financing for the PD-14 engine, the state made Aviadvigatel the first MS-21 supplier. Irkut intended to identify the second engine supplier, and select other contractors, through an international tender. Before the tender was announced in August 2007, UAC President Fedorov named Pratt & Whitney and Rolls-Royce as possible engine suppliers. Both manufacturers confirmed their intention to take part in the bidding: Rolls-Royce was proposing its RB282 as the prototype of the MS-21’s engine, and Pratt & Whitney was planning to bid with the PW1000G. Later Fedorov also named CFM International among the participants in the tender. As for General Electric, he did not expect its partici-

pation since, according to him, “GE had its hands full with Boeing and Airbus orders”.

In August 2008 the MS-21 program passed Gate 2. December same year, Irkut invited proposals from potential systems suppliers. On 20 August 2009 Irkut had released a list of first-tier suppliers for some of the MS-21 systems. At the same time, the company made public the supplier shortlists for the powerplant, avionics suite, and flight control system. Talks on these three first-tier systems were to continue, with the selection of suppliers to be completed by the end of 2009. The final results of the tender were not announced until December 20, 2009. The MS-21 will be powered by a PW1400G geared turbofan derived from Pratt The MS-21-200 will accommodate 150 passengers in an all-economy configuration, at 32-inch seat pitch

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& Whitney’s PW1000G and its avionics will be supplied jointly by Avionika and Rockwell Collins (Irkut took responsibility for integration). For the flight control system, a joint proposal from Aviapribor and Goodrich AS was accepted.

The drawing of the tender results coincided with the development of the MS-21 preliminary design, which was approved in February 2010.

Gate 3 was therefore successfully passed. Together with the preliminary design, the program’s business plan and cost effectiveness were analyzed, and the projected market and marketing policy assessed. The budget and schedule for the next program phase also were approved.

The MS-21 will be assembled at Irkut’s key production facility, the IAPO Irkutsk Aircraft Production Association, that is preparing to assemble up to 60 aircraft per year. However, the production facility for MS-21 composite wings to be built in Ulyanovsk will have an annual capacity of up to 100 wing sets (see “Aerocompsite spreads carbon wings”).

The MS-21 will be outfitted at the Aviastar-SP plant in Ulyanovsk. According to Irkut President Oleg Demchenko, a mechanism is being developed whereby MS-21s assembled in Irkutsk will be ferried to Ulyanovsk for interior fitting and painting before their delivery to customer. An MRO center for the MS-21 may also be set up in Ulyanovsk, Demchenko said.

Structural design The MS-21 family currently consists of three models, with the following passenger capacities in an alleconomy configuration, at 32-inch seat pitch: • MS-21-200, seating 150, • MS-21-300, seating 181, • MS-21-400, seating 212.

The MS-21 family will enable airlines to optimize their fleets both in terms of passenger capacity and through the availability of several variants for each model, varying in range from basic to extended. For the MS-21-200/-300/-400 basic versions, the range is 3,500 km.; for the MS-21200ER/-300ER, it is 5,000 km; and for the MS-21400ER, the range extends to 5,500 km. Configurations can be changed to accommodate customer requirements at any point in the aircraft’s life cycle. In addition to the main versions, an MS-21200LR variant is being considered, with its range extended by an extra 1,500 km from the ER model. Other possible products include freight and executive/corporate options. To minimize the airlines’ costs, cross-family commonality is envisaged for the powerplant, airframe, cockpit, systems, parts, maintenance processes and methods of operation.

MS-21 suppliers • Powerplant – Pratt & Whitney (USA) or perspective powerplant built by United Aircraft Corporation • Avionics – Avionika (Russia) and Rockwell Collins (USA) • Flight control system – Aviapribor (Russia), Goodrich AS (France) • Landing gear – Gidromash (Russia), Meggitt ABS (USA) is to supply wheels and brakes • Auxiliary power unit – Hamilton Sundstrand (USA) • Electrical system – ECE (France, part of France’s Zodiac Aerospace) and Hamilton Sundstrand (USA) • Interior – C&D (USA, part of France’s Zodiac Aerospace) • Fuel system – Intertechnique (France, part of France’s Zodiac Aerospace) • Oxygen system – Intertechnique (France, part of France’s Zodiac Aerospace) • Gas inerting system – Intertechnique (France, part of France’s Zodiac Aerospace) and Hamilton Sundstrand (USA) • Fire protection system – Kidde Aerospace & Defense, a Hamilton Sundstrand company (USA) • Hydraulic system – Eaton (USA), • Wing anti-ice system – Hamilton Sundstrand (USA) The baseline family member is the MS-21-200. The MS-21300 will have a stretched fuselage, whereas its wing and engine will be the same. The MS-21-400 model, apart from being a stretch, will have a greater wing area and higher engine thrust.

It is planned that the first model to go into production will be the MS-21-200. Its maiden flight is scheduled for 2014, with entry into service in 2016.

All three MS-21 models will have a fuselage averaged diameter of 4,090 mm, which is 200 mm more than the Boeing 737NG and 120 mm more than the Airbus А320 family. The MS-21-300 fuselage will have two additional plugs, measuring 3,420 and 2,160 mm in length. The MS-21-400 will incorporate two 5,500 mm plugs added to the MS-21-200 baseline fuselage.

The MS-21 is to achieve a 12-15 percent reduction in direct operating costs compared with the best existing equivalents Aero India SPECIAL aircraft INDUSTRY 41

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The MS-21’s avionics will be supplied jointly

by Avionika and Rockwell Collins

PW1400G engine The choice of Pratt & Whitney as the MS-21’s engine supplier was anticipated. The company began developing its PW8000 new-generation engine back in 1998. At the first stage, the program envisaged an upgrade of the PW6000 model, with a replaced fan section and a gearing system. That work was conducted jointly with the German company MTU Aero Engines.

After the first phase of rig tests, the engine was further tested on an Airbus A340-600: the first flight took place in October 2008 from Airbus’ Toulouse, France headquarters airport. On the strength of these flight tests, Pratt & Whitney announced that the PW1000G’s fuel consumption was 12-14 percent lower than that of its existing equivalents. Not long before the MS-21 tender, Pratt & Whitney’s PW1000G engine was selected to power Japan’s Mitsubishi Regional Jet (the PW1215G/1217G version) and the Bombardier CSeries (the PW1521G/1524G version).

For the MS-21, the PW1000G engine had to be further enhanced, bringing its thrust from the 10 tons required for the CSeries and the MRJ up to a higher output of 14 tons. Yet the associated risks for the MS-21 program were lower than they would have been had a completely new egine design been selected. The 14-ton PW1400G engine will be based on the geared turbofan (GTF) technology. A gear system separates the engine fan from the low-pressure compressor and turbine, enabling the fan to rotate slower, while the low-pressure compressor and turbine operate at a high speed, delivering lower fuel consumption and noise and reducing maintenance costs. Gear systems were used in engine manufacturing before, but Pratt & Whitney claims it has managed to create a compact and reliable design with improved efficiency, making the engine suitable for longrange aircraft. Pratt & Whitney predicts that the PW1400G will be more advanced than the PW1000G, since there is more time available for its development: the CSeries is due to go on sale in 2013; the MRJ, in 2014, whereas the MS-21 will not hit the market until 2016.

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A larger fuselage cross-section for the MS-21 made it possible to increase the level of passenger comfort and to reduce boarding times. A wide aisle at 22.5 in (572 mm) between 18 in-wide (457 mm) seats allows for faster boarding (the А320, for example, has an aisle width of 480 mm). A variant with a narrower aisle (20 in, 508 mm) but wider seats (18.5 in, 470 mm) will also be available. The MS21 also offers larger overhead baggage bins, each designed to accommodate up to four standard suitcases (550×400×200 mm) plus additional small hand luggage.

The MS-21-200 cargo hold accommodates six standard LD3-45W containers. The MS-21-300 can carry eight LD3-45W containers, and the MS-21-400, 12 LD3-45W containers.

The optional fitting of a four-wheel bogie main landing gear enables operations from airfields with less rigid runway pavement.

The MS-21 structure makes a balanced use of aluminum alloys and composites, resulting in a lower weight combined with high reliability and relatively low airframe cost. The aerodynamic characteristics of the airframe have been considerably improved through the use of an allcomposite wing with new-generation supercritical airfoils, which also has a positive effect on fuel consumption.

Two highly reliable fifth-generation turbofan engines ensure fuel savings around 12% in comparison with powerplants of the previous generation. The MS-21 family will be able to meet future environmental requirements. The plane’s cumulative level of environmental noise will have a margin of at least 15 EPNdB on ICAO Chapter 4 requirements. Engine emissions should meet the CAEP 6 ICAO requirements with a margin of 50 percent.

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New technologies in MS-21 Decrease of labour intensity of MS-21 manufacturing is to be achieved by using the following key technologies: • Use of digital design and manufacturing technologies during the entire product life cycle.

• Manufacturing of composite materials by using perspective technologies inter alia high performance cutting and automated laying tools and non-autoclaving methods.

• Use of new generation automated drill and rivets machines and automated assembly line.

• Use of processing units for high speed processing of steel, aluminum, and titanium alloys.

• Mechanical milling of aircraft fuselage skin to ensure its accurate width and high speed mechanical processing of the aircraft skin using machines with adjustable table to cut attachment holes.

• Advanced elastic medium processing of parts by high pressure that does not require finishing work.

• Use of new generation high technological polymer materials, i.e. sealants, bonding, adhesives.

• Mechanization of minor operations including application of sealants and cutting holes inter alia in the constructions made of composite materials.

MS-21 project landmarks • July 2003 – The Russian Aviation and Space Agency identifies Yakovlev’s and Ilyushin’s MS-21 project as the winner in its tender to develop a short- to medium-range passenger airliner. The MS-21 family includes seating capacities for 130, 150 and 180 passengers.

• July 2007 – The first phase (Gate 1) of the MS-21 program is completed. UAC appoints Irkut as the lead contractor.

• August 2008 – The MS-21 conceptual design is approved (Gate 2).

• December 2008 – Irkut announces a tender to select MS-21 systems suppliers.

• August 2009 – Irkut announces the list of first-tier suppliers for some MS-21 systems, and a shortlist of engine, avionics and flight control system suppliers.

• November 2009 – Approval of the preliminary design by the Russian Ministry of Industry and Trade.

• December 2009 – Irkut completes the selection of first-tier suppliers of the MS-21 program’s main systems.

• February 2010 – The MS-21 preliminary design (Gate 3) is considered and approved.

• April 2010 – Irkut signs a contract with Pratt & Whitney for the supply of the PW1400G geared engine for the MS-21.

• December 2010 – MS-21 order portfolio includes 190 aircraft.

The MS-21 will generate 25% less СО2 emissions per passenger seat than other aircraft currently in service.

All the technical innovations applied to the MS-21 make it possible to achieve a 12-15 percent reduction in direct operating costs compared with best existing equivalents.

The MS-21 should be an attractive option both for Russian and foreign airlines based on its maximum economic efficiency, international certification in compliance with requirements of the AR MAK Aviation Register of the Interstate Aviation Committee, EASA, and FAA, together with customized logistics support and maintenance throughout the aircraft’s life cycle.

First contracts Speaking at the St Petersburg Economic Forum in June 2010, Irkut’s President Oleg Demchenko said: “A contract for 50 MS-21 aircraft is planned to be signed by the end of 2010.” For his part, UAC President Alexey Fedorov, speaking at the 2010 ILA air show in Berlin on June 9, said that according to the project’s business plan, about 50-70 MS-21 orders are expected to be in place by the first quarter of 2011. “This is what we need in order to launch the next phase of the project.

If there are more, we shall only be glad,” he said. By the end of 2010 this scenario came true as Irkut started to receive orders for MS-21.

Farnbourough 2010 Air Show saw a real breakthrough of MS-21 program. On July 19, a full-scale MS-21 cabin mock-up was presented to the international public. And in two days, on July 21, during the air show Irkut signed its first firm contract to deliver MS-21 to the Malasian Crecom Burj Resources Ltd (a part of Crecom Holding). According to the agreement the Malaysian company will get 25 MS-21-200 aircraft and 25 MS-21-300 aircraft starting from 2016. The contract value exceeds USD 3 billion.

Additional agreements followed. An agreement of intent was concluded with Ilyushin Finance Co (Russia) on delivery of 28 MS-21s and an option for 22 more aircraft. VEB-leasing (Russia) signed a contract on delivery of 15 MS-21 and an option of 15 more planes. Russian Nord Wind airline also signed up for 3 MS-21 aircraft and an option for 2 more. An undisclosed company signed a contract to acquire 5 MS-21s.

On 17 September 2010 within the framework of the Sochi-2010 investment forum Irkut Corporation and Russian Technologies State Corporation signed an agreement on delivery of 50 MS-21 aircraft in 20162022. This contract followed two-year negotiations between Russian Technologies, Irkut and UAC. In May 2009 UAC and Irkut signed a precontract agreement with Russian Technologies to deliver up to 100 MS-21 aircraft. According to UAC’s Fedorov, Russian Technologies State Corporation will support the MS-21 project since its implementation involves a number of companies of the State Corporation.

All this contributed to the current 190 aircraft MS-21 order portfolio. This figure proves the accuracy of technical and marketing decisions made by Irkut, UAC and other program participants.

With the launch of the MS-21 program, the Russian aviation industry has put everything at stake. If this aircraft fails to become a commercial success, another chance to come up in the commercial aviation world will not present itself for a very long time, if ever. Indeed, if the expectations of the Russian government – which has invested considerable budget funds in the MS-21 project, do not come true, it is unlikely that any other aircraft project will be given preferences of a similar scale.

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An eye in the Indian sky Pavel Nakhodkin In March 2010, an aircraft bearing a huge mushroom radome on its back landed in Mumbai. It was the second Beriev EI airborne early warning and control (AEW&C) system built by Russian and Israeli companies for the Indian Air Force. After the third such aircraft is handed over to the customer, India may choose to place additional orders. The Indian project has helped to advance Moscow’s own modernization efforts, resulting in the A-50U upgrade of the Russian fleet of Beriev A-50 Mainstay aircraft.

Additionally, work has started on a next-generation AEW&C system for the Russian Air Force.

The contract to supply India with three AEW&C systems, based around an Israeli radar and using a Russian aircraft platform, was signed in New Delhi in October 2003. Russia was represented by the state arms exporter Rosoboronexport. Selected as the lead contractors were the Taganrog-based Beriev Aircraft Company, Ilyushin Aviation Complex and Vega Radio Engineering Corporation.

The Israeli contractor was Elta Systems Ltd, a subsidiary of Israel Aerospace Industries (IAI). Thus began the two countries’ second attempt at promoting their joint AEW&C product for export.

Known at Beriev as EI, the aircraft sometimes referred to in the press as A-50E or A-50EI

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The Russian-Israeli project By the early 1990s, the only two countries that continued to produce major AEW&C systems were the US (with its E-3 Sentry AWACS, which first flew in October, 1975) and Russia (with the A-50 Shmel, NATO reporting name Mainstay, which made its maiden flight in December, 1978). Washington supplied Sentries to its primary allies: France, Saudi Arabia and the UK. The type also was deployed with NATO forces in Germany.

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Sweden’s Saab Microwave Systems developed a tactical AEW&C system around its Erieye radar in the 1990s. This system used a Saab 340/2000 turboprop or Brazil’s Embraer ЕМВ-145 regional jet as the airborne platform. The problem with Erieye was that it provided limited performance compared to the U.S. and Russian solutions.

Elta, meanwhile, was working on its own family of AEW&C systems, which had various effective ranges. The company’s prototype EL/M-2075 Phalcon radar, developed in the late 1980s, received high praise from the militaries of Israel and many other countries. Elta originally planned to use the Boeing 707 as the Phalcon platform.

After the NATO AEW&C systems demonstrated their effectiveness in the Gulf and Yugoslav conflicts in the 1990s, a number of countries decided to procure equivalent equipment. China was one of them, but the Tiananmen Square events in April 1998 resulted in the U.S. and Europe imposing an arms embargo on Beijing. China responded by turning for armament to Russia and Israel. It also continued to develop an indigenous AEW&C system under a program launched in the 1960s, but that effort was progressing rather slowly. Russia offered to sell Beijing its A-50 systems. Israel, for its part, promoted Phalcon. The Chinese military eventually opted for the Israeli radar, but a suitable platform remained a problem since the embargo ruled out an American or European aircraft. Elta came up with the solution of using the Russian Ilyushin Il-76 or, more precisely, Beriev’s A-50 variant especially configured for the Shmel AEW&C system. China at that time already operated a fleet of Russian Il-76MD transports, so pilot conversion to the aircraft type would pose no problem.

To implement the program, Russia and Israel signed their first-ever military-technical cooperation agreement at Paris Air Show in June 1997. The signatories were Rosvooruzhenie (Rosoboronexport’s name before November 2000), Beriev, and IAI. The sides agreed to deliver four Plancon-equipped aircraft to China.

Beriev’s internal designation for the project was AI, although the press sometimes referred to the aircraft as A-50I. The manufacturer used a production A-50 (factory no. 86579) for system integration trials. The airframe was stripped of its original Russian equipment and appropriately upgraded to house the Israeli radar. A mission compartment and rest area were set up in the pressurized section of the fuselage. (Interestingly, the Russian Air Force’s production A50s have no rest area.) Beriev installed mission consoles and racks for Phalcon equipment. The resultant AI aircraft could accommodate five main crew, nine relief crew and 10 radar operators.

EL/M-2075 Phalcon The IAI/Elta EL/M-2075 Phalcon (Phased Array L-band Conformal) is a multi-mode pulse-doppler radar capable of detecting and tracking air and surface targets at tactical ranges of 370 to 450 km. Its operating frequencies are between 1280 and 1400 MHz, which corresponds to the 21-23 cm wave bands.

Phalcon uses three to six distributed phased array antennas for 360-degree azimuth coverage. This design provides an operational advantage over the conventional mechanically-steered rotodomes used on the Sentry and Mainstay. Electronic scanning reduces the data refresh time to 2-12 sec., depending on sector priority, against 2040 sec. for the rotodome systems. Phalcon can simultaneously track up to 100 targets and provide weapon pointing information for 1215 of them. Thanks to a relatively low carrier frequency of 1-2 GHz, coupled with high processing speeds and clutter suppression ability, the system can detect slow-flying targets such as helicopters and UAVs, as well as cruise missiles and stealth aircraft. The system can switch between operating modes almost instantaneously.

Each of the six antennas measures 8.87 X 1.73 meters and includes 768 to 864 liquid-cooled, solid-state transmitting and receiving elements. The antennas are electronically scanned in both azimuth and elevation.

The EL/M-2075 is currently in service with three countries. The Israeli Air Force initially installed it on Boeing 707 aircraft. In 2007, it put into operation three Gulfstream G550 jets fitted with the advanced EL/W-2085 Eitam dual-band radar system. Under a 1989 contract between Israel and Chile, the Chilean Air Force in May 1994 received its first operational Phalcon mounted on a Boeing 707 (this aircraft became known as Condor). India, in May 2009, became the third country to have EL/M-2075 radars. The Republic of Singapore Air Force ordered four Gulfstream G550s in 2007, to use them with EL/M-2075 radars. These aircraft are to replace the country’s US-built E-2C Hawkeye AEW&C. A poll conducted by the Federation of American Scientists in 2009 identified EL/M-2075 Phalcon as the world’s best AEW&C system.

The flight crew area actually comprised two decks. The upper deck accommodated the two pilot seats, the flight engineer’s workstation and one spare seat. The lower deck was occupied by the navigator.

Immediately behind the flight deck was the mission compartment with 10 consoles and the rest area, separated from the cargo hold by a soundproof wall. The rest area was outfitted with nine armchairs meant for radar operators or relief crew. The mission compartment and rest area were equipped with separate air conditioning, lighting, communications and intercom systems. There was also a standard aircraft lavatory, which the production A-50 lacked. The rear loading ramp was refurbished, and an emergency hatch installed, to provide bailout capability for the operators.

The airframe was redesigned to accommodate the new equipment. It received a stationary radome measuring 11.5 meters in diameter (compared to the Mainstay rotodome’s 10.8 meter diameter).

The radome weighed 13 tons together with the three Phalcon antennas, which were mounted inside at a 120° angle. The radome rested on reinforced masts.

Apart from the three antennas in the radome, 71 additional antennas were scattered across the airframe. Of these, 44 antennas were part of the Phalcon system. The nose and aft sections of the

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EL/W-2085 Eitam at Farnborough 2008

fuselage and the wingtips were modified to accommodate antennas covered by radio-transparent fairings. Integration of the new equipment required changes to the aircraft’s power supply, air conditioning, oxygen supply, liquid and air cooling, communications and annunciation systems. The aft fuselage section was redesigned, and ventral fins added, to ensure directional static stability.

The AI aircraft first flew from Beriev’s Taganrog airfield on July 28, 1999, with test pilot Gennady Kalyuzhny at the controls. The testing program included 15 test flights and seven training flights. In October 1999, the AI ferried to Israel for Phalcon installation and testing.

But then a scandal broke. The U.S. government demanded that Israel freeze AEW&C deliveries to China. As a result, Israeli Prime Minister Ehud Barak announced in summer 2000 that the Chinese contract was being suspended. He did add that “IAI will be looking for ways to follow through with the deal.” However, one year later Israel’s new Prime Minister, Ariel Sharon, officially notified Chinese President Jiang Zemin that Israel would not be honoring the contract. Washington in 2002 paid Tel Aviv $800 million in compensation for the thwarted deal.

The AI aircraft minus Phalcon system flew to China in 2002. There it was fitted with an indigenous KJ-2000 radar at the Xi’an aircraft factory. The system performed its maiden flight in November 2003.

A production KJ-2000 was first revealed to the general public on October 1, 2009, during the military parade in Beijing to mark the 60th anniversary of Communist rule. According to the Chinese press, the PLA Air Force currently operates four such aircraft, all converted from Il-76MD transports built by Uzbekistan’s TAPO Tashkent Aircraft Production Factory in 1994-96. Further expansion of the KJ-2000 fleet will depend on whether China manages to procure more Il-76s.

Indian Phalcon At around the same time as China, India also started looking at ways to develop a tactical AEW&C capability. The country’s Defence Research and Development Organisation (DRDO) launched work on an indigenous Airborne Surveillance Platform (ASP) in 1987.

The program was led by India’s state corporation Hindustan Aeronautics Limited (HAL). A HAL-748 twin turboprop (the Indian licensed version of the Avro 748/HS748) was selected as the platform. The ASP-

46 aircraft INDUSTRY Aero India SPECIAL

fitted prototype crashed in January 1999, killing all eight crew and test engineers on board and leading to a five-year suspension of further work.

In parallel with the ASP program the Indian military sought to procure foreign AEW&C systems. One of the proposals considered was the Russian A-50, first demonstrated to Admiral Jayant Ganpat Nadkarni, Chief of the Indian Naval Staff, back in 1988.

But the Indian Air Force tender was eventually won

by Phalcon. The Indian pilots felt quite comfortable about the Israeli radar being installed on an Il-76 platform, since the Indian Air Force was already operating 18 Il-76MD transports and seven Il-78MKI aerial tankers.

The Indian Defence Ministry estimated at the time that it needed at least six Phalcons for guaranteed protection of the country’s airspace. The optimal figure was projected at 12 systems: nine in operation and three in reserve.

The contract for India’s first three A-50-based Phalcons was finalized in early 2000. But problems then ensued that delayed the program by three years. In April 2000, the Indian Defence Ministry took one standard EI characteristics Wing span, meters

50.50

Length, meters

46.59

Height, meters

14.80

Max fuselage diameter, meters Wing area, square meters Normal take-off weight, tons

4.80 300.0 190

Powerplant

Four PS-90A-76 turbofans

Thrust, kg.

4 x 16,000

Max cruise speed, km./hr.

800

Operating range, kilometers

7,500

Service ceiling, meters

12,000

new ProJects

Russian Air Force A-50 on a 30-day lease for familiarization and pilot training purposes. The Russian military interpreted this as New Delhi’s readiness to buy the Shmel system instead not Phalcon. The Russian Defense Ministry in effect prohibited domestic companies to work with Elta. Instead, it recommended Rosvooruzhenie to look into the possibility of selling India some of the available A-50s. India rejected the proposal and entered talks with Airbus over the possible use of the A310 as a Phalcon platform.

It was only in june 2001 that a Russian-Israeli working group persuaded the Indian Defence Ministry to sign the A-50 contract. Then the U.S. Department of State intervened in early 2002, demanding that Israel freeze the deal. The reason given was Washington’s concern about an escalation of tension between India and Pakistan. The program was again suspended, until the U.S. eased off in May 2003.

Finally, in October 2003, the Indian Defence Ministry, Rosoboronexport and Elta signed a contract worth some $1.1 billion for three Phalcon-based AEW&C aircraft. Deliveries were to be made in December 2007, September 2008 and April 2009.

The Russian contractors were again Beriev, Ilyushin and vega. The platform, known at Beriev as EI (but referred to in the press as A-50E or A-50EI), differs from the AI variant. It is based on an Il-76TD transport aircraft, rather than a production A-50.

The main difference from the baseline is in the powerplant: the original four D-30KP-2 engines, rated at 12,000 kg. thrust, have been replaced with four all-new Aviadvigatel PS-90A-76 turbofans, with a rated thrust of 14.5 tons and considerable capability for thrust increase. The new engine is fully ICAO compliant for noise and emissions. It offers greater reliability, a longer service life and better economics than the D-30, as well as enhanced operational stability and safety protection. All this improves the aircraft ’s overall performance: its service ceiling increases from 10 km. to 12 km., expanding the radar coverage radius. Its operating range also increases – going from 5,100 lm. to 7,500 km., resulting in greater loiter times without aerial refueling.

Apart from the mission radar, the aircraft carries an ELINT (electronic intelligence-gathering) station, which includes four sets of antennas at the wingtips, in the nose and in the aft fuselage section. At distances of 400-500 km., the station receives, analyzes, and locates radio signals of any polarization types from surface emitters operating in the frequency range of 0.5-40 Ghz. The stations uses interferometer spaced-antenna measurements to determine target bearing. ELINT data are checked against radar data for more accurate target ranging and classification.

The EI is fitted with a vega communications and data relay suite, built around two primary vhF/UhF radios, one hF transceiver and one hF receiver; 10

EI’s “dome” undergoes tests at Beriev facilities The “dome” is installed on EI, serial number KW-3552 (below)

additional vhF/UhF radio stations, a satcom station and two ShF radios; processing hardware and software, and an intercom system.

The IFF (identification friend or foe) system is supplied by Thales.

It interrogates targets by emitting a coded query signal and analyzing the reply. The system is capable of identifying an air or surface target to the tail-number level of detail, and also determines its bearing and range.

In April, june, and july 2005, TAPO delivered three new Il-76TD aircraft (factory/serial numbers 21727/94-02, 21730/94-03 and 21736/94-04, respectively) to Beriev. The first of them was converted to the EI variant by the fall of 2007. After a series of tests, on january 20, 2008, it flew to Israel for radar installation and testing. The Phalcon-equipped aircraft first flew from a Tel Aviv airfield on june 5 of the same year. A series of tests followed, after which the aircraft, bearing the Indian serial number KW-3551, flew to India on May 25, 2009. Three days later it, was formally handed over to the Indian Air Force in a ceremony at Palam Air Base near Delhi.

The second EI, serial number KW-3552, performed its first flight from Taganrog on january 11, 2009. In june, it was ferried to Israel. Nine

aero inDia sPeciaL aircraft inDUstrY 47

new projects

The modernized A-50 for Russia Participation in the AI and EI projects moved Beriev and Vega to radically renovate their production processes. The companies used their newly gained expertise to complete work on an upgrade solution for the Russian Air Force A-50s that had been suspended 10 years earlier. The upgraded variant is known as A-50U. The modernization effort mainly focuses on using contemporary lightweight radar hardware equipment, which substantially reduces the overall system weight. The aircraft can now take more fuel at the same take-off weight, which means an increase in its range and loiter time. Its take-off and landing performance, stability and controllability remain unaffected.

The A-50U system features improved detection and ranging performance for low-flying and low-signature air targets even in extreme countermeasures environments. It can detect helicopters and sea-surface targets. The rear hemisphere coverage performance also is improved on the A-50.

The avionics suite includes a satellite-based positioning system for increased navigation performance. The mission workstations are

updated with multifunction LCD displays; they feature improved ergonomics and data presentation, easy access to instruments and controls, and more efficient annunciation. The A-50U has crew rest areas, utilities, and a galley.

In November 2009, Russian Air Force Commander Lt. Gen. Aleksandr Zelin signed the acceptance test certificate for the A-50 system’s A-50U upgrade modification.

The technical solutions incorporated in the A-50U program will be used for Russia’s prospective AEW&C system. News agencies reported in February 2010 that Beriev was developing such a system. It is expected to surpass both the A-50U and the Indian EI variant, and may be rolled out by the middle of the decade. The new system will most likely be installed on the Il-476 heavy military transport, which will soon enter series production at the Ulyanovsk-based Aviastar-SP plant.

months later, on March 25, 2010, the second Phalcon system was delivered to customer. Beriev is now completing construction of the third aircraft, serial number KW-3553. All three will be stationed at Agra Air Base in the northeastern state of Uttar Pradesh, one of India’s largest air force installations and home to that country’s Il-76MD and Il-78MKI units. Agra has already deployed the AEW&C ground component.

lance systems. Two such aerostats were bought from Lockheed Martin in 2009.

In addition to the EL/M-2075 Phalcon systems, DRDO in 2004 announced the resumption of work on the indigenous Airborne Early Warning and Control System (AEW&CS). The agency invited private companies to join the program, with the Embraer MMB-145 jet selected as the platform. DRDO signed a protocol of intentions with Embraer in early 2005; in July 2008 the two parties signed a $210 million contract for the delivery of three ЕМВ-145 aircraft from 2011. Until now, this aircraft type (in the R-99 variant) has been used as the platform for the Saab Erieye radar. Five such aircraft entered service with the Brazilian Air Force in 2002-03. Four R-99s were supplied to Greece in 2003-05, and Mexico received one in 2004.

Prior to signing the Embraer contract, Indian military sources commented that AEW&CS-equipped

Indian prospects In order to effectively protect India’s borders, control the country’s airspace and prevent terror threats – especially in the wake of the November 2008 attack on Mumbai – the Indian military is seeking to form a single airspace defense system that would unite all radars and other military and civilian hardware under the air force’s command. Studies suggest that the Indian Air Force needs high- and medium-power radars, and also mobile low-power surveillance systems. The high-power class includes the Phalconequipped EI aircraft. Indian radar specialist Rohini has been partially responding to the country’s need for medium-power radars. Experts believe that India also needs to procure tethered aerostat surveilAn upgrade solution for the Russian Air Force A-50s is A-50U

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new projects

Victor Kobzev, Beriev General Director – General Designer ЕМВ-145s could supplement, and even partially supplant, India’s EI fleet. These statements moved some Indian and foreign media to question the feasibility of further EI purchases. However, according to several media sources, the Indian Air Force command has repeatedly stated that the ЕМВ-145 was failing to meet the AEW&CS requirements.

In particular, the U.S. weekly publication Defense News quoted a top-ranking Indian military officer as saying that the Indian Air Force has over the past four years revised its AEW&CS specifications to include a new-generation AESA-based radar and satcom equipment. If implemented, these changes will make the entire system heavier, and the ЕМВ-145 will no longer be suitable as the platform. In the wake of these revelations, DRDO has announced that as soon as the first ЕМВ-145 arrives, it will be fitted with a full-size, full-weight AEW&CS mock-up for a series of test flights.

The results of the flights, to be undertaken in 2012, a final decision will be made on whether the aircraft fits the system specification.

In the meantime, the successful entry into service of the first EI aircraft has prompted India to speed up talks on subsequent purchases. Speaking at the AeroIndia exhibition in February 2009, United Aircraft Corporation President Alexey Fedorov said: “We are positively interested in continuing our mutually beneficial partnership [on the EI program]. If more orders come for these aircraft, we will carry on in the existing cooperation, including with our Israeli partner.” Incidentally, the Beriev Board of Directors in early 2009 issued a reso-

lution on opening a representative office in Israel, apparently in anticipation of new export orders.

Finally, in mid-January 2010, several Indian and Russian media outlets reported that the Indian Air Force had contacted the Russian Federal Service for Military-Technical Cooperation with a request to purchase three EI aircraft, and an option for another six. Russia’s Interfax-AVN news agency quoted a military source as saying that “negotiations have just begun but we believe that Rosoboronexport may sign a contract soon.” In February last year, Beriev’s first Deputy General Designer, Nikolay Lavro, confirmed that talks were underway for the sale of nine more aircraft to India, including three firm orders and six options. “If Rosonoronexport signs a new EI contract with India, we will continue our joint work with Israel,” Lavro said. “The contract would allow for seamless continuation of AEW&C production for India.

The new batch would be installed on Il-476 aircraft.”

EI aircraft at Beriev’s home base in Taganrog

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looking forward with confidence Prepared for publication by Vladimir Karnozov Mikhail Pogosyan, who acts First Vice-President with United Aircraft Corporation, and also holds positions of MiG General Director – General Designer, and Sukhoi General Director, spoke to journalists on few occasions last year. Here are some extracts from his speeches.

Much was expected of Sukhoi’s and MiG’s civil and military programs in the past year. These two most famous Russian aircraft developers and manufacturers provide the base for foundation of United Aircraft Corporation’s business unit on combat aviation. This fact makes it all the more interesting to read and analyse major statements made by the head of this UAC unit.

Speaking on one occasion, Mikhail Pogosyan said the following.

“It is symbolic that the air show in Farnborough saw Kartika Airlines awarding us a large contract for the Sukhoi Superjet 100. We worked long and hard with our Indonesian colleagues

to achieve this. When doing this work, we not only got prepared for contract signing, but also discussed many other issues pertaining to our collaborative efforts.

After the launch customer, Aeroflot – Russian Airlines, the Indonesian carrier becomes second largest buyer of our passenger jetliners. We believe that this will create good perspectives for the Sukhoi Superjet 100 program in the Southeast Asia.

Our joint efforts on keeping the aircraft operational

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Su-35 in Indonesia will help us a great deal in promotion of the aircraft into the global market.

We take a view that this contract is not only important from the viewpoint of sales, but also as giving us strong foundations for establishing and developing cooperative programs with the Indonesian industry on after sales support of these aircraft, their repair and overhaul, other efforts on keeping advanced Sukhoi aircraft in Indonesia in an operational condition.

Let me express hope that, together with our partners who work on this program, including Powerjet, Snecma, NPO Saturn, Thales, Liebherr, other European and US firms, we will deliver our promises made today before our new customer.”

On another occasion, Mikhail Pogosyan addressed the audience with the following message about Sukhoi’s and MiG’s recent achievements.

“I think Sukhoi and MiG both hold very stable positions in the military sphere. Air forces of the forty four nations operate Sukhoi and MiG aircraft. Onefourth of the total export deliveries of tactical fighters is taken by our warplanes. Sukhoi and MiG aircraft account for bigger half of all Russian military exports.

The year of 2009 started another tendency, the process of renovating inventory of the Russian Armed Forces. The Defense Ministry has placed large orders for new aircraft. During 2009, 33 Sukhoi and MiG aircraft were delivered to the local customer and 18 more aircraft underwent modernization. This makes the local market comparable to the export by number of aircraft sold.

Mikhail Pogosyan Aero India SPECIAL aircraft INDUSTRY 51

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FGFA prototype I am convinced that we can keep our hard-won positions in the global market only if we persistently develop our technologies and overall quality of our aircraft. We have been working hard on this, making use of best technical solutions invented by Sukhoi company in the best interests of both Sukhoi and MiG programs. And vice versa: we try to make use of the MiG expertise at aircraft design in the Sukhoi aircraft.

To develop our business further, we must look into the future.

There is no doubt about that. In the sphere of military aviation, the Fifth generation fighter aircraft program reflects our vision of the future warplanes. I believe that MAKS’2011 show visitors will have an opportunity to watch our fifth generation fighter fly.

We commenced flight testing in January 2010. By the time of Farnborough air show opening, the prototype had flown 16 test missions.

In parallel, we continue ground testing of the onboard equipment and airframe static testing.

We make use of the many technologies that we create in frame of the Fifth generation fighter aircraft program, in modernization of fourth generation fighter aircraft. The Su-35 is the latest addition to Sukhoi’s programs on deep modernization of the fourth generation fighters. Deliveries of these aircraft to the Russian Defense ministry are planned to start in 2010. By the time of Farnborough 2010 we had performed a large flight testing program: more than 270 flights, more than 350 flying hours. We demonstrated that the aircraft meets customer’s specification.

The Su-35 features state-of-the-art flight control system and super maneuverability. What we do is we develop further the technologies worked out earlier in frame of the Su-30MKI program. One of the key things that determine high combat worthiness of this airplane is the capabilities of its radar and electronic warfare systems.

The radar detection range for aerial targets is up to 400 km. No existing fourth generation aircraft available anywhere in the world, and even no fifth generation fighters now in service, can match this.

The Su-34 program is being carried out in the interests of the Russian Defense Ministry, with export possibility.

In 2009 we delivered a pair of such aircraft to the customer, and then started work on fulfillment of a followon contract with the Russian Defense Ministry for 32 more Su-34s. These aircraft are assembled at the aviation plant in Novosibirsk. We have been making efforts on boosting production rates at this enterprise. In 2010 four Su-34s shall be delivered, and then we will increase production output to 12-20 airframes annually.

It gives me great pleasure to inform you that the Russian air force has been successful in mastering Workshop of Mikoyan design house

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this new type in service. The Vostok 2010 military exercises carried out by the Russian Armed Forces involved Su-34s. These aircraft demonstrated high effectiveness in fulfilling tasks that were assigned to them.

Touching on MiG programs, I shall mention the following recent developments and achievements. Deliveries of MiG-29 SMT multirole fighters to the Russian Defense Ministry began in 2009. We have also started deliveries of the MiG-29K deck fighters under contract with India. There has been a short but nonetheless successful program of the MiG-29K flight testing on the Admiral Kuznetsov aircraft carrying cruiser.

In early 2010 we signed a follow-on MiG-29K contract with India, firming up option for 29 more aircraft. This provides evidence that the MiG company has restored series production of its products. I believe in good prospects for the MiG-29K program and that of the MiG-35, which participates in the Medium Multirole Combat Aircraft (MMRCA) tender in India.

Besides, we continue working on other military programs, but I cannot speak much about them to the media. I can only say that combining resources of Sukhoi and MiG companies, and offering a wider product range to our customers improves our positions in the market sectors where we have been present for a long time.

Our priority in the sphere of civil aviation is the Sukhoi Superjet 100 program. It has the same level of priority with military aviation programs. The targets that we pursued in 2010 were completion of the certification trials, which would enable deliveries to start. By the time of Farnborough air show, testing of the SaM146 engine had been complete. The engine won EASA certification in the middle of 2010.

I think we have all preconditions for successful completion of the Superjet 100 certification effort.

Promoting the aircraft into the global market is an important task for us. In this connection, the new contracts signed at Farnborough International Airshow 2010, including a fairly large one with Kartika Airlines, boosted our order book. Number of orders has exceeded 130. This is good news for us and our partners on this program. Besides, we have also collected orders for more than 300 combat aircraft. The global market for the Sukhoi Superjet 100 is estimated at more than 800 units in the next twenty years.

Furthermore, we are considering expanding the Superjet family so as to better meet the demand of the global airline industry. We are bullish about perspectives of cooperation with India on the Fifth generation fighter aircraft. All this makes us optimistic about the future. Focus on market requirements and creation of products that meet the market demand, coupled with a high intellectual level of our products, dedication of our designers, engineers and workers, give us firm foundations for further development.”

Su-27SKM

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Russian Weapons sell well Konstantin Makienko Vladimir Karnozov Russia has two best-sellers in the global marketplace: natural resources (oil, gas, timber, metals) and weapons. Aviation takes 50% in Russian weapons export.

While the export of natural resources represents a much larger volume in terms of volumes and amounts, the export of weapons carries strategic importance. It helps the Kremlin build good relations with governments of other countries, and brings these nations into the Russian sphere of commercial relations, cooperation and other key areas. Another important aspect is that such activity helps domestic manufacturers stay in the business and develop critical technologies.

Natural resources and weapons both grew in export volume since Russia emerged as a sovereign country after the Soviet Union’s break-up. And while the worldwide economic crisis has an impact

on arms sales, the overall business volume continues to grow despite the adverse economic environment.

In 2009, Russian arms exports (in executed deliveries) totaled $8.5 billion – which was $150 million above the 2008 level, according to estimations by the Moscow-based Center for Analysis of Strategies and Technologies (CAST). According to Russian government officials, the 2009 order book volume reached $40 billion – up $7 billion up from the 2008 level.

These figures are big, but they fade in comparison with Russia’s oil income. According to official staSu-34

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tistics from the Federal Customs Service, in the first half of 2010, Moscow sold fossil fuels for about 130 billion dollars. Meantime, statistics from the state arms vendor Rosoboronexport say Russia’s weapons trade amounted to 6.46 billion dollars in 2006; it rose to 7.55 billion in 2007 and stabilized at 8.35 – 8.5 billion in 2008 – 2009.

Military export from Russia is centralized. All sales of ready-to-use weapons (not counting some minor items) go through Rosoboronexport, a government-run company responsible for military technical cooperation with foreigners. Separately, 21 different Russian companies (all being original equipment makers or license-holders) have governmental permission to work directly with foreign customers, but their scope of activities is limited to spare parts, repair and overhaul, training and logistics – and none holds the rights to supply weapons systems independently of Rosoboronexport.

Almost three years ago, Rosoboronexport and more than 200 other companies were moved under control of the “Russian Technologies” state corporation – a huge structure established by the Kremlin to control state assets in the Russian military-industrial complex. On the surface, the shift of Rosoboronexport produced little effect. Perhaps the most evident change was that all Rosoboronexport representative offices outside Russia have been “re-branded,” becoming those of the Russian Technologies.

This, however, does not bring much change to the everyday work. Employees continue to focus on sales and interaction with customers and end-users on technical support, modernization and upgrades, spare parts, training of personnel and logistics. The need to “change the façade” was caused by modifications in Russian law following establishment of Russian Technologies, and also was a measure to boost sales of high-tech civilian products abroad (which is one of the tasks set by the Kremlin).

In published statistics, Rosoboronexport states that its 2009 exports amounted to $7.4 billion, which is 10% more than the previous year. For new successes in the field of arms sales, Russian Technologies head Sergei Chemezov (the man who headed Rosoboronexport before receiving his new appointment) was decorated with the Order of Friendship.

He won this decoration in early 2010.

“This is a testimony of the fact that the arms trade developed well so far,” commented Rosoboronexport general director Anatoly Isaikin. “We anticipate that arms trade volume this year will

Year

Sergey Chemezov

not be less than the previous one.” During the 2001-2009 timeframe, the volume of arms sales made through Rosoboronexport rose by 2.4 times, he added. Russia has military trade partners in 70 countries around the world. “Today, we offer not only readyto-use systems, but also technologies, joint production of subcomponents – and sometimes even sell licenses for local production of ready-to-use weapons.”

At a press conference in February last year, Rosoboronexport officials said new contracts signed in 2009 exceed $34 billion, bringing the backlog to $21.5 billion. It is believed that the first figure is for deals signed and already approved by responsible governmental bodies (such as the Federal Agency for Military-Technical Cooperation) and put into force. The second is a total sum for upcoming deliveries of Russian-made weapons, not counting sales of property rights, licenses, documentation etc,.

“These figures make us look to the future with optimism, as the order book promises high workloads for enterprises of the Russian military industrial complex,” Isaikin commented. In addition, he said that in 2009, the sum of newly-signed contracts amounted to $15 billion. “It doesn’t mean that all of this money will actually flow into Russia during the short term…as many contracts span several years.”

In the past two years, the structure of Russian arms sales by types of weapons systems seems to have settled out. Once again, avia-

Table 1. Volumes of deliveries and signed contracts to do with Russia’s military technical cooperation with other countries 2006 2007 2008

2009

Deliveries, billion US dollars

6,46

7,55

8,35

8,5

Contracts, billion US dollars

30

32

33

40

Source: Center for Analysis of Strategies and Technologies

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Anatoly Isaikin

tion is the undisputable leader, representing half of the grand total.

Tactical jet fighters (Sukhoi Su-27/30 Flankers and Mikoyan MiG29 Fulcrums), Mil helicopter gunships (Mi-24/35s) utility rotarywing aircraft (Mi-17s) and Kamov naval helicopters (Ka-28/31s) are the best-selling items. These are widely considered world-class and expected to be in demand during the next 20 years before being superseded by a new generation of systems from the same makers.

The next three hardware types form a second category: items for anti-aircraft defense, land forces and naval applications. These types continue to “compete” against each other for the second and third places in Russian arms exports by the volume of annual sales.

In 2009, equipment for land forces was in second place at 19 percent, and navy-related hardware was third at 13.9 percent, leaving anti-aircraft defenses one step lower at 13.3 percent.

While these numbers provide some perspective on the situation, the reality is more clouded. In 2008, the London-based International Institute for Strategic Studies reported that “in recent years, it has become increasingly difficult to collect and analyze meaningful data on Russia’s Federal Budget, and particularly the finances of Russian national defense, owing to a number of presentational changes.”

Today, these words seem even more meaningful, as governmental financial statistics have only become less understandable. Independent analysts say that, as time goes on, they tend to experience

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more and more difficulty when assessing the flow of information from Russian sources. The regime of secrecy has tended to tighten, while the independent news media – badly hit by the economic slump – has largely lost interest in covering military subjects and have suffered a loss of skilled staff writers. One of the outcomes is the growing number of “undiscovered” arms deals and larger amounts of “unidentified” content in such deals. Equipment for navies and air defense units appears to be most difficult to identify in recent Russian export sales.

This is reflected in the differences between official figures and those from independent analytics, such CAST in Moscow. For instance, CAST’s own calculations found that the share of aviation equipment in new sales represented a 61 percent share (compared to 50 percent in official statistics), army equipment was at 21 percent (government figures place it at 19 percent), naval hardware was rated at 9 percent (compared to 14 percent in official statistics) and air defense at 8 percent (the government’s number is 13 percent). Such differences are expected to grow.

This means that in the future, there probably will be more surprises when it comes to deliveries – which are harder to keep hidden than the content of sales agreements. This also provides evidence that more and more of Russian arms exports go to countries that tend to have less transparency in military affairs – including China, Arabic nations and certain territories in Latin America. It is understood that the role of such customers in Rosoboronexport’s client base is growing.

About 1 percent of Russian arms exports is equipment for special forces, such as non-recoil or noiseless rifles, rapid-fire guns, noiseless pistols, underwater shooting devices, grenade launchers, personal self-protection suites etc. While it is a small business money-wise compared to aviation, the importance of this type of equipment should not be underestimated. There are a number of customers who buy such hardware from Russia, often without publicity. It helps in building commercial ties, as the seller and customer probably would never come together at a negotiating table otherwise.

One factor in drawing this business is the unique technologies created by Russia’s military-industrial complex. Another plus for Russia is its extensive experience gained in counteracting terrorists and stopping nationalist resistance in the North Caucasus, leading to “battle-proven” hardware that is well suited to realistic scenarios of special forces’ needs.

In some cases, the sales of equipment to special forces have led to strong personal relations between seller and buyer – facilitating deals in other areas.

This is particularly true in case of some Arab buyers.

The current head of Rosoboronexport was previously

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Ka-31 responsible for sales of special forces equipment.

Anatoly Isaikin managed to establish good personal relations with certain buyers, thus opening new export perspectives for Rosoboronexport. “This is a relatively small, but a stable business,” Isaikin explained.

“Many of the items we sell are unique; they are being produced in very small quantities. It is always a trade between techniques of series production and needs of special forces. Certain types are under the strictest of controls, imposed to ensure the terrorists never get them.”

The United Nation’s register of conventional weapons can serve as a good source for understanding the structure of Russian arms sales. Effectively, the register is a list of military equipment that every member country fills out under good will terms, along with the desire to promote transparency.

Russia has been cooperative. In its report for 2008, Moscow acknowledged deliveries of 77 main battle tanks (the T-90 MBT series to Algeria and India), 46 armored vehicles (BPM-94 Vystrel and BTR-80 armored personnel carriers to Kazakhstan, Azerbaijan and Algeria) and 12 artillery systems (Smerch multiple rocket launcher systems to India). There were 34 combat aircraft for Algeria, Malaysia and India, Venezuela – including the last in a batch of 24 Su-30MK2V fighters, although this number does not take into account Su-30MKI kits for Hindustan Aeronautics Limited. The figures also included 32 combat helicopters (including Mi-17s to Indonesia), 921 guided missiles, and 138 portable SAM launchers with 624 missiles.

These numbers demonstrate that the United Nations register does provide a good snapshot of what Russian arms export is like these days. On the other hand, there are weaknesses in this data: for example, Russia did not include China in list of recipients for its missiles in 2008, while previous year, the given figure received by the country was 984 missiles.

It also is important to keep in mind that dozens of smaller countries produce Russian weapons. Some of them are in fact continu-

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Ka-52 Alligator ing to develop the Russian (Soviet) school of defense equipment design, manufacturing and after-sales support. Ukraine and Belarus are perhaps the best examples. In addition, Belarus sometimes is used as a vehicle to sell equipment to certain customers that cannot buy directly from Russia – or do not want to.

This applies both to new and used equipment, and can be illustrated by the fact that Belarus exported 33 MiG-23s to Syria (without indentifying exact type of the Flogger, which may lead to some interesting findings in future).

According to ex-president Victor Yushchenko, Ukraine last year signed arms export contracts for $1.5 billion. Since most of the Ukrainian contracts are short term and executed quickly, they add to the grant total of “Russian” arms sales worldwide. In addition, despite 15 years of separation following the Soviet Union’s breakup, Russia still uses a lot of Ukrainian components in its weapons.

This is a Soviet legacy, coming from the fact that Ukraine was home to many design bereaus and manufacturing plants involved in the defense programs of the Soviet Union’s military industrial complex.

“There is no area in our military-industrial complex where Ukrainian components would not be used,” Isaikin commented.

A pro-Russian candidate won presidential elections in the Ukraine last year. Now, with Victor Yanukovich in the high office, ties between the Ukrainian and Russian defense industries are expected to grow even stronger.

In particular, this brings about more hope to the long-going development of Antonov’s An-70, which effectively is the only truly next-generation airlifter currently flying in the Eastern world.

On the wave of warming relations with Kiev, Russian Defense Ministry leaders – including Minister of Defense Anatoly Serdyukov – began to speak about the need to finalize a contract on delivery of 40 An-70s to the Russian air force. If this happens, such a contract may finally get this development project off the ground and open export opportunities for the aircraft.

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Until recently, both the Russian military and Rosoboronexport remained cautious about the An-70’s sales opportunities. But this seems to have changed.

Isaikin told reporters recently: “In the today’s situation, airlifters are in demand all around the world; every air force needs or wants to have an efficient fleet of aircraft. Therefore, the An-70 has good chances in the market, provided its development is completed soon.”

Furthermore, the Russian air force made a positive assessment of Antonov’s idea to create a 15 metric ton airlifter, the An-178, which is based on the An-148 75-seat commercial passenger jetliner – which is in production within Russia (at the VASO plant in Voronezh) and in Ukraine (at Antonov’s plant in Kiev).

Today, the An-148 is most modern Eastern-built airliner, and it is in service with Rossiya – Russian Airlines (operating six An-148-100Bs as of January 2011) and Ukraine’s Aerosvit airlines (two An-148100Bs in service). Russia’s United Aircraft Corporation (UAC) has secured preliminary orders from five Indian airlines. This enabled UAC and Antonov to launch an An-148 type validation campaign with India’s Directorate General of Civil Aviation (DGCA) in May 2010. First deliveries to Indian airlines are planned for 2011.

In addition, two aircraft were contracted by the government of Myanmar in November 2009 for delivery in 2011; the deal is a part of a bigger one also involving delivery of 20 MiG-29 fighters. So, the An148 is on its way of becoming the first Russian-built airliner in the Indian inventory (not counting a hand-

COMBAT AVIATION

Mi-28N Night Hunter ful of Tu-154Ms and Il-62Ms that were operated for a short period of time in late 1980s/early 1990s).

UAC is talking to several Indian companies on the possibility of licensed production – which would start as “screwdriver assembly” and then move to a high degree of “Indianization.”

Should the An-148 become a success story, it may prove a basis for the creation of many specialized military versions, including the An-178, and even serve as the starting point for development of the Indo-Russian Multirole Transport Aircraft (MTA).

Russia also is considering re-starting production of the Il-76 50-ton airlifter as a modernized Il-476 airlifter, as well as the super-heavy Antonov An-124 Ruslan cargo aircraft. The Kremlin has approached China, the U.S., India and certain European nations with the idea to join forces on these programs.

Isaikin confirms this by saying that the Russian air force and undisclosed foreign customers have placed preliminary orders for Il-476.

China is being urged to renegotiate the stalled deal on some 40 Il-76-series aircraft in favor of the more advanced Il-476. India is likely to be offered either Il-476 or An-124 if it initiates a new strategic airlifter tender. Such a tender may be launched if India does not buy the Boeing C-17 Globemaster III under a government-to-government arrangement.

Advanced airlifters add a new dimension to the sales of aviation equipment, which currently are dominated by tactical jetfighters. In the next five years, the evolving Flanker and Fulcrum series of fourth-generation fighters will be succeeded by the FifthGeneration Fighter Aircraft (FGFA).

The FGFA effectively is an exportable version of the Russian air force PAK FA combat aircraft, which has been in flight test since January 2010. Isaikin says that Russia currently has received a proposal to cooperate on joint development of fifth-generation weapons systems from one country – India. The Indian initiative was given a positive reception, and now Russia and India are working together on opportunities for both the FGFA fighter and MTA airlifter, he added.

In the area of anti-aircraft weapons, Russia’s S-400 Triumph draws most interest from overseas customers. “It is a brand-new system being developed for Russia’s Air-Defense Forces. Once the Russian customer’s needs are fulfilled, the system will be available for export,” Isaikin told reporters. “We are in consultations with the Russian Defense Ministry in order to have an understanding of when we can start S-400 deliveries abroad. We are talking to our customers, but deliveries are some time off in the future.”

In the meantime, Russia will continue to sell the previous-generation S-300, which sometimes has become an issue for politicians because of its capabilities. “The S-300 is a defensive system; therefore, it poses no harm offensive to neighboring countries,” Isaikin stated.

However, long-expected deliveries to Iran are unlikely to start until newly-imposed United Nations sanctions are lifted.

This means Russia will have to find another customer for the already-produced systems that now are in storage following the Rus-

Table 2. Share of certain countries in Russian defense export

Share, %

Algeria

India

China

others combined

Syria

Malaysia

Venezuela

Vietnam

Afghanistan

29

25

15

10

8

5

5

3

3

Source: Center for Analysis of Strategies and Technologies

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Il-78MKI air tanker refuels Mirage 2000H fighters sian government’s June decision to join countries upholding sanctions for Iran. It may happen that these systems will find their way to China, which already operates the S-300PMU2 Favorit – the latest in the evolving S-300 series of weapons.

Isaikin also sees a new opportunity for expanding Russian sales with the introduction of a new type of armored vehicle for the army – referred to as the Machine – for the support of tanks in the battlefield. He described it as a highly protected and heavily armed vehicle that can survive threats from mines and anti-tank missiles.

It would interact with main battle tanks to clear the way for mainstay forces in the battlefield, he said.

“Russia has developed prototypes of such a vehicle. The use of such systems will allow a reduction in loses of personnel, and that’s the most important factor for any army.” During recent conflicts in Afghanistan, Iran and Lebanon, “classic” tanks – even the heavily-protected Abrams and Merkava – fell prey to anti-tank systems, and not even necessarily the most advanced missiles available. If the new vehicle finds customers, it will help UralVagonZavod – the largest Russian manufacturer of tanks – to survive the current business crisis that has badly hit this huge enterprise. “UVZ has orders, and talks with foreign customers are ongoing on further contracts for the plant,” Isaikin explained.

Among other weapons worth mentioning as offering export possibilities – including to customers in Asia-Pacific – is the Pantsir S1 short-range missile/gun air defense system. Reportedly, deliveries of this weapon are underway to Syria and the United Arab Emirates.

The export success of Russia’s Project 636 diesel submarines could be repeated with the Project 677 Lada. The lead vessel in this series was commissioned by the Russian Navy in May 2010 after several years of sea trials. As another example, the 300-mm Smerch rocket system is now being offered in a new version on a lighter wheeled chassis that carries four containerized rockets. India is a likely launch customer for this version.

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Also, the Ka-31 radar picket helicopter that already is in service with the Indian navy has won additional orders from this country along with other customers in the region. At Airshow China 2010, Rosoboronexport confirmed that it has sold Ka-31 helicopters to China in a package deal also involving deliveries of Ka-28 ASW rotorcraft using same platform.

In geographic terms, Asia-Pacific continues to serve the main selling point for Rosoboronexport.

By contractual volume, Vietnam was the largest buyer of Russian weapons in 2009. It signed a contract valued at roughly $4 billion for six Project 636M diesel submarines (to be built at Admiralty Shipyards in St. Petersburg) together with infrastructure. This contract is a real breakthrough, since the purchasing nation does not operate submarines today.

Another large sale there was for eight Su-30MK2 multirole aircraft (deliveries to be completed in 2011), in addition to four such aircraft purchased earlier. Hanoi has funded development of the Bastion shore-protection system using Yakhont supersonic missiles (similar to BrahMos PJ-10 co-developed by Russia and India) – with deliveries of these systems to began in 2009. With these deals, Vietnam is now among the largest Russian customers, together with India, China, Algeria, Venezuela and Syria.

Russia will continue to use foreign components in its weapon systems – both for export and internal use. Night vision systems from Thales for use on armored vehicles, along with avionics for aircraft applications already are incorporated in the latest products from Russian manufacturers.

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Russia’s electronics producers are not as advanced as the French in these fields, but they are catching up. “We have started producing thermal imagers – quite good ones, in fact – which is something we could only have dreamed of a few years ago,” Isaikin commented. However, Russia will continue purchasing advanced components and technologies from France and other European nations, as well as develop other means of industrial cooperation and co-development in high-tech areas.

At the same time, Russia has been renegotiating older agreements with other nations on licensed production of Russian weapons. This process is related with the protection of intellectual property rights. Isaikin says that some breakthroughs have been made in this area: for instance, China has been licensed to produce the Kalashnikov assault rifle, which has been in production there for decades without permission from its developer.

Despite this success, China’s share in Russian military export is likely to continue on a downward trend. “The fall of military trade with China is easy to explain: the local military production there develops quickly and well,” according to Isaikin. “In the past, China needed modern weapons systems because its domestic manufacturers could not fulfill the requirements of the Chinese armed forces.

Today, Chinese manufacturers have improved, and they can produce more competitive systems in greater numbers for the Chinese customers.

The share of Russian exports to China has gone down to 18 percent. I anticipate this may decrease further.”

Sukhoi test pilot Sergei Bogdan talks to Venesuelian colleagues

In the foreseeable future weapons sales will continue to serve a major political tool in the Kremlin’s hands as an instrument of keeping its allies interested in their Russian connection.

Meantime, with domestic orders rising, the Russian military industrial complex, once almost totally dependent on foreign sales to keep conventional weapons production going, will increasingly see the Defense ministry of its home country as its major customer.

Russian air force fighters over Project 956 destroyer

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airline customers

AN-148 proves worthy of Airline service The following excerpt is from a report delivered

by Sergey Belov, General Director, State Transport Company Russia (Rossiya) at the conference on initial operational performance of the D-436-powered Antonov An-148 airliner.

Our conference pursues a somewhat unusual goal – to analyze the initial operational performance of a new aircraft type.

It is as yet early to speak about full-scale operation for the An148, but we already can draw certain conclusions based on the results of this aircraft’s initial operation. Our airline’s proposal to hold this conference, made after an internal analysis of the first operational results, was due primarily by our desire to put all parties involved in the loop as early on as possible, and to provide timely feedback on the aircraft’s initial entry into commercial service.

Sergey Belov, General Director, State Transport Company “Russia“ (Rossiya) and Yuri Ostrovsky, First Deputy General Director, Ilyushin Finance Co. 62 aircraft INDUSTRY Aero India SPECIAL

Prepared for publication by Vladimir Karnozov

First off, I would like to say that GTK Rossiya’s choice of the An-148 was by no means accidental.

We first looked at it back in 2004, when Pulkovo [the airline that merged with Rossiya in 2006] was retiring its Tupolev Tu-134 regional fleet. It was at this point that the airline began studying available options in the 60- to 80-seat capacity segment to replace the mainstay fleet; at that time, we were operating Ilyushin Il-86s, Tupolev Tu-154s and Tu-134s.

We were considering the technical characteristics of the Sukhoi Superjet 100, and also of Antonov’s airliners — in fact, we looked at interim aircraft versions that preceded the An-148, such as the An74TK-300, the An-74-68, and certain others.

Our airline thoroughly studied all proposals and opted for the An-148. In 2007, we signed a financial lease agreement with Ilyushin Finance Co. (IFC) for six such airliners. The original schedule called for deliveries to be made in 2008-2009. In reality, we received our first An-148 only in December 2009.

During 2010 we took delivery of four more aircraft.

Although the initial schedule slipped, the delivery of the initial batch of six aircraft has taken place.

It is a clear sign that the An-148 production is now set up and running.

So, now Rossiya operates a fleet of six An-148s and seeks nine more, for which we signed in 2010.

We want to share our initial operating experience with you. Six aircraft already represents a serious fleet, and we are planning to log quite a few flight hours with them. Our airline’s approach is this: the aircraft we buy must pay back our investment in revenue operations; they must justify our costs beginning this year.

It was not an easy job for us to negotiate for a customized aircraft version that would suit us. IFC, Pulkovo, Rossiya and Antonov set up working groups; we held 12 meetings to develop additional specifications and agree on optional equipment. All this work was necessary to get what our airline needed.

We were not paying for a production aircraft in factory configuration; we were buying an air-

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An-148 liner customized to our specifications, one that would meet our expectations as an airline. I am happy to say that in the end – thanks to an active participation of all parties involved – we got what we wanted.

This was followed by the production run and initial delivery. As it was the first production aircraft, we found a number of shortcomings, mainly those on the production side. We didn’t blow them out of proportion, since we knew that the An-148 was a new-generation product for the Voronezh [VASO] plant, and that they had difficulties launching its production in contemporary Russia. But we also knew from our operational experience with VASO’s other product, the Il-86, that the Voronezh plant was a top-class production site.

I would like to note that we were accepting our first An-148 for revenue services, not for operational tests. I think it is a target to be met by everyone present — to aim for delivering an aircraft in such a condition that would allow the airline to begin revenue operations immediately, within 48 hours. Because, you see, leasing payments start at the signing of the acceptance certificate. Although this is a performance conference, I am going to mention a number of economic parameters. After all, we fly to make a profit! And it is the An-148 that we pin our profit hopes on.

Our first An-148 has been used in scheduled service since December 21, 2009. Before the New

Year of 2010, it completed several revenue flights from St Petersburg’s Pulkovo to Moscow’s Sheremetyevo and Domodedovo airports. But it would be correct to say that Rossiya began full-scale An-148 operation only in 2010.

All six aircraft we have now are serviceable. So far we have not been stretching them to the limit but they have accumulated quite some flight hours already. I think that 167 hours a month (a record as of mid-2010) is a good figure for an aircraft that was just entering commercial operation. From December 21, 2009 to May 20, 2010, our An-148 fleet accumulated a total of 915 flight hours and performed 710 landings.

The current limited operation of our An-148 fleet is not related to the aircraft’s performance. It is explained by the fact that Rossiya is short of An-148 type-rated pilots. The training system is not working fast enough in providing us with enough flight crew. Flight crew training today tops our agenda. An analysis of our An-148 fleet’s effectiveness shows that even if each of the aircraft keeps flying less than 250 hours a month they will not provide a profitable payback.

In their operation, the new aircraft are experiencing certain malfunctions, which is only natural. I would like to make a special mention of this. During initial operation of the An-148, we did not find any defects that could ground it.

We cannot but compare the An-148’s performance with that of Rossiya’s other aircraft types. Take the Boeing 737-500, which we use on roughly the same routes. We now have five of this type, aged 17-19 years.

Our hands-on operational experience with Russian- and foreign-made aircraft tells us that it is possible to keep a mixed fleet airworthy, given appropriate maintenance. Now that the An-148 is a new aircraft type of the latest generation, we pay special atten-

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An-148 tion to its operational safety and airworthiness, without sacrificing operational efficiency.

We compared the operating costs for the An-148 and the Boeing 737-500, and concluded that in terms of per-flight costs, the An-148 was unconditionally cheaper to operate. For example, total costs for a round-trip service between St. Petersburg and Samara amount to 26,116 rubles [$840 at current exchange rates] for the An-148, against 48,402 rubles for the Boeing 737-500. For a roundtrip routing between St Petersburg and Moscow’s Domodedovo, it is 24,336 rubles for the An-148 compared to the 737-500’s 30,018 rubles.

Of course, in terms of seat-kilometers the economy will not be that impressive (384 rubles compared to 425 rubles for St. PetersburgSamara, and 358 compared to 263 for Domodedovo). This is because of the An-148’s smaller seating capacity (68 seats on the An-148 vs. 114 seats on the 737). But here, again, we have to look at the passenger load factors. On the routes currently serviced

by Rossiya, the load factors for the An-148 exceed 80 percent. This means that the An-148 is not only in demand today, it is essential to increasing frequencies.

To date, we are operating our new aircraft type on relatively short routes, such as St. Petersburg-Moscow. As the initial operational phase continues, we place the greatest emphasis on ensuring the aircraft’s reliability. The reason why our An-148s fly to Domodedovo, Sheremetyevo and Vnukovo [in the Moscow region] is not because these are the most cost-efficient destinations for Rossiya, but because we have four daily flights, say, to Sheremetyevo, in addition to Aeroflot’s 16. So [in case we have a problem with an An148 at one of the Moscow airports], we can always send a replacement over, or ask Aeroflot to pick up our passengers. The same with Domodedovo: we have nine daily flights there, so we can reach that airport at all times.

We have arrived at the conclusion that the An-148’s highest operational effectiveness begins from 1,200-km-long routes. With a full passenger load, the aircraft has a range of 4,000 km. We are currently forced to use it on the St. Petersburg-Moscow route because we need to closely monitor its airworthiness. In the future, we will start putting the airliner on longer routes in order to increase its operational effectiveness. All the teething problems

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must be rectified to result in a commercial success.

The aircraft has demonstrated a potential for intensive use on Rossiya’s routes. On certain days, some of our An-148s would perform up to three flights. But in order for the aircraft to pay back the leasing payments airworthiness expenses, we must operate each of them between 10 and 12 hours a day. There are aviation specialists in this room who understand that for a short-haul aircraft to accumulate so many flight hours is not an easy task. Logging 12 hours a day is in fact quite a feat, but we must achieve this target.

What are we hoping for? The aircraft is still manufactured in small batches. But we expect the production rate to grow, leading to a decrease in production costs and lower spares prices. And we are interested in cheaper parts: we operate these aircraft on a financial lease, and have further fleet expansion plans.

We also hope that the production ramp-up, and a subsequent increase in the number of An-148s in global operation, will eventually bring the lease payments down. More parts will be produced, and changes will be made to certain processes that will make maintenance easier.

We are now readying the An-148s and their crews for international operations. Back when we negotiated with the manufacturer, we insisted that the aircraft must be equipped for flights to Western Europe.

We are, after all, part of the international community, and we compete against foreign carriers. We have yet to integrate into the European air transport system with our An-148 fleet to fit into the global airport infrastructure. This is why, whether we like it or not, we are preparing the An-148 for international services.

Rossiya’s task is to regain a leading position in the Russian air transport system, including through the increase of frequencies and the use of aircraft with just the right capacity. In this regard, we very

airline customers

much rely on the An-148.

Passengers are satisfied with the aircraft, which is great. Customer satisfaction is indeed paramount.

But we should not forget that an aircraft is a commercial product. Several manufacturers now offer similarly-sized airliners. The An-148 is coming of age in a cut-throat competitive environment.

We all have to face competition. People keep asking me: why don’t you increase revenues by increasing airfares? But how can I raise them if there are five or six other airlines out there, working the same routes and competing with us in the same price niche? It often happens that we are putting an An-148 on a route that is already serviced by our competitors’ Boeing 737s and Airbus A320s, as well as by new regional aircraft types. In essence, we have found our An-148s pitted against the larger Boeing 737s, even in the domestic market. Well, as compared with the 737-500, the Antonov indeed offers lower operating costs on a perflight basis. But we also see the burden our airline carries by operating of this new aircraft type.

For us, there is no question of whether this aircraft is good or bad. Let me put it straight: the An148 is very much a good aircraft. It has proved worthy of airline service. But we, together with the manufacturers, have yet much work to do to improve it and make it into a good commercial product able to unseat the competition.

We have visitors from various airlines, including from foreign carriers, who ask us about our experience operating this type and the labor costs involved. We tell them that the An-148 is a very good aircraft. We do have certain issues, but we seek to resolve them together with the industry.

Alexander Neradko Russian aviation authority favors An-148 “The Antonov-148 may become the most popular jet with the airlines operating in the territory of the Russian Federation”, said Alexander Neradko, head of the Federal Air Transportation Agency (FAVT), the Russian civil aviation authority. Speaking at an An-148 operators’ conference, he said this airplane “was the one we all have been longing to see in revenue service” since it fully meets expectations of Russian airlines to a robust regional jet able to operate from most of the Russian provincial airports. Initial operations with GTK Rossiya – so far the only Russian operator of the type, and those with Aerosvit in the Ukraine, confirmed most of the expectations, but also highlighted certain teething problems with the type. Neradko called for a closer cooperation between Russian industry, airlines and aviation authorities in order to make the An-148 a mature commercial product. “FAVT will support GTK Rossiya, which endevoured to be An-148 first operator in Russia, in every way we can”, Neradko said.

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SHARING EXPERIENCE On the record: Lev Lander, Deputy Chief Engineer at the aircraft maintenance base, and head of the engineering and technical department, GTK Rossiya airline.

Preparations for acceptance and for the initial period of operations of the An-148 jetliner began several years ago.

We settled on a 68/75 seat layout: 60 economy-class seats and eight in business class, with the possibility of quickly converting to a 75-seat all-economy configuration. At the moment, all six aircraft received by our airline are outfitted with the 68/75 arrangement. We chose passenger seats from the Akko firm. This is a Russian company based at Sheremetyevo. In choosing the supplier, we were guided by considerations of quick repairability. However, no need for them to be repaired has yet arisen. In order to serve businessclass passengers, it was decided to locate a second toilet at the front of the passenger cabin, an extra flight attendant’s seat and additional galley equipment. It must be said that our joint work with the developer and manufacturer in terms of defining the concept of the optional equipment and determining its cost caused great difficul-

Lev Lander 66 aircraft INDUSTRY Aero India SPECIAL

Prepared for publication by Vladimir Karnozov

ties. Why was this? Naturally, everyone wants to sell for a slightly higher price, but we wanted to purchase for a slightly lower price. It transpired that the OEM had presented quite a lot of functions as options to be selected by the customer at extra cost, but the prices of those options turned out to be quite high.

Guided by the aim of saving money, we had to make do without many interesting options. We came to an agreement by September 2009 on the main concepts of the optional equipment and its cost. The airline was simultaneously preparing for the first deliveries.

We formed a working group at the demand of the maintenance depot. Headed by the chief engineer, this group included specialists from the departments involved in this aircraft type’s entry into service. The company that built the jetliner was providing relevant technical documentation to us. Great help was provided by Ilyushin Finance Co., which presented us with the An-148 operating manual.

When we embarked upon practical work, it proved difficult to make progress. Primarily it was unusual for us because we decided to operate the aircraft not based on a maintenance schedule but rather by an MRO program. Composing that program was an all-new territory for us, because previously we worked with Soviet aircraft which require a different approach to maintaining airworthiness. Once we received the raw data, we started composing the MRO program. Our colleagues who service foreign-made aircraft like the Boeing 737-500, 767300 and the Airbus A319/320, assisted us. With their experience of working on foreign aircraft types, we created the MRO program for the An-148. It turned out to be entirely appropriate and we are currently using it in practice.

I will talk separately about how the maintenance personnel were trained. A specialized An-148 zone was established at the line maintenance shop. Great care was taken in selecting its staff. But it has to be said that we had some choice. At the time we had just started to intensively retire our Tu-154, Tu-134 and Il-86 aircraft, and technical personnel were being freed up. We made choices of the personnel based on criteria which we had formulated for ourselves, proceeding from the tech-

airline customers

An-148 nical characteristics of the An-148. Subsequently, time showed that this approach in selecting personnel was the correct one. Highly qualified staff started working for the new shop. We have no problems with the skills of the technicians and engineers. The only difficulty was to change the thinking of the shop specialists from the concept of scheduled maintenance to oncondition maintenance. Now, we have overcome this difficulty and are working normally.

The first group was formed with 12 avionics specialists and 12 airframe and engine specialists. Conversion training was carried out at the Antonov personnel training center. I think that the standard of training at the center is acceptable and quite good. The Antonov specialists had enough experience to carry out the training.

We also taught the next group there, consisting of 35 people – 17 airframe and engine specialists, and 18 avionics specialists. Now we have 59 certified specialists on this type. Another group of 22 currently is undergoing conversion training at our St. Petersburg center.

We think that this number will be sufficient to carry out line and light maintenance of our six-aircraft fleet.

While the first group was being trained, the necessary equipment was being purchased. In total, we spent around 40 million rubles from our own budget on acquiring equipment and implementing the first stage of conversion training (the training costs of the very first group were covered by the lease agreement with IFC).

In the future, we will send our personnel to a training center in St. Petersburg, because training works out to be more expensive in Kiev due to the travel expenses.

This is how we approached the acceptance of the first aircraft: on September 25, 2009, Rossiya’s technical commission was summoned to the Voronezh VASO plant to take delivery of the first An-148 aircraft, registration no. RA-61701. The acceptance process took some time. Initially, there was a lack of understanding between the factory and the airline. For our part,

we strictly followed the program which had been prepared beforehand and approved by the chief engineer of the Rossiya maintenance base, which is quite a substantial document. This program is something like an operational register on how to go about the aircraft acceptance process. It includes a walk-around inspection, full fuelling to check for any leaks in the fuel tanks, an engine run-up, testing the deployment and retraction of the landing gear and equipment power-up tests.

Initially we encountered incomprehension from the plant workers, who were expecting that we would work in accordance with their inhouse documents, which were different from ours. But during the work, over the course of the month, we came to understand each other.

We understood what we wanted from the plant, and the plant understood that our demands were fair. Overall, in time we found a common language. When the first aircraft was being accepted, there were 150 issues on which we had different views. But when the third aircraft (registration no. RA-61703) was being accepted, there were only 38 such deviations. I can gladly note that the plant took our remarks into consideration.

Technicians give An-148 a service

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An-148 On November 5, 2009, the RA-61701 aircraft flew to Pulkovo Airport, and on December 21, it began revenue operations. We received the second aircraft on December 30, 2009, and the third on April 16, 2010.

The second and third aircraft started revenue flights far more quickly than the first one. As of May 20, 2010, we have flown 915 hours on these three aircraft, performing 710 landings.

So far our aircraft have mainly been flying the St. Petersburg – Moscow route, which has been having its effect on the regularity of operations. In terms of passenger services, Moscow is the highest priority destination, and several airlines service this route, competing with one another. We have had instances when flights have been delayed, including for technical reasons. We were cleared to return to the base airport on a scheduled flight with an unserviceable APU. But I think this is only the start of the path which we need to continue on.

We need to work with Antonov and the aviation authorities on expanding the MMEL (Manufacturer’s minimum equipment list). We have had issues regarding the functioning of the landing gear retracting and lowering system – on two occasions the landing gear moved more slowly than normal. We carried out an investigation and localized the landing gear fault. There was a post-landing engine shutdown incident while taxiing at Samara’s Kurumoch airport. The cause of this was that the aircraft met a snow flurry head on (probably from a snowdrift next to the runway). After this the engine started normally and since then has been working on the RA-61702 aircraft without a single removal.

In terms of working with industry representatives, they are currently fully represented in Pulkovo. Antonov has two specialists here, VASO has a team of 11 people and Motor Sich has two. There is not much that needs to be said about the Voronezh plant: we have known its team for a long time, we have been working with their personnel for many years, they are the same people who worked with us on the Ilyushin Il-86 aircraft.

In terms of the work of the Motor Sich team, the two specialists sent to us on detachment are very qualified and skilled people.

We would like the engine manufacturer to have a greater inventory of spare parts at their disposal at Pulkovo than they currently have. We sometimes have to obtain some necessary items from

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the plant’s warehouse in Zaporozhie, Ukraine, which is not always acceptable in terms of time. Once we had to ask VASO for urgent help, and at our request they quickly sent a replacement engine starter system from their warehouse, which allowed us to promptly prepare the aircraft for its next flight.

We believe that more rhythmical work would ensue if the Motor Sich representatives had more parts at Pulkovo.

I will say a few words about Antonov’s customer support service. I will stress that they created a good aircraft. Everyone praises it: the pilots, the passengers and the engineers. It is a decent aircraft, but it needs to be supported. I think that the level of Antonov’s support needs to be further improved. During last winter, which was unusually cold, with temperatures keeping at -20 degrees C. and below, pipes in the aircraft's tail froze.

Rapid decisions were taken on this problem, but a service bulletin has yet to be issued. Among positive examples, I can note that we have established a clear system of presenting information: we compose letters and data sheets for technical inquiries. I would like the decisions on these to be taken more quickly.

As regards documentation, it was nice to hear reports that an electronic version of the paperwork is ready.

Moreover, the VASO representatives have a complete set of detailed drawings. They help us in our work. When we need to order a certain part, we look at these drawings and make our order.

Based on Rossiya’s experience, we have carried out a comparative analysis of the labor intensity of maintenance on the An-148 and Boeing 737.

It shows that the An-148 developers still have things to work on. It probably makes sense to reduce the labor intensity of transit checks after every landing, and also of daily checks.

airline customers

It is good that we and Antonov have mutual understanding on the fact that the aircraft should be flying as much as possible, and spend as little time as possible on the ground. We must continue to eradicate the old school of servicing aircraft, and more actively adopt new approaches to ensuring airworthiness.

In conclusion I want to speak about the twelvemonth-long work on this aircraft. I will say again that the An-148 is a good aircraft, everyone likes it. But we should work further on improving its operational support. Airlines are commercial organizations and they need to earn money, to use their fleets for transporting passengers, and spend less time on repairs, maintenance, spares, etc. What should be done here? During the initial stage of the An-148 operation, some teething problems came to light, which need to be eliminated as soon as possible. But this is only possible through our joint efforts. I sincerely ask the industry to help us in this. The industry representatives at Pulkovo need to be supplied with full technical kits whose content should be based on the experience of operating problems. Also, as the launch operator of this type in Russia, our airline would appreciate external financing of spares purchases. And the MMEL needs to be expanded as much as possible, to eventually become as elaborate as those for the Boeing 737 and Airbus A320. monthly Utilization rate: 270 FH The day of 21 December 2010 marked a complete calendar year since the An-148 commenced revenue operations in Russia with GTK Rossiya. This fact and the recent statistics were discussed at a purposely assembled operators conference in Pulkovo airport of St. Petersburg. In the first year of revenue operations, Russian-made An-148s performed 1,875 scheduled flights in the central timetable to 26 destinations, and carried over 90 thousand passengers. By December 2010 an average flight time per airframe had increased up to 270 flight hours. This compares to 150-160 flight hours a month for the RA-61701 when it entered service a year ago. IFC general director Alexander Roubtsov says the main target for 2011 is to increase the monthly utilization rate per airframe up to 330 flight hours. “We are fairly close to the target with the recently made aircraft which have most of the earlier discovered design and manufacturing flaws rectified. We continue working hand in hand with the aircraft developer, manufacturer and GTK Rossiya in order to make the An-148 a mature product able to compete successfully in the global market.”

Aerosvit An-148 at Airshow CHina 2010 Antonov state enterprise exhibited an An-148100B aircraft on static display at the Airshow China 2010. The aircraft, registration UR-NTC, operates

Rossiya opted for Russian-made Akko seats

with Ukraine’s AeroSvit airline. On Airshow China opening day, the crew of Antonov test-pilots Sergei Troshin and Vladimir Mosin executed breath-taking performance by making sharp turns with the bank exceeding 80 degrees, and pitch up to 60 degrees. Russia’s largest aircraft lessor, Ilyushin Finance Company (IFC) is negotiating with four Chinese airlines on a total of 20 passenger jetliners built in Russia and Ukraine, mostly the An-148 family twinjets. A new round of talks and presentations took place during Airshow China 2010. global market for an-148/158/168 The global market for the Antonov An-148 regional jet is estimated at 350-400 units in the next twenty years, Alexander Roubtsov, general director of Ilyushin Finance Company (IFC) said. He clarified that this estimation is made for the airplane’s baseline version An-148-100 and its variants, «A» , «B» and «E». As of today, only An-148-100B is operational, and a few orders have been secured for the “E” variant. Roubtsov further said that IFC and United Aircraft Corporation (UAC) have already received orders and commitments for 180 An-148s. The An-158 aircraft, effectively a stretched version of the An-148, seats 99 passengers in all-economy cabin instead of 75 for the An-148. This aircraft may win 200-250 orders, Roubtsov said. Accordingly, the An-148 and An-158 together can generate 550-650 sales. The whole of the family, which also includes the An-168 or the Antonov Business Jet, the An178 ramp freighter and other mutations of the basic airplane, may pretend for a total of one thousand orders. So far, six An-148-100Bs have been assembled at VASO plant in Voronezh, Russia, and three in Kiev, Ukraine, but one of the Ukrainian airframes has been turned into An158 development prototype.

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customer support

supporting an-148 This presentation was made at the Rossiya-hosted operational performance conference for the Antonov An-148.

The speaker was Valery Ivanov, head of the Antonov Design Bureau’s An-148 client support group.

The Antonov Design Bureau pays close attention to the operation of its products. Our aircraft are used in over 70 countries, and our firm’s specialists endeavor to provide active client support everywhere.

I would like to tell you about An-148 operations in Ukraine.

The first aircraft to be delivered was given manufacturer serial number 01-01 (MSN01-01), and civilian registration UR-NTA. A week after being handed over to the airline for operation, it made its first passenger flight on the Kharkov-Kiev route. It happened the second of June 2009. When a whole year passed, we saw to it that both the maiden flight and the first anniversary were special occasions, making them memorable.

Here are the initial results of An-148 operation: we have established flights throughout Ukraine, flying to various airports. Late last year, service was started to other CIS countries, and then to Western Europe. We are continuing to add new destinations. Until recently, the average sector length was 1 hr. and 20 min.; we now have reached a duration of up to 2.5 hours. In other words, our sectors are increasing. The first routes were one-hour flights (from Kiev to Odessa, Simferopol, or Lvov), so that any faults could be fixed quickly. Now that the problem flow has declined considerably, it’s become possible to expand the network of routes served by An148s, and the sector lengths continue to grow. In May, for example, we started flights to Thessaloniki, Greece.

Prepared for publication by Vladimir Karnozov

Let me note one peculiarity about operating URNTA. Most of its faults had to do with the airframe and avionics. Why the airframe? Because this particular aircraft, MSN01-01, was the first An-148 to undergo intensive use in the process of factory and certification tests. Its design has some peculiarities. Subsequent An-148 aircraft had design changes based on the experience of testing MSN01-01.

It’s worth noting that the An-148 is a new-generation passenger jetliner, created with the use of cutting-edge technologies. It’s full of sophisticated equipment and features modern performance levels. Even the leading Western producers don’t have such an advanced aircraft in this class. On delivery, the first jetliner drew some minor criticisms concerning the overhead bins and paintwork. Some of them were repeated when GTK Rossiya took delivery of the RA-61701 aircraft from the VASO plant. Yet these comments are of a somewhat different nature.

More complaints were received about the airframe.

Tests and operation revealed some design flaws, which we endeavored to eliminate once the An148 was in regular production, and we have made some progress on that: the aircraft delivered to RosAerosvit's newest asset, An-148 registration UR-NTC

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customer support

siya were assembled with the changes we managed to make.

How do we see cooperation between designers and operators? Firstly, we train pilots and cabin crew – over a hundred specialists have undergone training. We train them efficiently, in the understanding that a very important stage of initial operation is under way.

The chief designer at Antonov decided to establish a client support group for the An-148. As group leader, I assisted in putting MSN01-01 into service: providing support to the airline, providing advice and technologies for fixing current faults, including aircraft system failures. My group is a small team that acts as the nucleus of relations between Antonov and airlines operating our aircraft. We endeavor to understand any defects that arise, and resolve them on the spot if possible. If not, we use every available means of communication to bring in the relevant specialist in any given area.

The An-148 has an excellent onboard technical servicing system (OTSS). We receive a great deal of data from it. Problems that would usually be difficult to understand are resolved more easily with the OTSS. Having worked on An-124-100 Ruslan aircraft in the past, I can compare their operations to the An-148, and I can say this much: the fault tracking level is much higher for the An-148 and troubleshooting naturally is faster and more efficient due to its more sophisticated built-in monitoring system.

To be honest, we aren’t up to the Boeing and Airbus level yet, but we are actively working to create a modern client support system. We are establishing an information analysis support center, which is now being equipped with the latest data transfer technology for rapid response operation. Everything will be aimed at creating a system based on ideas expressed by the world’s leading aviation specialists. We shall offer the same kind of support as the world’s leading producers. At this point, it’s still being developed: we have a center, the addresses are known, and we are starting to communicate…receiving information from Rossiya, processing it, and trying to deliver recommendations quickly.

Antonov’s chief objective is to issue design documentation. As the aircraft designer, we undoubtedly are accountable for the aircraft in general. We also seek to influence the pace of supplementary design work, and proper operation. We see our chief task as ensuring that timely corrective action is taken.

We analyze the data presented today by Rossiya and Aerosvit Airlines, doing a great deal of productive work with them, resolving any questions that arise.

Allow me to note the significant decrease in questions arising at Aerosvit since it started operating the An-148. At the start, there were two questions per flight. Now, with the aircraft in serv-

An-148 registration UR-NTA in maiden flight 17 December 2004

Technicians give An-148 a service

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customer support

An-148 ice for a year and a half, the number of questions coming in from the airline has practically dropped to zero: we get one question a week, or none. More questions are coming in from Rossiya than from Aerosvit, since we have already resolved some of them in Ukraine – working out and making changes to the design, technical specifications, software, and various manuals. This has been facilitated by the Ukrainian and Russian aviation authorities.

When setting up the client support group, we put some thought into providing flight safety support under these new conditions.

We made a proposal: use the “technical solution“ document for timely intervention with the aim of taking action on complaints. This document is a simplified version of design documentation. When a “technical solution“ is signed by a design engineer, this isn’t merely the signature of someone delegated to sign it; it’s the signature of the person who has taken in all the pertinent information from his colleagues and endorsed it by his signature. Each document of this kind is revised numerous times and thoroughly considered. Its form is somewhat different from what we have used in the Soviet Union and later in the CIS. It’s a new form, more efficient, and we expedite these documents.

Wing production for An-148

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We also use conventional methods, issuing service bulletins; but we can’t always coordinate everything quickly with those, since it takes time to issue and distribute a bulletin. But a “technical solution“ can be delivered faster, and we have taken advantage of that in providing client support for the An-148.

We have used this approach most actively on aircraft MSN01-01, which is owned by the Antonov Design Bureau. Of course, it helps that we, as the design bureau, have been carrying out the relevant procedures on our own aircraft. If we have a “technical solution“ and a technician crew is on site with the aircraft, then we give them the documentation and go out there and work together, implementing solutions. The only hold-ups involve working techniques.

After that we convene another meeting to report “technical solution“ results, and close them out with service bulletins for additional work required: that is, using the conventional practice of classifying a change and sending out updates.

The only difference is that when “technical solutions“ precede bulletins, what we achieve is preemptive action. The work is done before the formal procedure of making changes to the aircraft’s technical specifications. We are trying to adopt the same approach in working with Rossiya. Based on our experience, I can say that we resolve some problems rapidly by means of timely “technical solutions“.

I have a list of about 35 questions in total, including 11 raised at today’s conference, about faults and criticisms identified in the course of operating the aircraft. Technical documentation has been issued for questions about additional heating of the vacuum toilet waste system (which was required during the cold snap in the winter of 2009-2010), additional latching on the direct vision window, and others. Last winter, when we were trying to urgently resolve the additional heating problem, we came up with a temporary solution — working on aircraft to ensure that they kept flying even on the coldest days. Of course, we later issued relevant service bulletins. The question of the vacuum system heating, and uneven cabin heating has now been resolved; we are about to start making physical changes to the aircraft. We discuss all this in our explanatory notes, letters, and documentation received regularly

by Rossiya.

Antonov isn’t standing still. We are actively working on developing the An-148. We recently received an additional certificate allowing Cat. III landings.

The certificate has been received, and the documentation is being passed on to VASO. So we have the green light to continue developing our aircraft and fly to Cat. III airports. This will require extra

customer support

investment, of course, but it will make operations more efficient.

A further development of the type, the An-158 stretched version seating 99 passengers, made its first flight in April 2010. This aircraft is about to complete certification tests, which we expect in the first quarter of 2011.

What’s new in the An-158? Things that were optional features for the An-148 aircraft delivered to Rossiya, as compared to the initial factory model. The baseline version of the An-158 has the four onboard systems installed on production An-148s to meet the requirements of Rossiya. Push-button overhead baggage bins have been replaced with a new modified design. And that’s only some of the many improvements and upgrades.

It’s been good to hear some general impressions about the new aircraft from pilots, technicians, engineers, and passengers at Rossiya. I’m glad that most of these impressions are positive. Here’s my personal view: I took delivery of the new aircraft from the designer, and participated in taking delivery of the first production aircraft at the end of last year and early this year. I remember my own first impressions and those of the specialists at Rossiya; I remember the red faces of the pilots and flight attendants after the first flight. And our faces were probably just as red. On the whole, however, it was very good to see how well prepared the whole Rossiya team was to meet the new aircraft. After only a week or two of working together, we were talking the same language – we understood what we were studying and how to do it, and the decisions we made.

An-148 This constructive approach, being willing to clarify issues, and assistance from the VASO technicians – all of this helped us through the difficult initial stage of establishing normal operations for a new type of aircraft. We flew here yesterday on one of our own flights, where we had a chance to talk to pilots, flight attendants, and passengers. They said: “The aircraft is a success – we like it.“ It’s a completely new type, of course, and still needs work to let things sink in and establish uninterrupted everyday operation. The Antonov team, our subcontractors and suppliers are continuing to work together on improving our product.

There are now two An-148s in scheduled service with Ukraine’s Aerosvit: UR-NTA was joined by UR-NTC in May 2010. We Ukrainians will endeavor to catch up with our respected colleagues at Rossiya in terms of flights, cycles, and the number of passengers flown. This won’t be easy, of course, given the higher rate of production for this type of aircraft in Russia. Rossiya took delivery of six An-148s by the end of 2010 and signed for nine more such aircraft. We’re satisfied to note that An-148 aircraft are getting a good reception from passengers and airline specialists, and we’re making every effort to live up to their high expectations.

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cUstoMer sUPPort

a PiLOt's PassiOn extracts from the speech made by eugeny ryabinin, antonov test pilot at the initial operational performance conference for the antonov an-148.

One day recently I experienced some very special feelings, because for the first time I was a passenger aboard the An-148 jetliner aircraft, registration UR-NTA, the airplane I had been flying for six years. I paid money to buy a ticket from Kiev to St Petersburg, and I, a test pilot, then flew on “my aircraft“ as a passenger. These were wonderful feelings! There really is a lot that links me to this aircraft.

I remember approving the first line captain of GTK Rossiya – Russian Airlines for commercial operations on the An-148. This brought with it a feeling of responsibility: how will he fly on his own?

We pay a great deal of attention to you, the launch operators.

And now I am very nervous speaking to you. We take everything related to the An-148 to heart; we go through moments which are often out of our control... We have to endure these moments because if we, the participants in the An-148 program – who have worked on it from the very start – do not do this, then basically the project will not survive and will not develop.

For some reason, no economic figures were given today in the speeches by Rossiya representatives: for example, what the fuel consumption is, or what the average speeds are. I would like to give all of you all of these key figures now in the hope that you will find them interesting. We are carrying out an analysis based on the utilization of An-148 aircraft in Ukraine from the very start of their commercial operations on 1 june 2009. We are registering a stable fuel consumption of 1,760 kg. per block hour. This is continuing from month to month, give or take 100 kg. We have performed over 1,000 revenue flights. The average route length is quite short: 1 hr. 20 min. The average cruise speed is 700 km/hr. Let me remind you that the fastest cruise speed for this aircraft type is Mach 0.79.

I shall now discuss the aircraft ’s introduction on international routes. It has been servicing the following cities: Stockholm, vilnius, Riga, Warsaw, Budapest, Sofia, Belgrade, Istanbul, Athens, Rhodes, Thessaloniki, Tbilisi, and Moscow’s vnukovo and

An-148 flight simulator in Kiev 74 aircraft inDUstrY aero inDia sPeciaL

Prepared for publication by Vladimir Karnozov

Eugeny Ryabinin

Sheremetyevo airports. We have already had several SAFA inspections, and there have been no criticisms of the aircraft. I personally had a SAFA inspection in Sofia. Two inspectors came, and they did not have a single item to write up.

Now I want to talk about training of flight personnel. A well-trained pilot is definitely the safest asset. At this stage, we have a flight simulator which has been set up and is working in Kiev. Admittedly it is not a perfection. I agree on this with the previous speakers: they are absolutely right to make this criticism. But unfortunately, this is the only one we have for now. I will try to reassure you somewhat: in February 2011 we are planning to complete installation of a new simulator with wonderful visualization and motion systems corresponding to all the international standards (Level D).

Despite its drawbacks, we use the Kiev simulator in flight crew training. As you know, we have already trained pilots for Aerosvit Airlines and Rossiya. Recently we finished training a second group, a further 17 people. And before this, if my memory serves me correctly, there were two groups of 14 people each.

As the next step, we perform what couldn’t be demonstrated in the simulator: we carry out airfield training instruction which, in my view, is of a very high quality. I think that the pilots that took part in this training were pleased, coming to a complete understanding of the aircraft. And I am sure that based the way they were trained on the An-148 during these airfield sessions, that wouldn’t know Western aircraft types based on what conversion training

customer support

An-148 is offered for Airbus or Boeing aircraft. We provide hands-on demonstrations of procedures that help them understand, get a feel for, and become familiar with this aircraft, and start to love it and respect it.

Tomorrow, we will start training another group of pilots here, with the activity based at Pulkovo.

From our point of view, we wish and hope that the new Rossiya pilots who will start flying the An148 will like the aircraft just as unconditionally as those who are already flying it.

The experience of our operations has shown that passengers like our aircraft very much. There are passengers who always travel on this type, including some frequent flyers. And we receive positive feedback at the end of the flights.

When people – both airline staff and passengers – see our aircraft, they say: “Thank goodness!

Finally, passenger aircraft are appearing under Russia’s Romeo Alpha (RA) national registration code, rather than a Bermudan Victor Papa (VP) registration; and these aircraft were made in Russia!“ Ukrainian passengers travelling on Aerosvit say similar things of the Ukrainian-built An-148s.

I will now talk about the problems which Rossiya specialists have spoken about. In Ukraine, no faults were observed on the UR-NTA aircraft over the entire year of its operation on scheduled services.

There were no engine shutdowns. Also, we did not have any issues with landing gears. The change in the course of squawks on An-148 aircraft in operation in Ukraine can be traced in the chart provided.

This is indeed more a question for the manufacturers of the aircraft and its components. We hope that the issues concerning production will be resolved.

It is slightly frustrating that being Ukrainian citizens we, the Antonov test pilots and instructors, are not allowed to fly in the capacity of flight crew commander in the Russian airspace. We are not

given the change to perform flight training instruction from Pulkovo airport of St. Petersburg. Believe me, many problems which have been spoken about today would not have occurred if a third crew member, an Antonov test pilot, was on board. Before Rossiya started operating An-148s, we addressed the Russian aviation authorities, wrote letters in which we asked and implored them to let pilots from Kiev on board. But unfortunately our requests were not granted.

This is what I wanted to tell you. It is emotional, of course. But you should understand what it means for a test pilot who knows all the procedures, who knows the behavior of the aircraft both in the winter and summer (and we have carried out tests in various climatic conditions) not to be allowed to get involved in training his colleagues just because he has the “wrong“ passport...

Well, thank goodness that Russians themselves have started to fly this new type, and here in Russia your own flight instructors have emerged. I hope that the An-148 will have a long life in the skies over Russia and many other countries.

Antonov flight test base in Gostomel near Kiev Aero India SPECIAL aircraft INDUSTRY 75

partners

BRAHMOS: a STORY of SUCCESS Vladimir Karnozov An interview with Dr. Sivathanu Pillai, Chief Executive Officer and Managing Director of the BrahMos Aerospace joint venture.

Sivathanu Pillai

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The BrahMos joint venture with India and Russia is often cited as a success story. Why has BrahMos become a benchmark in international cooperation?

It was in the early 1990s after the Gulf War when the Indian Ministry of Defence realized the importance of cruise missiles. Indian scientists thought that we, too, needed to have cruise missiles. During the 1991 war in Iraq, a large number of Tomahawk missiles were launched by the U.S. to destroy much of Iraq’s capabilities. Our analysis showed that a first attack with cruise missiles was the main reason why Iraq was not able to deploy most of its military power.

India believed our cruise missiles should be very stealthy, flying at very low altitude and striking with precision. After seeing the whole world in terms of development, we decided to take the long road and go off the beaten path…selecting not a subsonic cruise missile solution, but choosing instead a weapon with supersonic speed.

We think that the key to “future war” is speed.

A supersonic missile needs a highly capable engine to reach the desired speed. This is why we focused on solid propellant technology. India already had experience in solid ramjet technology.

At first, we thought we would go for a solid propellant ramjet to propel the missile to its supersonic speed.

But with solid ramjet has limits in the Mach number that can be attained, whereas a kerosene-based ramjet can reach up to Mach 7. So in future we want to grow.

After understanding this, we were looking for who has the right technology? In India, we are very experienced with guidance systems. We have our own functional navigation systems, along with excellent experience in onboard computers through the Indian Prithvi and Agni ballistic missile programs.

Fortunately, our friends at NPO Mashinostroyenia were working with us as consultants. There was a time when Russia and its companies were in a difficult financial position after the Soviet Union’s break-up. As a result, the roots of our cooperation led to a fruitful arrangement very quickly. Both of us needed each other.

One brought its achievements and funding for R&D, the other technologies for a supersonic engine.

partners

Based on this, it was decided we would develop the supersonic missile in India, making use of Russian propulsion technology. We realized that it would take from five to seven years for the technology transfer – and this is only enough to bring it into the system. So it was going to be a long time. Therefore, we thought it would be better to do things in parallel: work on the propulsion system in an approach that involves the engine directly. If we went shopping for such an engine, we would find many restrictions for its use. This is a highly-guarded technology for any nation. So we found the way to work together in a joint venture configuration. The name for this cooperation was derived from Brahmaputra and Moskva – two big rivers of our respective countries.

This is about how the whole thing started. The missile is now in service.

What was the role of Gerbert Efremov in the BrahMos story?

At that time, he was the Director General at NPO Machinostroyenia. He has done a lot for us. Luckily, he had a clear vision – he could see the future. He was also able to keep the people motivated and positive.

He was good at R&D. This opened the money flow for the company. Also, cooperating with India brought in work for his company. We had many requirements for India’s cruise missile...and we still do. This means more work will be given to Russian specialists. Efremov was perceptive enough to see this potential.

If it was not for Efremov, could BrahMos have happened?

I don’t think it is possible to answer this question, as anyone who is heading a design bureau naturally wants to protect his own people. At that time, there was little opportunity to receive worthwhile funding from the Russian government. Working with India on BrahMos provided an opportunity, and Efremov understood this.

Then you actually employ Russian passport holders?

Yes, they work in my company.

India has had a long history of relations with the Russians.

First, it was the Soviet Union, and then Russia. These relations survived the change from communism to capitalism. Was this change for the better in Indo-Russian relations in your area?

When Perestroika came, I saw a big disturbance in the Soviet Union and then in Russia. Up until 2000, there were many problems: political, economic and social. But after Putin came, things started to change. The whole situation started to stabilize. The Mafia’s influence is less, and I think people now feel safer. Things actually improved in Russia. So I think it is for the best.

Is it easier for you to work with the Russians now? or was it better 15 years ago?

In the early 1990s, there was financial crisis, and the mentality was one of survival. People and companies wanted to survive. Good engineers were prepared to take any job, having been forced to work in such low-paid jobs as drivers. Today the situation is different. Most young people learn English; they can work in IT and other modern technologies. It has come a long way, creating many good jobs. Skilled people are no longer dependant on the military industry to get a good job. So the military industry’s importance has come down, while that of the civil industry has increased. So it is quite different today from that it was 15 years ago.

Increasing the speed for India’s cruise missile is likely to require a larger weapon. Do you think you will need to involve more Russian companies into a BrahMos 2 version?

We are not aiming to make it bigger. Currently, the BrahMos PJ-10 land-launched missile weighs 3 tons. It is quite big actually.

There is a special version to meet the air force requirement. We are adding fins and this version weighs 2.5 tons.

Do you think you can keep the launch weight under three tons, while increasing speed to Mach 5 and then further onto Mach 7?

Gerbert Efremov

Within your joint venture, do you actually employ Russians along with the Indians staff members? How many Russians currently work at BrahMos Aerospace?

Frankly speaking, the number of Russians is not large. Basically, BrahMos Aerospace is an Indian company. Russia’s role is mainly design and development. The Indian responsibilities lie more with design of the ground systems. The complete ground system has to be designed by the Indian side. We needed many people for this, and we run a large unit for such activity. Our Indian staff also is responsible for project management, marketing and exhibitions.

Although the number of Russians is small, more people can come from Russia and stay here in India when required. We have a center in Moscow, and one in Delhi in which they can communicate.

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Russia's Minister for Industry and Trade Victor Khristenko (center) at BrahMos stand

We have reduced the weight to 2.5 tons for installation on aircraft, while the land-launched version weighs 3 tons. Even this is heavy. When considering this missile for use on a Sukhoi fighter, we are thinking of a lower weight. Besides, the shorter a missile, the better it is.

How will the BrahMos joint venture company develop?

It is the first India-based joint venture that handles the design, development, production and marketing of a complete weapon system. We have done well so far. It has been a shining example of cooperation between India and Russia. So far, Russia is very happy with this cooperation. We are also satisfied on the Indian side. So, this company has been very useful.

I think a larger production domain has to be arranged. It also is time to see how our product is being used in service by the armed forces. Knowing customer requirements and working to satisfy customer requirements over the entire lifecycle of a weapon are important for any defense company. That is what we are trying to focus on now.

BrahMos PJ-10 missile launchers

Indian Defense Minister Arackaparambil Kurian Antony and his predecessor, Pranab Mukerjee, have repeatedly said that BrahMos has been an “exemplary case.” Their desire is to use this successful experience and extend it to other projects, including the Multirole Transport Aircraft. What is your advice to other top managers who want to start projects such as the MTA? My first advice is that any joint venture should be under equal partnership. Both sides should bring in their respective competences. If one side is weaker, the other takes all. So, the first thing is to establish the competence. Competence is what matters.

A second important point is the user requirement.

You should know the customer. If a system is to be developed but the customer is not interested, then you are in the position of having to go after him, begging. And that is not a good sign.

Third, you should establish a firm base of competitiveness. And then you will have to globally raise the competitive capabilities.

Is 50/50 participation good for other joint projects?

Equal participation is important.

What would you think the authorities of India and Russia should do to ease assist such endeavors in the future?

If it is a new development, various difficulties will need to be overcome. Difficulties can hamper any development. It is necessary to defeat the difficulty and succeed. For that, you must be able to grow your capabilities to overcome such challenges. In other

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words, your company must be viable. And remember: all of this is a continuous process.

Is the environment right for new joint ventures between Russia and India?

Yes, I think so. Importantly, BrahMos is the first joint venture between Russia and India in the defense sector. We did not have such experience before, and our cultures are different. We do not welcome the problems, but we welcomed friends.

There should be mutual trust between the two sides.

Trust is a major component, along with competence.

Traditionally, we are friends, and this makes it easy to work. If there are secrets, these are not for good friends. Good friends will always find ways how to stay together. We do find ways to work together.

And that’s the strength.

Even though we have BrahMos as a good example, there are very few other joint ventures involving Russia and India. Why is this so?

Yes, it is true that BrahMos is the only successful example. Why there are so few? People are an important element of the formula, and when adding the final element that has been missing, the whole thing turns into a success.

Radar homing head

Do you have any messages for the employees of United Aircraft Corporation and its industrial partners?

In India we are really dependent on Russia. And we have been for a long time. Since 1960s, the Indian Air Force relies on Sukhoi, MiG etc. All of its primary types of military aircraft have had a Russian origin. Our cooperation has been well established in the area of defense. Now, it is a high time we expand our cooperation into the field of civil aircraft. There is a big requirement for modern civil passenger aircraft. Today, no passenger aircraft are produced in India, while Russia produces a number of types. At the same time, HAL and other local companies have amassed a good knowledge in aviation. The local people say “sophistication knowledge.” They can develop good cockpits, computers and composites. So it would be good for us both to join forces. The aircraft industries of Russia and India – beginning in India with Hindustan Aeronautics Limited – can succeed together.

Do you mean HAL can succeed working together with UAC through a joint venture on a 50/50 basis?

Yes. Using a joint venture could be the right step to develop a new aircraft together. We foresee three different aircraft: one would be sized at less than 50 passengers; the second would have a capacity of fewer than 100 passengers; while the third would be for the market requiring seating of less than 200 passengers.

Do you think one joint venture would make all three aircraft types? And is now the time?

Answer to both questions is: “Yes.” The global aircraft industry is in a downturn. We had better start now so that we can develop our aircraft and have it ready to enter the market at a time when the demand will be picking up. We live with cycles; our industry tends to go through seven-year cycles. As a result, I believe we had better do things now before others move into action.

However, some buyers would shy away from Russian-built civil aircraft, even though they may respect Russia’s military equipment?

But everything is in our own hands, and all the capabilities are there. HAL has the support from India’s government. Russian specialists support HAL activities in India. They worked with them before, and they work hand-in-hand with us now. Russia has deep roots in India. The creation of a joint venture between HAL and the Russian civil aircraft industry will help us both do better.

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Malaysian interest

Vladimir Karnozov

At Farnborough International Airshow 2010 (19-25 July) the Malaysian company Crecom Burj Resources Limited placed firm order for fifty MS-21 next-generation narrow body jetliners with deliveries due in 2016-2020. Many of the high-ranking Malaysian government officials and military leaders attended the event.

Minister of defense Dato Seri Dr. Ahmad Zahid Hamidi, and Chief of Defense Forces, General Tan Sri Dato Sri Azizan bin Ariffin were among the honorable guests.

Dr. Ahmad Zahid Hamidi MS-21

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Since mid-1990s, Russia has been a major supplier of advanced military equipment to Malaysia.

The most important sales were those of MiG29 interceptors and Su-30MKI multirole fighters.

Based on the strong footing, the cooperation between our countries is expending into civil field.

At Farnborough International Airshow 2010 Crecom Burj Resources Limited placed firm order for fifty MS-21 next-generation narrow body jetliners. The contract worth $3 billion went to Irkut corporation that previously supplied Sukhoi fighters to Malaysia. Deliveries of the MS-21 jets are due to start in 2016.

On one occasion we happened to get some exclusive moments with high-ranking Malaysian military leaders and asked them some questions about their vision of the current state and future of the Russo-Malaysian cooperation in combat and civil aviation.

We spoke to Minister of defense Dato Seri Dr. Ahmad Zahid Hamidi, and asked him about his

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Su-30MKM impressions from inspection of the MS-21 full scale mockup. Dr. Ahmad Zahid Hamidi replied with the following words: “It is a very impressive mockup. I think the MS-21 is the aircraft of the future. It is certainly a very good passenger jetliner for the airlines. It has a new, very promising Pratt&Whitney engine and a very advanced crew station. Also, the interior design is pleasing. It offers very comfortable conditions for the travelers”.

We were also interested in the Su-30MKM, how the new multirole fighter performs in the Malaysian service and whether it has sufficient support from the manufacturer? “We are satisfied

Malaysian and Russian officials at Farnborough 2010

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Azizan bin Ariffin

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with the aircraft itself, MRO and pilot training”, the minister answered. “We are also satisfied with the transfer of technology as far as the offset program is concerned. At the same time, we are very satisfied with the performance of the Su30MKM, and have no problems with maintenance and logistics support”.

The minister stressed that, on the whole, the Su-30MKM project looks like a good investment for Malaysia. The money was well spent potentialwise. Although the spending was high, the Royal Malaysian air force (RMAF) has notably increased its anti-aircraft defense and aerial strike capabilities with inclusion of the Su-30MKM fighters in its arsenal.

We further asked whether the defense ministry can be interested in buying commercial aircraft for its own needs if the aircraft of such type are in service with local airliners. “Depending on the military specs”, – the minister answered. “We are definitely looking for possibilities to support our operations. Surely, we are talking about some requirements for new aircraft not so much for combat, but for transport missions”. Every country with a potent air force operates special mission aircraft developed on the platforms of commercial jetliners, including VVIP, electronic warfare aircraft etc.

We were also able to speak to Chief of Defense Forces, General Tan Sri Dato Sri Azizan bin Ariffin.

Our first question was: “What did you like most

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in the MS-21 mockup?” Azizan said he was deeply impressed by the large liquid crystal displays in the MS-21 cockpit. “This kind of displays is impressive.

Obviously, the most recent technology has been used in these displays, which is good. The cockpit is highly digitized. The modern technologies make it easier for the pilots to control the aircraft. I am sure the pilots will love this advanced flight deck, since it is indeed a lot more modern as compared to the current generation of jetliners”.

We went on discussing the interior of the MS21 passenger cabin. “This is what private airlines are basically looking for. They want their airplanes to be comfortable, good-looking and spacious”, Azizan commented.

“The warplanes from the Sukhoi company are now in service with the Royal Malaysian air force.

Do you like the Su-30MKM fighters?” Having heard this question, the general cheered up and exclaimed: “Oh yes! It is a very good platform, the Sukhoi aircraft are awesome fighters! We are very happy with it”.

All of the 18 aircraft ordered have been delivered and are now in RMAF squadron service.

The general went on: “Irkut, which manufactured these aircraft, did its job very well. Sukhoi Coporation has also done well. Speaking on behalf of the Air Force, and the Armed Forces of Malaysia, I say: we like our Sukhoi fighters”.

Touching on the developer’s and manufacturer’s support, Azizan said it can be further improved.

“We should be getting a better response. We need a better arrangement – this is what we had been talking about with the Russian companies on the MiG-29 fighters. I have many times spoken to the President of Irkut Corporation Oleg Demchenko and the President of the United Aircraft Corporation Alexey Fedorov on this theme. I have repeatedly told them that we want to help them promote Russian products in our region, and that a better functioning support system is important to support sales in this region”.

We were also interested what is happening to the RMAF MiG-29s. “They are still flying”, the general collaborated. Commenting on the wide spread rumors as though these MiGs would “soon” be withdrawn from service, he said: “Yes, there was much speculation about this, but the aircraft are still flying. They need some upgrades, and the cost of ownership shall be brought down. But we are pretty confident that we can find ways to approach the problems of high cost of the MiG29 maintenance”.

“How shall the Russian makers improve so as to serve your needs better?” This happened to be another question that excited the general, and made him speak emotionally: “I suggest

RMAF pilot Norazlan Aris at his Su-30MKM Aero India SPECIAL aircraft INDUSTRY 83

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MiG-29N

you ask Mr. Fedorov about this. He can give you the best answer on my behalf! I have been talking a lot to him about this. This is the issues that we often discuss with our Russian partners, and we do it regularly.

Running this business today needs a complex approach. In the modern world the issue of customer support has to be different to what we have now. There are some areas where Russia is moving fast, and there are some areas where Russia is still lagging behind the West”.

In many words Azizan explained that, in his view, the manufacturers need to do their business in a cooperative manner with the customers and the industries of the buying nations.

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If the business is not run in a cooperative manner with the importing countries, than the manufacturer who has made sales but has not involved local companies in the business, continues to face competition with a bunch of companies from other exporting countries, including the big ones from the US and Western Europe. And these are eager to displace the Russian competitor.

“Russia can substantially increase its sales potential if its manufacturers make serious steps to resolve all these problems I have been discussing with Oleg Demchenko and Alexey Fedorov”, Azizan concluded.