Flight International - August 18, 2015

fiightglobal.com 18-31 August 2015 | Flight International | 43

RUSSIA

INTERVIEW

Tier 1 level of the Russian aerospace supply

chain. Industry consolidation in the USA

and Western Europe has formed a large col-

lection of Tier 1 suppliers, a sophisticated

class of the supply chain characterised by

the ability to design and assemble complex,

integrated systems, such as onboard power

and computing systems. Rostec has been cul-

tivating companies such as KRET and Tech-

nodynamics to perform similar roles. It is

still early days, but Western sanctions have

pushed Russian officials to call for accelerat-

ing a transition to local suppliers on com-

mercial programmes.

Russian industry has long been self-suffi-

cient with military systems technologies, but

UAC’s market share objectives for commercial

aircraft requires an industry that can reliably

produce systems that can pass Western certifi-

cation standards.

SYSTEMS INTEGRATORS

“The recent rouble deterioration and the cur-

rency fluctuations gave a big chance to do-

mestic manufacturers and suppliers to switch

some of the existing international suppliers,

both in the process of Superjet modernisation

and MC-21 development,” Slyusar says.

“Bearing in mind, they should be the same

quality, the same certification and the same

price – maybe even better – then this is a real

opportunity for Russian suppliers to step in

and to change the Western ones. Although the

rouble right now is rising, so this effect may

be a little bit smaller.”

The Russians have already launched the

Aviadvigatel PD-14 turbofan engine to com-

pete with the Pratt & Whitney PW1400G

geared turbofan. Now, companies such as

Technodynamics are seeking to become Rus-

sia’s answer to the USA’s UTC Aerospace Sys-

tems or Europe’s Thales – Tier 1 systems inte-

grators. As Slyusar notes, however, the

near-term objectives for Russian participation

in the MC-21 are more modest.

“It’s electrical systems, chassis [wiring har-

nesses] and the air conditioning system, and

they are right now on the stage of final devel-

opment. They would probably start soon the

testing and development of these systems

maybe using our flying laboratories and air-

craft,” Slyusar says.

“Pretty soon they will be ready to step in, to

ship these systems for our aircraft. It concerns

both the Superjet and MC-21 programmes.” ■

“The rouble deterioration

gave a big chance to domestic

manufacturers and suppliers”

YURI SLYUSAR

Chief executive, United Aircraft

practical as he recommits to achieving the
market share goals.
“Basically, these figures are still workable,”
he says.

CRISIS RESPONSE
First, however, Slyusar’s goal is to stabilise the
company’s finances and rescue the S uperjet –
a programme viewed internally as essential to
building UAC’s credibility with the commer-
cial market as Irkut prepares to begin deliver-
ing the MC-21 in less than three years.
“The latest economic turmoil has led us to
promise the board of directors to develop sort
of an anti-crisis programme to increase effec-
tiveness and to cope with the recent econom-
ic conditions,” Slyusar says.
UAC is keeping many details of the crisis
response plan closely to its chest for now –
but it includes a deal struck in early April that
has committed the Russian government to in-
vest a further 100 billion roubles (roughly
$1.8 billion) to stabilise the finances of the
Superjet programme.
More ambitious changes also could be pur-

sued. The Russian aerospace industry is domi-

nated by two conglomerates – UAC and Ros-

tec. Both companies have aggregated dozens of

former Soviet design bureaux and factory com-

plexes. While UAC is a corporate umbrella for

Russia’s fixed-wing aircraft makers, Rostec

oversees a vast empire that includes United

Engines, Russian Helicopters and electronics

and systems specialists such as KRET (“Radio-

electronics Technologies Concern”) and Tech-

nodynamics. Rostec has already moved aggres-

sively to slash costs, announcing plans to lay

off 40,000 engineers.

UAC is not quite ready to announce specif-

ic cost-reduction plans, but Slyusar acknowl-

edges some budget-cutting will be necessary.

“Of course, we’ll be probably moving in the

same direction,” he says. “Some management

will be cut. There will be optimisation of costs

of course, maybe some corporate optimisations

and restructuring. Of course, all these things

should be done. Right now we’re not ready to

speak about exact figures of any changes that

are being prepared at the moment.”

Another major shift may occur below the

Republic of Tatarstan – Office of President