FLUG REVUE August 2003: Russian aerospace is an important partner

THE AEROSPACE INDUSTRY IN THE CIS STATES

By Volker K. Thomalla

After the collapse of the Soviet Union, the aerospace industry in the CIS states went into catastrophic free fall. What had once been the nation's pride and joy collapsed almost into insignificance. Whereas there was much to commend Russian spaceflight, with its robust and reliable technology, as a system partner and integral player in international activities such as the ISS, the aircraft industry was not initially so fortunate. There were hopeful initiatives in the commercial aircraft segment, such as the co-operation between Rolls-Royce and Tupolev on the Tu-204 or between Ilyushin, Rockwell Collins and Pratt & Whitney on the Il-96M, but these early joint ventures were not a commercial success. Customers in the West did not trust the Russian manufacturers to provide a satisfactory level of product support, while for Russian customers Western technology was too expensive.

The aircraft industry in the CIS states learned from this and is now waking up with a new self-confidence. It is presenting itself as a partner of Western industry. This is borne out, amongst other things, by three contracts it has just signed. EADS, Sukhoi, export organisation Rosoboronexport and missile manufacturer MBDA have signed a protocol specifying some areas in which the signatories might co-operate. These include equipping a Sukhoi fighter aircraft with missiles from MBDA, joint development of defence systems including unmanned combat air vehicles (UCAV) and joint projects in the area of customer support and aircraft modernisation.

The choice of the SM146 engine from Snecma and NPO Saturn as powerplant for the Russian Regional Jet (RRJ) is a further milestone in the history of Russian-Western collaboration. There is a real requirement for an aircraft like the RRJ, and not just in the CIS states. Boeing and Sukhoi reckon it would have potential sales of up to 800 aircraft. Yuri Lastochkin, general director of NPO Saturn, described the agreement as “perhaps the last opportunity for Russia to regain its world market position in civil engines”.

During the Paris Air Show Irkut, EADS and Rolls-Royce Deutschland published the results of a joint study assessing the prospects of the amphibious Beriev Be-200 twinjet on the world market, according to which there will be a requirement for up to 320 aircraft in this class over the next 20 years. A first fire-fighting variant powered by BR715 turbofans is to be offered by the three companies from August.

For both the Russian and West European companies, the primary significance of this collaboration is strategic. The Russian aircraft market has a big potential that will be developed sooner or later. Simply on the basis of the enormous distances between cities in the CIS states, aviation is an indispensable form of transport there.

Whether the projects just kick-started are implemented and whether they will ever generate a profit, only time can tell. In the short-term, this is not the priority but rather the fact that the joint ventures are opening up medium- and long-term markets to the participating companies. The Western companies will receive access to markets in the CIS states, while their counterparts in the CIS states will overnight be able to project themselves with their products and services as serious suppliers.

At the same time the partners will be able to pool their resources to their mutual advantage, with each contributing its own particular strength. For the last 10 years the Russian aircraft industry has been a sleeping giant. Now it is slowly stirring.

From page 4 of FLUG REVUE 8/2003

Last updated 7 July 2003

FLUG REVUE, Ubierstr. 83, 53173 Bonn, Germany