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For New UAC President, Civil Game Is the Best Bet
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Yuri Slyusar, the new president of Russia’s UAC group, insists its strategy is unchanged by economic challenges.
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Yuri Slyusar, the new president of Russia’s UAC group, insists its strategy is unchanged by economic challenges.
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Russia’s United Aircraft Corporation (UAC) is back at the Paris Air Show, primarily in pursuit of its goal of doubling annual revenues largely through increased deliveries on the civil side of its business. In this respect, the group is highlighting the appearance of the Sukhoi Superjet 100 here at Le Bourget, but it will also be seeking to convince the market that Irkut’s in-development MC-21 twinjet will soon be a viable challenger to rivals such as the Boeing 737 Max, the Airbus A320neo, the Bombardier CSeries and China’s Comac C919.


UAC also comes to Paris with a new president, Yuri Slyusar, who replaced long-serving Mikhail Pogosyan in January. Addressing the Council of Russia’s Aircraft Manufacturers in Ulianovsk on April 16, Slyusar said the state-backed group, which now encompasses just about all the country’s aerospace interests, is determined to become more efficient and competitive over the next decade. He indicated that further financial support from the Russian government is assured now that UAC’s new long-term development program has been approved by the company’s main shareholder.


However, in a pre-Paris show interview with AIN, Slyusar insisted that the change of leadership at UAC has not marked any radical change in strategic direction and that he is determined to continue an on-going process of modernization and growth for the group.


“Our strategic goals have not been changed much as we are planning for faster civil aviation growth and development as our first priority, and further development of the military and transport aviation segments,” said Slyusar. He indicated that the domestic markets of Russia and the Commonwealth of Independent States are the main sales priority for the Superjet SSJ100 and the MC-21, with the Asia-Pacific region, Middle East and Latin America viewed as the best export prospects.


According to Slyusar, even in the face of budgetary pressure, the Russian government still views development of the country’s aviation industry as a top priority. Pointing out that government representatives are in the majority on UAC’s board of directors, he said no strategic changes have been demanded of the company’s senior management. He added that the state’s aviation development plan, running from 2013 through the end of 2015, will continue beyond the end of this year, while acknowledging that “the existing program should and can be adjusted once economic circumstances change.”


Slyusar explained that the aircraft industry is one of just a few in Russia to be assured a minimum level of government financial support, which he indicated protects it from the potential impact of reduced public spending. “On the contrary, a number of decisions have been made on extra funding to further stabilize the industry,” he said. “Moreover, the government decided to support financial leasing and create a mechanism for residual value guarantees. All these measures allow us to propose a competitive financial package that we have been testing on the SSJ100 and will later offer with the MC-21.”


This year, UAC has begun the formation of a new transport aviation division, following on from the 2014 move to merge its Tupolev subsidiary with the Kazan Aviation Plant (KAPO). “The production facilities’ restructuring, or I would say modernization, is also well under way,” Slyusar said. “We are even more focused on our plants and design bureaus’ re-equipment, which should go hand-in-hand with restructuring to meet the demands of modern technology. For example, we are going to invest around $2 billion in modern technologies and equipment in just three years, starting with this one.”


Slyusar played down the impact of economic sanctions imposed by Western powers in response to the military conflict in Ukraine. “We can’t say the sanctions have affected our sales strongly,” he stated. “This statement should be applied for both military and commercial aircraft.”


Earlier this year, UAC signed a memorandum of understanding with China’s New Century International Leasing and Xixian New Area Administrative Committee to establish a leasing group to market the Superjet to carriers in China. It believes this could generate as many as 100 more aircraft over the next three years. Slyusar implied that this initiative is, in part, a reaction to obstacles to SSJ100 sales in the West, concluding that there may have been “some change in the direction of our work, but not a decline in its speed and results.”


Superjet Status


According to UAC, the Superjet orders total stands at 190 aircraft, some of which have already been delivered. During the course of 2015, the company expects to deliver around another 30 of the twinjets (see story 542 on page ??), including those expected to go to Gazprom Avia, Aeroflot and Interjet, as well as several VIP versions of the aircraft set to enter government service. This is fewer than the 36-unit production rate that Slyusar set as a revised annual output rate (down from the previous level of 44 or 45).


Pressed as to the status of aircraft delivered, or due to be delivered, to lease customers PT Sky Aviation in Indonesia and LAO Central in Laos, the UAC president said these may end up being transferred to other operators. Meanwhile, the Thai government has ordered two extended-range versions to be used for VIP transportation, with deliveries expected in 2016.


UAC subsidiary Sukhoi Commercial Aircraft is now working to amend the Superjet’s type certificate for approval to operate in temperatures of up to 50-deg C (122-deg F). Other planned improvements include the possibility of extending the operational envelope to airfields as high as 3,300 meters (10,827 feet) above sea level and the company is also seeking approval from the European Aviation Safety Agency to certify the extended-range version of the basic SSJ100 model.


Slyusar explained that engineering work is still in progress to reduce the overall weight of the Superjet. Also planned are  new winglets that could result in another 3- to 4-percent reduction in fuel consumption. The manufacturer is evaluating the case for a larger 130-seat version of the aircraft, as well as a business jet configuration that would offer maximum range of more than 7,000 km (3,780 nm).


Next-Gen Fighter


On the military side of its business, UAC expects to add three more prototypes of its fifth-generation T-50 fighter to the test fleet this year, joining four aircraft already being used for development work, in addition to a ground test rig. Slyusar reported that during government trials conducted last year, “We succeeded in obtaining reliable results at sub- and supersonic speeds, low and high altitudes, and at critical angles of attack.” He added that in-flight refueling tests and a variety of aircraft performance evaluations also have been completed. The development team is now engaged in avionics testing and combat-mode performance tests, including weaponry integration and use.


“In comparison with the previous generation fighters, the PAK FA [the T-50] enjoys a number of unique features to combine functions of both a fighter and a strike aircraft,” commented Slyusar. “The fifth-generation aircraft has been equipped with a new highly integrated avionics complex with a high level of automated control and intellectual support of the crew to minimize the pilot’s routine work, while allowing him to concentrate on tactical mission completion.”

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