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Aviation History
2004
2004-09 - 1910.PDF
BUSINESS INDUSTRY VLADIMIR KARNOZOV/ MOSCOW Moscow picks Fedorov to prepare 'single entity' Irkut president to head RSK MiG as plans to unify aerospace industry progress The Russian government has made a significant move in its plans to create a single national aerospace company with the appointment of Irkut president Aleksei Fedorov to head RSK MiG. Fedorov will be expected to pre pare the company for privatisation and inclusion alongside Irkut in the planned national entity. His appointment also clears the way for a resumption of MiG-29 pro duction for export orders, which had been awaiting funding. A staunch supporter of radi cal reforms in Russia's aviation industry, Fedorov says: "We have suggested to the govern ment a comprehensive set of measures, often referred to as 'single entity plan', that call for serious evaluation of all existing projects and assets." Fedorov takes over the job from Sukhoi deputy general director Valery Toryanin, who signed India's $700 million order for MiG-29K/KUB naval fighters after his appointment in November 2003 and raised commercial funds to fulfil Sudan's contract for 12 MiG- also won Moscow city administra tion and banking community sup port for resumption of the Tupolev Tu-334 102-seat airliner pro gramme. Toryanin, who replaced Nikoial Nikitin as head of RSK MiG, had opposed the company's dena tionalisation. MiG-29 production ceased in 1991, and since then export aircraft have been completed from unfin ished Soviet-era airframes. Stocks have been depleted, however, and attempts to relaunch production have so far failed, because neither the Russian government nor export customers had agreed to provide cash to get production under way. "Fedorov's arrival will create an atmosphere of confidence around the company, which will, in turn, mean that banks will be more will ing to invest in resuming produc tion," says an industry source. RSKMiG's debts were esti mated at $1 billion in January, leading to government ner vousness about whether it was in a position to take on Indian and Yemeni orders for MiG- 29s and new sales expected to come from Algeria, Sudan, Chile and Venezuela. A market for 400 MiG-29s and 200 MiG AT jet trainers has been predicted up to 2010, with an annual export value of $600-800 million. Fedorov was suggested to Russian president Vladimir Putin by Rosoboronexport general director Sergei Chemezov. The appointment was supported by Mikhail Fradkov, chairman of the 29SEs and two MiG-29UBs. He Fedorov: staunch supporter of radical reforms Russian cabinet of ministers. PRODUCTION Russia to unite avionics companies Russian president Vladimir Putin has signed an act creating a uni fied avionics company, Avionika, based on an association of com panies around the Technocomplex research and production centre. Technocomplex president Givi Djandjgava says the new joint stock company will be created by mid-2005 and will include 19 air craft instrument-making plants, with 51 % of its shares belonging to the government. "We realise only too well that a defence facil ity cannot be privatised and no other entity but the government will be able to give guarantees for its support," he adds. The company will include the Ramenskoye avionics design bureau federal research and production centre in the Moscow region, Moscow's Avionika research and production facility, the Pribor plant in Kursk, the Ramenskoye instrument-making works in the Moscow region, the Elara research and production instrument-making enterprise in Cheboksary, and Technopribor in St Petersburg. The new company will develop and manufacture navi gation systems, fire-control radars, automatic pilots, onboard computers, flight-control systems and life-support systems. EXPANSION BRENDAN SOBIE / SINGAPORE Taiwan tips major growth after restructuring Taiwan's Aerospace Industrial Development Corporation (AIDC) forecasts 30-40% growth over the next five years following the com pletion of corporate restructuring by its new chairman, Tao-Yu Sun. Sun says, expansion of AIDC's civil aircraft unit and a new mainte nance business should help the government-owned company achieve NT$16 billion ($470 mil lion) in annual revenues at the end of a new five-year business plan, compared with just under NT$12 billion estimated for 2004. Costs will be cut by 10%, implying reduc tions in the 3,400-strong workforce. Sun has already overseen a cor porate restructuring programme that began in July with the elimi nation of 27 of AIDC's 58 divisions. By combining and integrating units, the company is in a better position to identify problems that have long restricted efficiency. "Frankly, we now understand where the problems are," he says. Sun is looking at a potential pri vatisation of AIDC within three years, "but at the same time it's dif ficult to do that until we make the company profitable", he says. AIDC's military aircraft business, which accounts for about 50% of revenues, is profitable but shrink ing. The new maintenance arm, formed in response to an outsourc ing trend in Taiwan's military, is set to account for 15-20% of revenues within five years. AIDC has already won a contract to maintain Tai wan's fleet of Bell AH-1W heli copters and is seeking another to maintain AIDC AT-3 trainers. AIDC no longer produces military air craft, but has several ongoing mod ification programmes. AIDC's unprofitable civilian unit supplies components for the Airbus A321, Alenia/Lockheed Martin C-27J, Boeing 717 and 737, Bombardier Challenger 300 and Learjet 45, Dassault Falcon family, Eurocopter EC 120, Ibis Aerospace Ae270 and Sikorsky S-92. It wants to drop its participation in the Ae270 programme and renegotiate its C-27J, 717 and Challenger 300 contracts to make room for 7E7 and additional A321 work. www.flightinternational.com FLIGHT INTERNATIONAL 5-11 OCTOBER 2004 27
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