Chemezov spoke about plans to create an air concern modeled on Airbus

The Russian aviation industry will be united into one concern within Rostekh. However, the state corporations refused to join the JAC with the Helicopters of Russia due to the presence of minority shareholders in both companies.
Origin source
Russian Airbus

The general director of the state corporation, Sergei Chemezov, told RBC about plans to create a single aviation concern within Rostek, in which key enterprises of the aviation industry will be integrated. As part of this process, the question of joining the Rostekh United Aircraft Corporation (UAC), uniting Russia's largest aircraft manufacturers, will soon be discussed at the president level, Sergei Chemezov said on the sidelines of the Engineers of the Future-2018 forum.

"Not only the UAC and Russian Helicopters can enter the concern, but also enterprises that produce units and components for aviation. This and DCC, and CRET, and "Technodynamics". And they will work together as a big concern following the example of Airbus, "the head of the state corporation said.

According to the head of Rostekh, integration will not take place in the form of a merger of a state-controlled UAC into one company (it owns MiG, Ilyushin, Sukhoi, Tupolev, and others) and Rostekh's Russian Helicopters ". "We are talking about technological, production cooperation, cooperation in the part of procurement activities. Cooperation will include legally independent enterprises, "Chemezov stressed.

He specified that among possible scenarios, the association of UAC with "Russian Helicopters" was considered, but it was abandoned due to the presence of minority shareholders in both companies, which in case of legal association of assets would have the right to demand the repurchase of their shares. "If all follow this example, then it would take about $ 400-500 million to purchase. And this is a lot of money, besides, one of our main goals in accordance with the strategy is to attract strategic and technological investors to our assets, "Chemezov explained.

12% of the shares of Russian Helicopters belong to the consortium of the Russian Direct Investment Fund (RFPI) and Arab investors. Private shareholders own about 4% of the UAC.

How the Airbus Group was formed

The largest European manufacturer of aerospace equipment Airbus Group in its current form was formed in 2000 as a result of the merger of large European manufacturers at the initiative of France, Germany and Spain into the European Aeronautical Defense and Space Company (EADS). It included French companies Aerospatiale and Matra, German Dornier Flugzeugwerke and DaimlerChrysler Aerospace and Spanish Construcciones Aeronauticas. The divisions of EADS were French companies Dassault Aviation (fighters) and Eurocopter (helicopters), the German Eurofighter, as well as the manufacturer of passenger airliners Airbus Industrie. Concern EADS began to produce civil and military aircraft and helicopters, spacecraft, missile systems, etc. In 2013 EADS was renamed into the Airbus Group.

Earlier, plans to unite the UAC with "Helicopters of Russia" as part of Rostek were reported by Interfax with reference to the materials of the Ministry of Industry and Trade. "Thus, under the management of a single management company, it is planned to unite the competencies of helicopter and aircraft construction," the agency said. In May, the head of the UAC, Yuri Slyusar, on the sidelines of the St. Petersburg International Economic Forum, told Interfax that the decision to move the company to Rostechno is actually being prepared.

Ministry of Aviation Industry

A single concern will make the Russian aviation industry more efficient, says test pilot Gurgen Karapetyan, adviser to the General Director of Russian Helicopters. In his opinion, the success of this model was confirmed not only by the experience of Airbus, but also by the Soviet experience.

"Take the Ministry of Aviation Industry, which was the head - motor, instrumentation, the command post, which included helicopters, Ilyushinsky firm and so on. Efficiency was the highest. It turns out, in principle, we are repeating the old on the basis of the philosophical law of "denial of negation," Karapetyan says. The creation of an aviation concern will help to optimize production capacities, eliminate duplicate production, he believes.

The aviation cluster in Rostekh was established in 2015, it was headed by former Defense Minister Anatoly Serdyukov. According to the website of the state corporation, the largest companies of the cluster are the holding company Helicopters of Russia (one of the leaders in the world helicopter market with a share of more than 10%), Tekhnodinamika, United Engine Building Corporation (UDK) and the Radioelectronic Technologies Corporation. The companies of the cluster employ 192,000 people. The aggregate revenue of the cluster for 2016 is 534.7 billion rubles. The main strategic goals of the cluster are revenue growth of an average of 14% in ruble terms to 2025.

The UAC includes 30 aircraft manufacturers, including SSJ and MS-21. In 2013, the UAC was transferred to nine aircraft repair plants of the Ministry of Defense. In total, more than 90,000 people work at the enterprises belonging to the UAC. According to SPARK, the revenue of PJSC UAC for 2016 was 50.8 billion rubles.

According to the published strategy of the UAC until 2035, the share of the corporation in the world civil aviation market should grow by 2025 from a level of less than 1 to 4.5%. The share of the "affordable market" of military aviation from the current 20% by 2035 should grow to 45%. It is assumed that the "affordable market" will be the markets of all countries, except for NATO members and historical allies of the alliance, and since 2030 - and with the exception of China. Thus, the UAC expects to reach the breakeven level and become attractive to private investors.