Thales has signed up to become a risk-sharing partner on the Sukhoi-led Russian Regional Jet (RRJ) programme, with responsibility for supplying and integrating the aircraft’s cockpit avionics.

The contract, worth an estimated $120 million, represents the first time that the French electronics and systems group has co-operated with Russian industry on a civil aerospace project. It follows the signing of a preliminary agreement in December 2004.

“We have a significant share of risk,” says Thales aerospace division senior vice-president Francois Quentin. Around 20% of the RRJ’s avionics software will be developed in Russia, he adds.

The deal covers development of Thales’ TopDeck avionics suite for the RRJ, the construction of engineering test rigs in Toulouse and Moscow and delivery of avionics for four RRJ prototypes.

Sukhoi aims to fly the RRJ in 2007 and deliver the first 95-seat version the following year, although it is yet to finalise a contract with prospective launch customer Sibir for up to 50 aircraft. “We are very actively negotiating with Aeroflot,” said Sukhoi chief executive Mikhail Pogosyan after signing the Thales agreement.

Thales Aerospace, one of the manufacturer’s six divisions, accounts for around 20% of the company’s revenue.

Despite the downturn in the civil market in the wake of 9/11, “we have managed to keep the sales of the division growing”, says Thales chief executive Denis Ranque. About 70% of the division’s revenues are derived from military sales, but renewed growth on the civil side means Thales “expects something probably close to 50:50 by the end of this decade”, says Ranque. “We are approaching the end of the downturn cycle.”

Source: Flight International