Q: How is the establishment of the umbrella Sukhoi Corporation progressing?
A: The process is in its final stages. Shares of the Komsomolsk-upon-Amur (KnAAPO) and Novosibirsk Aircraft Production Organisations (NAPO) have been transferred to Sukhoi Corporation.
It now holds shares in all five member enterprises (Sukhoi Design Bureau, KnAAPO, NAPO, NPK Irkut and Beriev) and will be transformed into a shareholding structure in the third quarter of this year. So Sukhoi Corporation will have been formed by the end of 2003, in the timeframe set by the Russian government.
More than 40,000 people are employed at our enterprises, and with annual production output of more than $1.5 billion - maintained at this level since 2001 - we are Russia's largest machinery manufacturer and one of the world leaders in military aircraft production.
Q: What success has Sukhoi had in working with international partners?
A: We established close co-operation with Thales and SAGEM on customising the Sukhoi Su-30MKI for India. At the customer's request, these multi-role fighters are fitted with avionics from our French colleagues. Sukhoi specialists are experienced in shaping integrated avionics suites from elements of Russian, French and other origin. Certainly co-operation in the military field has good prospects.
In civil aviation, we signed an agreement in April, together with NPO Saturn, with the French engine specialist Snecma on its participation in the Russian Regional Jet (RRJ) project.
Q: Are any other foreign firms participating in the RRJ?
A: RRJ family aircraft are being developed for not only Russian airlines, but the international market as well. From the beginning the RRJ has been designed to international standards. We co-operate with Boeing on airframe. Work on on-board systems and engines is based on co-operation between Russian and international companies representing leading aviation countries.
Such practice draws on the strengths of all project participants. First, it allows for maximum use of airframe and avionics technologies developed around the world.
Second, it will help achieve high loading factors for manufacturing sites in all participating countries while keeping the manufacturing costs down, taking advantage of Russia's skilled aviation specialists and relatively low-cost labour.
On all systems we will have co-operation between Russian and foreign companies. Partners on certain systems have already been selected. Selection of major foreign partners should be completed in the next three-four months. We will be naming new partners at Paris.
Q: Should prospective partners speak to Sukhoi or Boeing?
A: Boeing is our most important partner and participates, among other things, in raising funds for the programme. But Sukhoi has overall responsibility for the programme. Logically, applications should be filed with the project leader.
Q: Is international co-operation possible on RRJ assembly?
A: The RRJ assembly line is planned at NAPO in the Siberian city of Novosibirsk, while KnAAPO in Komsomolsk-upon-Amur will produce major components. International co-operation on engines and systems is already in place, including production issues.
This practice can be extended to the airframe. We are interested in maximum co-operation with companies in countries where the RRJ will be offered. Sukhoi has the experience from military programmes when Sukhoi fighters were produced under licence in China and India. For the RRJ, it makes sense to work out mutually beneficial programmes with companies from these countries.
Q: How is the RRJ project financed?
A: Financing comes from industry sources and outside investors. The aircraft will be certificated to both Russian and international air worthiness requirements.
Although compliant with the strictest requirements of its class, our product will be priced 15-20% below the competition. These are the 'factors of success' for the programme, and the necessary conditions for attracting risk-sharing partners and state financing. Besides, we hope to win firm orders. Without those we will not commit to a full-scale project launch or construction of prototypes and demonstration aircraft.
Taking account of the rather tough project schedule, which aims at certification of the basic model in one year, we hope to attract investment at today's low interest rates. This is possible because of the international co-operation and reputation of our partners.
Q: Sukhoi is well known for its sport aircraft. Is anything new on offer?
A: We continue to improve the Su-26/31 family. Installation of an up-rated engine, the 420hp M-9F, will boost the thrust-to-weight ratio and improve flight performance.
The first modified aircraft have undergone testing and received positive comments from Russian sportsmen. The new model will be offered on the international market. Besides this, we continue working with Sukhoi Advanced Technologies on sport aircraft manufacturing issues.
Q: What are the main factors that helped Sukhoi win tenders in Southeast Asia?
A: It was a combination of things: high flight performance and combat capabilities, operational performance in service and a relatively low price. The second factor is that we have amassed experience of adapting our aircraft to the needs of each customer. During negotiations we try to take account of the customer-specific requirements and adapt our product. Customers tell us which avionics items they want at the stage of shaping their aircraft. Sukhoi benefited from these factors in Malaysia and Indonesia. During talks with the customers, we managed to achieve mutual understanding. A large part of success came from our partners, most notably Russia's state weapons export agency Rosoboronexport, NPO Irkut (in Malaysia) and KnAAPO (in Indonesia). We pay attention to after-sales support and introduction of modern logistics schemes, forming a comprehensive service package to the customer.
Q: Sukhoi fifth generation combat aircraft have export potential. What is Sukhoi's position on this? How can firms from other countries take part in these projects?
A: The fifth generation fighter project ideology has been worked out by the Russian defence ministry together with the industry. It calls for participation of firms from other countries in development of an export version. The latter is being created in parallel with the basic variant for the Russian air force.
Work with foreign partners goes at the same pace as development of these aircraft complexes. It would be premature for me to speak about results while negotiations are going on, but we do understand that international co-operation is a factor of success.
Source: Flight Daily News