Russia's aerospace industry was once as great as America's, at least on paper. It was undone in several ways - political, economic, military and industrial - by the collapse of the Soviet Union and the end of the Cold War. The industry's structural and technical weaknesses were cruelly exposed by the sudden end to superpower confrontation and exposure to market rather than military forces.
Out of the rubble emerged one still-potent industrial icon - Sukhoi, its survival sustained by export sales of the impressive Su-27 family of fighters. Now the Kremlin is trying to recapture Russia's aerospace greatness by uniting the industry in one corporation centred on Sukhoi. But whether OAK - United Aircraft - will be a creaking edifice or the acorn of an industrial powerhouse will depend on how successfully it adapts to and competes in the global aerospace market.
Sukhoi is taking the lead in developing Russia's first modern airliner, the Superjet 100, and Moscow's hopes for OAK's success are predicated on the company's ability to apply its proven military manufacturing capability to commercial aircraft. Things are shaping up Sukhoi has secured international development partners with global reputations and the Superjet has attracted its first non-Russian customer.
But it remains a stretch to imagine that an industry steeped in Soviet military procurement and production traditions can transform itself overnight into a globally competitive and market responsive commercial entity. Even in the West, the disciplines of commercial and defence aerospace are so different that many companies will not mix the two.
But just as OAK wants to secure its roots in the bedrock of Sukhoi's military aircraft production base, Boeing is trying to turn its high-powered commercial aircraft manufacturing machine to the advantage of its defence customers. The US Navy's new P-8 anti-submarine aircraft is based on the 737-800 airliner and will be built on the same line - an unprecedented step that promises the military customer access to commercial economies of scale, but poses challenges in accommodating unique defence requirements without disrupting the smooth flow of mass production.
But the pay-off for bridging the gap between the military and civil aerospace markets is there for both Boeing and OAK. And, for both companies, it may be the key to their future success as global commercial and defence markets evolve.
Can OAK thrive on the back of Sukhoi's military success?
For both companies, it may be key to success as commercial and defence markets evolve
Source: Flight International
