Can the RRJ revive Russia's fortunes in commercial aviation? With help from Boeing, the Sukhoi-led project is well on its way to achieving certification
This year is make or break for the Russian Regional Jet (RRJ) programme aimed at restoring the country's competitiveness in the commercial aviation market. By the middle of the year a pool of launch airlines should be formed with a combined order for 40-60 aircraft, the minimum to enable commercial launch in the second half of the year. If successful, the project will maintain 80,000 jobs in the industry.
"They are weeks away from passing gate four of Boeing's eight-gate system," says Sergei Kravchenko, president for Russia and CIS at Boeing, a programme participant. "This means the aircraft is well advanced, its configuration is chosen, and firm orders are pending."
The RRJ effort is led by Sukhoi, one of Russia's best-performing aerospace companies. Sukhoi, best known for its combat aircraft, has little experience in civil products, and that is limited to sport aircraft and the Su-80 twin-boom quick-conversion turboprop. The company wants to expand into commercial aviation as it believes there is little potential for growth in the military sector. Formerly a design house, Sukhoi has now grown into a corporation that has absorbed the KnAAPO and NAPO production plants and acquired stakes in TANTK Beriev, a design house, and the Siberian aircraft manufacturer NPK Irkut. The RRJ project is also seen as a vehicle for the manufacturer to enter the global marketplace.
The RRJ is to be the first Russian aircraft designed from scratch to meet Western certification standards. So far, only one Russian airliner has won US Federal Aviation Administration FAR 25 type certification, the Ilyushin Il-96M/T.
Sukhoi Civil Aircraft was established in 2000 to manage the project, a departure from traditional Russian practice, which saw responsibility divided between developer and manufacturer, largely independent of each other. "The major challenge," says Andrei Ilyin, Sukhoi Civil Aircraft general director, "is that the creation of that new system runs in parallel with the creation of a product. There are many aspects, organisational and financial, that we had not envisaged, not even suspected the existence of. We get to know them in the process, get them solved."
Russian market
Analysis of passenger traffic on domestic Russian routes shows that 85% of aircraft are carrying fewer than 100 people. Sukhoi saw little point in competing with Airbus and Boeing in the worldwide market for 100-seat airliners, which promised little gains in the home market. Sukhoi strategists decided to address the needs of the in-country point-to-point market with an aircraft family comprising 60-, 75- and 95-seat models. Within Russia, competition comes from the 90-seat Antonov An-148 and 102-seat Tupolev Tu-334, although Sukhoi general director Mikhail Pogosyan does not see these designs as competitors: "These aircraft can take their relatively small portion of the CIS market in the near term, but we think they do not meet the modern requirements of aircraft in that class. We aim our product at the international market, with its requirements in economics, lifecycle costs and after-sales support. Our product is based on wide international co-operation that will help us establish an effective after-sales support system, which is a key to success on the international market."
For the RRJ project, Sukhoi is following the production methods Boeing established with other airlines. A part of that has been the creation of the RRJ airline council that was assembled in November 2003, attracting Air France from SkyTeam and Scandinavian Airlines (SAS) from the Star Alliance, as well as Aeroflot, Arkhangelsk Airlines, KrasAir and UTAir. These airlines were given a detailed presentation on the aircraft and its systems, the organisational structure of the project, operational economics and after-sales support. The council was their opportunity to be critical - an opportunity they seized. "There were many replies and critical points from the airlines," Ilyin says. A second council, scheduled for this month, will include aircraft system integrators and focus on their critical review.
In between council meetings, Sukhoi managers are talking to individual airlines to discuss technical, economic and financial matters, with particular focus on Aeroflot, KrasAir, Pulkovo, Sibir and UTAir. Together, these airlines carry over 50% of Russian passenger traffic. "When you talk to the airlines," says Ilyin, "you get confirmation of your marketing studies and you make changes to your plans. We had thought that the 75-seater would go first, and then the 95- and 60-seaters at half-year intervals. Now it looks like the 75- and 95-seaters will be going simultaneously."
Production plans
The KnAAPO and NAPO plants will produce the RRJ, with annual output of 60 airframes. Early plans had called for final assembly at NAPO, to which KnAAPO would supply wings and empennages, but Sukhoi is now working with KnAAPO to set up an RRJ-95 final assembly line. "This would increase the plant's share in the manufacturing effort from 40% to roughly 60%. The NAPO plant at Novosibirsk will assemble fuselages and perform final assembly on the 75- and 60-seat versions," Ilyin says.
Both plants are obliged to separate civil and military work, to enable international certification by Russian and Western aviation authorities. The RRJ production site at KnAAPO will be established as a separate enterprise with a workforce of between 6,000 and 8,000.
The RRJ airframe will be largely aluminium, although 15% of the aircraft will be made of composites in alloys 1163ATV, 1163T7, 5ochT2 and composites in use on the Il-96M/T have won FAA approval during the aircraft's shadow certification by the USA and will be used on the RRJ. VSMPO will supply the titanium alloys it sells to Airbus and Boeing.
Ilyin says KnAAPO is "quite good" at information technology, through its experience with the Su-30MK fighter series, "and NAPO also has a number of CAD/CAM workstations". Both plants use Unigraphics design software, while the Sukhoi design house prefers Dassault's Catia. Because of a tough timeframe, use of both systems is being considered. "There have been cases when the developer did documentation in Catia, and production went in Unigraphics," Ilyin says. "Economics will prevail in software selection."
New method
RRJ production will be a departure from the old Soviet method, whereby a design house would develop an aircraft, build several prototypes and hand over documentation to a manufacturing plant, where the design would be adopted to the plant's technologies and production capabilities.
"Now we work with the plants from the very beginning, with their economists and technologists, and together we calculate the economics of the technological processes for every airframe part. This process is tuned so that we can produce a given part at a pre-calculated cost. We will not have the situation where we learn how much the manufacturing costs are after production has started." Ilyin says. This is the first such case in Russia, and it is also the first time a Russian civil project will involve a digital database with online access during the development effort.
The database will incorporate airframe and systems design, manufacturing processes and logistics. Digital mock-ups of the airframe and all systems have been created. "As we go further with the creation of the database, drawings of particular parts will be added," Ilyin says. Airlines will be given online access to the database.
Audit opportunity
Several European airlines have been closely monitoring RRJ progress, but remain cautious. Ilyin blames the impact of the Fairchild Dornier bankruptcy. The 728 was an aircraft the airlines wanted, says Ilyin, and they are wary of a Russian company about which they know little.
To allay fears, the airlines investing in the RRJ will be able to audit Sukhoi Civil Aircraft, the manufacturing plants and all the Russian enterprises in the supply chain. "They can make sure every promise is kept on the airframe, systems, manufacturing quality and reliability," Ilyin says. "The airlines are frightened of what happened [to Fairchild Dornier], but they are interested in our aircraft." Although similar designs are available from Bombardier and Embraer, Sukhoi promises a sticker price 10-15% less and 15-20% cheaper life-cycle costs.
But the Fairchild Dornier bankruptcy has had some positive effects. Some RRJ participants had invested in the development of systems for the 728/928. "These expenses are frozen and many have been written off. If our supplier finds that it makes sense to use the technologies or parts developed for the discontinued aircraft, we are supportive of it," Ilyin says.
The research and development costs on airframe, systems and production preparation are $670 million, exclusive of the engine. About $100 million is being provided by risk-sharing partners from foreign countries. The RRJ won the Russian state tender, and is expected to be allocated budgetary funding. "We are working on financial matters with Rosaviakosmos on the state financing promised in 2004-8," Ilyin says. Funding will come in portions, payable upon completion of certain R&D development phases.
The project participants, including Sukhoi, will contribute 45-50% and Rosaviakosmos 10-15% of the R&D funding. The rest will come in the form of bank loans and outside investments. More details on the financial side will be revealed in the middle of this year. "By the year end it should be clear who, when, where and how much," Ilyin says.
Outside investors will be offered stakes in Sukhoi Civil Aircraft. Founded in 2000 as a Sukhoi subsidiary, it has recently been turned into a joint-stock company 100% owned by Sukhoi. This move has been made to separate the RRJ project from Sukhoi's military programmes. "Western partners and financial institutes told us they are ready to fund the programme, provided they can be sure their money does not go into the military sector," Ilyin says. Currently, 300 engineers and 50 managers are working on the project at Sukhoi Civil Aircraft in Moscow.
Sukhoi will invest in the RRJ project through the sale of Sukhoi Civil Aircraft shares. It will keep "a considerable stake" for itself, while selling the rest to outside investors to raise funding for the project.
The RRJ production run is expected to reach 600 by 2020 and a total 800, of which 40% will go to CIS airlines and the rest exported. A joint study by Boeing and Sukhoi has identified a market for 5,500 50- to 100-seat regional jets worth $100 billion in the next 20 years - the RRJ aims to capture 10% of it.
First flight
Aircraft development is set to start in earnest in the second quarter of this year, with the aircraft's first flight scheduled for May 2006. Deliveries are planned to begin in the middle of 2007, with the first few going to Russian airlines. "But we firmly intend to have export aircraft among the first 10," says Ilyin.
Russian airlines have placed "soft orders" for 100 RRJs. The project will be launched after 40-60 firm orders are received. "Market analysis gave us a clear indication that such an aircraft is needed. From the airlines we learn that there is a market demand for it. The decision [for commercial launch] will be made. The central point is to keep within the schedule," Ilyin says.
In October 2003 the basic RRJ-75 passed gate three. "At that stage we knew the performance of the aircraft was good enough to be able to guarantee the performance to the airlines. We also knew the cost, and production is being tuned to keep costs down. We are working with the airlines to optimise the aircraft economics on their route networks," he says.
Moscow-based leasing company FLK signed for 30 RRJs at the MAKS 2003 air show in Moscow. It was, however, not a firm order, as Ilyin explains: "It could not have been one because at that time we had yet to determine the exact price, financial mechanism, conditions and guarantees. We are negotiating details of the deal to make it into a firm order." FLK has agreed to act as the main financial vehicle for Russian airlines willing to acquire the RRJ under financial lease terms.
The biggest milestone passed so far was the selection, in October, of risk-sharing partners to produce major onboard systems. The suppliers are:
Air Cruiser (Zodiac - emergency equipment); Curtiss-Wright subsidiary Autronics (fire protection); B/E Aerospace (interior, oxygen); Goodrich (wheels, brakes); Hamilton Sundstrand (electrics); Honeywell/NPO Salyut (auxiliary power unit); IPECO (pilot seats); Intertechnique/Abris (fuel system); Liebherr/ Electropribor (flight control); Liebherr/ Teploobmennik (air conditioning, pressure control and anti-ice systems); Messier Dowty/Aviaagregat (landing gear); Parker Aerospace (hydraulic system) Thales/Aviapriborholding (avionics).At least 50% of the respective systems' production will be in Russia.
In January, Sukhoi held a meeting of systems integrators at which joint working groups were established to manage system integration. The next step is to distribute some of the airframe work to Beriev, Ilyushin and Yakovlev - participation of these firms is seen as "strategically important", and their experience in commercial aviation is needed to compensate for the lack of it at Sukhoi. Beriev has been allocated work on certain fuselage parts and Yakovlev will handle the development of wing edges, hatches and doors. Ilyushin will help with the development of some onboard systems and with the Western certification effort, since it has experience of obtaining FAR 25 certification for its Il-96M/T.
Although all RRJ documentation will be in digital format, the intended airframe partners have the flexibility to supply drawings and documentation on paper or computer files. "The IT technologies at some of the Russian firms are not well developed. They are lagging behind the West. We can accept paper drawings and digitise them ourselves," Ilyin says.
Some airframe work may be outsourced to developing countries under offset programmes if their airlines order the RRJ. Sukhoi is currently negotiating with India and Malaysia. Local firms will be invited to form joint ventures with Sukhoi to run regional support centres.
Boeing's involvement in the project is a result of Sukhoi's hunt for expertise in airliner development. "Boeing participates on the basis of a consultancy agreement and an agreement of partnership," says Boeing's Kravchenko, although neither Boeing nor Sukhoi details these agreements. "We are a private company, and we do not do anything we don't have a financial interest in. This project is beneficial to Boeing," Kravchenko says. "One of the reasons why we participate in this project is that Boeing does not develop or produce regional aircraft with 70-90 seats."
Joint working groups
Boeing specialists, led by RRJ project director Bill Jarrell, work with Sukhoi employees in four joint working groups, on engineering, certification, marketing and after-sales support. "They help us in aircraft development and in mastering their technologies. They tell us how to make it better from the viewpoint of technologies, they consult us on development and they check whether we have got everything right," Ilyin says. Communications with Boeing US offices are provided from the company's Moscow Engineering Centre. The centre employs 550 Russian engineers, "tens of whom are from Sukhoi".
Boeing is also sharing its technologies in after-sales support. However, Kravchenko says that using Boeing worldwide support systems to assist RRJ operations is "not on the agenda", although he does not exclude such a possibility. The RRJ will have servicing and maintenance procedures similar to those on Boeing designs. East Line Technique at Moscow's Domodedovo airport has been certificated to service Boeing types, and is looking to handle RRJ maintenance.
Final assembly of the RRJ's powerplant, the 13,500-17,500lb-thrust (60-78kN) SM146, will be performed jointly by NPO Saturn and Snecma in Rybinsk in central Russia. NPO Saturn general director Yuri Lastochkin estimates the R&D costs as "two-thirds of that for the airframe".
The SM146 is "a strategically important programme for us", says Jean-Paul Ertemanne, president and general director of Snecma. He expects the regional jet market to grow faster than other sectors in the next 20 years. Snecma is responsible for the SM146 high-pressure system. It contributes the DEM 21 core, work on which began four years ago and which entered bench-tests in 2003.
NPO Saturn provides the SM146's low-pressure systems. The company holds 60% of the commercial engine sector taken by Russian designs, providing D-30K engines to the Ilyushin Il-62M and Il-76 and Tupolev Tu-154M. Its Moscow engineering centre, formerly the Lyulka-Saturn design house, has developed AL-series engines that power all Sukhoi combat aircraft. The centre will be responsible for mating the SM146 to the RRJ.
NPO Saturn will use technologies such as digital control systems for the SM146 that have been developed from military-engine programmes such as the AL-41F, a design for fifth-generation fighters.
The SM146 was launched in May 2003. Its development is spread over 36 months and in 2006 the first engines are expected to be fitted to an RRJ prototype.
VLADIMIR KARNOZOV / MOSCOW
Source: Flight International
