As recently as the early 1980s, it company has a Moscow office, employing ogy specialists to work on Boeing contracts of Boeing Russia and the Commonwealth would have been difficult to imagine the 220 people, that oversees operations in in commercial aviation, information technol- of Independent States. Kravchenko joined Soviet national airline, Aeroflot, flying Russia and the Commonwealth of Indepen ogy and space. Boeing subsidiary Jeppesen Boeing in 1992, when he helped establish Down-to-Earth Boeing airplanes. dent States. The same building is also employs approximately 100 people at its Boeing’s overall presence in the region. Today, the Russian airline has Boeing home to the Boeing Design Center, which St. Petersburg, Russia, office. Today, Boeing employs some 2,500 full-time jetliners in its fleet and is a customer has about 1,150 contract engineers work- In addition to talent, Boeing has and contract employees throughout Russia. for the 787 Dreamliner. Other Russian ing in concert with Boeing engineers in the developed a number of business alliances Kravchenko said business opportunities carriers, created since the days of the Seattle area. They play an important role within the country, including one to use in Russia have grown dramatically since Cold War, also fly Boeing airplanes. in around-the-clock design support for Russian titanium on the 787 and other the days of the Soviet Union. The country success In late 2010, a diverse, government- Boeing commercial airplane programs. Boeing commercial jetliners. has been open to new outside business After a long, successful partnership on the space owned company, Russian Technologies, “Russia has an excellent talent base of “Russia represents a very good global alliances and is seeking full membership station, Boeing and Russia expand collaboration placed an order for 50 Next-Generation highly educated people,” said Shep Hill, model for Boeing,” Hill said. “We have in the World Trade Organization. 737 airplanes, which will be used by president, Boeing International. “We’ve established partnerships there that have One early sign of this liberalization was on Earth several state-run airlines. This is Boeing’s been able to leverage that talent very enhanced our productivity and given the opening of Russian airspace in 1999 to largest sale to Russia in terms of the num- effectively to support some critical Com- us access to valuable resources. Our allow point-to-point service via polar routes. Stories by Bill Seil ber of airplanes. Some of these planes will mercial Airplanes development programs.” presence and involvement in Russia Kravchenko, representing Boeing, worked arrive before the 2014 Winter Olympics in The company’s oldest Russian facility, have also had a positive effect on our with the Russian government to negotiate PHOTO: Where Russia’s past intersects with its future—St. Basil’s Cathedral in Red Square, Moscow. The nearby Boeing Moscow office and Boeing Design Center Sochi, Russia. (See story on Page 48.) the Boeing Technical Research Center, relationship with Russian airlines.” this change, which gave a boost to the sale are leveraging the country’s engineering talent and natural resources to advance critical Boeing’s business activity in Russia was created in 1992. It taps the talent of The company’s operations in Russia of Boeing long-haul jetliners such as the 777. Commercial Airplanes programs. SHUTTERSTOCK is not limited to airplane sales. The Russian scientists and information technol- are led by Sergey Kravchenko, president “This was a critical element to our
Russia at a glance Location: Northern Asia, bordering the Arctic Ocean, between Europe and the North Pacific Ocean. The largest country in the world by territory with 11 time zones, it covers 6.5 million square miles (17 million square kilometers)—about 1.8 times the size of the United States. Population: 139 million Capital: Moscow Other major cities: St. Petersburg, Ekaterinburg, Novosibirsk, Vladivostok, Nizhni Novgorod National language: Russian Government: Russia has existed as an independent republic since 1991. Current leaders include President Dmitry Medvedev and Premier Vladimir Putin. Gross domestic product (2009 est.): $2.11 trillion Trade partners: (Exports) Netherlands, Italy, Germany, China, Turkey, Ukraine; (imports) Germany, China, Ukraine, Italy, United States Sources: U.S. and Russian governments
42 BOEING FRONTIERS DECEMBER 2010–JANUARY 2011 43 international sales and it would not have increasing revenue in both airplane sales In July 1975, a Boeing-built U.S. Apollo Helping children across which helps families raising children with parts for commercial airplanes, has had happened if Russia had not looked on and services,” Kravchenko said. “But we spacecraft docked with a Russian Soyuz Down syndrome; Children of Russia, an active community involvement program Boeing as a reliable long-term business also want to leverage every opportunity spacecraft. In the 1990s, joint missions which provides services to children with since it opened in July 2009. partner,” Kravchenko said. to reduce costs and develop new tech were held that involved the Boeing-built cancer and blood diseases; and Kidsave Boeing has supplied the children’s He sees “huge opportunities” for com- nologies to improve the company’s U.S. space shuttle docking with the Russia International, which helps orphaned chil- hospital in Verkhnaya Salda with equipment mercial airplane sales as Russian airlines productivity and make our airplanes Russian Mir space station. This working dren. Educational programs include the that has significantly improved the facility’s Boeing’s corporate citizenship activities replace their aging Soviet-built fleets. He more competitive worldwide.” relationship became more formal and Moscow School for Continuous Math Edu- diagnostics capabilities and reduced the in Russia extend from Moscow and also sees bright prospects for Boeing Kravchenko notes that the titanium challenging later in the decade as the cation and Junior Achievement–Russia. time needed to conduct laboratory tests, St. Petersburg to a remote community Commercial Aviation Services. As Russian partnership involving Ural Boeing Manu- orbital assembly of the International “I’m very proud of our employees, according to Maria Osnovina, business in the Ural Mountains. airlines adopt Western operational models facturing is particularly significant to Space Station began, with Boeing as who generously donate their time to com- operations manager for Ural Boeing The company has supported more and advancements in technology, they will Boeing. (See story on Page 50.) The NASA’s prime contractor. munity activities,” said Sergey Kravchenko, Manufacturing. This has modernized eye than 50 charitable projects focusing on need support in areas such as training, metal has long been valued by the Kravchenko describes the space president of Boeing Russia and the Com- examinations, heart diagnostics, and ear, health and human services, education, management consulting, engineering, aerospace industry, due to its strength, station as the best symbol of U.S.-Russian monwealth of Independent States. “We nose and throat exams. Urine analysis and arts and culture. Philanthropy efforts information technology and efficient relatively light weight, and resistance to partnership since World War II. (See story don’t have to send e-mails asking them equipment has greatly decreased the include cash grants, in-kind donations and operations. (See story on Page 48.) expansion, contraction and corrosion. on Page 46.) to volunteer; they do it on their own.” time it takes to complete tests. employee volunteerism. Employees are Kravchenko believes Russian expertise “Russian titanium has become one “Apollo-Soyuz was a small crack in the The company’s presence is especially “The technicians who conduct the particularly active in services for children, in engineering, design and information of the great success stories in our global Cold War mentality,” Kravchenko said. “It felt in Verkhnaya Salda, a manufacturing analysis are happy that they’re better able including health and education. technology can strengthen both Boeing supply chain,” he said. showed everyone what both nations could town in the Ural region. A joint venture to help the children,” Osnovina said. “It’s a Among the programs receiving Boeing and its customers. Boeing’s longest period of collaboration accomplish by working together.” n called Ural Boeing Manufacturing, which big change from the old days, when doctors support are the Downside Up Center, “Our Moscow office is focused on with Russia has been in space exploration. [email protected] is involved in the production of titanium might have to wait days to get the results.” n
“Our Moscow office is focused on increasing revenue in both airplane sales and services.” – Sergey Kravchenko, president of Boeing Russia and the Commonwealth of Independent States PHOTO: MIKHAIL MELNIKOV
PHOTOS: (Above right) Boeing Moscow Communications Director Dmitry Krol and his son, Alex, help restore an airplane at the Monino Aviation Museum, Moscow. (Inset, top) Boeing Moscow lead engineer Alexey Musienko helps out at the city’s Downside Up Center. (Above) Boeing Moscow travel desk receptionist Ilya Poliveev distributes presents at the Downside Up Center. MIKHAIL MELNIKOV
44 DECEMBER 2010–JANUARY 2011 BOEING FRONTIERS 45 The International Space Station together, we’ve accomplished everything In late 2009, Boeing and Russian of the youngest people in the room. “I very much enjoy the Russian people,” represents nearly two decades of we set out to do in the early 1990s,” said aerospace company RSC-Energia “I was born on July 16, and I remember Sherrill said. “Politics aside, they’re just Living continuous, successful collaboration Mark Mulqueen, Boeing’s vehicle director signed a memorandum of understanding watching the launch of Apollo 11 during like us. They want the same things. They between the United States and Russia, for the space station. He has been to jointly develop a common docking my 10th birthday party,” he said. “It was have the same problems. They want and the dawn of the international working on the program since 1987. system that will serve as an international on our old, black-and-white TV.” their children to grow up and have a space age. “And this has happened despite all standard for advanced space exploration Boeing’s Joe Sherrill, director of good future.” n space The partnership began in the early the setbacks and political challenges vehicles from all nations. avionics projects for the space station, 1990s when the U.S. space station we’ve faced over the years,” he added. Development of such standards is joined the program 15 years ago PHOTO: (Below left) A Russian Soyuz program, facing budget cuts, opened Once competitors in a race to the a vital step in the international exploration because he wanted a chance to work spacecraft approaches the International The space station is a the program to international participation. moon, the two countries first cooperated of space, according to Mulqueen. In with Russian engineers. He had long Space Station (foreground) for docking The Russians, with decades of experience in the 1975 Apollo-Soyuz mission. A addition to standard docking systems, had an interest in the country and its on Dec. 22, 2009. It carried a Russian high-flying symbol of cosmonaut and two astronauts from Japan in space, joined the ambitious venture. special module was developed to allow commonality in propulsion systems, people. Indeed, while in college he and the United States. Another Russian global cooperation— Boeing is NASA’s prime contractor for the Russian Soyuz and Boeing-built power systems and environmental studied the Russian language with spacecraft, already docked at the space the station. In addition to NASA and Apollo spacecraft to dock in space. systems will also be needed. hopes of having the opportunity to station, is shown at top left. NASA and technical Russia, Japan, Canada and 11 member From 1994 through 1998, there were Mulqueen said he enjoys working use it one day. achievement nations of the European Space Agency nine missions where the U.S. space with the Russian engineers, some Seven years ago, while working at are partners in the station today. shuttle joined with Russia’s Mir of whom have experience from the the Boeing Moscow office, he married “The thing that most impresses space station. early days of the Mir station. In a Russian woman. Today they have a me about this program is that, working And the cooperation continues. planning sessions, he is often one 17-month-old daughter.
Engineering This highly experienced Boeing engineer just in any happens to live in Moscow Alexei Shuvaev was born in 1957, the same year the Soviet Union launched the first Earth-orbiting satellite, Sputnik 1. language This was the dawn of the space age, and Shuvaev as a child became a space enthusiast. He closely followed both the Soviet and U.S. efforts to reach the moon. Today, Shuvaev is senior lead engineer at the Boeing Design Center, Moscow, which works with Boeing engineers in the United States to provide around-the-clock design support for Boeing commercial airplane programs. Shuvaev—called Alex by his American colleagues—provides technical leadership to contract engineers on a variety of projects. Most relate to airplane interiors, payloads and environmental control systems. His wife, Tatina, also is an aerospace engineer but left work to raise their children. They have an 18-year-old son, now an engineering student, and a 10-year-old daughter. Shuvaev’s own parents were both field geologists. Early in his career, after graduating from the Moscow Aviation Institute in 1980, Shuvaev spent 10 years working on the Russian space plane, a concept similar to the U.S. space shuttle. That program was canceled following the collapse of the Soviet Union in 1991. He joined the Boeing Design Center in 1999 as a contract employee. After a few years, he was offered a job as a full-time employee. He travels to Boeing’s Everett, Wash., plant about once a year to confer with his PHOTO: MIKHAIL MELNIKOV U.S. colleagues. He has developed friendships with American co-workers and, in his free time, has joined them on expeditions to scenic locations in the Seattle area. “I enjoy hiking in areas like Mount Rainier, which is especially beautiful in August,” he said. “I’ve also gone canoeing in mountain lakes, taken scenic drives and been to the Pacific Ocean.” During those trips to Everett, Shuvaev enjoys visiting a favorite used bookstore, where he tracks down science fiction stories by some of his favorite authors, including Clifford Simak, Arthur C. Clarke and Robert Heinlein. “When I was young, people were crazy about space and science fiction stories about space travel,” Shuvaev said. “Everyone followed the space flights, the cosmonauts and the race to the moon. It was a very exciting time.” n
46 BOEING FRONTIERS DECEMBER 2010–JANUARY 2011 47 The Russian airline industry is in tran- late 2010 order by Russian Technologies his Moscow- and Seattle-based team “We’re working closely with Russian sition, modernizing fleets and adopting for 50 Next-Generation 737 airplanes. “It’s a changing recently completed the 50-airplane sale banks and leasing companies to educate Western operating practices. The Next-Generation 737s purchased to Russian Technologies. them on Boeing’s products, and aircraft As trade barriers come down, the by Russian Technologies, a diverse state- market with new More than 20 Russian airlines use financing in general,” Papyan said. “They’re Flying growing strength of the Russian economy run company, will be used by several Boeing airplanes, with many purchased or just starting to finance airplanes, and we’re is expected to accelerate the replacement government-owned airlines. Boeing opportunities leased from the secondary market. About trying to ensure that ours will be on the of aging Soviet-built aircraft. Boeing has also logged orders for 737s from half the Boeing planes used by Russian banks’ preferred products lists.” into the future estimates that airlines in Russia and the Russian carriers S7 and Atlant-Soyuz, emerging.” airlines are older 737 “classic” models. As As Russia reinvents its airline industry, Commonwealth of Independent States will and 747-8 Freighters from Volga-Dnepr— – Sergei Leschinski, sales director, trade barriers ease, it is expected that the Boeing Commercial Aviation Services Russia’s airlines are need about 1,000 jetliners over the next an order book that represents the breadth Commercial Airplanes, Russia demand for new planes will grow rapidly. wants to double its business in Russia 20 years—an estimated $90 billion in sales. of the Russian airline landscape. “Our sales team is focused on the top 10 over the next couple of years, said expanding and updating While today’s Russian aerospace Competition from Airbus has been vice president, Sales & Marketing, Boeing Russian airlines, but all of the airlines are on Kamil Gaynutdinov, Moscow-based sales their fleets, and Boeing industry produces a limited number of strong, but Boeing is optimistic that it Commercial Airplanes. “Russian airlines our radar,” Leschinski said. “It’s a changing director for Commercial Aviation Services. commercial airplanes—with plans to can maintain its approximately 60 percent are in the process of strengthening and market with new opportunities emerging.” “Russia’s aviation industry is advancing is well-positioned develop new models—Boeing sees market share of Western-built aircraft. growing their long-haul operations.” Boeing Capital Corporation is advising quickly and is successfully competing in to help strong potential for near-term as well “With all the liberalization that’s taking The core Boeing Commercial Airplanes the nation’s aircraft financial community, both domestic and international markets,” as long-term sales. place, we’re also seeing growing traffic sales team for Russia is spread between according to Mher Papyan, Boeing Capi- Gaynutdinov said. “The Boeing Company Early evidence of this is a 2007 order to and from Europe, and that’s happening Moscow and Seattle. Sergei Leschinski, tal’s senior director for Russia and the and the Boeing brand are well-positioned by Aeroflot for 22 787 Dreamliners, and a at a significant pace,” said Marlin Dailey, a sales director based in Moscow, and Commonwealth of Independent States. to help support our Russian customers.” n
Major Russian airlines
Aeroflot Notable: S7 Airlines has leading positions Headquarters: Moscow in the domestic market and firm orders for 10 Next-Generation 737s. Fleet: 96 airplanes, including 11 767s, three MD-11 Freighters, 66 A320s and Volga-Dnepr Group 10 A330s Headquarters: Ulyanovsk Notable: Aeroflot is the flag carrier and Fleet: 10 747 Freighters and largest airline in Russia. It has firm orders AN-124 Freighters for 22 787 Dreamliners. The airline will Notable: The group has a firm order soon merge with six airlines belonging for five 747-8 Freighters. to Russian Technologies, which has firm orders for 50 Next-Generation 737s. Moskva Airlines Transaero (Atlant-Soyuz) Headquarters: Moscow Headquarters: Moscow Fleet: 57 airplanes, including 20 737 Fleet: Three 737 Classics and six Classics, two Next-Generation 737s, Next-Generation 737s 13 747s, 12 767s and seven 777s Notable: Moscow Airlines has firm orders Notable: Transaero is the only operator for four Next-Generation 737s. of 777s and 747s in Eastern and Central UT Air Europe and the largest charter operator Headquarters: Khanty Mansiysk, Siberia in Russia. Fleet: 20 737 Classics, two 757s, and S7 Group: S7 Airlines Russian airplanes and helicopters and Globus Airlines Notable: UT Air operates the largest Headquarters: Moscow helicopter fleet in Russia in support of oil S7 Airlines fleet: 19 A319s, nine A320s and gas development and United Nations PHOTO: An artist’s rendering of a Boeing and two 767-300ERs (Extended Range) international transportation. 787 Dreamliner in the Aeroflot Russian Airlines livery. Aeroflot is studying expansion Globus Airlines fleet: Four 737-800s and of its domestic and international business four 737-400s with the help of 22 Dreamliners. BOEING
48 DECEMBER 2010–JANUARY 2011 BOEING FRONTIERS 49 Russian titanium travels long distances About 85 percent of the chips can be benefit to The Boeing Company than than any previous Boeing jetliner. sophisticated machinery and comfortable through various sites, from the time the remelted at VSMPO to make new we had imagined.” “In order to keep this new alloy afford- amenities for the Russian workers. ore is mined to the day it becomes part forgings. The remaining chips, which Byrne said the joint venture gives able, we agreed to build the Ural Boeing “It was very exciting to move to a of a completed Boeing jetliner. are contaminated or unusable, are sold Boeing greater oversight of the supply Manufacturing plant in Verkhnaya Salda,” remote community and bring this One of the most important stops is for reprocessing. of titanium it receives from Russia and Koessler said. “This creates a closed loop enterprise to life,” Baker said. “But it Ti a recently completed facility called Ural John Byrne, director, Suppler provides VSMPO an ownership incentive titanium production flow that allows us to would not have been possible without Boeing Manufacturing, in a remote area Management–Common Commodities, to ensure the success of the operation. make full use of our titanium supplies.” the full support of the partners, Boeing of the Ural Mountains near the Russian Boeing Commercial Airplanes, first The forgings machined at Ural Boeing The Ural Boeing Manufacturing facility and VSMPO.” n town of Verkhnaya Salda. proposed the idea of the manufacturing Manufacturing are made from a new was built under the direction of its first This is a joint venture with Russian facility and handled the initial negotiations titanium alloy that was jointly developed CEO, Gary Baker, who recently moved PHOTOS: (Below left) A 787 side of body that binds titanium producer VSMPO-Avisma, which for the project. The strategy allowed for the 787 Dreamliner program by from that position to a new assignment chord forging being rough-machined at Ural operates a titanium mill on the same site. Boeing and VSMPO to keep the chips Boeing and VSMPO, said Gary Koessler, in China. Boeing Manufacturing. MARIA OSNOVINA/BOEING Partnership provides The mill produces the forgings that are within Russia, thus avoiding difficult trade a Boeing employee, who serves as chief Baker moved to Verkhnaya Salda in late (Insets, from top) An exterior view of the machined at the Boeing manufacturing issues involved in returning the chips executive and general director of Ural 2007, along with his wife and daughter. Ural Boeing Manufacturing joint venture’s titanium for 787 while building in Salda, Russia. MARIA OSNOVINA/BOEING facility. from outside the country. Boeing Manufacturing. Titanium, with As the only Boeing employee on site, A titanium forging machined at Ural Boeing leveraging Russian The location of Ural Boeing Manufac- “We originally set out to solve some its strength, stability and resistance to he worked with Russian crews to build Manufacturing. MARIA OSNOVINA/BOEING turing is critical because it allows workers operational challenges,” Byrne said. corrosion, makes it a natural fit with Ural Boeing Manufacturing from the shell manufacturing and to quickly transport highly expensive “But the creation of Ural Boeing Manu- the composite materials used in the of an old building. By 2009 they had resource strengths titanium chips back to VSMPO’s mill. facturing ended up being of much greater 787. The 787 requires more titanium modern manufacturing facilities with
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