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Russi a &CIS Observer from the publisher of november 2018

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• INDUSTRY becomes largest warplane Russia/CIS Observer is produced by: Russia keeps its ambition in manufacturer ...... 12 Publisher commercial aircraft ...... 2 Su-30SM to get new engines ...... 12 Evgeny Semenov VSMPO and Boeing expand titanium EditiorinChief • AIR TRANSPORT Maxim Pyadushkin partnership in Russia ...... 6 China-friendly Russia and Russia- Art Director Aerosila showcases hi-tech ...... 7 Andrey Khorkov friendly China? ...... 14 Sales & Marketing Director Aeropribor-Voskhod goes innovative ....8 Oleg Abdulov PD-14 engine for Russian MC-21 • BUSINESS AVIATION Commercial Director Sergey Belyaev receives certification ...... 9 Russian business aviation enjoys

All rights reserved. upward cycle ...... 19 No part of this publication may be • DEFENSE reproduced in whole or in part without the written permission of TMC demonstrates precision-guided • SPACE BUSINESS A.B.E. Media. weapons ...... 10 Uncertain future of International A.B.E. Media cannot be held responsible for any claim, error, omission or inaccuracy in advertising Su-57 to enter service in 2019 ...... 10 Space Station ...... 22 material supplied by advertisers.

© № 45, November 2018 Cover photos (clockwise): NASA; Leonid Faerberg / Transport-Photo.com; UEC; Tel.: +7 (495) 626 5356. E-mail: [email protected] Fyodor Borisov / Transport-Photo.com Correspondence: P.O. Box 127, , 119048, Russia Web site: www .rusaviainsider.com Read more news and stories at ww w.RusAviaInsider.com

RUSSIA/CIS OBSERVER NOVEMBER 2018 1 AEROSPACE INDUSTRY

Russia keeps its ambition in commercial aircraft plies powerplants for UAC and the As of October 2018, there country’s rotorcraft manufacturer – were some 132 Superjet 100 Russian Helicopters also owned by aircraft in operation globally Rostec. After the merge, Rostec’s avi - ation cluster will have an estimated turnover in excess of one billion rubles ($15 billion). But the manufacturer’s efficiency is nevertheless will be affected by external political influences which will not only affect the prospects for further interna - tional cooperation but also the future marketing of Russian-built aircraft in the global arena. o t o h P - t r o

p 100 s n a r T

TSuhep eSSrjJe1t0 0 remains UAC’s only rev - / v e y e enue-generating aircraft program, oth - k i n A

m er projects are in development. In 2017 o y t r

A the number of deliveries reached 30, partly as a result of effective state sup - Maxim Pyadushkin largest producer of civil aircraft (name - port mechanisms, with all domestic de - ly, jet and turboprop with a liveries financed via state-run lessors. ussia’s only planemaker seating capacity above 20 seats). As of September 2018, there were United Aircraft Corpo - The situation can change after UAC some 132 SSJ100s in operation, mostly ration (UAC) became the fell under control of the industrial giant with Russian airlines, although some R world’s largest manufac - Rostec during another round of consol - are with commercial and governmental turer of combat aircraft, but it also idation of the country’s aircraft indus - operators in Europe, Mexico, Thailand plans to increase its share in the com - try. Russian president Vladimir Putin and Kazakhstan. The program received mercial segment. The Russian manu - issued a bill in October allowing to a serious boost on the same month facturer’s ambition is to raise its current transfer the government share of when its largest customer Russia’s 1.8 per cent share of the global market 92.31% to Rostec. largest airline placed a new or - to 4.5 per cent by 2035. This may be - Rostec is the state-owned corpora - der for 100 aircraft of the type. come achievable only after the launch tion governed by Putin’s close friend The deliveries are planned for 2019- of serial production and deliveries of Sergey Chemezov. It was founded in 2026. The deal will provide UAC with a the corporation’s new civil products: 2007 on the basis of Rosoboronexport guaranteed capacity load to keep the MC-21 narrow-body and the arms trade agency and gradually take steady, average rate of between 25 and CR929, the wide-body program which control over the government assets in 30 deliveries a year now, achieved in re - is being developed jointly with China’s the defense and automotive industries. cent years. COMAC. It has already become the largest However, threatened by the existence In 2017, the Russian manufacturer UAC supplier, providing the manufac - of new-generation, western-built com - delivered 32 commercial aircraft to turer with 70% of aircraft components petitors, such as the Embraer E-Jet E-2 customers. Of this number, 30 were and subsystems, including engines, and the A220, as well as by the Superjet 100 (SSJ100) regional , hydraulics and composites. might of the Airbus/Boeing duopoly’s jets. According to UAC’s own esti - Rostec’s most important asset is expansion into this market segment too, mates, this places it as the world’s sixth United Engine Corporation that sup - the SSJ100’s future now hangs on the

2 RUSSIA/CIS OBSERVER NOVEMBER 2018 AEROSPACE INDUSTRY

manufacturer’s ability to significantly is the aim of the SSJ100R, the special the end of this year, for 50 of the version improve the aircraft’s performance. ‘Russianised’ version. dubbed SSJ75, with an option for up to In response to this competitive chal - However, while these efforts may help 25 more. lenge, SCAC is working in two marked the program to remain airborne, more Work on an improvement of the directions. The first is to expand the radical modifications are needed to suc - company’s after-sales support is also operational capabilities of the existing cessfully compete with the arrival of underway. platform to match customer demands. new models envisioned by Embraer, One such effort resulted in a modifica - Bombardier and, potentially, 21 tion – dubbed the SSJ100B-100 – Mitsubishi. Typically, the recent change DMeCve-loped by , the which features more powerful PowerJet in SCAC’s top-management has redi - MC-21 narrow-body is destined in the SaM146-1S18 engines, improved soft - rected the likely flight path of Superjet’s short term to become the flagship prod - ware for avionics and enhanced high- future away from the stretched version uct of the Russian civil airspace indus - lift devices control systems. The testing to the shortened, 75-seat variant. try. It made its in May of aircraft equipped with blended Notably, a decade ago, the short ver - 2017 and, one year later, the second winglets (Sabrelets), which will be of - sion was considered as the base option flight prototype joined the testing. fered for both new aircraft and as a at the program’s launch. In reality, the Neither UAC, nor Irkut have been retrofit option, is also underway. desired outcome is de facto a virtually particularly diligent in their reporting The second path to a more sustainable new model, with new engines and pos - on the test results. In July 2018 the future is the positive targeting of politi - sibly a composite . Russia’s second manufacturer announced that the sec - cally-sensitive clientele, such as govern - largest carrier – – has al - ond flying prototype had been ferried to mental operators and countries under ready voiced a cautious interest in the Zhukovsky to join the certification test - western sanctions. This requires a major aircraft, which may enter the market in ing program, and that three more air - reduction of western-produced aircraft the 2022-2023 timeframe. A letter of craft were in the process of being assem - parts and components by replacing them intent, inked by S7 and SCAC in April, bled at the Aviation Plant. By with Russian-made alternatives, which could mature into a firm order before July, the second flight prototype had ac -

РЕКЛАМА | ADVERTISING AEROSPACE INDUSTRY cumulated some 14 hours of flight time, tions, it will enter a highly competitive the base CR929-600 platform, with 280 during which it reached an altitude of marketplace, as the demand for next- seats in a three-class configuration; the 12,000 meters and a top speed of 0.8M generation narrow-bodies may by then shortened iteration CR929-500 for 230 (TAS 850 km/h). Further testing is to be be significantly satisfied by the re-en - passengers; and the stretched version conducted at the premises of the freshly gined and the CR929-700, with seating capacity for upgraded Flight Testing Facility (FTF) MAX. Both types have al - 320 passengers. The general layout, in - of Design Bureau, which re - ready entered service in 2016 and 2017 cluding the shape and span of the cently acquired a new hangar and a new and, as iterations of tried and tested ex - , the length of the , the hub for the collection, processing and isting designs, by 2020 will have proba - parameters of the nose and tail sec - analysis of flight data. bly overcome any teething problems. tions, and the location of the engines, The certification of the aircraft’s base and doors were all final - version, the MC-21-300 powered by 929 ized in June 2018. According to these Pratt & Whitney PW1400G engines, is IRnu thsseo w-iCdeh-binodeys ese CgmR ent, UAC’s new parameters, the CR929 should be still scheduled to complete before the product, the CR929, is being developed somewhat more spacious than the rival end of 2019, with the first deliveries jointly with China’s COMAC. For the -300 and its advanced slated for 2020. The backlog currently Russian industry, this project is an op - A330-900neo versions. includes 175 firm orders, mainly from portunity to retain the competence, This perceived advantage is indica - state-run leasing companies. There are share the development costs and gain tive of the project’s primary focus on three airlines currently claiming the ti - access to the growing Chinese market the Chinese market, which currently tle of launch operator: national carrier for larger aircraft. For the Chinese part - favors the A330-300 as its main ‘work- Aeroflot, UAC-associate Red Wings ner, it is a chance to benefit from expo - horse.’ The CR929 program is now at (owned by Finance Company) sure to Russia’s expertise in aircraft de - the Gate 3 stage, a definition phase and the private Irkutsk-based IrAero sign whilst, at the same time, building which is expected to complete by mid- (the city where the MC-21 is to be as - experience in developing such wide- 2019. sembled). body programs. CRAIC has also been sending re - Aeroflot is the largest customer, with In the one year that has passed since quests for tenders for the supply of en - a commitment for 12-years operational the China-Russia Commercial Aircraft gines and engine nacelles, as well as for leases for 50 aircraft via Rostec’s sub - International Corporation (CRAIC) landing gear mechanisms. Although the sidiary Avia Capital Services. The first joint venture was established in planemaker has not disclosed who the 25 deliveries will each be powered by Shanghai in May 2017, the CR929 pro - potential suppliers are, it has admitted Pratt & Whitney engines but, from the gram has reached several milestones. In that it has received bids from seven en - 26th aircraft onwards, the Russian PD- December last year it passed the pro - gine manufacturers. General Electric 14 may be an option. ject’s Gate 2 stage, which defined the and Rolls-Royce both have engines in By 2020, when the MC-21 is expect - overall concept for the new aircraft the right thrust range to power the new ed to be available for revenue opera - family, which embraces three variants – aircraft, and may be on the list. Another t u k

r The second prototype of MC-21 I joined the certification trials in July

4 RUSSIA/CIS OBSERVER NOVEMBER 2018 AEROSPACE INDUSTRY

ative of the existing four-engined wide- body freighter. The production of the type is being sustained by orders from governmental customers with the pur - pose of preserving the competences of wide-body aircraft design and produc - tion capabilities of the Voronezh Aviation Production Plant (VASO), an UAC subsidiary. The modernization effort, which was launched in 2017, predicates a produc - tion output of an annual rate of two-to- m o c Thhee ffiirrsstt fflliigghhtt ooff . o t three aircraft up to 2025, the year when o Russo-Chinese CR929 h Russo-Chinese CR929 P - t r wiiddeebbooddyy aaiirrlliinneerr iiss the CR929 is expected to enter com - o p s n ssllaatteedd ffoorr 2023 a mercial operations. The list of potential r T customers includes Rossiya Special option that has been brought to the signed passenger cabin. The backlog Flight Squadron, which is responsible table is the Russian-made PD-35 en - currently includes a single letter of in - for carrying the country’s high-ranking gine, which is currently under develop - tent (LOI) for 50 units from GTLK officials, the Russian Defence Ministry ment. signed in 2017. and other government bodies, a situa - The program’s production schedule A similar pattern is emerging with the tion that qualifies both the IL-114 and was first announced in June 2018, with IL-96-400M, the new passenger deriv - the IL-96 as ‘semi-civil’ projects. assembly of the first prototype planned to begin in 2021, the maiden flight slat - ed for 2023 and entry into service in 2025.

UTnhiete dse Amiric-rcaifvt iCl oprrpoojreactitos n has two more commercial projects in its portfo - lio – the Ilyushin IL-114-300 regional turboprop and the IL-96 wide-body . Although there are currently no orders for these aircraft from com - mercial operators, they are nevertheless being artificially supported by the state in order to preserve the Russian indus - try’s competences and capabilities in their respective segments. In May 2016, the Russian govern - ment made a decision to upgrade and re-launch serial production of the Ilyushin IL-114-300 regional turbo - prop twin aircraft. Initially produced in Uzbekistan by the Tashkent Aviation Production Plant, the pro - gram is now undergoing moderniza - tion and relocation to Russia, follow - ing the trials of the similarly-fated IL- 76 transport aircraft. Ilyushin, the type’s design company indicates that serial production of the aircraft may not restart before 2021. In the mean - time it promises a more powerful en - gine, new avionics suit and a re-de -

RUSSIA/CIS OBSERVER NOVEMBER 2018 5 AEROSPACE INDUSTRY

VSMPO and Boeing expand titanium partnership in Russia Maxim Pyadushkin event is one in a series of consistent steps world. It currently holds about 30% of which will extend the co-operation be - titanium supplies for global aerospace oeing has quietly doubled its tween the two companies, develop new industry. The company reported it had titanium parts production technologies, build additional capacities delivered 15 tons of this metal in the capacities in Russia despite and boost production outputs. first half of 2018, by 5.9 percent more B growing political tensions The original memorandum to double than a year ago. Its revenue grew by 5.7 between the two countries. The compa - UBM’s capacities was signed at the percent to 38.2 billion rubles (around ny’s top officials – CEO Dennis 2013 with a view to $584 million). Muilenburg and the president of Boeing launching the new site by 2016, a com - According to the Russian Ministry of International Marc Allen travelled to pletion schedule which was later post - Industry and Trade, VSMPO annual Sverdlovsk region of Russia on poned to 2018. The 20,000-square m supplies to the US market total $560 September 19 to open a new production site is highly automated and capable of million, including about $350 million facility for Ural Boeing Manufacturing, final, as well as rough, machining of of titanium shipped to Boeing only. a 50/50 joint venture with the local tita - components. Besides the US planemaker the nium manufacturer VSMPO-Avisma. It became a part of Titanium Valley Russian joint venture supplies parts for Boeing’s strategic partnership with special economic zone and will process third parties, like General Electric and VSMPO-Avisma dates back to 1997, titanium forgings for 787 as well as for Rolls-Royce, as well as manufacturers of and their UBM joint venture was legally the new aircraft like 737MAX and landing gear. The Russian manufacturer formed in 2009 at Verkhnaya Salda, a 777X, reported Sverdlovsk region gov - also sell titanium to Airbus and Embraer. home town of VSMPO-Avisma on the ernor Evgeny Kuivashev, the only But the April sanctions imposed by the eastern slopes of the Ural Mountains. It Russian top government official who USA on Russia have prompted the Rus - makes initial machining of titanium attended the inaugurating ceremony. sian government to propose restrictions forgings for Boeing 737, 777 and 787 The total investment accounted for 5.5 on such co-operation in the aerospace programs. billion rubles (about $83 million). industry. However, VSMPO-Avisma Commenting on the opening of the Russian titanium plays a vital role for war ned about the imminent negative ef - second site, Mikhail Voevodin, head of Boeing business. VSMPO is one of the fects of such measures and, subsequently, VSMPO-Avisma, emphasized that the largest titanium manufacturers in the Denis Manturov, Russia’s Minister for Industry and Trade, announced that the response to the sanctions should not af - fect VSMPO-Avisma and other residents of the Titanium Valley. The Russian company is also a long- standing partner of the Chinese aero - space industry. Since 2004, it has been supplying China Aviation Supplies Imp. & Exp. Corporation (CASC) with tita - nium billets used in the manufacture of die-forgings for Airbus programs. VSMPO-AVISMA acts as a supplier for China’s flagship commercial avia - tion program of the C919 medium-haul v e h s

a jetliner. Under the agreement with the v i u K

y aircraft designer, Commercial Aircraft n e g v E

Corporation of China (COMAC), it /

m Boeing and Russian officials are opening a r g will be supplying 12 different die-forg - a

t new facility at Ural Boeing Manufacturing s n I ing types through to 2021.

6 RUSSIA/CIS OBSERVER NOVEMBER 2018 AEROSPACE INDUSTRY

Aerosila showcases hi -tech wo leading Russian companies - SPE Aerosila and High Technologies are jointly showcasing their capabilities as part of Russia’s exposition at T Airshow China 2018. At their stand (H5C2-2), the show visitors can view equipment both for existing air - craft types and for perspective models developed jointly by Russia and China. Aerosila is one of the world’s most experienced companies in developing air propellers for aircraft and air-cushion ves - sels, and small-size gas turbine engines. High Technologies is a leader in mass production of aviation and rocket compo - a l i s o nents. Their production has the unit operational parameters r e A at the world’s top level. Showcased at Zhuhai, APU ТА14 is Aerosila is bidding to supply its ТА18-200 APU for one of the models in the production range of APUs based on Russo-Chinese CR929 widebody airliner ТА14/14-130 gas turbine engine. More than ten modifica - tions of this engine power different fixed-wing and rotor air - tions, and in terms of development, including joint develop - craft, including Yak-130 jet trainer, Su-34/35 combat air - ment for newly developed aircraft and other purposes,” says craft, Ka-31, Ka-52 and Mi-8/17 helicopters. Most the company’ spokesman. Production localization may be Russian-made aircraft are equipped with APU produced by arranged based on license agreements. the company, and air propellers with 0.9 efficiency are the standard for turboprop aviation. The company’s production has high export potential, as its APUs are fitted on export versions of Yak-130 and Su-35. Basic APUs manufactured by the company are capable of fully supplying all on-board equipment with electric power on all existing and developed aircraft, including joint Sino-Russian projects: AHL heavy helicopter and CR929 widebody airliner. For the future heavy helicopter the company proposes ТА18-100 APU. Modifications of this APU are offered for the upgraded Mi-26T2 giant hel - icopter and . The company revealed that its Chinese partner has already agreed to modify this APU to reduce its weight to meet the AHL project specifications. The Russian developer has submitted its proposal for a more powerful ТА18-200 APU for CR929. The selection of suppliers for this program is expected to complete before the end of 2019. The APU cores produced by Aerosila can also serve as base for on-board power units and electric powerplants for future more electric aircraft (MEA) and other electric vehicles. Designed by the company, co-axial propfan rotors with un - rivalled performance have raised interest with aircraft devel - opers for replacement of conventional propellers, as this will allow to increase their altitude and speed parameters, and operational efficiency. “We cooperate with our customers, both in terms of sup - plying serially produced items and offer customization op -

RUSSIA/CIS OBSERVER NOVEMBER 2018 7 AEROSPACE INDUSTRY

Aeropribo r-Voskhod goes innovative t the Airshow China 2018, Russian designer of control and automation media for A aviation industry, Aeropribor-Voskhod is demonstrating multifunctional aerometric systems and flight instruments for commercial and s r military aviation. But the company is al - e t p

The company’s general helicopter equipment management o c i l

ready making plans to expand its capa - e

system is currently being successfully tested on the new H

n a i bilities to provide innovative solutions Kamov Ka-62 medium-class utility helicopter s s u for satellite navigation, rocket and space R equipment and high-precision weapons. Institute (TsAGI). This equipment was sions in Syria. It also creates equipment One of the company’s latest develop - first showcased this summer at the inter - for perspective aviation and space craft, ments, general helicopter equipment national Army-2018 forum in Kubinka as well as for unmanned flying vehicles.” management SUOVO system is current - near Moscow. Multifunctional aerometric systems ly being successfully tested on flight-test The distinctive geometry of the spheri - and instruments for military aviation, prototypes of Kamov Ka-62, Russia’s cal instrument and its holding device dif - designed by the Russian company are new medium-class utility helicopter. In fers from conventional probes by usage of used on MiG-29K, Su-30MKI, Su- essence, this system is “the heart” of polyhedrons instead of smooth bodies. It 35S, Su-57, MiG-35 fighters. Smart electrical power supply for the heli - also features simplified calculation algo - sensors, flight instruments and systems copter’s entire on-board electronic rithms and most importantly, its size and for military transporters are installed on equipment, as it is responsible for distri - weight are significantly reduced, as well as Il-76MD-90A and Be-200. Besides the bution of electrical power to all on-board inertia moments of the parts, which come Ka-62 management system, the com - consumers and for managing more than in contact with the wind stream. This al - pany develops air parameter measuring 30 of the helicopter’s systems. lows for more flexibility in terms of loca - systems for Ka-52 combat helicopter Another important development of tion of the system’s modules. Designers and its ship-based variant Ka-52K. Aeropribor-Voskhod, multifunctional suggest placing the new equipment on the Flight instruments and aerometric sys - flight data metering equipment have front part of the aircraft fuselage from tems produced by Aeropribor-Voskhod been undergoing testing on-board of both the right and left side, symmetrically. are installed on all civil aircraft de - the perspective MC-21 narrow-body Preliminary wind-tunnel testing at signed by Ilyushin and . passenger airliner, the flagship program TsAGI have confirmed the best meter - Aero pribor-Voskhod was founded in of Russia’s aerospace industry, since ing performance of the new probes, 1944. Since 2012 it has been part of 2017. This equipment is used for meas - Aeropribor-Voskhod reports. This Radio Electronic Technologies Concern uring, calculating and indicating data paves way to its implementation as part (part of Rostec). The company has huge on aircraft’s altitude, speed, angles of of flight parameter measuring systems experience and potential for the future, attack and yaw, OAT and braking tem - on any type of rotorcraft, including there are new opportunities ahead, as it perature, and feeding this data to other perspective high-speed helicopters. is heading towards innovation. aircraft systems. During flight testing of “For over 70 years our company has The nearest plans include expanding MC-21 no malfunctions have been reg - been producing equipment for aircraft, its capability list and profile. The prior - istered and no negative comments have both civil and military,” says the general ity directions are design and production been made about the system’s func - director of Aeropribor-Voskhod Oleg of high-precision satellite navigation tionality, Aeropribor-Voskhod reports. Guliaev. “Presently our company spe - systems, development of systems and One of the company’s innovative de - cializes in design and serial production aids of navigation for air forces and signs is a spherical polyhedron air pres - of multifunctional radio electronic sys - commercial aviation, design of equip - sure probe-converter, developed jointly tems for all modern aircraft, including ment for rocket and space, and for with Central Aerohydradynamic those involved in [Russian military] mis - high-precision weapons.

8 RUSSIA/CIS OBSERVER NOVEMBER 2018 AEROSPACE INDUSTRY

14 PD- engine2 f1 or Russian MC- rehce eRuissviane PsD- 1c4 teur -rtthief piroctotayptes.i Tohen first PD- Validation of the PD-14’s type T bofan engine that has 14-powered MC-21 will be certificate in Europe is scheduled for 2019 been designed to power the demonstrated in Q2 2019 and, C E all-new Russian MC-21 nar - as previously reported. The U row-body jetliner has been MC-21 with PD-14s is due to the need for a hyrdomechani - The MC-21 will also offer granted a type certificate by receive certification in 2021. cal protection so that all en - Pratt & Whitney PW1400Gs the country’s federal air trans - The new Russian engine gine modes, from start-up to as an option. This version of port agency, a decision that was designed and developed stop, are governed solely by the aircraft will be the first to signifies that the powerplant is in conjunction with the na - electronics. The PD-14’s win certification. It is believed ready for operation, reports tional 2013-2025 Aviation FADEC consists only of ad - that its type certificate will be the Russian Ministry of Industry Development vanced Russian hardware issued by the end of next year. Industry and Trade. Vali da - Program, a project initiated components. Russian national flag carrier tion of the certificate by the by the United Engine The powerplant has also Aeroflot is planning to receive European Aviation Safety Corporation (UEC). recently completed climate up to 24 PD-14-powered Agency (EASA) is scheduled The engine secured its cer - tests under ‘classic’ icing MC-21s. At the same time, for 2019. tification shortly after the for - conditions. On top of that, smaller carriers such as Reportedly, three PD-14s mal approval of its FADEC UEC has promised to extend Irkutsk-based IrAero and will be delivered to MC-21 digital control system – one the lifetime of engine com - Moscow-based Red Wings, manufacturer the Irkut that boasts extreme reliability, ponents six-fold, by utilising have also shown interest in Corporation by the end of UEC officials say. The engine a new heat-resistant granular this version of the all-new 2018 for flight tests on one of is capable of working without alloy. Russian airliner.

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RUSSIA/CIS OBSERVER NOVEMBER 2018 9 DEFENSE

TMC demonstrates precision -guided i t s o range air-to-surface missile GHz and in continuous A- v o

N weapons

A

I is used against a wide spec - band emission mode). The R

/ v o t trum of radar contrast targets missile can be used against both n o The iinnovattiive TMC prrogrram m a ranging from boats to cruis - preset targets and those detect -

M iinclludes rreconsttrructtiion off prroducttiion y e g and testing facilities, and more r and testing facilities, and more ers day or night, VMC and ed operationally by the aircraft e S IMC, out at sea and in the target designator system. us sia’s Tactical Missiles Vympel and GosMKB vicinity of the shore line. The air defense sector is R Corporation (TMC) is Raduga. The weapons de - The class of anti-radiation represented by the RVV- showcasing its precision- signed to kill surface targets air-launched guided missiles MD, RVV-SD and RVV- guided weapons within a includes the Kh-35UE guid - is represented by Kh-31PDs BD air-launched air-to-air combined exposition at the ed missile featuring flexible and Kh-58UShKEs. The for - guided missiles with the Airshow China 2018. The target guidance and attack mer now has got increased range to 40-200 km. They corporation unites more programming and the high- speed, range and warhead are equipped with all-new than 30 companies focusing speed Kh-31AD. Both are yield. It is good for use in any homing systems with im - on design and production of designed for use against sur - meteorological conditions proved sensitivity and ECM highly sophisticated mis - face ships and transport ves - against radar stations of air resistance. According to silery, space-rocket and un - sels (as clustered or individ - defense missile systems. TMC CEO Boris Obnosov, derwater technologies. Its ual targets). Kh-35UE can The Kh-58UShKE missile is the use of a wide range of air booth at Zhuhai is displaying also be used against ground used to destroy ground radar weapons during the military samples of smart weapons by radar contrast targets. stations (operating in pulse operation in Syria helped to both the parent company The Kh-59MK air- emission mode in the carrier significantly improve the and its subsidiary GosMKB launched guided extended- frequency range of 1.2 to 11 performances. 57 2019

Snu ei- ght years tafoter ites finrst teRurssi ans Aeerrospvacie cFoerce s.i Int The fighter is now powered The flight tests with new I flight, Sukhoi Su-57 fifth made its first flight in 2010. with Al-41F turbofan engines more powerful engines generation fighter has finally As for now ten prototypes (previously known as Izdelie dubbed Izdelie 30 (Item 30) got its first order from the were involved in the 117). This is a derivative of started in December 2017. It Russian military. The con - program. Two more Al-31F powerplant family was reported earlier that tract for the delivery of the are used for the ground tests. used at Sukhoi Flanker fami - Izdelie 30 increases thrust- first production Su-57s be - In February, two Su-57s ly. Its 117S variant with 14.5 to-weight ratio of Su-57 en - tween the Defense Ministry were spotted at the Russian tons thrust is installed at abling it to fly at supersonic and the aircraft manufactur - military base in Syria where Sukhoi Su-35S fighter. cruise speed. er, United Aircraft Corpo - they have been tested in com - ration was in August. bat operations. Krivoruchko “The Defense Ministry confirmed today these trials plans to receive 15 produc - had been successful. tion aircraft in the nearest fu - Meanwhile, the Russian ture”, said the deputy minis - military seem to wait for the ter Alexey Krivoruchko. The fighter to meet all the opera -

first fighter is to be handed tional requirements to start m o c . o t

over in 2019. larger procurement. The o h P - t r

Su-57, earlier know as deputy defense minister o p s n a r

Sukhoi T-50, was developed mentioned the deliveries of Su-57 tests with T

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all-new engines e under PAK FA program to Su-57 with the new engines e k i

commenced in the n A

replace 4th generation Su- were expected to start since m end of 2017 o y t r 27/30 Flanker aircraft in the 2023. A

10 RUSSIA/CIS OBSERVER NOVEMBER 2018 MARKET SUPPLEMENT President-S26T2 The airborne self-protection system for the Mi-26T2 helicopter

Group of authors :

Sherstnev D.V. Butuzov V.V. Golovin A.I. Koreljakov B.V. JSC “NII “Ekran” JSC “NII “Ekran” JSC “NII “Ekran” JSC “NII “Ekran” General director First deputy director general Deputy director general, Leading engineer-designer – chief designer first deputy of chief designer JSC «NII «Ekran» is a benchmark company developing of multifunctio - SPS President-S26T2 components nal integrated airborne self protection systems for aircraft protection Missile Approach Warning System (MAWS) against enemy air defense guided missile systems, as well as terrorist The MAWS is based on 4 UV direction finders and intended to detect at - groups widely using modern man portable air defense systems (MAN - tacking missiles by means of UV missile engine plume radiation . The PADS ). The company is a member of JSC «Concern Radio-Electronic MAWS transfers angular coordinates information into the ECU during the Technologies» of State Corporation «Rostec». missile launching and at its boost path . 4 UV direction finders provide JSC «NII «Ekran» is proud to present its own development – the 360 coverage on and 90 coverage on elevation for the protec - airborne self protection system (SPS ) President-S26T2 for the Mi- ted helicopter. They are installed in two pods of the Laser DIRCM system . 26T2 helicopter , which is the modification of the basic optical-elect - ronic SPS President-S . Purpose | The SPS President-S26T2 is intended for protection of the world biggest military transport helicopter Mi-26T2 (export version ) against MANPADS attacking IR seeker guided missiles . Structure | The SPS President-S26T2 consists of : • Missile approach warning system based on 4 UV direction finders The pod of the Laser DIRCM system (MAWS) ; • Laser directed infra-red counter measure system fulfilled in 2 pods Laser Directed Infra-Red Counter Measure System (Laser DIRCM system ) (Laser DIRCM) ; The Laser DIRCM system consists of two identical pods installed at Mi- • Counter measure dispensing system for 50 mm cartridges (CMDS) ; 26T2 helicopter boards . The Laser DIRCM system countermeasures to • Electronic control unit with external memory (ECU) . attacking IR guided missiles by means of laser radiation . Counter Measure Dispensing System (CMDS) The CMDS is intended for placement and shooting out of 50 mm flare cartridges. The CMDS operates in automatic and manual modes. In automatic mode the CMDS is controlled by the ECU. In manual mode the CMDS is controlled from the cockpit control panel . Electronic Control Unit with External Memory (ECU) The ECU is intended for receiving and processing of the SPS President- S26T2 components and onboard radioelectronic equipment data , sen - ding of control commands and information according to preset algo - rithm into the SPS President-S26T2 components and onboard radio - electronic equipment of the helicopter . External Memory (memory card) | The external memory is intended for : • storage and sending a special software file from nonvolatile storage on the SPS President-S26T2 ECU request ; The SPS President-S26T2 for the Mi-26T2 helicopter • data recording and storage by the objective control system (OCS) ; • transferring of OCS information into the SPS President-S26T2 sup - Key specifications | The SPS President-S26T2 provides : port facility . • protection for the helicopter in the given coverage area ; SPS President-S26T2 principle of operation | The principle of • detection and countermeasures to attacking MANPADS IR seeker operation of the SPS President-S26T2 is based on detection of attac - guided missiles at all missiles application ranges ; king missiles and their IR seekers countermeasure by means of laser • situational awareness and control of the SPS President-S26T2 beha - radiation and flares. The helicopter is protected in automatic mode wit - vior with displaying information on the multifunction display ; hout a crew participation . • the helicopter crew with speech messages about attacking missiles . JSC “NII “Ekran”, 443022, Russian Federation , Samara, The SPS President-S26T2 weight without flare cartridges and the Kirova prospekt , 24, Tel. (846) 3122170, Fax: (846) 3122182 cabling is not more than 380 kg . E-mail: [email protected] , URL: www.ekran.kret.com DEFENSE

Russia’s UAC becomes largest warplane maussnia’su Unfitaed cAirtcrauft Croerpor ration R (UAC) has become the largest m o c manufacturer of fixed-wing combat air - . o t o h P -

craft in the world. The company’s annual t

UAC plans to assemble 2,450 r o p s

report says it delivered 94 warplanes in military aircraft through 2035 n a r 2017, including fighters and . T UAC insists it took the lead among the newly assembled combat aircraft in 2017. Su-30SM fighters, as well as of Su-34 global aircraft manufacturers. Lockheed These included 10 Sukhoi Su-35 fighters bombers. The Russian Defense Ministry Martin delivered 74 combat aircraft last for China, six Su-30MKAs for Algeria, announced in January that it had re - year: 66 F-35s and eight F-16s. Boeing two Su-30SMs for Kazakhstan, and 15 ceived more than 110 new aircraft in reported 39 deliveries, including 23 F/A- MiG-29M/M2 fighters for Egypt. 2017, but this figure is believed to include 18s and 16 F-15s. France’s Dassault With these figures taken into account, both fixed- and rotary-wing types. handed over nine Rafales. Eurofighter a total of 61 aircraft must have been UAC plans to assemble 2,450 military Typhoon has not yet reveal its deliveries handed over to the Russian military. The aircraft through 2035, increasing its for 2017. UAC did not report its deliveries Russian Aerospace Forces continue to market share to 45% compared to 20% breakdown by customer types, but expand their fleet of Gen 4++ Sukhoi in 2015. Domestic procurement will be Russia’s Kommersant daily reported ear - aircraft. In 2017, the military took deliv - financed under the new governmental lier this year that Russia had exported 33 eries of single-seat Su-35S and twin-seat armament program for 2018-27.

The Russian military has ordered more thrust without afterburning is 8,800 kgf than 100 Su-30SM against 7,700 kfg at the current engine. for both the Air The standardization is also a good rea - Force and the Navy son as Su-35S and Su-30SM heavy fighters will be a backbone of the Russian m o c . Air Force at least for the next decade. o t o h P

- Yury Slyusar, the head of United t r o p s n Aircraft Corporation, a parent to both a r T

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g Sukhoi and Irkut, told in 2017 that the r e b r e a modernization dubbed Su-30SM1 may F d i n o also include the installation of new avion - e L ics and the introduction of new air- launched weapons as well as the improve - 30 ment of maintenance procedures to re - duce the operation costs. Su he- RussianS mMilitary ptlaons tog re-een t- ndevelowpme nte effnort galoingn wieth Ss ukhoi and Since 2012 the Russian military has T gine its two seat Sukhoi Su-30SM Su-30SM manufacturer – Irkut ordered more than 100 Su-30SM for fighters. Instead of a pair of current Al- Corporation. The official goal of the re- both the Air Force and the Navy. This 31FP, these aircraft are expected to re - engine effort is to standardize the engines aircraft is latest version of Russia’s export ceive more powerful Al-41F-1S (earlier supplies to the military as Al-41F-1S bestseller, the Su-30MKI family. The known as Item 117S) turbojets, according powers another fighter of the Air Force – largest foreign operator of these fighters to the information, released by the en - single seat Su-35S. But the new engine is India. It is also in talks with Sukhoi gine’s manufacturer Ufa-based UMPO can expand Su-30SM capabilities. It has over the modernization of its fleet. company, a subsidiary of United Engine 14,500 kgf full afterburner thrust what is Algeria, Malaysia and Kazakhstan also Corporation. UMPO takes part in this by 2,000 kgf more than at Al-31FP. The have fighters of this family.

12 RUSSIA/CIS OBSERVER NOVEMBER 2018

AIR TRANSPORT

China-friendly Russia and Russia-friendly China? o t o h P - t r o p s n a r T / v e e k i n A

m o y t r A

China is a huge country with a population of almost 1.5 billion people and has bold 2017 the three largest air companies in ambitions of sustaining its growth rates which have been high for the last two the country – China Southern decades, until recent years when a decline set in. Air transport appears to be a piv - Airlines, and otal element for China’s economic growth – and all of this contains significant con - – each registered traffic sequences for Russia. numbers of more than 100 million passengers, while the overall market it - Ekaterina Sorokovskaya indirect socio-economic benefits, the self grew by 12.6 per cent. Last year, and Alexey Sinitsky secretary general pointed out. the combined traffic performance of In recent years, the Chinese air all Chinese carriers reached some 549 ivil aviation will continue transport sector (both domestically million passengers. to play an essential role in and internationally) has been register - China Southern, the country’s China’s economic and ing an unparalleled upswing. This is biggest airline, last year carried 126 C social development, attributable to the fast growth of the million passengers, 10.2 per cent more ICAO secretary general Fang Liu an - country’s middle class, from which than in 2016. Its domestic traffic grew nounced at the Belt and Road Forum consumer spending on entertainment, by 10.3 per cent to 109 million passen - for International Cooperation which healthcare and online shopping has gers, whilst international flights gener - took place in Beijing in May last year. increased and which will continue to ated 15.4 million passengers, an in - According to the high-ranking offi - rise significantly in years to come. crease of 11.1 per cent. cial, strategic and aggressive invest - People will also spend more on travel - China Eastern carried 111 million ment in air transport development will ing, boosting demand for air transport passengers last year, nine per cent be the key success factor for China’s services. more than in 2016. The most impres - new large-scale initiative because it is According to the Civil Aviation sive improvement – a 10 per cent in - air services that generate direct and Administration of China (CAAC), in crease up to 92.6 million passengers –

14 RUSSIA/CIS OBSERVER NOVEMBER 2018 AIR TRANSPORT was achieved on domestic flights. airports in China reported a traffic ders. With the recent slowdown of International services accounted for turnover of more than 1.148 million economic growth in China affecting 14.7 million passengers (up 2.4 per passengers, representing a 12.9 per profit margins, China’s airlines, cent over 2016). cent improvement on 2016; and traffic in order not to lose momentum, are Air China, the last of the nation’s big at 32 individual airports exceeded 10 now actively pursuing two strategies: three air carriers, cleared the psycho - million passengers. The nation’s expansion in foreign markets, and logical barrier of 100 million passengers strategic plan promises that 136 new the development of the low-cost car - last year, registering traffic of 101.6 mil - airports will be built by 2025. rier segment. The Chinese middle lion passengers (+5.1 per cent). Some Meanwhile, air transport compa - class is again the factor influencing 83.5 million of that total (+6.0 per nies in China have been affected by the foreign expansion plans, with cent) were covered by domestic services competition from elsewhere, with Chinese passengers opting to choose and 13.5 million (+2.0 per cent) by in - passenger traffic growth rates suffer - Chinese carriers that they are com - ternational. ing since the Gulf carriers of fortable with. Remarkably, each of China’s big Emirates, Etihad and China’s robust upturn in outbound three airlines currently handles as started to draw clients to their Middle tourism is a consequence of improved many passengers as the entire Russian East hubs conveniently located be - living standards and the now relaxed commercial aviation business. tween Europe and Asia, and by offer - visa requirements for Chinese citizens Nevertheless, Russia’s Aeroflot still ing affordable ticket prices along with in many countries around the world – leaves them behind in terms of inter - top-quality services. Nevertheless, ac - two key drivers in the trend for in - national traffic, with more than 17 cording to the International Air creasing numbers of international million passengers. Apparently, Transport Association (IATA), China travellers. However, there are three China’s available resources and en - will soon outpace the USA and be - other major factors that are contribut - hanced capacities point to promising come the world’s largest aviation mar - ing to the enhanced growth of passen - assets for boosting future international ket by 2022 as global passenger traffic ger traffic on international flights: services, but which, for a number of passes the 1.5 billion people mark. firstly, with all three big Chinese air reasons, have not yet been fulfilled. It is becoming increasingly obvious carriers being state owned, the na - China is in the process of building that China’s rapidly expanding avia - tional policy is encouraging the need new airports and revamping and ex - tion business is not just challenging to be more aggressive in the interna - panding many of its existing air hubs. the largest American and European tional flights segment, with a stimula - In 2017, the nation brought 11 new air carriers, but the emerging Chinese tion toolkit that may well include both airports into operation, raising its total air companies are also forcing their soft incentives like satisfying prefer - number of gateways to 229. Last year, competitors to look over their shoul - ences (such as more convenient slot

The most popular foreign destination carried by Russian airlines, scheduled services

Country 2017 2016 2015 2014 2013 Rank Pass. carried Rank Pass. carried Rank Pass. carried Rank Pass. carried Rank Pass. carried Germany 1 2890717 1 2459127 1 2279010 1 2360619 1 2152121 China 2 1931756 2 1506995 2 1399537 3 1318839 3 1271752 Italy 3 1671606 4 1288985 4 1293160 2 1337496 5 1211730 Spain and Canary Islands 4 1601310 5 1178820 5 1022912 6 1179441 4 1231487 Armenia 5 1555929 3 1389768 3 1318948 4 1309441 8 1166894 Cyprus 6 1270018 6 893055 7 912531 12 836086 16 711937 Thailand 7 1053856 9 783515 8 899877 5 1188714 6 1181886 Israel 8 1027351 8 845966 15 806431 15 784947 15 714499 Kazakhstan 9 934541 11 771046 14 827354 16 746908 18 573071 Turkey 10 930862 – N/A 6 917558 7 1130672 9 998744 France 11 903952 12 763619 17 766773 13 816938 13 785820 Tajikistan 12 885145 10 777421 9 894344 10 1027969 10 983683 Kyrgyzstan 13 863932 7 882754 16 777038 18 693054 19 563127 United States 14 855832 14 752904 12 852734 14 786520 14 775492 Uzbekistan 15 728962 13 761248 10 888798 8 1087011 7 1176792 Czech Republic 16 701404 15 551137 18 592468 19 610806 17 601360 South Korea 17 625060 16 502 848 – N/A – N/A – N/A Georgia 18 578674 – N/A – N/A – N/A – N/A Greece 19 508866 – N/A – N/A 17 695604 12 794499 Azerbaijan 20 507431 17 486976 20 447404 20 496291 20 558266

Source: ATO Sourcebook’2018

RUSSIA/CIS OBSERVER NOVEMBER 2018 15 AIR TRANSPORT

the international flights sector where Chinese air companies may be able to use their seat capacities even more ef - ficiently. The new silk road The Belt and Road initiative, as well In the autumn of 2013, Xi Jinping, streamlined transport, energy and as the transport communication plans president of China and party gener - trade corridor between the countries of countries participating in the proj - al secretary, introduced the concept of Central Asia and Europe. The ect, stipulates that Chinese and for - of the Silk Road Economic Belt (in initiative aims to foster scientific eign airlines will launch more than reference to the historical Great and technical cooperation and en - 100 new international flights between Silk Road from China to Europe as hance economic ties between states cities and regions embraced by the mentioned in 1877) and the along the route. As of today, more initiative. Almost one third of those Maritime Silk Road. The two con - than 80 countries and international destinations will link China with cities cepts later formed the initiative of organisations have signed up to in - in Russia and central, south-east and the One Belt, One Road (also tergovernmental agreements and south Asia. known as Belt and Road Initiative) memoranda of understanding with which is aiming at re-creating a the government of China. TChhei naM-foriseconwd ly hRuubs sia irport of Sheremetyevo is currently the most times); and harder measures, all the of slots for airfield operations on do - popular among Chinese airlines. It is way down to direct orders to serve mestic flights as a result of out-dated the only European gateway that serves specific destinations. airport infrastructure and restricted flights of eight Chinese carriers: Secondly, the airlines themselves handling capacity. A domestic flight , China are becoming excited about the op - requires two slots – one for take-off Eastern Airlines, Air China, Tianjin portunities that international routes and one for landing – while an inter - Airlines, Hainan Airlines, Sichuan may offer. Factor number three, sur - national flight needs only one, as the Airlines, and prisingly, is a technical one. Many second is provided by the foreign air - . In 2017, traffic between Chinese carriers are now facing a lack port. As a result of this factor, it is in Sheremetyevo and China exceeded m o c .

o Air China alone transports more than t o h

P 100 million passengers annually – the same - t r o

p total of the entire combined Russian s n a r commercial aviation industry T

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16 RUSSIA/CIS OBSERVER NOVEMBER 2018 AIR TRANSPORT two million passengers, a 17 per cent funct used to serve Beijing the second in Russia (after improvement on 2016. and Hainan from Domodedovo and Sheremetyevo) – to be certified by the Flights to and from China have VIM-avia, which has also recently left China Friendly programme. Pas - been steadily on the increase from the the market, offered a vast Chinese sengers from China have been showing Moscow airport, Russia’s biggest. As destination network. interest in Novosibirsk as a transfer of the summer of 2016, Shere - Moscow’s Vnukovo Airport cur - hub for trips to European Russia metyevo’s destination network in rently hosts only one Chinese airline. (Moscow, St Petersburg, , etc) China included 12 airports. In 2017, China Southern Airlines, Beijing St Petersburg Pulkovo Capital Airlines, and airport was granted the Lucky Air added services to Shen - Welcome Chinese certificate of the Chine zhen, Quindao, Chongqing and Kun - Tourism Academy in 2016 ming and, in the 2018 summer sched - ule, the number of Chinese destina - tions increased to 16. The special re - lationship will continue to grow, as will the number of frequencies within the existing services. In June of this year, Air China increased its weekly frequencies to Beijing to 14, and a month later Hainan Airlines increased the number of flights to the capital of China to 10 weekly frequencies. Beijing Capital also launched a new o v o k l

destination, to Hangzhou. u P The list of Russian airlines perform - ing flights from Sheremetyevo to In May 2018, Hong Kong Airlines and rest of Europe for the last four China includes Aeroflot and Royal launched a direct flight from Hong years, so now almost half of foreign Flight, the latter launching flights to Kong. So far flights are being operated traffic entering the Novosibirsk Guiyang, the capital city of Guizhou until the summer schedule is over province are Chinese citizens, province. In March 2017, Shere- (October 27), and whether they will Tolmachevo officials point out. metyevo was the first Russian airport be prolonged depends on seat occu - to be awarded the China Friendly cer - pancy rates. tificate, with the hub proving that it Meanwhile, the carrier is also con - TRhues Csihai-nfersiee mndarlkye tC seheimnsa ?to be inex - complies with high service standards sidering flights to St Petersburg’s haustible – and that in itself is attract - for Chinese passengers, offering read - Pulkovo Airport which, as with ing foreign and Russian carriers, but able website information, audio an - Sheremetyevo, is looking to foster fur - another hefty boost is coming from nouncements and airport navigation ther cooperation with Chinese carriers. those local authorities which actively signs in Chinese. Other friendly fea - The gateway was granted the Welcome subsidise long-range air services from tures include, UnionPay and Alipay Chinese certificate of the Chine Chinese second-tier cities (other than support at restaurants and cafes in the Tourism Academy in December 2016. from Beijing, Shanghai and duty-free zone, as well as Asian cui - As of 2017, three Chinese air compa - Guangzhou). No one should be misled sine and menus translated into nies served St Petersburg’s Pulkovo di - by the term ‘second-tier’ though – be - Chinese. rectly from Beijing (Hainan Airlines), cause it still refers to cities with popu - Sheremetyevo’s rival Moscow air - Urumqi (China Southern Airlines) and lations of dozens of millions of people. port of Domodedovo offers flights to Shanghai (China Eastern Airlines). In Subsidies at Chinese airports differ two Chinese cities: Urumqi (operated January 2018, com - from those typically present in other by S7 Airlines) and the Hainan resort menced regular operations between St aviation markets which usually cover of Sanya (). Last year, Lucky Petersburg and Chengdu (Sichuan (fully or partially) just airport fees and Air carried out its flights from province), while in May 2018 China some marketing support. Of course, Kunming to Domodedovo, but later Eastern Airlines launched flights from more generous subsidies may also be followed other HNA Group members Xian (Shaanxi). available, but they can barely compete (Hainan Airlines, Beijing Capital Elsewhere in Russia, in June 2018, with some Chinese regimes, with in - Airlines and Tianjin Airlines) and in Novosibirsk centives which sometimes generate 30 switched to Sheremetyevo. The de - became the first regional hub – and to 50 per cent of a flight’s revenues for

RUSSIA/CIS OBSERVER NOVEMBER 2018 17 AIR TRANSPORT

the company. One such example is economic effect. And yet, from a for - How long this subsidisation policy Qingdao, which contributes $12,300 eigner’s perspective, Xian, with its will continue remains an open ques - for each flight of a 200-seat aircraft Terracotta Army, seems a more attrac - tion. The records show it is problematic service to other Asian cities. tive destination than say Changsha or for a foreign company to introduce or It is believed that the total amount Wuhan, which offer hardly any attrac - sustain such a subsidy regime – the of China’s aviation subsidies is now tions. Subsequently, the subsidisation Chinese prefer to keep the money with - estimated to exceed $1.3 billion, as policy has stimulated a steady growth in the existing business-schemes. such subsidies may also last for a long of long-range air services from sec - Yet, despite this thorny issue, the time and cover more than just the first ond-tier Chinese cities. The average Chinese market still looks an ex - one or two years’ of flight operations. number of such flights has gone up tremely attractive one – or maybe The most unusual thing about Chinese from two to 31 per day over the last 10 even over-the-top, observers wonder. subsidies is that they are meant to years. One of the reasons for Russia’s VIM- mostly favour outbound tourism. However, in late 2017, all three ma - avia’s fiasco in 2017 was its failed at - Although it is common practice across jor Chinese airlines expressed doubts tempt to get a grip on Chinese desti - the globe for airport subsidies to indi - about the continuation of the subsidi - nations. To achieve this goal, the rectly be evened out by revenues gen - sation policy and pointed out that company had expanded its wide-body erated by incoming tourists and grow - those particular air services have re - fleet half a year earlier than planned ing businesses at home, on the con - mained low-profit and would cease as and, due to some unexplained rea - trary, air traffic in China’s second-tier soon as the subsidies are scrapped. The sons, failed to develop the services – cities is almost entirely aimed at serv - call to axe the subsidies voiced by the and eventually faced a cash-flow gap ing Chinese tourists going abroad to Big Three can also be considered as a that was too wide to bridge. Currently, holiday destinations. For example, move to upset local competitors several other Russian airlines are fol - Xian pays for transporting (mainly, the private HNA Group that lowing in VIM-avia’s footsteps re - Chinese tourists to Europe, but very accounts for 31 per cent of flights from garding the Chinese destinations. We few Finns (or other Europeans) head second-tier cities, as well as foreign cannot but hope that they will be able for Xian to help generate a noticeable companies). to walk all the way to the end.

Eight Chinese operators perform flights from Moscow Sheremetyevo airport m o c . o t o h P - t r o p s n a r T

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18 RUSSIA/CIS OBSERVER NOVEMBER 2018 BUSINESS AVIATION

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Anna Nazarova become an integral part of the general whilst France’s Nice and ’s mobility. New solutions and services Biggin Hill airports once again were the ol itical sanctions, the grad - have made business aviation more af - most desired destinations. ual isolation of Russian busi - fordable and raised its profile among Russian business aviation operators nesses in the global econom - younger people, resulting in a steady have also confirmed that the market has P ic arena, vague perspectives growth of traffic since November 2016. become more lively, with demand for for the Russian business elite – these are The highest growth was registered in private and corporate aviation spurred the main factors currently shaping the March (up nine per cent year-on-year), by international forums, congresses, future of the country’s business aviation July and October (up 8.9 per cent) on summits and exhibitions, as well as market. Despite this, the present re - 2017, boosted by increased activity in prominent sports events – all those get- mains surprisingly bright, as the indus - central European countries, such as togethers, that focus demand for travel. try is on an upward flightpath, having Slovakia (30.9 per cent growth), Bosnia Vitaliy Tereschenko, first deputy recovered from previous crises. and Herzegovina (25.7), and the Czech CEO of Russian operator Sirius Aero, Republic (13.8). Business activity in the reveals: “If you compare the season, European Union is nearing the record which started in December 2017 and RFulossaiat’isn bgu stirnaefssf iac viation industry flew levels of 2006, a year which preceded ended in March 2018 with the same pe - into 2018 on an upswing. According to the most prosperous period in the his - riod in 2016–2017, Sirius Aero showed Eurocontrol data, in 2017 the number tory of business aviation, namely 2007 a 19 per cent growth, which is largely of business aviation flights in Europe and 2008. attributed to fleet expansion. At the climbed by six per cent, exceeding The German consultancy Wings same time the market average growth 700,000 flights, which translates to an Advance notes similar optimistic was between four and five per cent.” average of 100 additional flights per day. trends. The analysts reveal that 2017 According to Tereschenko, in late Brandon Mitchener, general director was marked by a four per cent up 2017 and early 2018 the market followed of the European Business Aviation draught compared to the previous year. a typical cycle – December became one Association (EBAA), has expressed a The number of business aviation flights of the busiest months in the year, and strong belief that business aviation has grew throughout Europe and in Russia, whilst the demand went into a natural

RUSSIA/CIS OBSERVER NOVEMBER 2018 19 BUSINESS AVIATION dive after the holiday season, it picked Bombardier Challenger 604/605/850, 2014 (let alone pre-2008 crisis times), up again in February with more business the smaller Cessna Citation the charter broker business has enjoyed trips and the ongoing ski season. XLS/XLS+, and the Embraer Legacy high margins, thanks to a number of Another operator, Kazan-based 600/650, which enjoys enduring popu - factors. However, the countrywide cost , has also noticed the general larity with Russian passengers. This da - optimisation sweep has reached private tendency towards growth in all types of ta is provided by Aim of Emperor group aviation as well, prompting price air travel services, including charters, and is based on the commercial charter damping, the hunt for empty legs, and although no figures have been dis - and private flights statistics of the often more attractive prices for passen - closed – as is the same for its col - Russia-originated company. gers. All this shaped the market condi - leagues at Jet Express. Irrespective of The destination preferences of busi - tions that favoured new clients’ intro - them being tight-lipped about the op - ness passengers have remained surpris - duction to renting a private jet. In erational results, the companies notes ingly consistent through the years. Europe, the price for chartering a a curious trend: in the period that cov - Large market players agree that Europe smaller jet like the Embraer Phenom ered the second half of 2017 and the is still number one for Russian trav - 100/300 does not exceed €10,000. first half of 2018 there is a clear ten - ellers, more specifically Nice, London, dency towards increased numbers of Paris, Berlin, Geneva, Milan, Vienna, flights in the typically low seasons, which are joined by Pisa and Chambery TUhnec hflaeentg ionf g‘ pcroonvissiosntealnlyc-y Russian’ namely early December, February and in the summer and in the winter. Within business-jets (de facto those owned by March. There’s also rising demand for Russia – Moscow, St Petersburg, Russian citizens, but registered and op - flights within Russia, indicating the Sochi, Rostov-on-Don, Kazan and erated outside the country) is the ‘mea - gradual transformation of business avi - Yekaterinburg – retain their positions sure of things’ – which characterises ation from being primarily a luxury- of preferred destinations. Simferopol is the real condition of the business avia - segment towards becoming a standard also on the list, however no operator tion market, and the country’s econo - business tool. would dare admit it as they would not my in general. Whilst charter flights are The preferences of charter users in risk flying a with a foreign the most popular but also the more vul - 2017 inclined towards midsized and registration to Crimea for fear of break - nerable and fluctuation-prone seg - heavy business jets. Passengers still pre - ing sanctions. ment, the private aircraft fleet is a more fer flying with a company of friends and Prices for charter flights remain un - significant factor, and is not season- partners, or will contract a jet for family der pressure from fierce competition sensitive. vacations. The list of charter market against a backdrop of stable, albeit Owners of private aircraft are also aircraft leaders is topped by the moderate demand. Prior to the crisis of owners of the largest corporations in the country, with a resource-based economy which does not stimulate new aircraft Fleet expansion enabled Sirius Aero to show a 19 per cent growth in owners, but on the other hand keeps the operations in winter season 2017-2018 list of existing ones relatively intact. So the fleet of ‘Russian’ business jets hardly changes in number over the years. There is still no official data, but ac - cording to subjective assessments, the figure fluctuates between 350 and 500 aircraft. Of this only 74 are listed on the national register, according to JetNet. The reasons for such a low rating on the Russian aircraft register are well known not only to private owners, but also to the largest commercial airlines, includ - ing flag carrier Aeroflot, which has the major share of its fleet sporting

m Bermuda’s VP- and VQ- prefixes on its o c . o t

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20 RUSSIA/CIS OBSERVER NOVEMBER 2018 BUSINESS AVIATION m o c . o t o h P - t r o p s n a r T

/ g r e b r e a F d i n o e L

Foreign-registered operators such as Vista Jet enjoy the same level of success in the Russian market as the local companies

objectives and the plan for using his air - ports if necessary and unrestricted cab - less than 10 per cent of the global fleet craft,” explains Vitaliy Tereschenko of otage whilst being compliant with cus - being on sale. So it may be assumed Sirius Aero. “Our airline has several toms regulations. that the period of attractive offers and aircraft on the Russian register, and However, foreign-registered aircraft discounts is nearing its end, and the several more registered in Bermuda. In operators such as Vista Jet, Global Jet prices are moving closer to realistic the latter case we operate the aircraft in Concept, Air , and Jet Story market values. According to estimates compliance with the Part 83bis of the enjoy the same level of success in the from LIS Trading Group, which is also Chicago convention, as a Russian air - Russian market, and have their own list an aircraft broker, the market of used line. We believe this to be the most effi - of advantages in the eyes of aircraft jets has shown signs of revival lately, as cient and reliable scheme.” owners. These attractions include it is now attracting a new category of Sergey Trifonov, of Tulpar Air, ad - transparent history of operations, clients working on their first business jet mits: “There’s no tendency towards which is key to re-selling the aircraft in purchases. transferring aircraft onto the Russian the secondary market, favourable taxa - “In the last few month we have seen register. The fancy of the Transport tion, and ample possibilities for the a steady increase in the number of re - ministry is not really supported by any raising of finance for a business jet ac - quests for the search of aircraft in the benefits of such a transfer.” quisition. For passengers there’s also price range of around $6 million. In Despite the low popularity of the the high chance of catching an empty this price category the Embraer Legacy Russian register, there are a number of leg to Europe, which saves between 30 600 has won unrivalled success, which Russian airlines which operate success - and 70 per cent of the charter’s cost. is beginning to influence its asking fully with aircraft with the RA- prefix price. The secondary business jet mar - on their tails. The largest of these are ket is entering the sellers’ market phase, Sirius Aero, RusJet and Aeroservice. TAhier cmraarfkte tf ofr u seadle b usiness jets for sale and buyers should hurry up with their Sergey Trifonov explains that the major is another major factor for the industry. purchase decisions,” advises Roman advantage for locally based/registered The Russian used aircraft market is Malyushhkin, managing partner at LIS airlines is their unrestricted ability to closely aligned with the global market, Trading Group. operate domestic flights, better flexibil - which is now characterised as a seller’s In conclusion, it can be observed that ity and reduced waiting times due to market, one defined by a period of eco - 2018 started out as a year of promises. their aircraft being closer to potential nomic growth which has spurred in - The growth of charter traffic, the re - customers, and Russian-speaking creased demand for aircraft, hence vival of the used jet market – all these crews. This view is shared by Sirius higher asking prices. According to are indicative of the Russian business Aero, whose spokesman emphasises JetNet data, as of April 2018, about 9.3 aviation’s steady and cyclical develop - that, within Russia, local operators per cent of the world’s collective fleet ment. It is likely that the market will benefit from more privileges, such as of 21,607 business jets were up for sale. continue strengthening, unless external lower airport and ground handling fees, JetNet’s methodology stipulates that political and economic cataclysms access to government and military air - the sellers’ market is characterised by push it into a reaction.

RUSSIA/CIS OBSERVER NOVEMBER 2018 21 SPACE BUSINESS

Uncertain future of International Space Station v o g . A S A N

By Igor Dmitriev plementation, the idea being that broad The station’s complement crew com - cooperation would help cut the con - prises six persons; the ISS has been per - his year marks two anniver - struction costs and times. However, ex - manently manned since 2000. Crew saries in the history of the penses started growing at a fast pace and conduct experiments in biology, medi - International Space Station exceeded $150 billion in 2010. Brazil cine, physiology, astronomy, meteorol - T (ISS), the largest space ex - bowed out of the program in 2002. ogy, physics and chemistry, as well as ploration effort to date. 25 years ago In terms of operation the ISS com - carrying out space technology research NASA and Russia’s signed prises the Russian and US segments. and regularly launching nanosatellites. the Space Station Program Imple - The former is managed by the mission The ISS experiments have yielded mentation Plan while the Zarya control center in Korolev, outside impressive results. In particular, the Functional Cargo Block launch, which Moscow, and the latter by the control AMS-02 (Alpha Magnetic Spectro - signaled the beginning of ISS construc - centers in Houston, Germany’s meter) device was used to conduct im - tion was launched 20 years ago. The Oberpfaffenhofen, Japan’s Tsukuba portant research into dark matter. The ISS’s future is currently uncertain, but and Canada’s Saint-Hubert. The sta - spectrometer, which detects elemen - is expected to be decided in the next tion currently includes 16 modules; an - tary particles, weighs 8.5 tons and costs several months. other three, the Nauka multipurpose $2 billion. It was developed by an inter - The ISS is based on two space station laboratory model, a nodal module, and national group of scientists represent - projects, Russia’s Mir 2 and the US’s a science-power module, are to be ing 16 countries with funding from the Freedom, which were never implement - added in the next several years. US Department of Energy. Between ed separately. It incorporates the opera - Weighing in at around 420 tons, May 2011 and April 2013 it registered tional experience of the Soviet orbital measuring 51 by 109 by 73 meters, com - around 100,000 positrons. This abnor - stations and the US Space Shuttle vehi - manding a pressurized volume of 916 mal level of antimatter may indicate the cles. Once the program had been final - m3 and 388 m 3 of living quarters, the existence of dark matter. ized legally and technically, work on the ISS is the largest artificial object ever Other ISS-hosted experiments have station was begun by the 16 participating launched to near-Earth space. It is cur - also been successful. For example, countries: the US, Russia, Japan, rently flying in an orbit with an inclina - medics and physiologists have been Canada, and Brazil, as well as 11 ESA tion of 51.6 О, at altitudes of between able to develop food rations and physi - members (Belgium, Denmark, France, 400 and 450 km, and with an orbital pe - cal exercises aimed at reducing the Germany, Italy, the Netherlands, riod of 90 minutes. Since first put into speed at which crew on long missions Norway, Sweden, Switzerland, and the operation, the station has completed lose bone mass, which is one of the key UK). Each country was expected to con - around 114,000 orbit passes and hosted problems to be solved in the interest of tribute reasonably to the program’s im - 232 persons from 18 countries. future interplanetary missions.

22 RUSSIA/CIS OBSERVER NOVEMBER 2018 SPACE BUSINESS

Research demonstrated a decrease in will follow the law, whatever law by Bridenstine was discussed by the crew’s vision caused by changes in the Congress passes.” congressional subcommittee on space intracranial pressure on the eyeballs. Bridenstine added that the intent is on September 26. The legislators do not “It’s probably the most significant dis - for NASA to be one customer of many want China’s orbital station, which is to covery we’ve made in space physiology customers operating in the low-Earth be launched in 2022, to remain human - in 20 years,” commented US astronaut orbit and to have multiple providers ity’s only low-orbit outpost. Michael Barratt, who had spent over six that are competing against each other NASA, which is planning to focus its months on the ISS as part of two expe - on cost and innovation: “If we can have efforts on deep-space missions, needs ditions back in 2009. a competitive market place in low- more time to handing over its low-orbit ISS crew conduct applied research Earth orbit for human habitation where operations to private contractors. The and experiments that facilitate the cre - NASA can be one customer of many agency is additionally worried by the ation of new space equipment. In par - customers, and we have multiple hold-ups in the development of the pri - ticular, US astronauts study capillary providers competing on cost and inno - vate Dragon and Starliner manned behavior of liquids in microgravity, vation, it drives down our cost, it in - spacecraft, whose operation will not which will be useful in developing fuel creases access, and then NASA can use begin until 2019 or 2020. This is why tanks and fuel pipeline systems for fu - its resources to go further.” Senate, and then Congress, supported ture spacecraft and boosters. He added: “And in order to go further the plan to prolong the ISS operation Despite the progress made to date, we need to free up resources that are through to 2030. Senator Ted Cruz, the ISS cannot keep going forever: its currently in the low-Earth orbit, and so head of the house’s committee on components will eventually reach the we free up those resources by commer - space, commented: “One of the dumb - end of service life, and the program par - cial operations and then use NASA’s re - est things you can do is cancel pro - ticipants have their own ideas as to the sources to go to the Moon and on to grams after billions in investment when station’s future. The program was origi - Mars.” NASA is in talks with a number there is still serious usable life ahead.” nally scheduled to last until 2010, but of international companies over delega - Not all US specialists are squarely the deactivation date has been repeat - tion to them of the ISS management behind the ISS privatization idea. edly postponed. In 2016, the partici - and funding functions. “There are peo - Frank Slazer, Vice President Space pants agreed to continue operating the ple out there that can do commercial Systems for the Aerospace Industries ISS until 2024, after which it was to be management of the station”, Briden - Association, believes that the very prin - deorbited and sunk in the Pacific. Now, stine said shortly after assuming office at ciples of the station’s operation do not however, various variants are being con - NASA. “I’ve talked to many large cor - allow for its commercialization: the ISS sidered for the station’s active service to porations that are interested in getting is governed by intergovernmental be prolonged beyond that date. involved in that through a consortium, if agreements. The partners have been mulling the you will.” The White House is planning This is why it is highly likely that the possibility of continuing with ISS oper - to ask Congress for $150 million to be term of the station’s operation will be ations until 2028, but no decision has allocated in the 2019 budget for enabling prolonged again. Roscosmos will prob - been made so far. The USA spends privatization of the ISS. ably has nothing against such a deci - some $4 billion per year on the station’s However, Congress may have its own sion, seeing as there are currently no maintenance, which limits the possibil - view of the matter. The bill mentioned ready alternative to the existing ity of implementing future space proj - ects, so NASA has been looking to have The first two pieces, Russian Zarya and US Unity the US segment privatized. “At present modules of the International Space Station were the ISS is scheduled to remain opera - mated together in December 1998 tional until 2024. The president’s budg - et request has said that we are going to end the direct funding in 2025 with the intent to commercialize the low-Earth orbit in 2025. So, that is being said and I support that policy,” NASA Administrator Jim Bridenstine said during his October visit to Russia. “The Congress is maybe looking to extending it to 2030. There is a bill in the House [of Representatives] and a bill in the v o g .

Senate that would do that.” He added: A S A “Of course, as NASA administrator I N

RUSSIA/CIS OBSERVER NOVEMBER 2018 23 SPACE BUSINESS

manned space exploration program. In tories. Another use for the ISS might be launch NASA crew commercially, on 2014, Russia considered the possibility as a maintenance base and a hub for board Starliner and Dragon Crew vehi - of building a national high-latitude sta - space tourists. cles, which are not going to be put into tion and withdrawing from the ISS be - All these ideas could be implemented service until 2019. (Seeing as the yond 2020; there was also a proposal to within the next 10 to 15 years. In the launch dates for the new US manned turning the Russian ISS segment into a meantime, the plans for the ISS may be spacecraft have slipped repeatedly, and national orbital station after the inter - significantly revised in the light of the may yet be revised in the future, NASA national project has been discontinued, current situation, including the has been playing it safe by booking seats but no decision was made on either of October 11 failed launch of a Soyuz- for its astronauts on Russian Soyus ve - these plans. The European partners will FG rocket carrying the Soyuz MS-10 hicles until February 2020.) most likely support the idea of prolong - manned mission to the station. The ISS Overall, even the short-term ing the ISS operations, for similar rea - partners are now looking into what prospects of the ISS are currently un - sons as Russia. EU bureaucracy means changes need to be made to the sta - certain. Things should become clearer a final decision will take some time, but tion’s operation plan. Manned flights in the next several months. However, there is no particular rush. to the ISS have been suspended. one may predict with a high degree of Interestingly, one proponent of the Normally, in such situations, manned certainty that the station will continue ISS’s commercialization is the Russian missions resume after two successful in operation until 2030: the partners company S7 Space, which operates the unmanned launches in a row. On the have invested heavily in the program Sea Launch and Land Launch projects other hand, there have been exceptions and are interested in obtaining new re - and specializes in space launch and or - to many programs recently. sults. “The space station is a world- biting services. Recently, S7 Space pro - The ISS may be operated automati - class facility,” Andrew Clem with the posed using the ISS as a cosmodrome, cally, without crew on board. However, Johnson Space Center said back in which would significantly expand the Sergey Krikalev, Roscosmos’s executive 2013. “[It] allows for demonstration of company’s range of commercial servic - director for manned programs, believes critical capabilities for long-duration es. Specialists are looking into the pos - every effort must be made to prevent human spaceflight and generation of sibility of assembling large space sys - such a scenario. Mothballing the sta - interest in science, technology, engi - tems on board the station for further tion and then reactivating it again neering and mathematics education.” launches to geostationary orbits, to - would require much time and money. Five years on, these words are still pret - wards the Moon, and to escape trajec - This would also jeopardize the plan to ty much relevant.

The ISS future may be significantly revised after the failed launch of the Soyuz MS-10 manned mission to the station on October 11 v o g . A S A N

24 RUSSIA/CIS OBSERVER NOVEMBER 2018 Russia MRO & CIS 2019 Moscow, March 5–6, 2019

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