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PUBLISHING DATES: July 18,19&20, 2017 DAILY NEWS PUBLICATION FOR KEY RUSSIAN AIR SHOW MAKS-2017 The Show Observer is brought to you by the publisher of the renowned Air Transport Observer magazine, its sister publications and aviation b2b portal ATO.ru — ’s only true industry trade media , which are recognized worldwide for the quality of reporting and in-depth news coverage. Show Observer is published at MAKS since 2003 and building on the multiyear experience of our partner — AVIATION WEEK.

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• AEROSPACE INDUSTRY An-132D debuting in Le Bourget ...... 15 Russia/CIS Observer is produced by: Russia to return Publisher • AIR TRANSPORT Evgeny Semenov to narrowbody market ...... 2 EditiorinChief Will upgraded fleets lead Maxim Pyadushkin Russia, China join forces to develop to price wars? ...... 16 Art Director widebody ...... 6 Andrey Khorkov Sky arithmetic for Russian Sales & Marketing Director UAC sets up a center for all civil Oleg Abdulov ...... 18 Commercial Director programs ...... 8 Sergey Belyaev IFC leases its first foreign-built Cover Photos PD-14 enters the home stretch ...... 10 Fyodor Borisov, Leonid Faerberg, aircraft ...... 20 Kamov Ka-62 performs first flight ...... 11 All rights reserved. No part of this publication may be boosts SSJ100 efficiency ...... 12 • SPACE BUSINESS reproduced in whole or in part without the written permission of Russian titanium gains weight ...... 13 Difficult year for Russian A.B.E. Media. space sector ...... 21 A.B.E. Media cannot be held responsible for any claim, error, omission or inaccuracy in advertising • DEFENSE material supplied by advertisers. New strategy for Russia’s © № 1 (44), June 2017 Unmanned future for Russia ...... 14 space industry ...... 23 Tel.: +7 (495) 626 5356. E-mail: [email protected] Correspondence: P.O. Box 127, , 119048, Russia Web site: www.ato.ru/rco Read more news and stories at ww w.RusAviaInsider.com

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 1 AEROSPACE INDUSTRY

Russia aiming to return to t u k r Tnhea corunrtroy’s nwew MbCo421 dairlyine r mfirst falewr ink latee Mt ay I

Maxim Pyadushkin aircraft since the collapse of the Soviet program. This became Russia’s second Union. The project was selected by the commercial aircraft effort involving ussia is planning to make a government in 2003 as the replacement broad international participation after comeback to the most for aging Tu-154 and Tu-204 the SSJ100. profitable segment of the . In its the MC-21 pro - R global commercial aircraft The development effort was officially totype was powered by Pratt & Whitney market with its new Irkut MC-21 nar - launched in 2007 by Irkut Corporation, PW1400G-JM engines. This variant of rowbody passenger aircraft. The first a subsidiary of the United Aircraft the PurePower ultrahigh-bypas-ratio flying prototype took off in Irkutsk, Corporation (UAC). Like with Russia’s powerplant family develops 31,000 lb of Siberia at the end of May. first post-Soviet commercial aircraft thrust; it also powers the A320neo, the The first flight lasted for 30 minutes; program, the , the Bombardier CSeries, the MRJ, and the the aircraft climbed to not higher than program is being led by a combat jet Embraer E2. 1,000 meters and developed a maxi - maker. The aircraft’s alternative, Russian-de - mum airspeed of 300 km/h, says OEM Despite the fact that Irkut by 2007 signed powerplant, the PD- Irkut Corporation. The airplane was was running a very successful Sukhoi 14, has just completed initial trials on an tested for stability and controllability. Su-30MKI multirole fighter produc - Il-76LL testbed and will now enter cer - The aircraft also performed a go- tion program, the manufacturer’s aspi - tification tests. A Russian certificate is around maneuver, then overflew the rations went beyond the military sector. expected to be issued in 2018. Deputy runway, climbed and turned. In 2004 it acquired Design Prime Minister Dmitry Rogozon has The first flight went as planned, Bureau, which had developed the announced that a Russian-powered Captain Oleg Kononenko commented: Soviet-era Yak-40 and Yak-42 regional MC-21 could take off in 2019. “No obstacles to further tests have been passenger jet types. Also in 2007, Irkut The MC-21’s suite was de - revealed.” First Officer Roman signed its first fuselage component sup - signed by the UAC but features compo - Taskayev confirmed that everything had ply contract for Airbus A320s. nents supplied by Honeywell, Thales, perfor med nominally. The MC-21 draft design was ap - and Elbit Systems. Other foreign part - The MC-21 is Russia’s first domesti - proved in 2008. One year later, Irkut se - ners include , Eaton, cally designed commercial narrowbody lected the primary suppliers for the Meggitt, and Goodrich. More foreign

2 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 РЕКЛАМА | ADVERTISING AEROSPACE INDUSTRY suppliers have been involved into set - between the composite skin and the ti - holdups (both organizational and tech - ting up the production line at Irkut’s fa - tanium beam. The remedy was to rein - nical). In the meantime, competition cility in Irkutsk, and also in delivering force the wing on the first prototype has been mounting. Now it looks like materials for production. prior to the first flight. the Russian aircraft will enter the mar - The foreign technologies involved in The avionics suite includes 9 x 12 ket behind the Airbus A320neo, the the program will be retained by Russia: inch MFDs, electronic flights bags, and MAX, and, probably, even Irkut demands that its partners localize also enhanced vision and synthetic vi - the COMAC C919, which might limit aftersales maintenance of their compo - sion systems. The MC-21 will also be - its potential sales. nents in the country. The Russian come the first Russian commercial air - Certification in Russia is now maintenance partners are to be identi - liner with active sidesticks, supplied by planned for 2018, to be followed by fied by June this year. US-based United Technologies EASA certification in 2019. The name MC-21 stands for Aerospace Systems. The MC-21 backlog stands at 175 Magistralny Samolet 21 veka (Mainline The first prototype, rolled out in June firm orders, mostly from Russian gov - Aircraft of the 21st Century). It was se - 2016, represents the MC-21-300 base - ernment-owned lessors, plus over 100 lected to emphasize the innovative na - line version with 79,250 kg MTOW. It commitments. The launch operator is ture of the program. This will be the can carry up to 211 passengers to a dis - understood to be Russia’s largest carrier, first Russian commercial aircraft to tance of up to 6,000 km. The shorter, government-controlled . The feature a high-aspect-ratio supercritical 72,560 kg MTOW variant, dubbed carrier will receive its MC-21s via the lo - composite wing. Composites are also MC-21-200. will seat up to 165. cal lessor Avia Capital Services. In April used in the wing box, vertical and hori - At the start of the MC-21 program, 2017, Russian media cited the Aeroflot zontal stabilizers. in the mid-2000s, the aircraft was ex - CEO Vitaly Saveliev saying that the first The wing box and outer wing are pected to enter service in 2016. This delivery was expected in 2019. manufactured under a vacuum infusion was believed to result in the Russian Other customers include Russian technology at UAC subsidiary Aero - airliner’s high popularity worldwide, as lessors VEB Leasing, Sberbank Composit. During fatigue tests at the Airbus and Boeing had not yet finalized Leasing, and Finance Central Aerohydrodynamics Institute their plans for new narrowbody prod - Company, as well as local carriers such (TsAGI ) in February, the wing box de - ucts at that time. The timeline eventu - as Aviation, Red Wings, and veloped cracks at the point of contact ally slipped due to developmental IrAero.

The MC-21-300 baseline version can carry up to 211 passengers

to a distance of up to 6,000 km t u k r I

4 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017

AEROSPACE INDUSTRY

Russia, China join forces to

Rdusesia’vs UeACl aond pChi nwa’s CiOdMAeC bhavoe sedt upy a joainti vrenltuiren to erunr the program

Maxim Pyadushkin

ussia’s United Aircraft Corporation (UAC) and the Commercial Aircraft R Corporation of China (COMAC) have taken another step to - ward the joint development of a new long-range widebody commercial air - liner, dubbed the C929 in China. The partners officially opened the joint ven - ture China-Russia Commercial Aircraft International Corporation (CRAIC) in Shanghai in May. The company will coordinate the parties’

efforts on the program, which still has a v e s t s many important issues unresolved. y L The official opening of UAC-COMAC

a n i

r joint venture in Shanghai

UAC President Yury Slyusar de - a M scribed the establishment of CRAIC as the most important pragmatic step in is also president of UAC subsidiary notes. The Chinese party will work on the framework of the program: “We Sukhoi Civil Aircraft Company the fuselage, , nosecone, want to develop this widebody aircraft (SCAC). SCAC will gradually take over nose , and wing fairings. together, to organize its production, control on all the UAC’s commercial Masalov says, the detailed design operations, aftersales support, market - aircraft programs. Guo Bozhi, head of should be completed by the end of ing and sales, and so on.” the widebody program at COMAC, is 2018, by which time the partners expect Jin Zhuanglong, chairman of the the CRAIC general manager. The part - to have identified their major suppliers. board at COMAC, noted that the es - ners have four members each on the Requests for information have been tablishment of CRAIC marked an im - board of the new JV. sent to 169 companies. Russian and portant milestone for the program: “We The JV launch will enable the begin - Chinese companies will have priority, will cooperate sincerely with UAC, and ning of detailed design work on the new followed by foreign businesses with es - strive to make the program a model of widebody, seeing as the sides have tablished joint ventures in either of the Sino-Russian cooperation. We will fol - agreed on how the workload will be countries. low the latest international mainstream shared, Masalov explains. UAC and The UAC and COMAC have already airworthiness standards, build more COMAC engineers have been working held initial meetings with airlines and competitive long-range widebody air - on the program in concert since 2013; lessors on the future aircraft’s priority craft, and strive to provide customers now the development effort will be market, which is believed to be China. with better service and make new con - picked up by a joint engineering center, The potential clients asked for the air - tributions to global aviation market.” to be set up in Moscow in 2018 with a liner to come with two powerplant op - The program, launched in 2014, is total of about 100 engineering person - tions, Masalov says. The partners are in backed by an intergovernmental agree - nel representing both countries. talks with General Electric and Rolls- ment between Moscow and Beijing The UAC will be responsible for the Royce, while Russia’s Aviadvigatel PD- signed two years later. development of the composite wing, 35 might be offered at a later stage. The JV board is chaired by UAC wingbox, wing systems, engine py - It is understood that the will vice—president Vladislav Masalov, who lons, and main landing gear, Masalov be at least 50% composite for lower

6 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 AEROSPACE INDUSTRY

weight and higher performance. The COMAC, for its part, will use the COMAC has been proposing a aircraft is also expected to have im - C929 to fill the widebody gap in its branch of the engineering center to be proved aerodynamics, and to be “more product line, which currently is repre - set up in Shanghai, and has also been electrical”, although the final system sented by the ARJ21 and in favor of parallel certification in choices have yet to be announced by the C919 narrowbody. Russia and China. Guo Bozhi says a the designers. The partners are not making any of - certification application is expected to The baseline will have 280 seats and ficial statements as to when they expect be filed in 2019. a range of 12,000 km. A shorter, 230- the airliner to enter service, saying only Masalov explains that, seeing as the seat version is planned, as is a 320-seat that the development and certification UAC is the designated program inte - stretch, but whether or not these ever processes might take up to 10 years. grator, the engineering part of the pro - materialize will depend on customer The UAC and COMAC forecast a glob - gram is to be completed in Russia. demand. al demand for 7,000 widebody com - Another possible bone of contention The UAC’s Slyusar says the new mercial aircraft in 2023-2045, to the is the manufacturing process. It has been widebody will help both companies fill tune of $1.5 trillion. The major part of agreed that final assembly will take place the existing gap in their respective com - this demand is expected to come from in Shanghai. Masalov hopes that the mercial product lines stretching from Asia-Pacific, China, Russia, and the Russian side will at the very least be en - regional to long-range airliners. For the CIS, Masalov remarks. titled to manufacture the components it Russian manufacturer, the C929 is to Even with the JV in place the part - is going to design. On the other hand, he replace the ageing Ilyushin Il-96 quad ners have yet to agree on several impor - says, the possibility cannot be ruled out as the largest member of the product tant issues, and the talks are not going that production of these components range that also includes the SCAC to be easy. The Russian side wants to will be given to COMAC if the latter can SSJ100 and the Irkut MC-21. The maintain parity in every aspect of the manufacture them cheaper: “There is as UAC intends to keep building the Il- program, while China is trying to get as yet no firm agreement on the compo - 96-400M version for government cus - much out of the deal as possible, as it is nent manufacturing distribution, the is - tomers until the new Russian-Chinese clearly focused on the domestic market sue will be finalized closer to the pro - widebody enters service. at the moment. duction launch date.” G N I S I T R E V D A

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А М А Л К Е Р AEROSPACE INDUSTRY

UAC sets up a center for all civil programs Russia’s United Aircraft Corporation (UAC) expanded the role of one of its primary civil assets, Sukhoi Civil Aircraft Company (SCAC), which is responsible for the Sukhoi Superjet 100 (SSJ100) regional jetliner program. Apart from the revision of the SSJ 100 program following the decision by strategic Italian partner Finmeccanica to reduce its participation, it was decided to use SCAC as a center that would manage all the UAC civil programs. SCAC’s new president, Vladislav Masalov, told Russia & CIS Observer how the company will transform and what projects it will take on board.

the reason why operators have been sultants and sales managers, so it will having problems with the type. I will continue to be responsible for sales. work to involve professional MRO Only now the JV will have closer con - providers in the process. tacts with the SCAC commercial sector We hope to sign an agreement shortly in Moscow. In the past 12 months we with FL Technics, one of the leading have taken part in all the talks held by C

A MRO providers. It would organize base the SuperJet International team. C S and line maintenance outstations for — What will the UAC civil division’s — What tasks is SCAC facing now that our aircraft and would be offering OEM product line look like? the Italian partner has reduced its par - services to European customers. — Apart from the SSJ100, the Irkut ticipation in the SSJ 100 project? Another aspect of aftersales support MC-21, and the future Russo-Chinese — Our only task is to ensure commer - is that we need to seriously expand the long-range widebody commercial air - cial sales of the aircraft. For this purpose stock lists at our parts depots. I mean craft, it will also include the renovated we are intensifying work with potential both our home-based stocks, which we Ilyushin Il-114 turboprop. operators and invest maximum effort in are obliged to provide to customers, — How will the UAC civil programs be organizing aftersales support. and consignment inventories at the op - managed? At the upcoming MAKS air show in erators’ end. This will require sizable — Everything will be managed through Russia in July, we are planning to sign investments, up to 15 billion rubles SCAC. I am planning to incorporate the another SSJ100 contract with Aeroflot. [$263 million] at the initial stage. widebody aircraft and Il-114 into the ren - Another major operator, Mexico’s We have also agreed with on ovated SCAC first, to be followed by the Interjet, will receive four airlines this year component repairs at their technical MC-21 at a later stage. We are already and another four in 2018. If we manage base in Toluca. We selected 47 compo - setting up a department within the SCAC to coordinate a number of terms and nents they are prepared to repair, design bureau that will be working on the conditions, Interjet will be prepared to signed a license agreement, and handed widebody program. We need to bring the sign a contract for 10 more aircraft. over the relevant technical documenta - administrative functions, sales, and after - We are currently in talks with GTLK tion to the operator. sales support up to the senior decision- State Transport Leasing Company over — What will SuperJet International making level, i.e. to set up a single cus - a remarketing scheme which, as our ex - JV be doing? tomer support center for all civil aircraft perience suggests, could be popular — It will continue to customize programs. It could be set up on the prem - with regional airlines. SSJ100s for specific customers and deal ises of SCAC or as a standalone legal en - So the annual output of 35 with certification issues. All the export - tity; we will decide later this year. we are planning for the next several ed airliners will be delivered to our Seeing as we are incorporating new pro - years is very much achievable. Venice-based JV, which will install in - grams into SCAC, we will need to change — There are already many SSJ100s teriors, paint and fine-tune the aircraft. the company name to a more ge neric one in operation. How are you going to de - The JV will also continue to run a shortly. The rebranding decision, however, velop aftersales support? training center. will be for the UAC to make. — I believe the artificial monopoliza - SuperJet International employs a This interview was prepared by tion of the aftersales support services is rather strong team of marketing con - Maxim Pyadushkin

8 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 РЕКЛАМА | ADVERTISING AEROSPACE INDUSTRY m o c . o t o h p - t r o p s n a r T

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v e e k i n A

m o y t r A 14 PD4 enters the home stretch

Artyom Korenyako and Evgenia Kolyada The PD-14 program is currently in PD-14’s core can be used to develop full swing. A total of 12 test engines engines for various other applications n late May 2017, the Russian city of have already been assembled, Ar tyu- (for rotary- and fixed-wing aircraft, and I Irkutsk witnessed the maiden flight of khov reported at the Russian Go vern - also for industrial use) within short pe - the new-generation Irkut МС -21 airlin - ment Aviation Board meeting in early riods of time and with minimum risk.” er powered by US Pratt & Whitney March. He emphasized that the pro - In March this year, Alexander PW1400G-JM engines. Shortly before gram incorporates 16 critical technolo - Inozemtsev, managing director and chief the first flight, the United Engine gies, allowing the PD-14 to compete designer of UEC-Aviadvigatel, the PD- Corporation (UEC) announced it had with the latest-generation powerplants. 14 designer, pointed out that the program successfully completed the second stage The company continues assembling was progressing on schedule despite sev - of the flight trials on its newest PD-14 prototypes and fine-tuning them, in - eral remaining obstacles: “We are in the engine, the Russian alternative power - cluding with the use of environment middle of multiple trials, and literally all plant option for the country’s long- simulation tests inside a climatic testing our test benches in Perm are loaded with awaited narrowbody aircraft. chamber at the Gromov Flight Re - work. In a couple of days the engine will “The tests completed mark a signifi - search Institute and on the institute’s leave for Rybinsk again, to commence cant milestone in the PD-14 develop - Ilyushin Il-76LL flying testbed. the next stage of open rig tests, which we ment program, allowing us to move on “The engine has already demonstrat - have already been through once before. to the certification trials on the flying ed the design technical parameters,” There is no doubt that the engine will be testbed, to be followed by engine flight Artyukhov stressed. “We are also devel - a success; our priority at the moment is tests with the MC-21,” says UEC oping the nacelle as part of the project. to complete all the tests.” General Director Alexander Artyukhov. This would normally be for the air - Inozemtsev added that the PD-14 Certification of the new Russian-made framer to develop, but we are dealing was to achieve type certification in engine is to be completed in 2018-2019. with the challenge successfully. The 2018, to be followed by EASA valida -

10 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 AEROSPACE INDUSTRY tion in 2019: “We are in cooperation The Perm-based engine specialist is In his March interview, Inozemtsev with EASA experts; they have already already involved in the so-called PD-35 stressed that the PD-35 was still in the visited our site and familiarized them - program, which will use the PD-35 core research and development phase, in - selves with the situation. This so-called as the basis for a family of heavy-duty cluding deep analysis of the next tech - shadow certification means that they powerplants. The 35-ton PD-35 bypass nology cycle required to create the en - have been taking part in our [certifica - is viewed as the baseline for a gine: “Everything created so far within tion testing] work but have not so far family of 22- to 38-ton engines intended the PD-14 program will be applied to signed any papers. They merely share for future widebody airliners. the PD-35 project. But that will not be advice so that later on, when we are “Our design specifications for the fu - enough: scaled-up PD-14 technologies ready to apply for [EASA] certification, ture powerplant guarantee that it will be alone will not make the bigger engine we do not have to do some things again. competitive and will meet the require - competitive. There certainly are nu - Despite the overall positive impression, ments for engines of 2025-2030,” ances that we have to bear in mind. We the EASA sees that we still have issues Artyukhov noted. We are conducting have to completely work through this and there is much work left to be done. intensive R&D work as part of the pro - second technology package in the next But the work is going on.” gram; we have already come up with six years, and we invite a large number eight core technologies and created the of academic and industrial facilities to necessary infrastructure, as well as join us in this effort. Our goal is intro - PoAwnoetrhperl apnrito rfiotyr t awskid foerb tohed Ry ussian identifying a pool of participants, in - duce technologies that will make the engine-makers is to create a 35- to 40- cluding various research and develop - PD-35 competitive, to demonstrate ton-thrust engine, Artyukhov points ment facilities, design bureaus, and them on the prototype core and then out. This is where the experience universities.” He added that the imple - on the demonstrator engine. In order to gained from the PD-14 program will mentation of this project would en - accomplish this, we will need to build become crucial. The company says the hance the potential of Russian plane- test benches: at the moment there is no project should be based heavily on the makers, enabling them to build all types test rig for such a big engine in the know-how and technology involved in of aircraft: passenger airliners, country because the did the PD-14 engine family program. freighters, or military transports. not have powerplants of this size.” 62 Kamov Ka4 pehre Kfaomorv Kma-62s m efdi -rsmtad e fitsl firsgt tahke-t off. Before T um multirole helicopter proceeding to horizontal has performed its maiden flights, it performed multiple flight. The flying prototype engine runups and hovering s r e t lifted off from the airfield of tests. The company is assem - p o c

i Ka-62 is the first l e H Arsenyev-based Progress bling two more flying proto - Kamov’s non-coaxial n a i s

s rotor aircraft

Company, a subsidiary of types, which will enter certi - u R Russian Helicopters holding, fication trials shortly. on May 25, more than a year Ka-62 medium twin is the Another foreign component speed of 290 km/h. The after the first hovering test. first Kamov’s non-coaxial is the aircraft’s transmission range of the craft is set at 770 According to Russian rotor aircraft. It features a developed by Austrian spe - km with use of the main fuel Helicopters, during the 15- standard rotary-wing config - cialist Zoerkler. tank. minute flight the aircraft cir - uration with a single five- According to the manu - The Russian Ministry of cled the airfield once, accel - bladed main rotor and a facturer, the maximum car - Industry and Trade sees the erating to 110 kph. The pro - shrouded tail rotor. The air - rying capacity of the aircraft country’s defense and law- totype was being tested for frame incorporates a consid - is expected to make up enforcement sectors as the handling and stability, com - erable share of composite 2,200-2,500 kg or 12 to 15 launch customers for the Ka- mented Russian Helicopters materials for lower structural passengers, while the maxi - 62. Russian Helicopters is CEO Andrey Boginsky. weight. The helicopter is mum takeoff weight will be planning to run a market The Ka-62’s flight test pro - powered by a pair of 6,500 kg. The helicopter will study to see if the type has gram was launched on April Ardiden 3G turboshafts with have a maximum speed of any potential demand among 28, 2016, when the helicopter 1,776 horsepower at takeoff. 308 km/h and a cruising civilian operators.

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 11 AEROSPACE INDUSTRY 100 Sukhoi boosts SSJ ef ficiency Artyom Korenyako Superjet fleet stood at below 1,500 platform for developing other projects hours per airframe per year in 2011-15, and an example of international coop - n the beginning of June, Irish or about four hours a day. Nevertheless, eration,” says Igor Vinogradov, the carrier CityJet received its sixth the share of passenger traffic served by SCAC vice-president for certification. Russian-built Sukhoi Superjet these regional aircraft in Russia keeps “It has eventually become a mass-pro - I 100 (SSJ100) regional aircraft. growing steadily: from 0.4% in 2011 it duced aircraft operated in various The airline is wet-leasing the jetliner to climbed to 0.81% in 2015, and has by countries under various conditions. At another European operator, Brussels now exceeded the figures for other last we achieved something we had Airlines. Soviet- and Russian-built airliners. dreamed of. We have finally built an This is one of the indications of the In parallel, SCAC continues to im - aircraft with which we will return on SSJ100 project being a success, even prove the aircraft and uses the experi - our investment. We have operating in - though Russia has so far sold fewer ence gained in the course of the come in the offing already.” Superjets than initially planned. On the Superjet program in new Russian air - Vinogradov recalls that at the begin - other hand, no one was expecting liner programs. As of spring 2017, ning of the project, the Voronezh and SSJ100 with their arms outstretched. EASA and the Russian aviation author - Ulyanovsk production factories, sub - The regional aircraft market is highly ities had approved 77 and 51 major sidiaries of Russia’s United Aircraft competitive; to occupy a decent place modifications to the SSJ100 design re - Corporation – SCAC parent company, on it, the Russian manufacturer will spectively, not to mention a vast num - offered to launch SSJ100 series produc - need to invest a lot of time and effort. ber of secondary changes which all tion. However, SCAC made the only Now, 10 years after the first SSJ100 combined to improve the aircraft’s right choice. “When discussing the presentation, OEM Sukhoi Civil technical characteristics and perform - SSJ100’s influence on the Russian Aircraft Company (SCAC) is preparing ance dramatically, as well as enhancing economy, one should keep in mind that to build its 150th airframe. In the next its reliability and maintainability pa - the development of Siberia and the Far East is one of our government’s priori - ties, says Vinogradov. — A dedicated already operates modern plant was built in Komso - three wet-leased Superjet 100 aircraft in its own livery molsk-on- to meet the needs of the SSJ100 program. The plant was cer - tified by the European aviation author - ities. It is capable of building 50 air - frames per year. Creating a new produc - tion facility in the region was an impor -

l tant achievement. People in the Far a n o i t

a East needed jobs that would bring them n r e t n I

t money and satisfaction. This problem e J r e

p was solved, in my opinion.” u S Now that the SSJ100 production is - five years the manufacturer is planning rameters. The SSJ100 will receive ad - sues have been generally resolved, to deliver 170 to 180 aircraft (including ditional fuel tanks in the SCAC is directing major resources to in the business jet version), at a rate of version, will be cleared to operate un - developing the aftersales service sys - 35-40 deliveries per year. der the ETOPS rules, perform steep ap - tem. Those SSJ100 operators which al - The aircraft utilization by Mexico’s proach landings, take off with prede - so have experience operating foreign Interjet serves as the benchmark, but ployed flaps, etc. types legitimately expect a certain level the Russian operators’ SSJ100s have “The main thing that Superjet of technical support. On the other not been operated as intensively. The brought to the Russian aircraft manu - hand, they all note that the situation average utilization rate of the Russian facturing industry is that it became a has been improving gradually.

12 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 AEROSPACE INDUSTRY

Russian titanium gains weight Maxim Pyadushkin

SMPO-AVISMA, Russia’s leading manufacturer of aeronautical titanium, V continues with its efforts to build up the output of high-refined products. The company has been devel - oping joint projects with the leading in - ternational aircraft manufacturers. Its long-standing cooperation with Boeing is being elevated to a new level; a simi - lar project is scheduled to be launched with Airbus shortly. As VSMPO-AVISMA representatives O P M told Russia & CIS Observer , the con - S V struction of the new production facility VSMPO-AVISMA and Alcoa joined their competencies to manufacture large molded for the joint venture Ural Boeing titanium- and aluminum-alloy parts for international aerospace manufacturers Manufacturing (UBM) is nearing com - pletion. The JV produces molded tita - supplier Figeac Aero. “Together with their unique and complementing tech - nium parts for the US aircraft manu - our partners we will maintain a parity nical competencies in producing large facturer. of shares in the JV,” the VSMPO- molded parts, and have already begun The production and administrative AVISMA source said. — “A new pro - to manufacture first titanium- and alu - buildings of the new facility will be duction facility in the Titanium Valley minum-alloy products, such as landing completed this summer, with the vol - special economic zone (in Sverdlovsk gear and wing parts for international ume of investment required for the Region, Russia – ed. ) is one of the ways aerospace manufacturers. project standing at 1.77 billion rubles to develop the JV, but in the first phase The Russian corporation has been ($207 million). The JV will be equipped we are planning to use the existing ca - actively diversifying its production and with state-of-the-art metal cutting pacities.” The new plant is expected to expanding its product portfolio equipment, a VSMPO-AVISMA repre - become operational in 2019-2020; the throughout the recent years. The key sentative confirmed. partners are now actively searching for attention is being paid to the develop - The facility, to be known as UBM-2, additional orders and preparing for ment of high-tech products based on will process molded titanium parts for production launch. deeply processed titanium alloys, in - all of Boeing’s civil aircraft programs, VSMPO-AVISMA reported a record cluding a large variety of molded parts, including the 787 family and the new growth in the output of deeply as well as thin sheets and tubes. 737 MAX and 777x types. The Russian processed products in 2015. The output VSMPO-AVISMA is now offering corporation will enhance the process - of the machine processing workshop more than 400 types of molded parts ing depth and improve the technologi - grew by more than 50%. In 2016, the on the international market and more cal level of production, supplying volume of molded parts grew by 3%. than 1,500 types of molded parts on Boeing will products whose size will be “In the future we are planning for the Russian market; these figures keep close to that of the final parts. “The molded parts to make up more than growing as the corporation is taking an new types of aircraft require more tita - 40% of our total output,” the company active part in all the new aviation pro - nium, so we are having more work to source said. grams. “The aviation market is stable do,” the VSMPO-AVISMA represen - The launch of AlTi Forge, a joint and optimistic today, especially when tative noted. venture between VSMPO-AVISMA it comes to the industry giants,” the A similar project is to be implement - and Arconic SMZ, became one of the company source stressed. “We have ed with Airbus. VSMPO-AVISMA has 2016 milestones. Arconic SMZ is man - long-term contracts with such compa - been discussing a machine processing aged by Alcoa, an American aluminum nies, and this is certainly the main JV with the French manufacturer’s manufacturer. The companies joined market for us.”

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 13 DEFENSE

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Denis Fedutinov to begin in the first quarter of 2017. Russian media reported in the spring Media have reported that the Russian of 2016 that the aircraft was being test - fter the 2008 conflict with military was planning to test the Korsar ed at the Gromov Flight Research Georgia, Russia became in Syria, but an accident in the course Institute in Zhukovsky, outside aware of the necessity for of the flight testing program likely af - Moscow. It appears that the UAV is A modern unmanned aerial fected these plans. currently undergoing flight tests, but systems (UAS). The conflict stimulated the development effort is far from over. a range of development projects for un - The second, heavier MALE system, manned aerial vehicles (UAV) of differ - TMheAreL aEre calsaos sprojects underway to de - the Altair, has been under development ent classes. Currently, several of these velop two medium-altitude, long-en - at Kazan-based Simonov Test Design projects are edging toward completion. durance (MALE) UAVs. The vehicles Bureau since 2011. The project costs were originally expected to have a takeoff about 1 billion rubles. In 2015, follow - weight of 1 and 5 tons. The similarity of ing the first flight, the company re - OTnaec otif cthael RUuAssiVans UAV projects current - their size and weight to the US Predator ceived a contract to carry out research ly under development is the Korsar. The and Reaper suggests that their functions and development. Series production is system, an apparent Russian equivalent to would also be similar. The MALE aircraft expected to follow eventually. the US-developed Shadow, is being devel - will likely be able to perform long-dura - The Altair is a high-wing, twin-en - oped by Rybinsk-based Design tion flights of over 24 hours, in addition gined aircraft with a wing span of just Bureau. It is planned as a surveillance ve - to carrying observation and intelligence- under 30 m and a V-tail. The UAV will hicle, and will have a range of 50 km. gathering equipment and weapons. have loiter time of up to 48 hours and a In parallel with the development ef - One of the systems is currently being range of up to 450 km. Its maximum fort, production has begun in Rybinsk. developed by Kronshtadt Group for the payload capacity will be around 2 tons. Aleksandr Yakunin, the CEO of the Russian Defense Ministry. The develop - One of the roles proposed for the two United Instrument Manufacturing ment contract worth around 2 billion MALE-class UAVs is monitoring of Corpo ration (UIMC, a part of Rostec rubles (some $35.3 million) was signed in Russia’s Arctic regions. To complement Corporation), announced in 2015 that 2011. According to available data, the air - the work being carried out by the military trial examples of the Korsar would be de - craft weighs around 1.2 tons and can car - and border service, the aircraft could be livered to the Russian army from the end ry 300 kg of mission payload. The UAV used for monitoring major facilities in of 2016. Series production was expected will have loiter time of up to 24 hours. the north of the country, and also to sup -

14 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 DEFENSE port navigation along the Northeast 2015 and started building the first pro - Military-Industrial Commission, said the Passage. The Altair entered flight tests in totype in 2016. However, even if every - first flight of the UAV was set for 2018. July 2016, according to officials repre - thing is going to plan, the project will However, if foreign experience devel - senting Russia’s Republic of Tatarstan. talk a long time to implement. oping such aircraft is anything to go by, Journalists took several pictures of the even if the 2018 first flight goal is met, UAV at KAPO aerodrome in Kazan, in - full implementation of the project is cluding a photograph of the second fly - SCinocme 2b0a1t2 ,u Snukmhoain hnase bde evne dheivcelleops ing still far away. ing prototype in an Arctic livery. Series the Okhotnik heavy reconnaissance/ In the past decade since the conflict production should begin in 2018. strike UAV. , who between Russia and Georgia, the headed the company at the start of the Russian Ministry of Defense has made project, commented at the time that the significant progress in equipping the OHnieg hpr4oajletcitt utod cer esaytes tae mRus ssian high- Okhotnik was to become the first joint Armed Forces with UAVs. The ministry altitude UAV is currently under devel - project between Sukhoi and MiG. has come a long way, from single pur - opment at the Central Aerohydro - The UAV will have a take-off weight chases to mass procurement of such air - dynamic Institute (TsAGI) and Myasi- of about 20 tons, open sources suggest. craft. Currently the Russian armed shchev Design Bureau. It is expected to be an equivalent to the forces possess more than 2,000 UAVs, No details are available, but the UAV US-designed Northrop Grumman X- and the military has gained significant is assumed to be similar in design to the 47 and Boeing X-45. Like its American experience in operating foreign un - US RQ-3, which itself is an alternative counterparts, it will be tailless for re - manned systems. This has allowed for a to a stealth high-altitude UAV. duced radar cross-section. better understanding of the UAVs’ role in was expected to give re - In 2014, Oleg Bochkarev, deputy Russia’s defense, and stimulated the de - leased design documentation by late chairman of the board of Russia’s velopment of domestic equivalents.

132

Anhe U4 krainian aDirfram der Aentbonouv istians dgist inicnt fr oLm tehe bBaseloineu’s 8r,1g00 et the contract with the Saudi partners. T bringing its new An-132D trans - meters. The Saudi assembly agreement was port turboprop aircraft to Paris Air Ukroboronprom, Antonov’s parent signed in early 2016. The partners are Show 2017. The aircraft will be a part company, says the aircraft’s flight range planning to build 80 An-132s, to be used of both the static and aerial displays. with maximal payload and 45-minute in transport, intelligence, and electronic The aircraft is a joint development of fuel reserve will be almost doubled, from warfare roles. The Ukrainian manufac - Antonov, Saudi Arabia’s Abdulaziz City the baseline’s 780 km to 1,400 km. turer expects between 260 and 290 such for Science and Technology (KACST), Antonov first announced plans to up - aircraft to be sold globally by 2035. and TAQNIA Aeronautics, a Saudi grade the An-32 in May 2015; back then Potential operators are believed to come company. The assembly line is expected the manufacturer was looking to launch from Africa, Southeast Asia, the Middle to be set up in Saudi Arabia. production within two years of signing East, and . The An-132D performed its maiden flight on April 30, 2017. It is a pro - foundly upgraded version of the 40- The An-132D is powered by Pratt & Whitney year-old An-32 transport. The im - Canada PW150A engines provements include new Honeywell avionics, Dowty R408 propellers, and an integrated air system supplied by Liebherr-Aerospace Toulouse. The aircraft is re-engined with Pratt & Whitney Canada PW150As, which are also used on the Bombardier Q400 turboprop. Antonov says the new en - gines and propellers boost the air - craft’s payload to 9.2 tons, compared v o to the An-32’s 6.7 tons. The new air - n o t n craft’s service ceiling is 9,000 meters, A

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 15 AIR TRANSPORT

Will upgraded fleets lead

Rtuo ssianp airlriniesc staerte dw to eaxparnds t?heir fleets as the passenger demand grows

Tatiana Volodina ture at least for the Russian aircraft SSJ 100 jet) over the past few years due MRO industry. mainly to governmental incentives. he average age of Russia’s The figures illustrate that the coun - Although it is expected there will be aircraft fleet has slipped try’s largest carrier Aeroflot remains no significant changes in the deliveries from 11.2 years at the start the principal airline to receive new air - pattern in the coming years, if the ru - T of 2016 to 11.6 in 2017, craft, while other Russian operators ble continues to strengthen making the largely as a consequence of rising leas - acquire brand new aircraft only occa - tourist flow cross over from domestic ing costs due to a weaker ruble, ob - sionally, and the coming years will see destinations to international, then the serves Andrey Kramarenko, a leading no change to this trend. In the future, demand for widebodied aircraft will expert at the Institute for Transport ex-Aeroflot airframes will likely be start growing. Russian carriers operat - Economics and Transport Policy transferred to its subsidiaries and in ed only 79 such aircraft last year, Studies at Russia’s Higher School of particular to S7 Group, the country’s against the previous 58 and 90 in 2015 Economics. The average age trend is second largest airline. and 2014 respectively. Moreover, with likely to continue in the coming years. The fundamental structure of aircraft the strengthening of the ruble, some The average age of units received in imports has remained largely un - airlines might consider newer aircraft 2016 – excluding the re-deliveries of changed for several years, with Airbus operations. the aircraft previously operated of the and Boeing contributing some 70% of Apart from the 79 widebodied air - defunct – is 6.5 years. But, the total airframes received. The re - craft, Russian airlines collectively op - with the ex-Transaero aircraft includ - maining 30% consists of regional air - erated 463 single-aisle and 348 region - ed, the figure jumps to 8.5 years. This craft, with that sector experiencing a al aircraft at of the end of the previous compares to just two years ago, when market share surge in demand for year. Kramarenko reveals that Soviet- the average age was only 4.5 years and Russia’s Sukhoi Civil Aircraft era aircraft carried only two per cent is a trend which suggests a favorable fu - Company (SCAC, the manufacturer of of the passengers, with approximately 90% carried by Airbus and Boeing air - craft, thus rendering the overall Soviet AIRCRAFT DELIVERIES TO RUSSIA IN 2010-2016, aircraft replacement potential almost BY MANUFACTURER complete. He notes that, in 2016, the Russian market returned to the capacity 9% growth numbers of middle pre-crisis levels, when airlines were collectively Boeing 6% receiving about 100 aircraft per year. 41% Airbus “Last year 80% of the new capacity Bombardier was subject to mechanistic, uneco - 29% ATR nomic pricing strategies, a develop - ment that will likely mean that, in Embraer 2017, airlines will be forced to fill their 11% Sukhoi fleets or leave aircraft on the ground Others with all the corresponding losses,” he 3% stresses. Speaking on Russian airlines’ 1% fleet growth rate forecasts for the 2017-2020 period, Kramarenko stress - es that if Russian airlines adhere to the Source: www.rusaviainsider.com rational market policy, “we can expect

16 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 AIR TRANSPORT m o c . o t o h p - t r o p s n a r T

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o The average age of aircraft received B r o by Russian carriers in 2016 is 8.5 years d o y F

net fleet growth of about 30-40 air - fic growth – “might only lead to price deliveries is estimated at 75-85 aircraft. frames of any size per year”. dumping”. Two thirds of these units are either in However, despite the mass aircraft The indicators are that the market the 50-110- or 140-220-seat categories. phase-out of the previous years – dur - situation will strongly reflect on Up to 2035, it is expected that Russian ing which almost 20% of the country’s Aeroflot remaining the biggest player airlines will collectively receive up to total capacity was removed – opera - and on its policy towards its daughter 2000 airframes, of which up to 1300 tors have nevertheless ramped up their company Rossiya which, in 2016 to - will offer mainline services. aircraft capacity too quickly. “This is gether with Vim Airlines, introduced Meanwhile, according to the United an irrational capacity management the most aircraft. “These airlines are Aircraft Corporation, the next surge in stance whereby the carriers have start - most likely to be the main drivers for demand for wide-bodied aircraft is ex - ed hastily buying new aircraft to meet excess capacity generation next year pected in seven to 10 years. According the demand – instead of calmly mak - and maybe in the coming years and this to Engineering Holding, Russia’s largest ing money steadily”, Kramarenko will result in price wars among the air - MRO provider, the country’s wide-bod - warns. The worst-case scenario could lines and also between airlines and the ied and long-haul fleet will almost dou - lead to a fleet growth of 50-60 air - rail services”, Kramarenko adds. The ble by 2020. The company also expects frames (phase-out numbers not in - largest Russian operator is readying for that carriers will phase out all Boeing cluded). a new round of price wars, having will - 737 Classics over the next five years. Preliminary estimates show that, ingly or unwillingly combined Rossiya Russia’s Ministry of Transportation despite the end of the economic reces - with the defunct Transaero airlines. notes that the world trend for the aver - sion, Russia’s GDP in 2017 will grow Valery Okulov, Russia’s Deputy age aircraft lease period now stands at by 0-2%, with passenger consumer de - Minister of Transport, has said that the 7-12 years. This is because new-gener - mand likely to grow by 2-3%, substan - average aircraft acquisition rate among ation aircraft have longer key check in - tially less than the anticipated aircraft Russian operators is about 60-70 air - tervals, a factor which will also influ - capacity growth. The previous years’ frames per year. With substitutions in - ence developments in the Russian avi - scenario – with a 15% passenger traf - cluded, the average annual number of ation market.

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 17 AIR TRANSPORT

Sky arithmetic for Russian airports Artyom Korenyako erate international flights to the city, in - astic about the role and place of Open cluding fifth-freedom services. Skies in the hub’s life. “Many people hus far, three Russian inter - anticipated a surge in the ’s per - national airports have im - formances related to the Open Skies plemented Open Skies ITnhitiea lFlya, r ERaussts ieax’sp erMieinncisetr y of project, but I prefer to be more realistic T regimes, but their results Transportation was eager to clear any about these things. The gateway is have not been immediately impressive. foreign airline for flights to and from closely connected with the area. Other airports are also considering the Vladivostok, i.e. within the established Passengers travel to the Primorsky Krai option – although the Russian author - third- and fourth-freedoms of the air. (Russia’s Far East region – ed.) rather ities are urging operators to make thor - The airport administration had antici - than to just the airport, be that for busi - ough calculations first. pated that, in the event of a successful ness or recreational purposes. What is Vladivostok was the pioneer airport in implementation of all stages of the important is that we see growth – and instituting an Open Skies regime in Open Skies project (including issues re - that it is steady,” said Lukishin. Russia. Having been constructed five lated to Customs and immigration The airport official noted that the years ago, timed to coincide with the clearances), that passenger traffic at the project has already provided the elimi - 2012 Asia-Pacific Economic hub would almost double. The airport nation of commercial restrictions for Cooperation Summit, the new gateway projected that foreign airlines would foreign airlines. However, apart from was designed to process 1,360 passen - launch new destinations to Taiwan, the South Korea, Russian airlines have not gers per hour, or 3.5 million a year. Philippines, Indonesia, Malaysia, been granted the same kind of privileges. Bearing in mind the fact that Russia’s India, Australia, the USA and Canada, “To change the situation, new air service Far-Eastern Federal District is the as well as increase numbers of frequen - agreements will be required as the exist - home for less than five per cent of the cies and extend the geography of flights ing ones limit the number of frequen - country’s overall population, a more ef - to China, Japan, South Korea, cies, slots, carriers, regular capacities ficient mechanism was needed to stim - Singapore, Vietnam and Thailand. and parties of charter flight operations. ulate a faster return on investment and But the plan failed. Compared to Apart from that, Russian air carriers are Open Skies was seen as the solution to 2011, when Vladivostok airport regis - subject to domestic restrictions in terms fill the comprehensively redesigned tered 1.46 million passengers, in 2016 of being cleared for international flights. Vladivostok airport with passengers. the hub served a modest 1.85 million, So, at this moment, the current status of The Russian Ministry of Transportation just 30% more. Unsurprisingly, in early the Open Skies program does not allow thus made an unprecedented decision 2014, Igor Lukishin, the general direc - for the full extent of its potential and in 2011: to allow foreign airlines to op - tor of the airport, sounded less enthusi - makes the entire project less attractive for airlines,” he added. Five years after the Asia-Pacific Summit, the new terminal at ATfhteer stkhey 2o0v1e4r Wthinet eBr laOclykm Speica s an Vladivostok is employing only half Open Skies regime was also introduced of its designed at the renovated airport of Sochi on the capacity Russian Black Sea shore. A year before the event, the gateway’s capacity was m

o increased to 2,500 passengers per hour c . o t o

h (mobilized to 3,800 during the p - t r o

p Olympics). Last year the invigorated s n a r T

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d i 2015 and 68% up on 2014) and became n o e L Russia’s fifth largest airport in terms of

18 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 AIR TRANSPORT passenger traffic. But this success can Open Skies regime. The Russian (Krasnoyarsk) and Novy (Khabarovsk), hardly be attributed to the Open Skies Transport Ministry granted the status to both of which are in the process of ac - regime. Instead, the growing perform - the country’s westernmost gateway in tively upgrading their infrastructure. ances of the Sochi gateway have, to a December 2014. Initially, it was Evidently, the most active among them certain extent, been determined by a planned to be active for only three sea - is at St. Petersburg, combination of bans imposed on sons – summer 2015, winter 2015-2016 which is rightly concerned about the flights to popu lar foreign leisure desti - and summer 2016 – but later, the growing market share influence of the nations, Turkey and Egypt, along with regime was prolonged until the end of Moscow air cluster, a factor which has other factors including ruble depreci - 2017. lead to less investment in infrastructure ation and overseas travel restrictions In November last year, Alexander at regional airports. for employees of Russian security Kopytin, the airport’s general director, Pulkovo would certainly like to see agencies. Nonetheless, the official re - revealed in an interview with the air space and visa regulations liberal - sponse of Basel Aero’s press office (the Interfax news agency that the Open ized. Considering the Open Skies operating company of Sochi Airport) states that the positive effects of the Open Skies regime should not be un - derestimated. The Open Skies regime was intro - duced at Sochi in autumn 2014 for three IATA seasons (winter 2014- 2015, summer 2015 and winter 2015- 2016) and, on May 31, 2016, the air - port was informed about its prolonga - tion until summer 2017. In 2015, flights within the program were per - formed by three carriers: Mahan Air (Iran), Turkish Airlines and SCAT. Last year four more – Qeshm Airlines m o c . and Meraj Airlines (both Iran), IsrAir o

t Pulkovo Airport is pinning its hopes on o h p

- liberalization of air space regulations and the (Israel) and SkyBus (Kazakhstan) – t r o

p introduction of a visa-free regime s n

joined the list. Finally, in February this a r year German company Condor T Airlines accomplished a program of Skies project had turned out to be regime has already been introduced at charter flights to Sochi, a development groundbreaking. “We were given a great Vladivostok, Sochi and , made possible by Open Skies. favor [with this extension] despite no the St Petersburg airport administration Basel Aero emphasizes that it works airline having used it in the previous thinks it would be fair to do the same non-stop on enhancing the effective - two years. That does not mean that the there. But in 2015, Pulkovo was refused ness of the Open Skies regime at Sochi. program has no future, quite the oppo - the special status – instead, the city was “However, the visa issue – the price site. Although it can only be tied to for - encouraged to use the resources of its and the lengthy application procedure eign air carriers which will start to come base carrier Rossiya for the develop - – hinders the growth of incoming back to us as we approach the 2018 ment of the airport. tourism,” a statement points out. The FIFA World Cup”, he said. Last year In early 2017 Alexander Neradko, introduction of a 72-hour visa-free Kaliningrad Airport registered 1.57 head of the Russian Air Transport regime would give the local air service million passengers, up 7.6 and 1.8 per Agency (Rosaviatsia), said that any de - market a timely impetus. Experts have cent compared to figures in 2014 and cision about an Open Skies regime already calculated that the introduc - 2015 respectively. International traffic should be preceded by a thorough tion of a visa-free regime at some through Khrabrovo in 2016 dropped by analysis of a potential outcome that it Russian airports would increase the 57% year-on-year in 2015 and totalled might produce over the air service mar - number of incoming foreign passen - 62,400 people (or four per cent of the ket. “The thing is that the examples of gers travelling by air by as much as 5-8 total passenger traffic). Vladivostok, Sochi and Kaliningrad million annually. demonstrated no significant increase in passenger traffic or number of foreign ICno tnhet epnasdt,e sres veral other Russian air - airlines,” he explained. KThhreab Broavlot Aicir psaoyrts a th Keallio ningrad is the ports have shown interest in the Open third Russian hub to have embraced an Skies regime, including Emelyanovo Read the full version at www.rusaviainsider.com

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 19 AIR TRANSPORT

IFC leases its first foreign4built aiWrillcemr Haonfdit us, the Hambojet CEO, had this to say: “We are impressed with the level of professionalism that IFC ex - hibited throughout the process leading up to this first agreement.” The second airframe is planned to be delivered before the end of this year. The two aircraft will bring the total Bombardier Q-series fleet on the African continent up to 120 (this in - cludes 70 Q400 airliners). The first IFC-leased Q400 was “We are proud of the Q400 aircraft’s delivered to Jambojet in May continued success in Africa,” com - C F I mented Jean-Paul Boutibou, Bombar - oscow-based lessor Ilyushin the type. The first aircraft was delivered dier Commercial’s vice-president for M Finance Co. (IFC) has leased to the customer in May. sales in the Middle East and Africa. two Bombardier Q400 regional turbo - “The agreement for these next-gen - “Jambojet’s operations illustrate the props to Kenyan low-cost carrier eration turboprops signifies a key devel - capabilities and qualities of the Q400 (LCC) Jambojet, a subsidiary of Kenya opment in IFC’s international leasing aircraft that make it uniquely suitable Airways. This is the Russian company’s business,” Alexander Rubtsov, the for the region.” first contract involving Western-built lessor’s general director, commented. Jambojet was created less than two aircraft. “The demand for high-performance years ago, and operates flights from The deal was struck shortly after IFC turboprops like the Q400 continues to Kenya’s capital city Nairobi to domestic firmed up one of its five Q400 options grow, and we are happy to enter into destinations. The airline’s fleet compris - and added it to its single firm order for this lease deal with Jambojet.” es two Q400s and two Boeing 737s.

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20 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 SPACE BUSINESS

Difficult year for Russian space sector 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

Igor Afanasyev, Dmitry Vorontsov vious years, some customers switched ning. Four Russian spacecraft were to SpaceX and Arianespace as their launched into orbit: the TMA- or the Russian space sector, service providers. 20M, the Soyuz MS, the Soyuz MS-02 2016 proved to be one of the Third, a number of launches had and the Soyuz MS-03. An important most difficult years in the been postponed due to the delayed achievement was the beginning of op - F past several decades. For the adoption of the federal space program erations of the Soyuz MS, the latest first time in 13 years, the country lost for 2016-2025 (FSP 2025) and also be - modification of this manned spacecraft its leading position on the space launch cause of cuts to the space budget. In series with an all-digital control system. market, falling behind China and the fact, the entire national space launch Another milestone came in the form US. Of the 85 launches performed program for the second half of 2016 had of the first launch from Russia’s new globally, Russia accounted only for 17. degraded to five service missions to the . On April 28, The country’s share of the space launch International Space Station (ISS). 2016 a Soyuz-2.1a successfully inserted market dropped from 33.72% to Serious problems involving the qual - three satellites into orbit: the 22.09%, even with the two Soyuz ity of Russian space equipment also Lomonosov scientific vehicle, the Aist- launches from the Guiana Space took their toll. A new analysis of the re - 2D Earth remote sensing probe, and Center figured in. sults of random tests on second-stage the SamSat-2018 student nanosatellite. The drop in launch activity was engines for the Proton-M launch vehi - From the technical standpoint, this caused by several factors. First, Russia cle revealed the use of an inferior sol - launch became an important break - had completed the creation of its navi - dering alloy. As a result, through in the national satellite con - gation and communication satellite State Corporation decided to recall 71 struction sector: the orbiting of the constellations, and their replenishment engines of the rocket’s second and third Aist-2D gave Russia its first small-sized now only requires rare individual stages for inspections and repairs. remote-sensing probe with high-reso - launches. Proton launches were effectively sus - lution equipment (1.5 to 2 m in the Second, the number of commercial pended until the summer of 2017. panchromatic range). This miniatur - launches had gone down noticeably: Despite the downbeat end of the ized satellite weighs not more than 530 following a number of accidents involv - year, 2016 in general was not that bad kg; to compare, relatively recently the ing Russian launch vehicles in the pre - for the industry, particularly its begin - only Russian space vehicle with com -

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 21 SPACE BUSINESS parable operational parameters would tion of the Martian atmosphere. Equal for the development and testing of the weigh in at around six tons! participation in the ExoMars project Federation PPMS. The flight tests will The operation of Vostochny will con - gives Russia the opportunity to conduct be implemented in three stages: an un - tinue in 2017: the cosmodrome is ex - international-level interplanetary re - manned flight to the Earth orbit in pected to be used for two launches this search. 2021; an unmanned flight and docking year, and the annual launch rate is set Russian engine builders managed to to the ISS in 2023; and a manned flight to grow gradually. expand their presence on the global and docking to the ISS, also in 2023. The Resurs P No 3 optoelectronic markets: deliveries of 390-ton-thrust Russian rocket builders announced Earth observation satellite was orbited RD-180 engines for US Atlas V launch new projects last year, including for a on March 13. Together with its two sib - vehicles continued, and on October 10, medium-class launch vehicle to be cre - lings, which had been launched previ - two new NPO Energomash RD-181 ated as part of Project Feniks. The new ously, it is part of a constellation of civil engines, with 196 tons of thrust each, rocket is expected to be able to insert 16 observation satellites capable of taking blasted off as part of an Antares 230 to 17 tons of payload into low-Earth or - photographs of super-high spatial reso - rocket. The design documentation was bit and up to 5 t into geostationary lution (better than 1 m). On March 24, released in 2014, and the first bench transfer orbit. Its first stage could be the Bars-M No 2 military mapping test followed in May 2015, after which equipped either with a single 740-ton satellite was orbited. This, in combina - four RD-181s were shipped to the cus - RD-171M engine or with two RD- tion with the Persona, Kanopus-V, and tomer. In March 2016, Orbital АТК , 180s. The vehicle is to be jointly devel - Aist-2D satellites already in orbit, Antares 230 manufacturer, decided to oped by Progress Rocket Space Center makes the Russian Earth observation firm up its option first for eight, and (the lead developer), Khrunichev constellation one of the most powerful then for 14 such engines, to be deliv - Center, Makeyev Rocket Design in the world. ered in 2017-18. Bureau, and Corporation. The Russian-EU ExoMars 2016 In another positive development fire Feniks is to enter flight tests by 2022. project got off to a successful start: on tests began on the 40-ton RD162SD It is intended for the revived Sea March 14, a Proton-M vehicle with a demonstrator (also known as the Launch project (it was bought by Briz-M booster put a probe consisting RD0162D2A) developed by Voronezh- Russia’s S7 Group) and also as the of two main modules (the Trace Gas based Chemical Automatics Design first-stage module for the future super - Orbiter, TGO, and the Entry, Descent Bureau. The engine runs on liquid oxy - heavy launch vehicle intended for and Landing Demonstrator Module, gen and methane. The bench prototype Lunar and Martian missions. EDM) onto a trajectory to Mars. The is a scaled-down version of the RD0162 Khrunichev presented projects to TGO houses four primary scientific in - reusable engine with over 200 t thrust. create the light and medium versions of struments, two of which, created with In a milestone development for the the Proton-M launch vehicle. The de - active participation of the Russian Russian rocket and space industry, cision was made to go with the medium Space Research Institute, and are in - Russia adopted the federal space pro - variant for the time being, which will be tended for studying the gas composi - gram through 2025. Despite the space able to insert around 5 t of payload into budget having been cut from the origi - geotransfer orbit. Seeing as lower- nal 2.8 trillion rubles ($49 billion) to weight (between 3 and 5 tons) telecom SPACE LAUNCHES IN 2016 1.4 trillion, the program still lists the satellites are now entering the market, key applied and scientific research the rocket will enable launch operator projects. The document calls for the International Launch Services to retain China 22 continuation of work on the ISS project and even expand its share of the com - and for further expanding the station’s mercial launch market. USA 22 Russian segment. Unfortunately, some Samara-based Progress Rocket and Russia 17 of the projects related to unmanned Space Center announced a project to flights to the Moon and Mars were ex - develop the Soyuz-2LK light vehicle, Europe (Arianespace) 11 cluded from the program, as was the which is to be less expensive than the creation of a superheavy launch vehicle current Soyuz-2 thanks to the absence India 7 for Lunar flights. Instead, a version of of a third stage, which will be replaced the -A5V will be developed, with the Fregat booster. The rocket will Japan 4 possibly to be used in the initial phase be able to insert significantly heavier of the new Lunar program. satellites into sun-synchronous orbit Israel 1 Another remarkable 2016 event was than the Angara-1.2 and the Soyuz- the signing of a government contract 2.1v: 2 and 3.85 t, depending on the North Korea 1 worth around 58 billion rubles between launch site location and the orbit pa - Roscosmos and Energia Corporation rameters.

22 RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 SPACE BUSINESS

New strategy for Russia’s space industry Igor Afanasyev, Dmitry Vorontsov

n February, the steering commit - tee of Russia’s Roscosmos State Corporation approved the new I development strategy through 2025 and development roadmap through 2030. The new strategy is to ensure the industry’s progressive development in the country’s interests. This is to be achieved through mobilizing internal re - serves, generating new ideas, and availing The core of Russia’s future of the opportunities provided by the in - manned ternational and domestic markets. spaceflight Roscosmos General Director Igor program will be participation in Komarov commented that the Russian the ISS program A S

space industry’s development should A N focus on commercialization of space services, boosting the efficiency of the lion in revenues; to 20% in the manufac - porating AI elements; and for advances International Space Station (ISS) op - ture of automated satellites ($2.2 bil - in 3D bioprinting. The document also erations, and improving the quality of lion); and to 26.6% in mobile satellite calls for testing nuclear energy technolo - launch vehicles and space vehicles. communications ($1.8 billion). Russia’s gies in space as a step toward long-dis - The strategy calls for Roscosmos’ share in the ISS project, and in providing tance interplanetary flights. revenues to grow 1.85 times by 2030 as crew rotation services, is to grow from 20 The priority space activity segments are compared to the 2017 level. The share to 23% ($2.2 billion). The greatest automated communications satellites, of the corporation’s revenue on the growth is expected in the navigation Earth remote sensing probes, navigation global available market is projected to services and equipment sector, from the spacecraft, and scientific research. Only grow from the current 4.8% to 9.5%. current 0.1% to 7.0% ($9.6 billion). after these does the strategy mention The share of revenues generated by ex - Advanced technologies are to be de - manned spaceflight and launch vehicles. tra-budgetary projects is to increase veloped in several segments. In the fu - By the year 2020, the Russian orbital from 25% in 2017 to 50% by 2030. ture, automated devices are to be used constellation will comprise 31 commu - Russia is to retain a 25% share of the for servicing satellites in orbit; there are nications satellites, including high-en - space launch market, generating $2.8 plans for creating constellations of small- ergy vehicles with broadband access billion in revenues annually. The strat - sized spacecraft with the functionality of and back-to-back relay. Their number egy particularly stresses the need for in - large satellites; and the industry is to de - will have grown to 43 by 2025 and to 46 creasing the reliability of launch vehi - velop competencies in additive technolo - by 2030, including mobile satellite cles and the quality of spacecraft. By gies with the use of materials returned communications vehicles serving mass 2030, the reliability of launches is to from space. In the manned spaceflight consumers and new-generation re - have grown from the current 93% to segment, the document calls for devel - peater satellites. A throughput capacity 99%; the service life of low-orbit satel - oping crew protection methods against growth of nearly 20 times is expected: lites is to reach 10 years, and that of prolonged exposure to radiation; for cre - from 3.3 Gigabit to 60 Gigabit per day. geostationary spacecraft, 15 years. ating life support and autonomous med - The Earth remote sensing constella - Roscosmos is planning to increase its ical and biological systems that could op - tion is to comprise 17 vehicles by 2020, presence in a number of new market seg - erate for prolonged periods of time in in - including weather satellites in highly el - ments: to 4.0% in the Earth remote sens - creased radiation environments; for the liptical orbits for Arctic observations and ing segment, which translates to $2.9 bil - development of robotized devices incor - for all-weather surveillance with the use

RUSSIA/CIS OBSERVER № 1 (44) JUNE 2017 23 SPACE BUSINESS a j a v r o C

e n a h p e RRuussssiiaa’’ss hheeaavvyy PPrroottoonn vveehhiicclleess wwiillll bbe e t S – phased out in late 2025 A

phased out in late 2025 S E of S-band radars. The figure is to reach of the solar-terrestrial relationship. A Russian scientific module will be 22 by 2025, and the constellation’s func - Russia will also continue to participate sent to the ISS by the end of 2018, fol - tions are to be expanded to include full- in the ExoMars interplanetary mission. lowed by another two before 2020. By scale weather support, highly detailed The core of the country’s manned that time, the future of Russia’s partici - surveillance in the visible band, and all- spaceflight program will be its participa - pation in the program needs to have been weather surveillance in the S and Х radar tion in the ISS program. In 2020-25, the decided. The ISS program has been ap - bands. By 2030, the constellation’s func - Russian ISS segment is to support sci - proved through 2024; should internation - tionality is to further expand to include entific research and experiments (30% al collaboration cease beyond that date, emergency surveillance in visible and in - of the total workload), testing of critical the possibility cannot be ruled out that frared bands. Spatial resolution is to be technologies (25%), and other experi - Russia will undock its national segment increased from 0.9 to 0.4 m for the visible ments (45%). The latter will include and continue to operate it autonomously. band and from 200 to 30 m for infrared. growing large superpure semiconductor Russia will continue to use the Soyuz- The GLONASS constellation is to ex - crystals and a number of commercial ex - 2 series of light and medium launch ve - pand from 24 to 30 satellites, and the po - periments sponsored by government and hicles. New launch vehicle projects in - sitioning accuracy is to be boosted from commercial organizations. clude a medium rocket under develop - the current 2.7 m to 0.6 m globally and The key objective of the manned part ment as part of the Project Feniks effort 0.1 m for Russia. The plan calls for in - of the strategy will be to minimize gov - to create a superheavy rocket. Three ver - creasing the signal availability in adverse ernment spending at the expense of sions are planned: one to be launched conditions from 49% globally and 78% commercial profits, for which purpose from the Russo-Kazakh Baiterek launch for Russia to 65% and 92%, respectively. services are planned to be provided to pad at (with the New Glonass-K2 and Glonass-VKK partner nations in the form of deliver - first launch set for 2021), another one for satellites are to enter service by 2025, and ing their astronauts and freights to the Sea Launch (the first launch is planned are to completely replace the vehicles of ISS. Boosting the efficiency of the for 2022), and the third one intended for the previous generations by 2030. Russian segment is to be achieved both Russia’s new Vostochny Cosmodrome. The strategy also calls for launching by way of increasing the effectiveness of In the latter case, the Feniks is set to lift the -UF and Spektr-RG space its use and by way of cutting the station off from the site for superheavy rockets, observatories, which are to join the servicing costs. The share of important which is expected to have been built by Spektr-R lab that has been in orbit applied experiments is to be increased, 2034. Also at Vostochny, flight tests of a since 2011. The lunar program will in - and the number of program partici - superlight rocket are expected to begin in volve the launching of a Luna-Glob or - pants with “new ideas” expanded. 2028, and tests of a light launch vehicle biter, two Luna-Resurs landers, and The document calls for introducing with a reusable first stage from 2031. one Luna-Grunt sample return vehicle. private-public partnership practices to Launches of Soyuz-2 medium rockets The Arka and Rezonans-MKO small- the commercial operation of the ISS will continue from Baikonur and sized satellites will be launched to con - and the transportation system, e.g. by Plesetsk. Heavy Proton vehicles will be duct scientific research of the Sun and establishing a dedicated operator. phased out in late 2025.

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