BUSINESS-PROJECT Creation of weal-and-brake repair department for aeronautical engineering of foreign manufacture Balashikha 2011 1. Business-proceedings description The amount of air passengers all around the world is growing every year. Today there are around 17 large domestic airlines such as: NordStar Airlines, Nordwind Airlines, S7Airlines, Transaero, UTair, Kuban Airlines, Aeroflot, VIM Avia, Vladivostokavia, Gaspromavia, Nordavia, Orenburg Airlines, GTK Rossija Airline, Tatarstan Airline, Ural Airlines, Yakutia Airline, Yamal Airline in Russian market of air carriers. In parallel with this, a proportion of aeronautical engineering of foreign manufacture operating by these companies is increasing too. According to data at the beginning of November 2011, there are about 400 Boeing and Airbus aircrafts in service in Russia. All aircrafts must be subjected to service maintenance at times stated by Manufacturer. Today the most of companies carry out maintenance and repair of aircrafts of foreign manufacture being at their disposal abroad. AC Rubin JSC has decided to organize weal-and-brake repair department for aircrafts of foreign manufacture. Undoubtedly, this kind of activity will be in good demand as Russian companies will have no need to carry out such operations abroad, and this will allow to reduce costs connected with aeronautical engineering flight to the place of service maintenance substantially. 2. Production plan At present time, AC Rubin JSC has powerful general industrial potential and unique testing equipment for wheels, brakes, hydraulic drives, pumps, all types of hydraulic units of hydraulic and brake systems. Our plant has carried out large investment project on setting up a production of high-quality blank castings, aluminium and magnesium alloys, under low pressure with use of modern program complexes, stereolithographyc sets and equipment for producing of high-precision send models of any geometry. All this allows to produce hydraulic drive casings at a higher quality level, highly competitive with foreign producers. Remaining largest plant in Russia carrying out production and testing of units of power aerospace systems and aircraft landing gears AC Rubin JSC accomplishes every degree of complexity repair of these units manufactured for domestic aircrafts such as Su, MiG, Yak, TU, Il and others for more than fifteen years. For this purpose, self-dependent organization department has been set up and successfully functions. Its production basis has been widened and improved, special-purpose equipment has been designed and applied (test stands, high- precision turning and milling equipment, production tools has been designed and manufactured). Owing to use of pneumatic tools and specially adapted samples of shot-blasting and send-blasting equipment, a substantial work content is carried out by relatively minor amount of operative personnel. So it is planned to create a weal-and-brake repair department for aeronautical engineering of foreign manufacture around already existing maintenance shop. However, to accomplish the ends put by it is necessary to do the following: 1. Certify this kind of activity according to international aeronautical standards. 2. Train personnel (probation period abroad + English training) which will carry out this kind of repair. 3. Replace old one and get new equipment complied with world standards, which could be needed for maintenance and repair. 4. Create essential infrastructure and industrial environment including physical, ecological and other factors (noise, temperature, humidity, lighting conditions, cleanness). Creation of an efficient transport logistic system plays role of no small importance as Russian airlines are based in airports stationed in large cities of Russia such as Moscow (Vnukovo, Domodedovo, Sheremetjevo airports), Saint- Petersburg (Pulcovo airport), Ecaterinburg (Koltsovo airport), Krasnojarsk (Emeljanovo airport), Tjumenj (Rosthino airport). On conclusion contracts with airlines for repair of aeronautical engineering, in named airports representative offices of AC Rubin JSC will be formed, which will take for repair and give out repaired wheels and brakes. Transfer of units requiring a repair and repaired units between receiving centers and overhaul department of our plant will be fulfilled by our own forces as well as with engaging of airlines carrying out freight services. 3. Business rivals and marketing research. Fleet of Russian companies involved in carrying air passengers on board of aeronautical engineering of foreign manufacture is represented in Table 1. Table 1 – Fleet of Russian companies involved in carrying air passengers Aircraft model, items Company No name 737 747 757 767 777 A310 A310 A319 A320 A321 A330 Airbus Airbus Airbus Airbus Boeing Boeing Boeing Boeing Boeing Airbus NordStar 1 8 Airlines Nordwind 2 2 8 6 Airlines 3 S7Airlines 1 20 9 10 2 4 Transaero 26 18 13 9 5 UTair 37 4 6 Kuban Airlines 3 7 7 Aeroflot 15 43 18 12 9 8 VIM Avia 11 9 Vladivostokavia 7 3 10 Gaspromavia 3 11 Nordavia 11 Orenburg 12 19 1 Airlines GTK Rossija 13 9 6 5 3 Airline Tatarstan 14 2 5 Airline 15 Ural Airlines 13 6 16 Yakutia Airline 6 5 17 Yamal Airline 1 8 Total: 1 49 79 26 15 145 18 28 33 10 As for now, AC Rubin JSC has been negotiating with 12 Russian aviation companies involved in carrying air passengers on board of aeronautical engineering of foreign manufacture concerning willingness to repair wheels and brakes of their aircrafts at our plant on getting corresponding Certificates. Estimating risks related to this project, it can be said with full confidence that, in the case of negative result in creation of weal-and-brake repair department for aeronautical engineering of foreign manufacture, all costs concerned with purchasing of equipment, personnel training, improvement of infrastructure and so on would up-grade and reduce repair time of wheels and brakes for aeronautical engineering of Russian manufacture. .