Russia’s United Aircraft Corporation to Create a Civil Aviation Division

Photo: Marina Lystseva / TASS

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Russia’s aircraft manufacturing industry, now consolidated under the auspices of United Aircraft Corporation (UAC), is facing further re-organisation after its board of directors decided to increase efficiency and attractiveness for investors by merging those subsidiaries which are responsible for developing and producing civil aircraft.

The new arrangement means that Sukhoi Civil Aircraft Company (SCAC), the UAC-Integration Center and New Civil Technologies will all be one division merged with the Irkut Corporation.

Ravil Khakimov, the recently appointed Irkut and SCAC chief executive is to take the lead in the enlarged organisation and will drive the further development of the civil division. “The division should not only be an aircraft developer and producer but also a competitive, customer-oriented provider of sales and support services as a whole throughout the life cycle of its aircraft,” he stresses.

According to UAC president Yury Slyusar, it is more productive to work on reducing risks and developing those businesses that – under the same organisation – both create and sell civil aircraft. It is more attractive to investors too.

“The reorganisation of Russia’s civil aircraft producers, inspired by the flagship Superjet 100 and MC-21 projects, requires the aggregation of resources and competencies of advanced civil aviation developers. This also applies to market promotion and the strengthening of the after-sales support system for our aircraft,” Manturov adds.

Plans to create a dedicated United Aircraft Corporation civil unit first surfaced in 2017. One of the options was to set up the new branch as an independent legal entity in order to distance it from the UAC’s defence contracts, which are under western sanctions.

In turn, following the approval of Russian president Vladimir Putin last autumn, UAC is itself currently being integrated into Rostec, Russia’s state-owned hi-tec and aviation behemoth.