Creation of Russian United Aircraft Building Corporation

Creation of Russian United Aircraft Building Corporation

The Federal Anti-Monopoly Service of Russia has approved plans to create the Open Joint Stock Company United Aircraft Building Corporation, the service’s press office reported.

The United Aircraft Building Corporation will include Russia’s leading aircraft makers: the Sukhoi Aviation Holding Company (Moscow), the MiG Russian Plane Building Corporation (Moscow), the Ilyushin Aviation Company, the Tupolev Company (Moscow), the Kazan Aviation Production Association, the Komsomolsk-on-Amur Aviation Production Association, the Nizhny Novgorod Aircraft Building Plant Sokol, and the Novosibirsk Aviation Production Association.

In accordance with President Vladimir Putin’s decree “On Open Joint Stock Company United Aircraft Building Corporation,” the federal government will have a 75-percent stake in the new corporation.

All these companies were removed from the list of Russia’s strategic assets. The new company will be registered in September. It will be headed by Alexei Fedorov, General Director of the MiG Russian Plane Building Corporation.

The united corporation will have four business units, called Combat Aviation, Civil Aviation, Military Transport and Special Aviation, and Hubs and Components. The annual turnover of the corporation is expected to be between $8.2 billion and $8.5 billion.

The decision to set up such a company was made back in 1999, but words did not translate into action until 2004, when the first steps were made to implement the project. The creation of the single aircraft building corporation will allow Russia to produce up to 120 civil aircraft a year. Today, the country’s aircraft making industry makes only nine planes a year.  (www.rbc.ru)