Has MiG nobbled upstart Russian Avionics?

Published: 2/21/2000

Andrey Shapovalyanz, Minister of Economics, has cancelled the licence of Russian Avionics (Russkya Avionika), the MiG spin off, founded in 1997 by Mikhail Korzhuev, that has recently sought to compete head to head with Russia"s two primary military aircraft producers for lucrative upgrade work of Russian fighter aircraft, both in Russia and abroad. RA originally operated in close cooperation with MiG on the upgrading of the MiG-29, when Mikhail Korzhuev was head of both businesses. His replacement, by Nikolai Nikitin, in February 1999 and the loss, last November, of some key design personnel by MiG to RA has considerably cooled relationships between the two entities. Whether MiG has been involved in the suspension of RA"s licence is unclear, but it appears the source of the investigation leading to the suspension, is at a high level from within the administration. Deputy Prime Minister, Ilya Klebanov, was vocal in his condemnation of the moves by the design teams and has brought the issue up at the Security Council. Boris Bobkin of RA claims that it has been attacked because of its competitive position in the reported $10m upgrade market. For Nikitin, who has publicly declared his hostility towards the company, the removal of RA will make it all the easier to achieve his task of converting MiG from a military aircraft producer to a much broader aerospace company, using the cash flow from upgrade business. This includes the MAPS joint venture with DaimlerChrysler Aerospace, currently undertaking the 150 aircraft market for upgrades in Eastern Europe. It is reported that Nikitin is prepared to welcome back the prodigal sons who migrated to RA: a move which RA"s demise may well prompt. Associated articles: www.concise.org 28th July 1999; 2nd December 1999

Article ID: 1455