Differences in opinion as to the project's future (560 words)

Published: 7/19/2000

It appears from sources close to the Mi-38 programme that the presence of the Eurocopter in the venture is not expected to continue. In an interview in the Russian monthly Aviation Transport Review, Valery Pashko, the sales director of Kazan Helicopters (KVZ), was reported as commenting that the 'French' in the form of Euromil have contributed little to the ongoing project and may exit the programme leaving KVZ and Mil, but retaining their rights to a pro rata share of the design. According to Pashko, there are now two fuselages for the helicopter programme, one in Moscow and the second in Kazan, with the plan to complete the KVZ air frame as a prototype by the end of next year. This timetable is viewed by some commentators as being overly optimistic, with doubts that the programme will ever reach completion. For Pashko, the possible failure of the programme to go ahead although disappointing, will not be disastrous given that he believes the programme's rotor blades and main gearbox could be used on the Mi-17, KVZ's main product. The view from Vladimir Yablokov, General Director of Euromil and the Chief of Engineering for the Mi-38 programme is however, quite different. He says that that the programme is one of the first priorities of the federal aerospace programme 2001-2015 and has been 'steadily' financed to date to the tune of 15-20% of the programme's cost, backing up the assertions of government that they see this as a key programme. It has also received funding from the three partners. The size of the funding to date has been reported as being $400m, with $100m coming from KVZ. This figure, which cannot be confirmed, does appear to be very high for KVZ in particular, given that the Russian partners were struggling to match funds in April of 1999 and given the rather relaxed attitude to a potential cancellation of the programme. Yablokov insists that the prospects for the programme remain good and that the various parties involved including the engine provider Pratt & Whitney Canada, have emphasised the fact by signing a partnership agreement in August 1999 and an agreement with P& W in February of this year. According to Yablokov there are no disagreements between the parties and there are no grounds for any reports that Eurocopter may leave the programme. Adding that Eurocopter has been pushing for JAR-29 and FAR-29 certification as a means of assuring that the helicopter can sell for the best price, to avoid the problems of the Mi-17 selling for 35-50% of a comparable western aircraft. Yablokov's confidence is however, not matched by sources within Eurocopter who can only be described as lukewarm on the programme and leaves the clear impression that the programme is not seen as a high priority. As for further funding, Yablokov seemed confident that the aircraft once flying and demonstrating its capabilities would attract considerable interest from investors, both domestic and international. The prospects for the helicopter, according to the preliminary results of research due in September 2000 and undertaken by both Eurocopter and the Russian partners, suggest that the domestic market could be for as many as 200 helicopters, with a further 100 to be sold by Eurocopter outside of Russia and the CIS.

Article ID: 1949