The requirement for industry restructuring is accepted (388 words)

Published: 3/20/2001

The helicopter industry's senior management met recently (15th-16th March), at FGUP KAPP, in Kumertau, to discuss prevailing conditions within the industry. The results of the discussions were to be passed to the Russian government and associated bodies - presumably the Russian Aerospace Industry (RAKA) - in order to assist the government in formulating a restructuring policy. Not surprisingly, the participants noted in their statements to the media that there were two major elements of the Russian helicopter industry retaining the ability to develop and build helicopters capable of meeting international standards - Mil and Kamov. The remainder of the industry, including those with design capabilities, were surviving on a mix of deliveries of existing helicopter types, spares, customer upgrades and servicing of helicopters supplied to customers outside of Russia; Russian business being entirely the overhaul and maintenance of customers' helicopters. Media reports indicate that the discussions highlighted the need for restructuring in order to reflect the changing requirements within the industry. They are therefore looking for a structure that vertically integrates the design bureaus and production plants, with the two “schools” of helicopter design merging into an undefined “multi-profile corporate structure”. Sources reveal that this effectively maintains the independence of Kamov and Mil, while extending the facility to coordinate. This is, appreciably, a long process, so any anticipation of a quick fix seems unlikely. The fate of the industry's massive overcapacity has not yet been addressed. Recent changes at the Ministry of Defence suggest that the concept of two manufacturing plants in each area of military helicopter manufacture, inherited from the Soviet military industrial plan, may have been abandoned. This was not supported by comments of this meeting, which again focussed on “coordination” with little change to the status quo. One plant that may be feeling a little uncomfortable, in terms of the two-day discussions, may be Kazan (KVZ), It has set its sights on the development of light helicopters; producing prototypes of the Ansat and Aktai light helicopters, in addition to the westernized version of the Mi-17, produced in conjunction with foreign partners. It is unclear whether Kazan is considered to be within the Mil or the Kamov schools, although the close relationship with Mil on the Mi-38 would suggest Mil.

Article ID: 2431