United Aircraft Corporation

History

Predecessor

After the Soviet Union's sudden collapse in 1991, the aerospace industry of Russia was in turmoil. An excessive amount of imports and highly protective tariffs devastated the manufacturing industry, both the aerospace and the automotive industry. The military aircraft industry was able to benefit from improving export possibilities by profiting from a large storage of components and parts from Soviet times. In contrast, the civilian aircraft industry suffered large losses and production of civilian aircraft diminished significantly. For example, in 1990 Soviet industry produced 715 aircraft. Eight years later that number decreased by 661 to only 56 aircraft. In 2000 just four civilian aircraft were produced. To address this, the president of Russia at that time, Boris Yeltsin decided that consolidation was necessary. He decided to create the VPK-MAPO (Military Industrial Complex – Moscow Aircraft Production Association), which includes companies such as Mikoyan. The consolidation was not successful and MAPA later merged with Sukhoi.

2006 amalgamation

The UAC was created on 20 February 2006 by Russian president Vladimir Putin in Presidential Decree No. 140 by merging shares from Ilyushin, Irkut, Mikoyan, Sukhoi, Tupolev, and Yakovlev as a new joint-stock company named the OJSC United Aircraft Corporation to optimize production and minimize losses. The UAC stated that the corporation was created to protect and develop the scientific and industrial potential of the Russian aircraft industry, the security and defense of the state, and the concentration of intellectual, industrial, and financial resources to implement long-term aviation programs. The United Aircraft Corporation started out producing the Tupolev Tu-154 "Careless", the Tupolev Tu-204, the Ilyushin Il-96, the Ilyushin Il-114, and all of Mikoyan, Sukhoi, Yakovlev, Tupolev, and Ilyushin military aircraft; all created before the corporation's creation.

In February 2007, the UAC presented its first aircraft and the first military aircraft designed and exported under the UAC brand, the Mikoyan MiG-35, designated by NATO as "Fulcrum-F" and a Generation 4++ jet fighter by Mikoyan. The MiG-35 was officially presented during the Aero India 2007 air show in Bangalore, India and officially unveiled when the Russian Minister of Defense, Sergei Ivanov, visited the Lukhovitsky Machine Building Plant "MAPO-MIG". The MiG-35 was a contender for its fourth-generation counterparts in the Indian MRCA competition but was taken out of the competition in April 2011. The MiG-35 would be adopted by the Russian Air Force and was planned to be introduced in 2018.

In October 2007, the Federal Financial Markets Service registered a primary issue of common shares for the United Aircraft Building Corporation. The issue included 96,724,000,000 shares priced at 1 RUB = US$0.04. In December 2007, the state-owned Vneshtorgbank announced that it would sell its 5% share in EADS to UAC at market price. Later that month VTB sold its share in EADS to the state-owned Russian Development Bank (VEB). EADS already owned a 10% stake in Irkut in 2012, which it planned to convert into UAC shares, which would result in EADS and UAC owning shares of each other. They also announced plans for a possible 10–15% share issue in 2008, planning to retain a 75% stake. Ater placing 5 additional share issues, the Corporation's chartered capital amounts to 174.61 bln. RUB. The share of the Russian Federation in UAC's chartered capital is 80.29%.

In February 2008, the UAC brought out an improved version of the Sukhoi Su-27, the Sukhoi Su-35S, also called the Su-35BM, which was to serve as the interim aircraft for the upcoming Sukhoi PAK FA, Russia's first fifth generation jet fighter. This is the second modernized version of the Su-27, where the first modernized version took place back on 28 June 1988, designated as the Sukhoi Su-27M, also known as the Su-35. The improved aircraft includes a reinforced airframe, air-trusted engines, radar, and improved avionics while excluding canards and an air brake. The Russian Air Force designated them as the Su-35S and ordered 98 units with additional orders from China and Indonesia. Sukhoi thought sales of the Su-35S would go over 160 but they are blunted by updated versions of the Sukhoi Su-30.

In May 2008, the UAC presented its third aircraft and the first airliner designed and exported under the UAC brand, the Sukhoi Superjet 100 (SSJ 100). The SSJ 100 is the fourth civilian aircraft and the first airliner to be made by Sukhoi. Previously, Sukhoi and Boeing made a cooperation agreement and which Boeing consultants would help and advise Sukhoi on the airliner. The SSJ 100 was introduced on 21 April 2011, with Armavia.

The Sukhoi Superjet 100 was subsequently described as the most important and the most successful airliner program of the Russian aerospace industry, and is regarded by the Ministry of Industry and Trade as a top priority project. Sukhoi Holdings of the UAC signed a joint venture with Leonardo-Finmeccanica (now Leonardo S.p.A.) to establish Superjet International to sell the SSJ 100 to potential customers.

In October 2009, the UAC signed a joint venture with Hindustan Aeronautics Limited (HAL) of India named the Multirole Transport Aircraft Limited (MTAL) where the two companies would cooperate on manufacturing aircraft for both of the Russian Armed Forces, the Indian Armed Forces, and for friendly third-party countries. One of the projects being developed in 2017 by the joint venture was the Ilyushin Il-214 Multirole Transport Aircraft (MTA) which was intended to replace India's Antonov An-32 transport fleet. The Il-214 was planned to perform regular transport duties as well as deploy paratroopers. The aircraft is planned to be revealed in 2017 and planned to be introduced in 2018.

In 2009, UAC delivered 90 aircraft, including 17 passenger models. This figure includes 31 MiG-29 and two Su-34 fighter jets produced for the Russian Air Force. The company's revenues for 2009 were expected to be 115 billion–120 billion rubles.

2010–2020

On 29 January 2010, Sukhoi and the UAC revealed Russia's first fifth generation jet fighter, the Sukhoi PAK FA (T-50). The PAK FA is a stealth, single-seat, twin-engine, multirole jet fighter designed for air supremacy and attack roles. The PAK FA would also be Russia's first aircraft to use stealth technology. The PAK FA is designed to replace the Mikoyan MiG-29 and the Sukhoi Su-27 and is expected to be introduced to the Russian Air Force in 2019. Also, under the MTAL joint venture, Sukhoi and HAL would co-develop the Sukhoi/HAL FGFA, now known as the Perspective Multirole Fighter (PMF), a variant of the PAK FA, of which would be designed for the Indian Air Force. On 11 August 2017, the Russian Air Force designated the Sukhoi PAK FA as the Sukhoi Su-57.

On 27 October 2010, the UAC and the Ukrainian state-owned aircraft corporation, Antonov, signed a joint venture contract, LLC UAC - Antonov, in the capital city of Ukraine, Kyiv. The purpose of the joint-venture was to deal with the coordination of Antonov and the UAC on purchasing spare parts, production, marketing, and sales, as well as servicing and joint creation of new modifications of Antonov aircraft, according to Defense-Aerospace.

In 2013, nine aircraft repair plants of the Ministry of Defense were transferred under the ownership of the UAC. As a result, in 2014, the serviceability of the Russian Air Force increased from 40% to 65%.

As a result of Russian military intervention in Ukraine in 2014, international sanctions were invoked against Russia, and because the UAC was part of Russia's aerospace and defense industry, it was sanctioned as well by the European Union. However, the 2014 sanctions did not include the civilian airliner industry of the UAC, such as the Sukhoi Superjet 100, exports of the regional jet to Western nations so the economic activities of Superjet International were not expected to be affected.

In April 2015, the company changed its full name to Public Joint-Stock Company (PJSC) "United Aircraft Corporation" (UAC). In the five years 2011–2015, UAC companies delivered to the Russian Defence Ministry more than 200 aircraft.

On 28 September 2015, according to a resolution by the Ukrainian government, the state-owned corporation Antonov would exit the LLC UAC - Antonov joint venture between the Russian and Ukrainian companies.

On 13 January 2016, India's HAL announced it would cease involvement in the Ilyushin Il-214 MTA project, and that Ilyushin would have to work on the project alone. The project was subsequently redesignated as the "Ilyushin Il-214" (with the MTA removed) since the project is no longer under the Multirole Transport Aircraft Limited joint-venture.

On 8 June 2016, UAC officially revealed the Irkut MC-21, its first medium-range jet airliner, when it rolled out in Irkutsk. The aircraft could be the first with an out of autoclave composite manufacturing for its wings. The goal of the MC-21 was to replace the Tupolev Tu-154, Tupolev Tu-134, Tupolev Tu-204, and the Yakovlev Yak-42. and to compete with the Airbus A320neo and the Boeing B737 MAX. Despite the domination of the airliner market by Boeing and Airbus as well as Russian protectionism preventing western companies from being suppliers to the program, the MC-21 was able to make its maiden flight on 28 May 2017, with two prototypes built and another four in assembly, while obtaining a total of 205 orders by July 2017, with an introduction planned in 2019 with Aeroflot.

In 2018, the United Aircraft Corporation's revenue amounted to 53 billion rubles.

On 25 June 2016, the UAC and the Chinese Government-owned aircraft corporation, Comac, signed a joint venture contract to create China-Russia Aircraft International Co, Ltd. (CRAIC), to be based in Shanghai to develop a commercial aircraft. According to the UAC, CRAIC is responsible for product and technology development, manufacturing, marketing, sales and customer service, consulting, program management, and other related fields. By 2017, the two companies were cooperating in creating a new generation of long-range wide-body commercial aircraft and taking charge of its operation under the joint venture. The aircraft was named the CRAIC CR-929, formerly the C929, and is intended to compete with the Airbus A330neo and the Boeing 787; thus challenging the Airbus-Boeing duopoly.

On 1 September 2017, the UAC Board of Directors, and UAC's subsidiaries, Sukhoi Civil Aircraft and the Irkut Corporation agreed to merge the civil industry Irkut Corporation and the Sukhoi Civil Aircraft into a Civil Aviation Division based on Irkut Corporation, with the intent being that Sukhoi would become the financial entity for all civil aircraft produced by UAC. According to UAC, the corporate restructuring was aimed at realizing UAC's strategic goal to increase the share of civil products in its portfolio to 45% by 2035 and to drive annual civil aircraft production to 100–120 aircraft per year, as well as to increase UAC's economic effectiveness and lower costs by centralizing supporting processes and decreasing levels of management. The transformation was intended to concentrate resources to develop, manufacture, and market Russian civil aircraft, while ensuring consistency in these areas and simplifying certification and licensing procedures.

On 9 July 2018, UAC was targeting 4.5% of global airliner market share by value and profitability by 2025, to grow its civil aircraft business from 17% to 40% of its income and to attract private investors before 2035.

On 25 October 2018, the United Aircraft Corporation was acquired from the Federal Agency for State Property Management by Russian conglomerate state corporation Rostec, with a turnover cost over one billion rubles (US$15 million). This would result in all Russian national aviation assets being put in the hands of Rostec, as Rostec also owns the helicopter monopoly Russian Helicopters and the engine monopoly United Engine Corporation. Rostec had stated it was willing to invest up to 40 billion rubles into the MC-21, taking some burden away from the federal budget. The restructuring was to be completed within 18 months.

2020-present

On 30 November 2021, the UAC board of directors approved the annexation to the corporation of both military aircraft producers Mikoyan and Sukhoi, previewed for 2022. The daily management of both is already made by UAC. In January 2022, UAC shareholders approved the annexation. As of 2022, UAC was 88 percent owned by Rostec.

On 22 March 2022, it was remarked that the Russian aviation industry was not receiving imported parts already paid for as a result of the 2022 Russian invasion of Ukraine.

The company and its CEO Yury Slyusar were sanctioned by the British government on 24 February 2022, as it was judged to have aided in the Russian invasion of Ukraine. In May 2022 the United States Department of the Treasury placed sanctions on Slyusar under as a member of the Government of Russia.

The conglomerate finished the process of Mikoyan and Sukhoi absorption in June 2022. Relevant records were changed on June 1 in the United States Register of Legal Entities.

UAC said in late December 2023 that it had successfully performed the year's state defense orders.

Organization

Company structure:

Aircraft manufacturers

• Aviastar-SP
• Beriev
• Ilyushin
• Yakovlev
  • Branch: Regional Aircraft-Branch of the Irkut Corporation (before:Sukhoi Civil Aircraft)
  • Branch: Irkutsk Aviation Plant
  • Branch: Yakovlev Design Bureau
• Myasishchev
• Mikoyan
  • Branch: Sokol Plant
• Sukhoi
  • Design Bureau
  • Civil Aircraft (now acquired by Irkut Corporation)
  • Branch: Komsomolsk-on-Amur Aircraft Production Association
  • Branch: Novosibirsk Aircraft Production Association
• Tupolev
  • Branch: Kazan Aircraft Production Association
• Voronezh Aircraft Production Association

Divisions

• UAC Health
• UAC - Transport Aircraft
• LLC UAC - Aggregation Center

Business and financial activities

• Finance Leasing Company
• Ilyushin Finance Co.
• LLC UAC - Purchases
• Sukhoi Holdings

Joint ventures

• China-Russia Aircraft International Co, Ltd. (CRAIC) with Comac
• LLC UAC with Antonov (terminated in 2015)
• Multirole Transport Aircraft Limited with Hindustan Aeronautics Limited
• SuperJet International (with Leonardo S.p.A.); in May 2022, Italian local police froze the assets of 146 million euros ($153 million) owned by Superjet International due to EU sanctions against Russia for its invasion of Ukraine.

Material providers

• KAPO-Composit
• AeroComposit
  • Ulyanovsk Branch

Others

• Gromov Flight Research Institute

Products

This section contains present and future products to be distributed under UAC umbrella

Airliners

The Sukhoi Superjet 100 is the first airliner and regional jet airliner that is developed and exported under the UAC brand, by which it was developed by Sukhoi Civil Aircraft, a branch of the UAC. The Sukhoi Superjet 100 was designed to compete with the Antonov An-148, Embraer E-Jet, and the Bombardier CSeries, and to replace the aging Tupolev Tu-134 and the Yakovlev Yak-42 jet airliners, claimed by Sukhoi to have a lower purchase and operating cost. The Sukhoi Superjet 100 was later described as the most important and the most successful airliner program of the Russian aerospace industry, and is regarded by the Ministry of Industry and Trade as a top priority project. The Irkut MC-21 is currently the newest jet airliner developed under the UAC brand, which is developed by the Irkut Corporation, a brand of the UAC. The goal of the MC-21 is to replace the Tupolev Tu-154, Tupolev Tu-134, Tupolev Tu-204, and the Yakovlev Yak-42. and to compete with the Airbus A320neo and the Boeing B737 MAX. Despite the domination of the airliner market by Boeing and Airbus as well as Russian protectionism preventing western companies to supply the program, the MC-21 was able to have its maiden flight, have two prototypes built and another four in assembly, and getting a total of 366 orders as of 24 July 2017, with an introduction planned in 2019 with Aeroflot. The introduction was delayed to redevelop the airliner with almost entirely Russian parts, with the new date planned for 2025. The Sukhoi Superjet 130 is currently being developed by Sukhoi Civil Aircraft, intending to bridge the gap between the Superjet Stretch and the MC-21. The Ilyushin Il-114's production and development continued as the Ilyushin Il-114-300, now restarted with all-Russian parts with a maiden flight planned in 2019 and an introduction planned in 2021. The CRAIC CR-929 is developed under the CRAIC joint-venture between the UAC and Chinese aircraft corporation Comac, with the purpose being a wide-body jet airliner as well as to compete with the Boeing 787 and the Airbus A330neo.

Cargo

The Ilyushin Il-214 was formerly a project designated as the "Ilyushin Il-214 Multirole Transport Aircraft" under the joint venture between the UAC and HAL. The project was first conceived in 2007, two to three years before the joint venture, "Multirole Transport Aircraft Ltd." between the two state corporations was created, and development began in 2012. However, the team under Ilyushin Aviation Complex, a branch of the UAC, and the team under HAL had many disagreements and misunderstandings. In January 2016, Ilyushin halted the project, and HAL announced it would not be involved in the Ilyushin Il-214 MTA project anymore, and that Ilyushin would have to work on the project alone. The project is now designated as the "Ilyushin Il-214" with the MTA taken out since the project is no longer under the Multirole Transport Aircraft Ltd. joint venture. The Il-214 was later renamed the Ilyushin Il-276 in October 2017.

The Ilyushin Il-112 is a high-wing, light, military transport aircraft based on the Ilyushin Il-114 currently being developed by Ilyushin Aviation Complex for air landing and airdrop. Development of the aircraft started before 2011, the year of which the maiden flight of the Ilyushin Il-112 is supposed to occur. The project was later abandoned in May 2011 by the Russian Ministry of Defense and seven Antonov An-140T were purchased. The project was later continued in January 2013 and a maiden flight conducted in 2019.

Special purposes

The Beriev Aircraft Company is a branch of the UAC that specializes in special purposes and amphibious aircraft. The Beriev Be-200 "Altair", based on the Beriev A-40 "Albatross", was designed before the UAC's creation and is a multi-purpose amphibious aircraft. The Be-200 is marketed as a firefighter, search and rescue aircraft, maritime patrol aircraft, cargo aircraft, and an airliner. The Beriev A-100 is an airborne early warning and control aircraft designed to replace the Beriev A-50, also made by Beriev. Its maiden flight was on 26 October 2016, with an introduction with the Russian Air Force. The A-100 is developed from the Ilyushin Il-476 with avionics and configuration being similar to the A-50U as well as a new active phased array radar made by JSC Vega.

Military

The Mikoyan MiG-35 is the first aircraft and the first military aircraft designed and exported under the UAC brand, as Mikoyan, the company that designed it, is a branch of the corporation. The MiG-35 was a contender for its fourth-generation counterparts in the Indian MRCA competition but was taken out of the competition in April 2011. The MiG-35 would be adopted by the Russian Air Force and introduced in 2018. The Sukhoi Su-35S, the UAC's second military aircraft, is designed by the Sukhoi Design Bureau, a branch of the UAC. The aircraft is to serve as the interim for the Sukhoi PAK FA, Russia's first fifth-generation jet fighter. This is the second modernized version of the Su-27, where the first modernized version took place back on 28 June 1988, designated as the Sukhoi Su-27M, also known as the Su-35. The improved aircraft includes a reinforced airframe, air-thrusted engines, radar, and improved avionics while excluding canards and an air brake. The Russian Air Force designated them as the Su-35S and ordered 98 units with additional orders from China and Indonesia. Sukhoi thought sales of the Su-35S would go over 160 but they are blunted by updated versions of the Sukhoi Su-30. 30 Tupolev Tu-22M3 bombers would be upgraded to the Tupolev Tu-22M3M with advanced avionics, ability to use air-to-surface weaponry, hardware components, and adapted for extended ranged weaponry. The first flight is scheduled for August 2018. Remaining Tupolev Tu-22M3 bombers would be undergoing modernization.

The Sukhoi PAK FA, designated by the Russian Air Force as the Sukhoi Su-57, under the Prospective Airborne Complex (PAK) platform, would be the first Russian aircraft to use stealth technology, as well as being Russia's first fifth-generation jet fighter, as stated before. The Sukhoi Su-57 would replace the aging Sukhoi Su-27 and the Mikoyan MiG-29 in the Russian Air Force with an introduction in 2020. Other aircraft being developed under the PAK platform are the Ilyushin PAK TA, a heavy transport aircraft, the Tupolev PAK DA, a strategic bomber, and the Mikoyan PAK DP, a new fast interceptor aircraft.

At the MAKS 2021 Air show UAC announced that the Mikoyan LMFS project was developed into the Sukhoi LFS.

In August 2023, Yury Slyusar reported that UAC had received an additional order for the equipment of the new Moscow and Leningrad military districts.

All of the aircraft listed were either put into or going into service in the Russian Air Force.

Corporate governance

Board of directors

• Denis Manturov (Chairman since July 2015)
• Yury Slyusar (President since January 2015)
• Boris Alyoshin (Advisor to the President of UAC on Science and Technology since May 2015)
• Vladimir Potapov (Independent Director since June 2017)
• Yury Borisov
• Valery Okulov
• Andrey Ivanov
• Evgeniy Yelin
• Anatoly Serdyukov
• Ivan Kharchenko
• Evgeny Jurchenko

Chairman

• 2006–2015: Sergei Ivanov
• 2015–present: Denis Manturov

President

According to the UAC, the president is the sole executive body of PJSC UAC with functions of the chairman of the management board. The president is empowered to decide all issues about the corporation's current activities, except for matters falling within the competence of the general shareholders' meeting, the board of directors, and the management board.

• Before January 2015: Alexei Fyodorov
• January 2015–present: Yury Slyusar

Management board

• President: Yury Slyusar
• Member: Demchenko Oleg Fedorovich

Vice presidents

Source:

• First Vice President: Alexander Tulyakov
• Vice President for State Defense Order and Service Support of State Aviation Aircraft: Alexander Bobryshev
• Vice President for special-purpose aviation: Sergey Gerasimov
• Vice President of Economics and Finance: Demidov Alexey
• Vice President for Security: Koval Artur
• Vice President of special purpose and strategic aviation: Konyukhov Alexander
• Vice President for Innovations: Sergey Korotkov
• Vice President of Civil Aviation: Vladislav Masalov
• Vice President for Military Aviation: Igor Ozar
• Vice President - Head of the Office: Alexander Skokov
• Vice President for Production: Sergey Yurasov
• Former member: Alexey Rogozin

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