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ROY'S RUSSIAN AIRCRAFT RESOURCE
Russia Will Deliver MiGs to Egypt
Egypt's president Hosni Mubarak, who arrived on a visit to Moscow, will hold discussions today ((02.11.06)) with Russian Federation president Vladimir Putin and prime minister Mikhail Fradkov, and also with some other highly placed personnel. A meeting also is planned with Russian businessmen in the Egyptian president's visit program.
On the agenda are questions which concern the situation in Palestine, Lebanon, Iraq, Sudan and Iran's nuclear program. Questions of bilateral relations will be discussed, most of all in the trade and economic arena.
In particular, the sides will discuss the two most acute subjects at the moment – nuclear energy and purchases of Russian arms. Thus, Nezavisimaya Gazeta is reporting today that during Mubarak's visit to Russia, agreements may be reached on the sale to the Egyptian military of several MiG-AT and MiG-29 fighters.
Source: 02.11.06, Trud
http://www.royfc.com/news/nov/0206nov03.html
ROY'S RUSSIAN AIRCRAFT RESOURCE
Russia Upgrading Indian MiG-29
The Russian MiG Airplane Building Corporation has signed a contract for the upgrade of India’s air force MiG-29s, ITAR-TASS reports.
Sixty-six MiG-29 fighters will be upgraded. The airplanes will get new avionics, including a fire control system and cockpit equipment, and also engines with increased power. The cost of the upgrade of all 66 fighters will be 850 million dollars.
The upgraded MiG-29 will be able to carry out both aerial combat and attack ground targets using modern precision weapons. Included with the armament of the improved airplanes are long-range R-77 air-to-air missiles and other modern munitions.
In the very near future, RSK MiG plans to sign an agreement for the delivery of 32 MiG-29SMT fighters for a total of 1.3 billion dollars to Yemen and also for 40 MiG-29SMT to Egypt. Deliveries of the airplanes to Egypt will be realized according to a “Trade-in” ((in English)) system – in exchange, Egypt will return the aging MiG-21 fighters delivered from the USSR in the ‘60 – ‘70s.
Source: 13.12.06, Lenta.RU
http://www.royfc.com/news/dec/1306dec01.html
ROY'S RUSSIAN AIRCRAFT RESOURCE
MiG Takes a Heading to Yemen
The Russian corporation is conquering the Middle East
Yesterday it became known that RSK MiG will sign two contracts for a total of 2.3 billion dollars in the very near future. Within the framework of the agreement, the corporation will overhaul 66 old MiG-29 fighters in India an deliver 32 new MiG-29SMT to Yemen. As a result, MiG’s orders on hand will double – to 4.5 billion dollars. Besides that, industry experts expect a speedy signing of a series of new contracts for the delivery of MiGs to Middle East countries.
Yesterday, the MDM-Bank analytical service, which is stepping forth as the organizer of the corporation’s new funded debt, disseminated information about two new RSK MiG contracts. According to MiG, the corporation and the air force and air defense headquarters of the Republic of Yemen has signed a protocol of intent for the delivery to the country of 32 MiG-29SMT airplanes for a total of 1.3 billion dollars. Moreover, the RSK has won a tender for the upgrade of 66 MiG-29 delivered earlier to India for a total of 0.85 to 1 billion dollars. According to MDM-Bank analysts, the contracts will be signed in the first quarter of 2007. However, source X in the aircraft industry has specified that the deal with India will be entered into in September, and with Yemen – in November – December. They reported at the RSK yesterday, that taking into account these two contract, the company’s orders on had will be increased from 2.5 to 4.8 billion dollars by 2009. Thanks to the new orders, MiG estimates increasing earnings in 2007 to 1.1 billion dollars versus 245.8 million according to 2005 results.
The contract for the upgrade of the Indian MiGs was agreed to a long time ago, but the delivery to Yemen is news. Industry analysts evaluate this deal as the RSK’s first step to expanding work in the Middle East and North Africa marketplace. “The former corporation management earlier had forecast for 2003 – 2004 a huge wave of MiG orders in these regions,” the deputy director of the Center for the Analysis of Strategies and Technologies, Konstantin Makienko, notes. “The wave has been delayed and its scales are less than expected. But it is growing.”
It is recalled that last year, RSK MiG entered into a contract with Yemen after 2003 which provided for the delivery of 6 MiG-29SMT and the upgrade of 14 MiG-29SEh sold earlier. Moreover, in 2005, two MiG-29SEh fighters were upgraded to the MiG-29SMT level for Eritrea. In 2005, a contract also was entered into for the delivery of spare parts and equipment for MiG-29 airplane to Sudan. In the beginning of 2006, the RSK signed a contract for the delivery of 28 MiG-29SMT and 6 MiG-29UBT fighters to Algeria for 1.5 billion dollars. According to MiG information, “there are good prospects for the realization of broad-scale programs for the delivery of MiG-29SEh airplanes to Egypt and other countries.” According to X, the contract for the delivery to Egypt of 40 MiG-29SMT will be signed before the end of 2006. This deal will be carried out on a trade in ((in English)) scheme: the new aircraft will be delivered in exchange for the old MiG-21, which have remained without any Russian servicing for more than 30 years.
Other huge contracts for the delivery of MiG airplanes to the Middle East are expected in the very near future. “Our buyers here are Syria and Libya,” Mr. Makienko thinks. The purchase of a huge batch of MiGs by Damascus is most likely. Libya is oriented right now at the heavy fighters of the Su-30MK type. But even here, one has to strive to fulfill a package deal, selling simultaneously both heavy and lightweight aircraft, as this was done in Algeria. And other buyers are possible, for example, the United Arab Emirates, although marketing MiGs there is a more complex problem.” However, at the same time, market participants are certain that the deal with Syria, if such is put together, will not be paraded around by Russia because of the worsening of the situation around Lebanon. Most likely, the RSK will announce a new contract at the last moment.
Source: 31.08.06, Kommersant, Correspondent: Konstantin Lantratov
ROY'S RUSSIAN AIRCRAFT RESOURCE
Competitors’ Fighters
Russian military airplanes will assure NATO aviation’s combat efficiency
A team of mangers under the leadership of Aleksey Fedorov, which in October 2004 moved from the Irkut scientific and production corporation into the Russian Airplane Building Company (RSK) MiG, has decided to report on the results of the work that has been carried out. According to the RSK MiG first deputy general director and general designer, Sergey Tsivilev, the team’s main tasks at the moment of the change of authority was a new marketing policy and increase of orders on hand.
Owing to market trends and in connection with the forthcoming integration of the Russian aircraft industry into the unified aircraft building corporation (OAK), they gambled on military programs. Although the state defense order then was connected only with the upgrade of MiG-31 fighters, and this was not more than 10 percent of the total orders on hand, the unpromising, from the financial and economic point of view, civil projects of the short-range Tu-334 liner and the multirole MiG-110 transport airplane were curtailed.
The reckoning was, of course, on the brand which is older and known throughout the whole world. Today, airplanes from the MiG-21 to the MiG-31 have, most likely, the largest distribution in the world – there are 6,289 of them in 52 countries of the world. The ratio of heavy and lightweight fighters in the world also has been played on the MiGs – 30 to 70 percent.
The new team’s operating principles not inherent to it earlier were introduced into the company’s practice. In particular, subscription servicing of aircraft equipment. The improvement of the post-sales servicing system, which for many years was a week part of the domestic defense industry, is covered behind these words. This process was made easier by the fact that the corporation has joint enterprises and representative offices in key countries of the world. One more novelty is the servicing of military airplane according to actual condition and not according to technical requirements as it was earlier. This has allowed lowering the cost of an airplane’s life cycle several times.
A cost-accounting system was transferred from Irkut to the RSK and a radical upgrade of the product to NATO and ICAO – the International Civil Aviation Organization – standards was begun. Very recently Eastern Europe’s aircraft market was in fact lost for Russia, although there were MiG-29 in the inventories of the former socialist countries. Now RSK MiG has re-established the positions there. Contracts have been concluded both for the upgrade and for the delivery of special equipment to some countries. In particular, a contract has been realized with Slovakia for the upgrade of MiG-29 to NATO and ICAO standards. In December 2005, the first four aircraft arrived in the inventory of this NATO country. In which connection, together with the largest European firms. Very recently it was impossible to imagine, inasmuch as the work was connected with military secrets, in particular with the IFF system.
The upgraded aircraft will be presented at the ILA-2006 aerospace salon which opens in the middle of May in Berlin. During the salon, RSK management intends to hold consultations with heads of the military authorities of Eastern European states. In the company’s estimates, Hungary, Bulgaria and Poland will be the next markets for upgraded MiGs. Even despite the fact that Poland is leasing a large batch of F-16 and Hungary already is receiving “Grippen” fighters. Everyone understands well that the MiG-29 which is upgrade for comparatively little money will be fully competitive in the coming 5 – 7 years.
The innovations introduced at the RSK allow guaranteeing: 70 – 75 percent of the fighter fleet will be in operation ((V STROYU BUDET STOYAT’)). In other words, the MiG people in fact will take on to themselves the assurance of the combat readiness of the North Atlantic alliance’s aviation. In exchange they need only one figure – how much will an airplane cost a year, and all the rest, besides this fixed figure, should not worry the NATO allies, they attest at RSK MiG. Aleksey Fedorov’s team was able to overcome the situation when everyone who wanted was involved with the upgrade of MiGs. Henceforth, the process can go only with the participation of the “home” firm.
Essentially, the upgraded often is so deep that as a result practically new airplanes are obtained. Ever more often the modern term “rebranding” is used in relation to them. Additional characteristics, for example the all-aspect engine nozzle, phased active antenna array of the aircraft radar and others have allowed conferring to the MiG-29M/M2 a new brand – the MiG-35. In particular, this airplane has been planned for participation in the Indian tender for 126 fighters. This aircraft’s marketing is planned before 2010. The ship-based MiG-29K/KUB, manufacture according to a contract with India, will be called the MiG-33. The first such airplane of 16 already is at the Fedotov Flight Test Center. The first test flight is just around the corner. The contract provides an option for 30 fighters.
These two aircraft are intended for markets with a high capability for payment, and “simple” MiG-29s are being supplied to those countries who cannot allow themselves to purchase highly upgraded airplanes. The multirole “4+” generation MiG-29SMT fighter has been sold to foreign customers since the end of 2004. Four such fighters have been delivered to Yemen, the upgrade of eight MiG-29 airplanes to the MiG-29SMT level also has been carried out for Yemen and two airplanes for Eritrea.
The corporation’s management has decided to keep the MiG-AT airplane project in reserve, despite its formal loss to the Yak-130. They think at the RSK that these are different airplanes: one purely training, the other is combat training. They have different niches in the market. And the Russian defense ministry has not turned down fully purchases of the MiG-AT. Work also will continue at the RSK in the sphere of unmanned aerial vehicles – Sergey Tsivilev refrained from more detailed comments on this topic.
The corporation also has good prospects. In the beginning of 2006, a contract was signed for the delivery of 28 MiG-29SMT and six MiG-29UBT fighters to Algeria. Part of the aircraft will be delivered as early as this year. An option also is possible – depending on how the RSK copes with the first part of the contract. Pre-contract work is going rather will on the deliveries of the basic modification of the fighters to a number of African countries and upgrade programs of the fighters delivered earlier to India and Malaysia. The prospects of broad-scale programs for delivery of MiG-29M/M2 airplanes to India, MiG-29SEh to Egypt and some other countries are good.
The RSK will not be limited by singular export contracts. Even Russia’s defense ministry has had their say. According to air force commander-in-chief Vladimir Mikhaylov, the question of the upgrade of MiG-29 they have in the Russian forces has been resolved.
Source: 21.04.06, Vremya Novostey, Correspondent: Nikolay Poroskop