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National Interests: Priorities and Security

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To the issue of restructuring of the United Aircraft Corporation

Vol. 14, Iss. 3, MARCH 2018

PDF  Article PDF Version

Received: 23 November 2017

Received in revised form: 18 December 2017

Accepted: 16 January 2018

Available online: 15 March 2018


JEL Classification: G34, L19, L93, O33, O57

Pages: 411–426


Sobolev L.B. Moscow Aviation Institute, Moscow, Russian Federation

ORCID id: not available

Importance The research constitutes a comparative analysis of the structure of leading military and civil aircraft companies of the world through annual reports, SIPRI ratings of arm-producing companies, annual ratings of aircraft corporations in Flight International journal and publications in the public domain.
Objectives The research aims to increase the economic efficiency of UAC’s operations by considering the organizational design of successful companies, global aircraft engineering trends and forecasts.
Methods The research is based on a comparative analysis of international aircraft engineering companies’ activities. I also identify possibilities for developing military and civil segments of those companies.
Results As the analysis shows, UAC has not created an effective civil segment for 10 years of its operations. Leading civil aircraft companies like Boeing and Airbus increased their revenues through a growth in their civil segments’ revenues, while revenues of military segments remained almost unchanged.
Conclusions and Relevance UAC’s project of SSJ100 generally failed to meet expectations. Another civil project faced high competition, thus its global launch requires many efforts and investment. As UAC is expected to enter all military and civil aviation markets, a lack of talent, lagging engine manufacturing and avionics, Western sanctions make the goal unattainable in the mid run, thus necessitating its adjustments.

Keywords: UAC, restructuring, military aircraft, segmentation, civil aviation, diversification


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