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Competition and cooperation in the global aircraft engine manufacturing industry

Sobolev L.B. Moscow Aviation Institute (State University of Aerospace Technology), Moscow, Russian Federation ( sobolevLB@yandex.ru )

Journal: Economic Analysis: Theory and Practice, #47, 2015

Subject The article analyzes the development trends in the global aircraft engine manufacturing industry. Two major trends include constant product renovation and business model optimization based on profitability indices. The business model optimization provides sustainability of aircraft engine manufacturers in the highly competitive aircraft engine market, increase in labor efficiency and stock value.
     Objectives The aim is to increase the economic efficiency of the United Engine Corporation by using the business models of global leaders in aircraft engine building, and their competition strategies.
     Methods The study presents a comparative analysis of leading Western and Russian corporations involved in aircraft engine manufacture.
     Results The analysis demonstrated that owing to competition and well-targeted business diversification, Western aircraft engine manufacturers provide for a stable growth of economic indicators (net sales, shareholder value, product modernization).
     Conclusions and Relevance Under fiercer competition in the global aircraft engine manufacturing sector, it is necessary to consider business model options in Russia, to maintain internal competition (at least of the 'Soviet' type), and to have a well-judged approach to diversification of Russian aviation corporations.


A high mission of general aviation

Sobolev L.B. Moscow Aviation Institute (National Research University), Moscow, Russian Federation ( sobolevLB@yandex.ru )

Journal: Economic Analysis: Theory and Practice, #3, 2016

Importance The small aircraft segment of Russia is on the wane. Meanwhile, in many countries, income from small aircraft manufacturing and servicing is considerably higher as compared to large and military aviation, not to mention employment opportunities.
Objectives The aim of the study is to find feasible solutions to revive the small aircraft production in Russia.
Methods The study draws upon the comparative analysis of operations of global small aircraft producers.
Results The analysis shows that they may be divided into three groups: large conglomerates, specialized companies producing a wide range of products, and small and medium-sized manufacturers. The study includes case studies demonstrating the directions where success in small aircraft business revival has already been achieved.
Conclusions and Relevance For United Aircraft Corporation, its involvement in the problems of small aircraft is an opportunity to diversify production and generate additional income, to get experience in designing and manufacturing for innovators, and to load idling production facilities. The successful cooperation of Rostec Corporation with Diamond Aircraft Industries, an Austrian company, is the second direction. The support to small domestic aviation companies (the Technoavia case) and cooperation with higher aviation schools and research institutes is the third direction. The fourth direction is the diversification of commodity and metallurgical corporations through the purchase of assets of small aircraft (the purchase of Aircraft Industries, a small Czech company, by the Ural Mining and Metallurgical Company).


Avionics in modern aviation industry

Sobolev L.B. Moscow Aviation Institute (State University of Aerospace Technology), Moscow, Russian Federation ( sobolevLB@yandex.ru )

Journal: Economic Analysis: Theory and Practice, #10, 2016

Subject The article analyzes the trends in the avionics world market development.
Objectives The study aims to increase the economic efficiency of Russian avionics manufacturers and avionic equipment based on experience in creating the business models by global leaders and their competitive activity strategies.
Methods The study rests on a comparative analysis of activity of leading foreign and Russian companies engaged in development and production of avionics systems.
Results The analysis shows that Russian companies operating in the field of avionics have made only the first step on their way to creating a globally competitive organization structure. Next steps should be decreasing their dependence on Defense Procurement through developing the civil sectors of electronics, increasing innovation and diversification to enhance economic stability.
Conclusions Under fiercer competition in the global avionics market, it is possible to use alternative business models of avionics manufacture in Russia, increase the number of manufacturers (including through the creation of avionics segments in allied industries), and develop internal competition in the country.


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