FlyingDutchBoy
Posts: 75
Joined: Wed May 24, 2000 3:42 am

Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:04 am

Russia to overhaul aerospace sector - govt official
By Maria Golovnina

MOSCOW, Feb 10 (Reuters) - Russia plans to bring together its largest aircraft makers under a single company in the next two years to put an end to damaging squabbles within the ailing sector, a senior government official said on Tuesday.

Speaking at a news conference, Deputy Prime Minister Boris Alyoshin said the move was aimed at making Russia's aircraft manufacturers more competitive against global rivals such as Airbus and Boeing Co. .

"We knew that sooner or later we had to either give up aircraft-making altogether, or conquer international markets," said Alyoshin, who created the ambitious project.

"We have to compete against global giants... We have lost a lot in the past decade and now we have to recoup the losses."

Alyoshin said the holding company will unite Sukhoi, Mig, Ilyushin and Tupolev -- Russia's cash-strapped industry giants that have struggled to keep pace with world leaders.

Once the backbone of Soviet civil aeronautics and defence aviation, the four were largely devastated in the post-Soviet economic meltdown after the government radically cut the military budget in the early 1990s.

Under the new plan the parent company, which will remain in government hands, will map out a single market strategy to avoid legal disputes within the sector that have prevented the industry from recovering.

The parent company will also include privately-owned Irkut Corp., which has a licence to assemble Sukhoi jets.

"The creation of the holding will put an end to endless wars among our companies. You know how much they wrangle over everything... This is not healthy," Alyoshin said.

Ilyushin had a four-year dispute with flag carrier Aeroflot over the lease of long-haul airplanes which settled earlier this year.

The holding company, due to be set up gradually over the next two years and likely to become fully operational by 2007, will concentrate on making commercial aircraft, as well as on defence aviation and maintenance, Alyoshin said.

"It doesn't necessarily mean this new company will be like Boeing. But our methods and structure will be similar," Alyoshin said.

He said the industry, currently fully controlled by the government, will eventually open up to foreign cash.

"The government currently has a lot of assets in the aerospace sector. They are not for sale yet. We need a proper system first. And only then the door will open for foreign investors -- so that they know what they buying."
 
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scbriml
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RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:10 am

Boris Alyoshin said the move was aimed at making Russia's aircraft manufacturers more competitive

Well, they couldn't be much less competitive! It will take a long time and cost a lot of money for Tupushin or Ilyolev to mix it with the big boys. Not that I'm totally discounting it, but I can't really see it happening.

ps The spell checker offers "illusion" as a replacement for Ilyushin. Is it trying to tell us something about this plan? Big grin
Time flies like an arrow. Fruit flies like a banana!
 
Greg
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RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:14 am

Uh...they have never been competitive to begin with...so I don't think Europe and Boeing are concerned.

Launch-to-first-delivery for Russian planes is roughly ten years....
 
kaitak
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RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:15 am

I think that joke dates back to the '60s, when British enthusiasts thought they saw an Aeroflot VC10.

Nyet! It was an optical ilyushin!

Moving swiftly along . . . I think this is an excellent idea. All four manufacturers have a lot of skill. What the Russians lack is money, not imagination. Engineering skill, design skill, general expertise is there; it needs money to develop it to its potential, but it's there.

Russian fighters are among the best in the world - look at the MiG29 and the Su-35. It will certainly take a while for them to catch up, but it's certainly within their abilities.
 
FlyingDutchBoy
Posts: 75
Joined: Wed May 24, 2000 3:42 am

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:18 am

IMHO, the Russian has right technologies, equipments, the capabilities and manpower ... good offer at good price! All they need is good management, PR, publicity and of course right products. Give them some times. It’s good for competition and consumer (airline company).
 
jmc757
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RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:24 am

Good news, hopefully they can become a real viable 3rd competitor. Yes it will take years and years, but how long did it take Airbus to make it to the "top"??
 
tristarenvy
Posts: 2235
Joined: Wed Jan 21, 2004 2:07 am

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:26 am

I've always wondered why Russian companies were not looked to for some sub contracting work from Boeing OR Airbus.

I'm sure someone w/Aircraft Assembly and Economics knowledge will set me straight on this..... Big grin



[Edited 2004-02-10 20:27:34]
If you don't stand for SOMETHING, you'll fall for ANYTHING.
 
soamsky
Posts: 293
Joined: Mon Jan 26, 2004 3:41 am

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:33 am

"Uh...they have never been competitive to begin with...so I don't think Europe and Boeing are concerned."

Yeah right, Boeing wasn't concerned either about Airbus in its beginnings. What do we have today??....

Yeah right!!
Soar the blue of the South American Sky
 
FlyingDutchBoy
Posts: 75
Joined: Wed May 24, 2000 3:42 am

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 4:41 am

I think the Russian and the new parent company love to be on the "top"!!! Reality check...yes yes yes! it will take years and years, therefore no worry Airbus and Boeing yet!

But, no matter how long does it takes, it will definately effects Airbus and Boeing sales and demands (the market share that is). Instead of having a duopoly market, it will be an interesting "tripoly" market in the future.... IF ONLY the russian succesfully make it happen. Certainly, if this going to happen, Airbus and Boeing markets are under threat.

[Edited 2004-02-10 20:51:36]
 
OV735
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RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 5:58 am

I rather doubt that they would be able to sell their product successfully in the West. Even thought there would prolly be a good number of customers, especially in CIS, I think they would have tough time selling their product in the West. Don't get me wrong, I don't think the product would be bad. Exactly the opposite actually, I think most of the current Russian/Soviet aircraft are just as reliable as their Western counterparts, but the whole business model in Russia seems a little off the track at the moment. Living where I live, I come across the Russian 'idea' of marketing often, whether I want to or not, and I have to say, in most cases it really differs from what I've seen in the Western countries.

But then again, I'd be very happy if proven wrong on this one. The IlTu would be a great thing. All they need is a good product line-up, good marketing and people not being afraid of anything that's Russian-made.

OV735

[Edited 2004-02-10 22:00:25]
 
scf158
Posts: 406
Joined: Fri Dec 12, 2003 1:22 am

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 6:01 am

What have boeing and airbus to 'beware' about?

Who does Ilyushin & Tupolev and sell A/C to anyways? Just all the russian airlines and a few other asian carriers?

 
Jaspike
Posts: 4843
Joined: Sat Feb 23, 2008 1:40 pm

RE: Ilyushin & Tupolev To Merge: Airbus Boeing Beware

Wed Feb 11, 2004 6:08 am

Who does Ilyushin & Tupolev and sell A/C to anyways?

Well there's TNT..


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