Poor showing by western exhibitors offset by strong military focus

Published: 8/18/1999

It seems that western manufacturers decided that the third largest air show in Europe was not worth exhibiting at, judging by the very small presence of companies at this year's MAKS 99 airshow, at Zhukovsky airfield, outside Moscow. The global giants had a particularly muted presence, perhaps reflecting their view of market prospects .In the case of Boeing, its exhibit comprised a mockup of its business jet, although, in truth, the executive jet market probably represents the only active aviation market in the country. Airbus also kept a very low profile: so low, indeed, that one had to visit the Aerospatiale Matra stand to see them at all. Even then, the display amounted to a few models. The active western aerospace participants in the Russia, however, were well represented with both Rockwell Collins and United Technologies both flying the western flag with substantial stands. The show even attracted a few new western entrants, with fastening business, Bristol of California, looking for new customers among Russia's engine producers, although the experience looked as if was proving more interesting than profitable. Generally, the focus of the show was a military one, with a dramatic displays from Sukhoi's Su-30MK - obviously unaffected by the fate of an earlier flight at the Paris Air Show - the Su-37 and the Ka-50. The virtual non stop routine of attack helicopters and fighters gave an indication of where the industry currently sees the majority of its sales coming from in the foreseeable future. It also emphasised the fact that Russia is capable of still producing cutting edge military equipment, even in its retrenched condition. The Il-96 T/M programme was represented in the display, along with the Tu-324 prototype, with Tupolev fully represented on the ground with no fewer than four Tu-204s. The heavy military presence was one of the show"s objectives, and the visit of the new Prime Minister Vladimir Putin was intended to reinforce the the government's stated view that the sector is important to the future of Russian industry: part of “the bread and butter of our economy", according to acting Deputy Prime Minister Ilya Klebanov, who is responsible for the Russian aerospace sector. Some industry participants were nonetheless depressed by the recent demise of Prime Minister Sergei Stepashin, who had allied himself with the industry's cause, with a promise not to leave the industry in the lurch, just days before he was fired. This has led many to feel that much support is promised but little delivered by governments who count their existence in months, rather than years. With production down by a widely quoted 90% since 1991, industrial participants were stoical. Since things cannot get any worse, any changes are likely to be positive. Everyone considered the government's role to be a critical one and, for most industry sources, including Victor Livanov, General Director of Ilyushin, the introduction of a viable leasing company for Russian aircraft is essential, if his and other companies are to sell aircraft to Russian airlines currently unable to raise the finance to pay for them. Without this type of intervention, the resultant low to no orders will increasingly push manufactuers and suppliers to the wall.

Article ID: 764