Irkut, SCAC to be merged into UAC corporate center

UAC is streamlining its ramified corporate system, which has proven inefficient Irkut Corporation, the manufacturer of the MC-21-300 airliner, will be responsible for commercial aviation programs (UAC)

The ongoing reform of Russia’s United Aircraft Corporation (UAC) will see its corporate structure transformed into a single company and converted to a single share, reads the corporation’s statement.

The process will involve merging the corporation’s subsidiaries Irkut Corporation and Sukhoi Civil Aircraft Company (SCAC), transforming them into a so-called corporate center. The decision was finalized at the September 4 board meeting of the three companies.

The portion of the corporate center to be based at Irkut’s premises will function as UAC’s commercial aviation division, whereas SCAC in its new format will be responsible for marketing, sales, and aftersales support of all of UAC’s commercial programs.

The structural reform has been accompanied by changes in the top management. Irkut President Oleg Demchenko will now hold the position of vice-president and chief designer. UAC’s current president, Yury Slyusar, will temporarily fill in for Demchenko as head of Irkut, while continuing in his current role.

Alexander Rubtsov, who has up to now been CEO of the lessor Ilyushin Finance Co., will become SCAC’s new president. Rubtsov is replacing Vladislav Masalov, who has been appointed to chair the board of China-Russia Commercial Aircraft International Co (CRAIC), a joint venture between UAC and China’s COMAC that is tasked with developing a widebody long-range aircraft program.

The aim of the ongoing reforms is to replace UAC’s current ramified structure, which has proven inefficient, with a more compact one. This is expected to speed up business processes within the corporation, as well as cutting administrative overhead costs.

The reform is in line with the corporation’s new strategy through 2035, which calls for the share of commercial production in UAC’s model range to grow from the current 20% to more than 24%. The corporation’s annual output is to reach between 100 and 120 airframes.

The SCAC-produced Sukhoi Superjet 100 (SSJ100) regional jet is one of UAC’s ongoing commercial programs, as are the Tupolev Tu-204/214 and Irkut MC-21 narrowbodies, the Ilyushin Il-96 widebody, and the Ilyushin Il-114 regional turboprop.

After the corporate center has been set up, the corporation will intensify work to create the transport, military, and strategic aviation divisions.

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