"The helicopter market is our top priority at the moment"

Aircraft Engineering Concern, a subsidiary of the Russian Technologies state corporation, unites almost 40 avionics developers across Russia. CEO Andrey Tyulin told Show Observer how the on-going consolidation is expected to benefit the sector, and outlined his company’s plans for the helicopter avionics market.

— HeliRussia 2012 is the first exhibition at which Aircraft Engineering Concern is represented as a single business entity; your Mil Mi-171A-2 program is the best illustration of how successful Russian avionics makers can be in joining their efforts. How has the consolidation of the avionics sector benefited the broader aerospace industry so far?
— When our managerial team came to the concern in August 2009, its consolidated revenue stood at 23 bln rubles [approximately equalled $720 bln at that time – ed.] and its seven subsidiaries were essentially bankrupt. The avionics market at that time was structured in such a way that the manufacturing plants were subordinate to Russian Technologies, while all avionics deliveries for fixed- and rotary-wing aircraft were being processed via private firms which controlled all the profits. There was not a single project at that time in which our concern would act as the prime contractor. By now the concern’s consolidated revenue grew to about 50 bln rubles, mainly in the rotary-wing and - strange as it may appear – the non-aviation segments. The concern integrated developers in all fields of avionics engineering - both independent organizations and those which were part of Russian Technologies. We pursue the strategy of developing public-private partnerships; this is why we are working together successfully. Besides, we are not going to take competences away from private companies; on the contrary, we are keen to use them to mutual advantage by involving our partners in research and production programs.