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RUSSIAN HELICOPTERS DOES REPAIRS

Sergey Kolobkov

The Russian Helicopters management company, currently being formed, will do more than just manufacture helicopters. As RBK Daily discovered, its functions will soon be expanded to include management of JSC Helicopter Servicing Company (HSC) that will establish helicopter servicing centers and take care of the deliveries of parts to helicopter manufacturing plants. Experts have estimated the value of this market in 2007 at 40 billion rubles.

JSC Helicopter Servicing Company (previously called JSC Kamov-Holding) is a fully-owned subsidiary of Oboronprom Corporation. It provides warranty and after sales maintenance of Mil and Kamov helicopters, including servicing and repairs.

As Andrey Shibitov, Director General of Russian Helicopters told RBK Daily that the company will soon take over the functions of the Helicopter Servicing Company. “Previously, it functioned as a department of Oboronprom, now it has been transferred to Russian Helicopters,” he said. The company will have two functions: the creation of a network of integrated after-sales servicing, and the delivery of materials and parts to helicopter manufacturing plants. “Everything will take place on a reasonable scale. It will not become the main supplier, but it can deal with those issues that arise with consolidated orders,” he said. The company is now in the process of formation. “In the near future we will complete this process,” he noted.

According to Andrey Shibitov, the key is to complete the transition from the trade of helicopters as piece items to the “full cycle” of production-servicing-repair-disposition. The Helicopter Servicing Company is now deploying a network of servicing stations abroad. “It is still too early to say where they will be established, since Russian helicopters are in use in 40 countries across the globe. Together with the servicing centers, engine repair facilities will be established in cooperation with JSC Klimov,” he told RBK Daily. According to the estimates of Konstantin Makienko, an expert with the Center for Analysis of Strategies and Technologies, at 2007 prices the market for the servicing of Russian helicopters could reach up to 40 billion rubles. Oboronprom representative Ilya Yakushev remarked that “in the nearest future a comprehensive program for the servicing of clients will be developed, including the establishment of spare parts depots in key regions of the world.” As stated by Oboronprom Corporation Director General Andrey Reus, a joint-venture for helicopter servicing will be established in India. “One or two similar centers are planned for China as well. We have concrete plans to establish servicing centers in Peru, Venezuela and in the Middle East,” he said. In total, he said that by the end of the year at least seven to ten such centers will be established. The Venezuelan center will be a large enterprise, almost an aviation repair factory, meant to provide technical maintenance for the Mi-26, Mi-35 and Mi-17-V5. “The cost of maintaining helicopters through their entire life cycle of 30 to 35 years is about five times their ticket price,” he said.

Aleksandr Voznesensky, deputy director for strategic development and corporate relations for JSC Klimov, said: “We have sent our proposals to Andrey Reus on how we want to participate in the development of a concept paper for the establishment of service centers, and to participate in this enterprise along with the helicopter makers. As a rule, engine-building companies all over the world make  45-50% of their revenues on servicing.” He added that several possibilities were currently under consideration for the establishment of joint ventures abroad: “They could be subsidiaries of Oboronprom, of JSC Klimov, or joint-ventures.”

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