The Public Joint Stock Company United Aircraft Corporation (PJSC UAC) was established in accordance with RF Presidential Decree No. 140 dated February 20, 2006 “On Joint-Stock Company United Aircraft Corporation” for the protection and development of the scientific and industrial potential of the Russian aircraft industry, the security and defense of the state, and the concentration of intellectual, industrial, and financial resources to implement long-term aviation programs.
At present, UAC encompasses about 30 enterprises and is one of the largest players on the global aviation market. Companies within the structure of the Corporation hold rights to such world-famous brands as “Sukhoi,” “MiG,” “IL,” “Tu,” “Yak,” “Beriev,” as well as the new SSJ 100 and MS-21 brands.
Priority activity areas of the Corporation are the design, production, testing, operation, warranty and service maintenance of aircraft for civil and military purposes. UAC companies work in the spheres of the modernization, repair and disposal of aircraft, as well as the training and qualification-upgrading of flight crews.
To date, the largest share in the production structure consists of military products both for the RF Ministry of Defense and foreign customers. From 2013 onwards, the bulk of military-equipment deliveries are bound for the domestic market.
In 2013, nine aircraft repair plants of the RF Ministry of Defense were transferred to UAC. As a result, in 2014, the serviceability of the RF Air Force fleet increased from 40% to 65%.
UAC seeks to increase the proportion of civil aviation in its sales structure, primarily by ramping-up SSJ100 serial production and launching the production of its prospective MS-21aircraft family. A significant backlog of orders for both these products ensures uninterrupted utilization of UAC’s production capacities in the mid-term.
The Corporation’s assets are located in various regions of Russia, and there are joint ventures with foreign partners operating in India and Italy. In total, UAC’s enterprises employ more than 98,000 people.
According to UAC’s long-term development strategy through 2025, it is planned to quadruple revenue to RUB 900 bln, reaching a sales-profitability level in terms of net profit of no less than 10%.
UAC’s priorities include the top-quality, timely execution of contracts under State Defense Order, development of effective, full-scope international cooperation with foreign aviation companies, as well as formation of technology advancements for the promotion of domestic products on the world market.
In April 2015, the Company changed its full name to Public Joint-Stock Company “United Aircraft Corporation” (PJSC UAC)
According to the strategic goals of the United Aircraft Corporation (UAC), by 2035 the share of civil products in its revenues should reach 45%, more than doubling from its current level of 20%. In total, UAC’s share of the total world’s civil aircraft market should also reach 4.5% by 2025 from the current level of less than 1%.
The share of accessible military aircraft market should also rise from current 20% to 45% by 2035. The accessible market will consist of all countries except NATO-member countries and their historical allies and from 2030 the Chinese market.
Not later than in 2025 UAC will become profitable by net profit and by 2035 will become a profitable business that is attractive to investors, lowering its dependency on the government in investments.
The strategy was earlier approved by the UAC’s Board of Directors. The UAC’s Strategic goals up to 2035 and transformation directions to achieve them document is available here. (http://uacrussia.ru/ru/corporation/strategy/).
The main tasks of the product and market strategy in the document are:
a) securing government requisites in state security including transportation security;
b) maximizing international sales in segments of civil regional, mainline and widebody jet aircraft;
c) preserving existing market share in military aviation while expanding in transport and special purpose segments;
d) achieving a balanced lifecycle stage product mix.
The overall effect from implementing measures to increase workforce effectiveness, capital management optimization, investment optimization, production facilities optimization and non-core assets sales will exceed 700 billion rubles by 2035. By that time the Corporation will provide more than 50,000 high-efficiency jobs, the yearly dividends should exceed 30 billion rubles, and payable taxes should exceed 200 billion per year.
