Types and role of competition in Russia. Competition is rivalry between participants in a market economy
Competition is an economic term. Derived from the Latin word "concurrentia", which can be translated as "collision, escape." The meaning of this term describes the process of struggle between market players for resources: territory of influence, low prices for raw materials, market share, exclusive terms of delivery, and others.
Competition as an engine of progress
Competition, according to economists, has a positive impact on the market situation as a whole. Thanks to the constant struggle and rivalry, new technologies are emerging that are the engines of scientific and technological progress. Competition affects the improvement of the quality of goods and services, helps to optimize price conditions for the consumer and increase the level of service in customer service.
Karl Marx wrote in his writings that the struggle for resources is divided into two types: intra-industry and inter-industry competition. What is it?
Let's take a closer look at these types of competition. Intra-industry and inter-industry competition - what are the differences between them and what are the common features?
The concept of intra-industry competition
Intra-industry competition is rivalry between companies producing identical goods and services. Let's figure it out. What are the positive effects of intra-industry competition?
In intra-industry competition, as a rule, small, medium, and more often large businesses compete. The exception is large companies, which account for one third to one half of the total market in a particular territory or industry. They do not participate in intra-industry competition as unnecessary, being monopolists capable of dictating conditions to the market.
Intra-industry competition contributes to the movement of the industry forward and the development of technologies, the growth of quality.
Types of intra-industry competition
Intra-industry competition is divided into two types: price and non-price.
Price competition is an attempt to gain consumer attention and increase market share by lowering the cost of goods and services. In principle, price competition is beneficial for consumers, but only up to a certain point. The fact is that at first, manufacturers reduce the cost of the product at the expense of profit, while maintaining quality and a customer-oriented approach. But in the event of a so-called “price war” in the industry, it is necessary to compete already by reducing production costs. And things can come to a forced decrease in quality, due, for example, to the purchase of cheaper raw materials. Not to mention the optimization of sales and service costs. In this case, competition undermines the market, weakens participants and makes consumers uncomfortable. Some companies that understand the situation and the laws of the market deliberately do not join the competition in the event of a price war and win this fight - without a fight.
Non-price intra-industry competition is a struggle for a buyer by changing the company's image, packaging, attitudes towards customers - all factors of detuning from competitors, except for price. In the struggle for the attention and loyalty of consumers, companies invest heavily in brand development, advertising, promotion of a product or service on the market, and marketing. This is effective, but leads to an increase in the cost of attracting each buyer. To break away from competitors, companies have to incur significant unproductive costs. In this regard, the net profit of each individual company is significantly reduced.
Examples of intra-industry competition
The intra-industry competition of Russia and the world can be illustrated by almost any sector of the economy: both material production (light and heavy industry) and socio-cultural sectors (education, medicine).
Intra-industry competition offers examples such as:
Production of dairy products: Izbenka, Wimm-Bill-Dann, Danone, Permmoloko.
Cargo transportation: Business Lines, LCMG, Translogistik, PEK, Zheldoravtotrans.
Education MBA: Moscow State University. Lomonosov, RANEPA, GSB GUU, EMAS.
Interindustry competition
Inter-industry competition, as a rule, arises when the possibilities of intra-industry competition are depleted. In fact, this is a transition to related industries, business diversification through the operation of a brand or the production of new products.
The object of struggle in this kind of competition is a higher rate of profit. What is inter-industry competition? The fact is that entrepreneurs leave unprofitable niches and rush into more profitable businesses. This process is accompanied by a decrease in supply in low-profit areas while maintaining demand - as a result, the rate of profit rises. In high-profit industries, on the contrary, an increase in supply leads to a decrease in the rate of profit and a fall in prices for goods and services.
In intersectoral competition, two types are distinguished: functional and capital overflow.
Types of intersectoral competition
The overflow of capital is designed to regulate the balance of the rate of profit in all industries. But in practice, this is prevented by some factors, they are called barriers. Separate barriers to entry and barriers to exit. Entry barriers include: licensing, expensive equipment, lack of the right to engage in another type of activity in the company's constituent documents, expensive marketing and significant investments in advertising campaigns. Exit barriers are trade union resistance, reputational risks, production costs.
The higher the entry threshold, the lower the chances of a change in the composition of market players. The overflow of capital can be external and internal. The external one is the entry of a new company into the industry, the internal one is the diversification of the business by one of the existing players.
Functional competition is the emergence of substitute products or services that compete with existing ones in the industry today and satisfy the needs of industry consumers by offering an alternative solution. The consumer himself chooses which drink to prefer - tea or coffee, go by bus or metro, send a letter by mail or courier. These are all examples of functional intersectoral competition. Substitutes (as substitute products and services are called) exacerbate inter-industry competition, set the pace for the market, confuse strategic plans and force top managers to come up with new ways to develop a business.
15:12 — REGNUM Russia and China in the Asia-Pacific region have more points of contact related to cooperation than competition. This was stated by Russian President Vladimir Putin at a press conference after the APEC summit in Bali on October 8, answering a question about how partnership and competition with China are combined in this region, the Kremlin press service reported.
“Competition is the engine of progress in all spheres: both in the economy and in politics. Therefore, I don’t see any contradictions or tragedies here, everything is normal, of course, it should develop this way. There is competition in some ways, cooperation in some "But today we have more points of contact with China related to cooperation, and this cooperation goes in different directions. And I already said at a meeting with business circles, if we are talking about energy, then these are hydrocarbons, and different ones - and oil, and gas, this may be liquefied natural gas in the future, this is electricity, this is nuclear energy... We have built two, as you know, units at the Tianwan Nuclear Power Plant, and the third and fourth units are next in line. everything we do We solve issues related to cooperation in the field of aircraft manufacturing The Chinese are, of course, primarily interested in heavy helicopters, and here we are certainly one of the leaders in the world. e us, probably no one does. There are in the States, but, in my opinion, they are not even so heavy there, 20 tons each. We will modernize or make a completely new machine - there at the level of specialists, experts decide this," he said.
Putin also noted good prospects in the field of space and aircraft manufacturing. “Of course, it is difficult to break into the world market with wide-body aircraft, it is very difficult, but we have such chances, both financial and technological capabilities, the market is huge both for us and for the Chinese. If we make a competitive, competitive aircraft, then it will enter its own market, it will already have good prospects,” the president stressed.
According to him, there are other areas in the metallurgical industry, there are also good areas of cooperation in the field of transport and infrastructure development. "After all, some routes connecting Asia and Europe are already passing through us and through China. And here we also need to decide with our partners in which direction," Putin said.
“We have a lot of problems related to environmental protection, ecology. Cross-border cooperation in this sense is generally difficult to overestimate. Look at what happened during heavy floods and floods. ", then it affects both the territory of China and the territory of Russia. Here it is very important to establish mutual relations both between the regions and between the relevant services. Today, all this interaction is at a very high level," he summed up.
01.10.2011 SATURDAY 00:00
ABC GERMAN ECONOMY. PART 1
Question: What role does competition play in the development of production?
Answer: Competition leads to a constant increase in production efficiency. It forces producers to avoid losses and reduce costs in order to sell goods at lower prices than others. It forces those whose costs are high out of the market, leaving only low-cost producers on it. Competition operates when there is an opportunity to choose among sellers and when there is freedom for new sellers to enter the market. Large and small firms can compete. Competitive firms may compete in local, regional, national, or even global markets. Competition is as important to a market economy as blood is to the human body.
Competition puts pressure on manufacturers to run their business efficiently and cater to consumer needs. It eliminates those participants who have proven their own inefficiency: firms that are unable to provide consumers with quality goods at competitive prices suffer losses and are gradually forced out of business. Successful competitors have to do better than rival firms.
No one knows exactly what kind of product consumers will want in the near future, or what kind of technology will help keep unit costs to a minimum. Only competition helps to find the answer to this question.
Entrepreneurs are free to choose new products or promising technologies - they only need the support of investors. In a market economy, no approval is required from central planners, majorities in parliament, or market competitors. However, competition forces entrepreneurs and the investors who support them to be prudent; their ideas must pass the "reality test". If consumers value an innovative idea so highly that it covers the costs of producing a product or service, then the prosperity and success of the new business are ensured, but if not, collapse is inevitable.
Consumers are the ultimate judges of innovation success and business success. Manufacturers who want to survive in a competitive environment cannot afford complacency. A product that is successful today may not be competitive tomorrow. To thrive in a competitive marketplace, firms must be able to anticipate, recognize, and rapidly implement good ideas.
Competition, as it were, "discovers" the type of organization and the size of the firm that minimizes the unit costs of production. AT Unlike other economic systems, a market economy does not predetermine or limit the types of firms that are allowed to compete. Any form of business organization is acceptable: whether it be an individual-owned firm, a partnership, a corporation, a collective enterprise owned by its employees, a consumer cooperative, a commune, or anything else. In order to be successful, you need to pass only one test - for the efficiency of spending resources.
The same applies to the size of the firm. For some products, the plant must be large enough to take full advantage of the potential economies of scale. If unit costs fall as output increases, small firms will incur higher costs and therefore charge higher prices for their products. Consumers interested in getting more goods for the same money will tend to buy from larger firms, increasing their chances of survival. Most small firms will be gradually forced out of the market. An illustration of this development of production can serve as an automotive and aircraft industry.
In other cases, smaller firms, often organized as personal firms or partnerships, will be more effective. Where consumers place a high value on goods and services that have the personality of a craftsman, large firms, unlike their smaller rivals, find it hard to compete. This happens, for example, in legal and medical practice, in the art trade, in the field of hairdressing. Through market competition, costs and consumer demand will determine the optimal type and size of firm in each individual market.
In order for large companies to achieve low costs, it is very important that the authorities do not restrict competition from foreign manufacturers and do not prevent their firms from selling goods abroad. For smaller countries, this is doubly true. For example, the size of the domestic market of a country like South Korea is small, and Korean automakers would have extremely high unit costs if they could not sell cars abroad. And consumers in smaller countries would have to pay a much higher price for cars if they weren't allowed to buy them from low-cost large foreign companies.
In other words, competition controls self-interest and makes it work for the good of society. As Adam Smith noted in The Wealth of Nations, people are driven by selfish motives: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their observance of their own interests. We appeal not to their humanity, but to their selfishness, and we tell them not at all about our needs, but about their benefits.
In a competitive environment, even the most greedy in their pursuit of profit are forced to serve the interests of others and provide consumers with benefits at least equivalent to those that anyone else can provide them. As paradoxical as it may seem, self-interest is the most powerful source of economic progress, provided it is driven by competition.
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Nikolai Fedorovich Nikitin was born on January 1, 1950 in the village of Orudyevo, Dmitrovsky District, Moscow Region, in the family of a military man. In 1973 he graduated from the Moscow Aviation Institute with a degree in mechanical engineering for aircraft construction. From 1973 to 1997, he worked at the Sukhoi Design Bureau, where he rose from engineer to deputy general designer. In 1997-1999 - First Deputy General Director of AVPK Sukhoi. In February 1999, by a decree of the Government of the Russian Federation, he was appointed General Director - General Designer of the military-industrial complex "MAPO" (in December 1999 it was renamed RAC "MiG"). Laureate of the State Prize of the USSR in the field of science and technology, Honored Designer of the Russian Federation, Candidate of Economic Sciences.
Position
Nikolai Fedorovich, judging by the performances of your competitors, the first half of 2002 was not successful for RAC MiG. Representatives of the Sukhoi Design Bureau are actively discussing their victory in the tender for a fifth-generation fighter, but the RAC does not comment. At the same time, representatives of the Yakovlev Design Bureau speak a lot in the press about winning the competition for combat training aircraft. MiG is silent again. Why?
In the process of discussing the problems of the fifth generation fighter, the MiG Corporation actively defended its positions at all meetings and conferences held. However, "MiG" strictly complied with the instructions of the leadership and the tacit agreement not to comment in the press on the course of these discussions and the results of the competition. As it clearly follows from your question, the MiG corporation is the only one that has observed and continues to comply with these agreements.
The information noise around the fifth generation is very reminiscent of the situation with the restructuring of the aviation industry - numerous conversations and statements over the course of many years. These conversations are still going on, taking up the time of ministers, deputy prime ministers, heads of state, and integration has been brought to life by a few enterprises, and, mind you, almost never appear in the press and high offices. They have no time, they work and perform assigned tasks.
Now let me comment on the current situation. You say that we lost two tenders or, as they say in the West, tenders. But here is an interesting situation. Over the past year, the MiG corporation has signed 5 contracts for the supply of aircraft equipment abroad and 4 contracts for the modernization of previously produced aircraft systems (3 of them in European countries). Thus, having won 9 tenders abroad, we "lost" in Russia. And how many tenders abroad have been won by the Sukhoi Design Bureau or the Yakovlev Design Bureau?
So it turns out that in the West, where, along with high tactical and technical characteristics, the main criterion for the tender has always been and remains the indicator "cost-effectiveness", we are winning, but in Russia we are losing. This means that other factors also influence our decision-making. Life will show who was right, whose position and what will eventually be implemented.
Fifth generation
What is the essence of the RSK approach to the problem of the fifth generation, how does it differ from the proposals of the Sukhoi Design Bureau?
You correctly asked the question - MiG has no other project, MiG has a radically different approach to designing next-generation combat (and not only combat) equipment. We look at the problem through the prism of economics. She must "rule the ball."
The task is not only to draw on paper the most powerful and best combat aircraft in the world, "which has no analogues." It must be built on time, the country must have the resources to produce it, and the Russian Air Force must be able to purchase it. In addition, the aircraft must be of interest to a foreign customer, so that production is paid not only by our domestic taxpayer, but also by a foreign one. And this is not a slogan - today MiG, being a state-owned enterprise, has more than 99% of its funds only from external orders. Moreover, our payments to the state budget are dozens of times greater than the receipts from it for MiG.
We have expressed our position on several occasions. Speaking about the fifth generation fighter, the MiG corporation is based on three main provisions. Firstly, the RSK should not and cannot stop in its development, our future, along with the ongoing diversification program, lies in the development of its combat component. Secondly, it is necessary to develop and manufacture a multifunctional combat aviation complex accessible to the Russian Armed Forces to solve the tasks of the Air Force and Navy. Finally, it is necessary to ensure a high export potential of the new fighter for its wide distribution around the world, as was the case with all aircraft developed by MiG.
Can the economic aspects of the program be analyzed in more detail?
The cost of the fifth-generation fighter program - I emphasize, the program, and not development work (the share of the latter, as a rule, is no more than 10%) - is commensurate with the Russian defense budget. But besides aviation, there are other types of the Armed Forces, which must also be re-equipped with new equipment. Therefore, it is necessary to strictly link the prospects for the purchase of a new fighter with other programs of the RF Ministry of Defense (RVSN, Navy, Ground Forces, other Air Force activities, etc.), which are planned to be implemented in the period 2002-2020.
Linking the budgets of all programs into a single budget for the technical re-equipment of the Ministry of Defense of the Russian Federation should adequately fit in with the projected economic development of Russia, the growth of the gross national product and realistic budget plans and forecasts for the next 20 years.
This will make it possible to approve the actual volumes of financing, purchases and the timing of the implementation of the technical re-equipment programs of the RF Ministry of Defense and, in particular, the fifth-generation fighter program. Then, in accordance with the amount of funding allocated, the TTZ of the Air Force for the new fighter should be formed. And only after that should a decision be made on the full-scale deployment of the new fighter program and the identification of the lead developer.
And now it is necessary to continue the competitive development of draft designs of the fifth generation fighter at the expense of the own funds of the Federal State Unitary Enterprise RAC MiG and OAO Sukhoi Design Bureau. And budget money should be directed to the development of critical technologies, the development of weapons and avionics.
How much will the fifth generation program cost?
According to public statements by a number of leaders, the planned cost of R & D for a Russian fifth-generation fighter in the period up to 2010 will be about $1.5 billion (some experts estimate it much higher). These funds are not in the budget of the Ministry of Defense of the Russian Federation. I note that a similar American F-35 (JSF) program provides for development costs of about $ 22 billion.
Even if the Russian aviation industry finds funds for R & D (for example, from the export deliveries of MiG-29 and Su-27/30 aircraft), then the determining and critical factor in the program of the fifth generation fighter will be the presence in the budget of the Russian Federation of 20-30 billion dollars to form the minimum acceptable fighter groups. In other words, during 2010-2025, 1.3-2 billion dollars a year should be provided for the purchase of new aircraft, weapons for them and their operation at the lowest possible rate.
What explains such a spread in price parameters?
The selected dimension of the aircraft. It is she who ultimately determines the cost of the program and the burden on the country's budget in the period under review.
There is another aspect of the program - export. At present, about 2,600 MiG-29, F-18, F-16, Mirage-2000 fighters, similar in size and weight to the aircraft offered by RAC MiG, have been delivered to more than 55 countries. At the same time, Su-27/30, F-14, F-15 fighters of larger size and weight were sold to 8 countries in the amount of approximately 650 units.
It is currently planned to export about 3,000 F-35 (JSF) fighters similar in size and weight to our aircraft, and there are no plans to export heavy F-22 fighters larger in size and weight than the F-35 (JSF).
Thus, it is only possible to reduce budget expenditures on the purchase of a group of new fighters for the Russian Air Force by solving another main task of the program - to ensure a high export potential of the aircraft under development. This, in turn, will make it possible to offset development costs at the expense of the foreign customer, ensure real foreign exchange earnings in the country, support hundreds of thousands of jobs in the high-tech sector of the economy for the period up to 2030-2040, and ultimately maintain Russia's position in the field of combat aviation.
The size of the new fighter, chosen by FSUE "RSK MiG" in comparison with the project of a heavier aircraft, will provide the possibility of forming the grouping necessary for the Russian Air Force at a 35-40% lower cost for the budget of our country and will provide 3-4.5 times more potential exports.
This is how we see the solution of the issue of the fifth generation fighter: through the economics of the process and the criterion of "cost-effectiveness" of the product.
Integration
You have been heading the RAC "MiG" for the fourth year. Have you completed all the tasks you set for yourself?
The MiG Corporation is a state-owned enterprise, and it was not I who formulated the tasks when I was appointed in February 1999, and then when I was reappointed in December 1999. They were put to me by the Prime Minister and the leaders who were responsible and are responsible for the military-industrial complex of Russia.
There were three such tasks. First, to unite all MiG enterprises into a single organization, that is, to create an optimal enterprise structure, according to which all successfully operating aviation companies in the world - Dasso, Lockheed Martin, Boeing - are built. Secondly, to return MiG products to the industrial arena and the foreign market. Thirdly, to ensure long-term, stable and cost-effective loading of 14,000 jobs, and, taking into account subsidiaries, over 40,000 jobs.
We have completed these tasks. By 2000, the merger of enterprises was completed, and RAC "MiG" is today the only aircraft building corporation in the country that unites de facto and de jure in one legal entity the entire life cycle of aircraft - development, production, sale, after-sales service, repair and modernization .
The new structure made it possible to work on the market more efficiently and, having the right to independent foreign economic activity, to pursue an active and offensive marketing policy. At the same time, the new marketing policy of the MiG Corporation, developed jointly with the federal authorities in early 2000 and constantly being improved, made it possible to radically restructure the activity in the field of military-technical cooperation, to adopt a systematic approach, which ultimately gave positive results.
To interest the buyer today is possible only with perfect, competitive technology. This forced us to create a new model range of aircraft: the MiG-29M2 (MRCA) was built in just 11 months, the MiG-29K/KUB is ready for serial production, and tests of the MiG-29OVT with thrust vector control will begin.
In 2001-2002 we returned to the foreign market. At the same time, the MiG corporation not only returned to traditional regions, but also mastered new regions. Contracts have been signed with five new countries, where our products were not previously supplied. There was a return of "MiG" to the countries of Eastern Europe. Moreover, the corporation "MiG" works and has contracts in the NATO countries. During 2001-2002 "MiG" won the competition with the leading firms of the West in Hungary, Bulgaria and Slovakia. The tenders held in these countries in 2001-2002 ended in our victory: contracts were signed to extend the service life and modernize fighter fleets. At the same time, in 2001, the geography of military-technical cooperation was expanded to 12 states, in 2002 - to 17.
Of course, a landmark event was the return of Russia to the European market, from which, by the beginning of 1999, Western countries tried to completely oust Russian fighters. Until recently, the MiG corporation has been fighting for the Austrian market, competing on equal terms with the giants of the world aircraft industry. Such perseverance created the conditions when Austria's neighbors (Hungary, Bulgaria, Slovakia), despite the active opposition of Western competitors, chose Russian MiGs.
Can you say that the corporation has completely overcome the crisis of 1997-1998?
Over the past period, in the absence of any orders from the Russian Ministry of Defense, the MiG corporation has taken all possible steps to find funds to save the enterprise, preserve development and production lines, and not lose personnel. Over the past two years, the real portfolio of orders has grown 6 times and a stable base has begun to be created, which will ensure the constant operation of MiG enterprises, including subsidiaries, for at least five years. Thus, thanks to the restructuring carried out and the implementation of an aggressive marketing policy over the past two years, for the first time in the last 6 years, our corporation has the prospect of not only retaining the personnel of the scientific and production sector, but also completely solving the problem of financial and economic stability of the DGC by 2004.
In 1995-1996, decisions were made to restructure not only MiG, but also Sukhoi, Tupolev and other enterprises. Why did MiG unite, while all the rest lagged behind in resolving this issue?
We analyzed the results of all previous activities of the enterprises that are part of the corporation. After all, the association "MiG" still began in 1995 with the creation of the military-industrial complex "MAPO". However, in the future, reintegration processes began, and by 1998 MiG had actually collapsed again. Therefore, clear tasks were set to correct this situation, as well as the deadlines for their implementation. This allowed us to complete the first stage of the restructuring process by 2000, despite the most difficult financial and personnel problems.
As for the other enterprises you mentioned, this question should be addressed to them, and not to us. We can only repeat to ourselves that we were given an unequivocal task: through optimal restructuring, to sharply improve economic, production and social indicators. And we solved it jointly with Rosaviakosmos, ministries and departments, but by no means shifting our problems onto them.
Diversification
Many firms that produced military equipment are entering a new sphere of civil aircraft construction. What are your plans in this area?
I would not say that the topic of civil aviation is new for the MiG Corporation. At serial factories, which today form the basis of serial production of RAC "MiG" (Moscow and Lukhovitsk branches), even in Soviet times, passenger aircraft, widely known in our country and abroad, were produced, for example, Il-12, Il-14, Il-18. The enterprises included in the engine block of the corporation also developed and produced engines not only for combat aircraft and helicopters, but also for civil aviation. And today our task, based on existing experience, is to develop and improve the production of civil aviation equipment.
We carried out a comprehensive analysis of the structure of current and prospective sales of RAC MiG, revealed a significant imbalance between the production capacity of the enterprise and the potential volume of orders for new MiG combat aircraft.
In such a situation, two main ways out are possible - either a radical reduction in production capacity, a significant part of the design bureau and a mass dismissal of personnel, or an active search for new programs to download them. We have chosen the second way. A variant of the corporation's development strategy, focused on deep conversion, has been developed. An analysis of the prospective load of the enterprise showed that 20-30% of the existing capacities are sufficient for the implementation of all military programs, and the remaining 70-80% should be reoriented to the production of civilian products.
Although the enterprises that are part of RAC "MiG" have been involved in civilian projects in recent years, these were mainly programs for the small-scale production of light aircraft, which are not able to seriously load the capacities of the factories and design bureau of RAC "MiG". To date, the only really promising project in this direction is the production of a four-seater Il-103 business aircraft.
The analysis of production capacities and conducted marketing researches of the market showed that the optimal civil project for deployment at RAC "MiG" is the program for the production of medium-sized civil aircraft. The choice was made on a 100-seat short-haul passenger aircraft of the new generation Tu-334.
What is the status of this project, and at what enterprise of the RSC will it be implemented?
Certification tests of the Tu-334 are now being carried out, in which RAC MiG has invested large amounts of its own funds under an agreement with OAO Tupolev. The main serial assembly will be carried out in Lukhovitsy, where we are now concentrating the bulk of serial production. To this end, the reconstruction of the final assembly areas is already underway. At the same facilities, we will also assemble military equipment. Reconstruction is an integral part of the company's fixed assets renewal program. No funds have been invested for these purposes for 20 years, and production begins to morally and physically grow old and wear out.
According to the calculations of the corporation's specialists, the capacity of the new workshop will allow the production of more than 20 aircraft per year, and by 2012 about 130 Tu-334 aircraft may be produced. To date, 20 Russian airlines, with which RAC "MiG" has concluded preliminary agreements, link their development with the operation of the Tu-334.
Another conversion project is the MiG-110 multifunctional cargo-passenger and transport aircraft. For us, it is important primarily because it was developed by the designers of our Engineering Center "OKB named after Mikoyan". The mock-up commission of the Aviation Register of the IAC for the cargo-passenger version of the MiG-110 has just completed its work, which is a necessary stage for the certification of the aircraft. The commission highly appreciated the professionalism of our designers. In the corporation's budget for the current year, within the limits of available possibilities, funds have been allocated for preparing the production of this aircraft.
Preparations are also underway for mass production of the promising multifunctional Ka-60 helicopter.
What are the prospects of the RSC in sports and small aviation?
Over the years, MiG aircraft set 72 world records for speed, altitude, rate of climb, and payload, including 9 absolute and 18 women's records. Many of them have not been beaten so far. Our test pilots are not only highly qualified professionals in their field - among them there are many excellent aerobatic pilots who have repeatedly delighted domestic and foreign audiences with their performances.
But our company did not develop purely sports aircraft. Nevertheless, serial production of RAC "MiG" produces sports aircraft of other design bureaus. In particular, the Su-29 and Su-31 planes of Sukhoi Design Bureau General Designer Mikhail Simonov are assembled at the Lukhovitsk branch, work on which he began back in 1983. These machines have proven themselves well at the world championships and are in demand in our country and abroad, and they are assembled entirely on a serial assembly line. In the design of these aircraft, composite materials are widely used, the production of which is carried out by the largest specialized workshop of our corporation in the aviation industry of Russia.
The production department in Moscow mass-produces Aviatika aircraft belonging to the ultralight class. These machines, in addition to their other capabilities, are also used for aerial acrobatics. The project is our joint program with the Moscow Aviation Institute, and on it students, working at the MAI Design Bureau, master the basics of aircraft design. Now the two-seat and agricultural variants are being certified.
We continue to work on light aircraft of various design bureaus that have good prospects in the general aviation market.
Does the corporation's portfolio include business aircraft developments?
We are already producing a multi-purpose Il-103 designed for three passengers. This is the first Russian aircraft to be certified by the US Federal Aviation Administration. It meets the requirements of airworthiness standards IAC, AR FAA, can be operated in any climatic conditions, is distinguished by a high level of comfort, economy and reliability. Today Il-103 are already flying in the skies of Belarus, Peru, Chile. In May of this year RAC "MiG" signed a contract to supply South Korea with 23 such machines during 2002-2003. Three aircraft will be delivered to Laos in 2002.
How is RAC MiG's partnership developing with Russian firms and Western corporations?
Indeed, today the world's largest aircraft manufacturing firms unite in international consortiums. International cooperation has become the key to the successful implementation of many projects for the creation of aviation technology. And the example of our corporation is the best confirmation of this.
We have a number of internal corporate programs in which the main production facilities, subsidiaries and affiliates of our corporation are actively involved. For example, the Lukhovitsky Aviation Production and Testing Complex is mastering the serial production of the promising Ka-60 helicopter developed by Kamov JSC, which is part of RAC MiG.
Our corporation cooperates with many domestic design bureaus in the serial production of aircraft of various classes, with manufacturers of engines, avionics, weapons, etc. On the whole, about 500 Russian enterprises are involved in cooperation with our enterprises in the construction of aircraft and helicopters.
The MiG Corporation is one of the few corporations in the country that has many years of practical experience of working with foreign partners within the framework of joint ventures for the joint operation and modernization of the delivered aircraft. Such interaction allows us to promote our products on the foreign market and strengthen customer confidence in the after-sales service system for the delivered aircraft. Our partners are the largest European concerns EADS and TALES, the French company SNECMA. Significant experience has been accumulated in the work of the Russian-German enterprise MAPS. There are technical centers in Malaysia and India. A directorate for the MiG-AT program was created jointly with French firms.
This is the largest-scale project in the field of military-technical cooperation between our countries, which is constantly in the field of view of the leadership of Russia and France. We are creating a new generation training aircraft. For the first time in the world practice of creating such machines, a three-channel digital remote control system is installed on it. According to experts, the MiG-AT can win 25% of the world market for training aircraft. Interest has already been shown in Algeria, India and Greece.
At the international aerospace show "ILA-2002" in Berlin in May of this year and in July in Farnborough, RAC "MiG" presented a new flight simulator, created jointly with the German company "STN-Atlas" and imitating the cockpit of the MiG-29 combat fighter. With the help of this simulator, it is possible to train pilots and practice the use of high-precision weapons against ground targets from the air. STN-Atlas is the main contractor for the construction of simulators for Eurofighter fighters and Eurocopter helicopters. In this program, we present the real cockpit of the MiG-29 and the algorithms of the weapon control system, and the German partners are responsible for visualization tools based on laser technology, which is a breakthrough in aviation simulator building. The flight simulator is part of the entire pilot training complex and is manufactured to specific customer requirements. On the basis of the new simulator, it is planned to create training centers for MiG-29 pilots for the countries of Eastern Europe. Such centers may appear in other regions, where MiG family aircraft were also delivered at one time. It is not excluded that the simulator will be sold to countries that can pay for the purchase (the cost can be from 4 to 12 million dollars, depending on the requirements of the customer), such as India, Algeria, Malaysia.
On the promising Tu-334 airliner, we are cooperating both with the developer - Tupolev OJSC, and with manufacturers of individual units. The cooperation of Russian and Ukrainian plants involved in the production of the Tu-334 has been determined.
In September 2001, RAC "MiG" and the largest aerospace concern in Europe EADS initialed a memorandum of cooperation under the Tu-334 program, according to which Western Europeans take on part of the functions of marketing the aircraft on the international market and certification of the Tu-334 according to European airworthiness standards .
Certification tests of this aircraft are carried out with Russian D-436T1 engines installed on the Tu-334, which sufficiently meet the current ICAO noise and emission requirements. The engine has been created, certified, and has the potential for development. In addition, it is possible to install other engines on the aircraft. Today, RAC "MiG" is actively searching for alternative options for installing engines on the Tu-334 that fully meet international standards. At the ILA-2002 aerospace show held in Berlin in May of this year, a memorandum of cooperation was signed between RAC MiG, JSC Tupolev and the German branch of the British company Rolls-Royce and specific areas for further joint work were identified. If the result is positive, then the first flight of the Tu-334 with new BR-715 engines may take place in 2004. First, it is planned to supply finished engines, and in the future, Russian enterprises may take part in the production of individual units.
The topic of partnership is very broad. I have listed only some of our programs and projects.
You have grown professionally and established yourself at the Sukhoi company, which competes with RAC MiG in a number of positions. Doesn't this cause additional problems for the corporation?
I have been in love with aviation since childhood. My father is a military pilot, and I dreamed of being both a pilot and an airplane maker. The dream came true, however, I did not become a professional pilot, but since 1968 I have been flying quite a lot and now I fly in the flying club, so I have great respect for people in this profession. The main business of life was the creation of aircraft.
For almost 25 years I worked at the Sukhoi Design Bureau. I am very grateful to my friends and colleagues in the design bureau, where I learned a lot and where I managed to realize part of my plans. I still maintain excellent friendly relations with many of them. But always and everywhere, including now in the MiG Corporation, no matter how loud it may sound, we serve our aviation. That is why today MiG is making decisions that contribute to the development of the corporation, the development of the aviation industry, and serve the cause of all aviation and, ultimately, the cause of Russia.
By the way, about competition. It has always had a competitive character in the defense industry of our country, contributed to the development of aviation, helped to master new ideas and technical solutions. If this competitive competition does not exist, if it turns into competition of "mutual destruction", then this will be a disaster for our Russian aviation. Therefore, when they talk about the competitive competition of the leading design bureaus of Russia, it causes only positive emotions. If the question is put differently, then I take it negatively.
If we recall the history, then at the first stage of the creation of the 4th generation fighters there was also a competitive competition between the three leading design bureaus, which successfully ended with state tests. After that, our country received, and then the whole world recognized two excellent fighters - the MiG-29 and Su-27, although until 1983 it was not clear which aircraft would be put into service. From such an approach, the state and our aviation only benefited. It remains the most effective to this day.
