Radioelectronic Technologies Concern will establish a new integrated company in 2014

Radioelectronic Technologies Concern (RTC, part of Rostec State Corporation) will offer the airframers a new efficient interaction model in 2014. An integrated supplier of avionics for civil and military-transport aircraft will be established on the basis of Russia’s leading enterprises forming part of RTC. Establishment of the new company will help improve the interaction with customers, tighten the quality control and develop the aftersales service, the concern’s press-service noted. The integrated supplier of avionics for civil and transport aircraft will be established on the basis of the Institute of Aircraft Equipment (NIIAO) and the Russia’s largest developer and manufacturer of avionics for civil and military-transport aircraft – Aviapribor-Holding (comprises Industrial Automatics Design Bureau (KBPA), Ulyanovsk Instrument Making Design Bureau (UKBP), Aviapribor, etc.). In addition, it will also comprise Aviapribor-Service company responsible for repairing and servicing the supplied instruments and components. The establishment of the new company will be completed in 2014. A “one-stop” model will allow RTC to build an efficient cooperation with Russian airframers providing full compatibility and high reliability of the manufactured systems and components. The integrated supplier will be responsible for product lifecycle management, order placement in the area of research and development work, definition of conditions for launching serial production of new solutions, the press-service added. Thus the integrated supplier will be interacting directly with the customers while providing aftersales services. The concern will retain control over assets and financial activities of the new company. «We signed an agreement with United Aircraft Corporation (UAC) and Russian Helicopters Holding Company in August at MAKS – 2013 airshow», – CEO of RTC, Nikolai Kolesov, said. – The primary objective of our cooperation is establishment of a system assuring centralized deliveries, aftersales service and lifecycle management. The establishment of the integrated supplier on the basis of NIIAO and Aviapribor-Holding is aimed at implementation of the agreements. This decision is in line with our holding’s development strategy». The integration of NIIAO and Aviapribor-Holding will allow RTC to decrease the operating costs and optimize the day-to-day operation. This will help improve the financial indicators of the company. Following the results of 2012 the net profit of NIIAO was 63 million rubles, Aviapribor-Holding - 13,8 million rubles. It is expected that the net profit of these companies will increase to 70 million and 118.8 million rubles respectively by 2014. The revenues of NIIAO and Aviapribor-Holding will increase from 788 and 964 million rubles (2012) to 874 million and 2.9 billion rubles respectively in 2014. The projected revenues for 2016 are as follows: 1,1 billion rubles (NIIAO) and 4,4 billion rubles (Aviapribor-Holding).