EADS, Rosaviakosmos sign Euro 1.2 billion agreement

EADS, Rosaviakosmos sign Euro 1.2 billion agreement

3 July 2001

A partnership package between EADS European Aeronautic Defence and Space Company and the Russian Aviation and Space Agency Rosaviakosmos has been finalised which is set to provide a substantial boost to the Russian aerospace industry. The finalised agreement was announced at a joint press conference on Monday in Moscow, by Philippe Camus, Chief Executive Officer of EADS and Yuri Koptev, General Director of the Russian Aviation and Space Agency.

"This long term partnership will create some thousands of highly qualified jobs in the Russian aerospace industry and is worth some Euro 2.1 billion in revenues over the first ten years," said Yuri Koptev.

The way is now open for EADS to start direct negotiations with prospective Russian industrial partners and to launch the process of investment. With a partnership package that includes the fields of civil aviation, military transport aircraft, helicopters, fighter aircraft and space technology, the potential areas for growth are widespread.

"This is not about vague hopes for the future," said Camus, "Our partnership package gives Russia the opportunity to work with us in many business spheres. No market is closed to Russian products."

The Russian industry will benefit not only by participating in programmes that are already running successfully, like the A320 family, but also those that are due to start production in the near future, such as the new superjumbo A380, the satellite navigation system Galileo and the military transport aircraft A400M. Jointly run companies will be established to manage the co-operation programmes.

"This new partnership will allow both Europe and Russia to be even more successful on the world market by joining their experience, know-how and markets. We are keen on developing strategic partnerships with the Russian aeronautic and space industry as we are keen to develop strategic partnerships with Russian Airlines, notably with Aeroflot." Camus said.

The partnership is set to boost employment opportunities within the aeronautics industry in Russia. Airbus will set up an engineering centre in Russia, which will employ 150 Russian engineers. In the civil aircraft sector, Russian workers will be given the chance to participate in the A380 passenger and freighter programme and the A400M programme. In Russian factories, which will be certified as suppliers for Airbus, engineers will co-design and produce a series of derivative components while Russian scientific institutes will do research in the areas of aerodynamics, calculation, wind tunnel testing, evaluation of metals, special tools and machines, acoustics and new simulation models. EADS will also provide training as part of the programme.

"There will be a real work load for Russian engineers," explained Philippe Camus. "The production flow anticipated in the civil aviation sector for example shall be in the range of one panel for the A320 per week, one fuselage section for the A330/A340 per month and 150 fuselage sections for the A320 per year. And these figures can be increased if the programmes run successfully."

The programmes will start immediately after the signature of the contracts between EADS and the industrial partners on the Russian side. "That also means a guaranteed cash flow for our Russian partners beginning tomorrow. And that also means that know-how will stay in Russia and their young people will have an incentive for staying in this industry. It means direct access for Russian products to the to European and world market." Camus said.

In terms of fighter aircraft, the co-operation in the MiG-29 upgrade will be continued. The EADS subsidiary Eurocopter will start a market study for the heavy helicopter Mi 38 and a prototype will be jointly developed. Areas in the space sector covered by the partnership include the existing launch companies Starsem and Eurockot, research and development of re-entry technologies, and Russian participation in the European satellite navigation system Galileo and propulsion technology. EADS supports the Russian idea to launch the proven Soyuz rocket from Kourou, French Guyana.


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