Russia to Merge UAC, MiG and Sukhoi to Prevent Mikoyan’s Bankruptcy

A MiG-35 panel blows out from its wing during a airshow in Moscow, Russia. Photo by Popular Mechanics.

The management of the United Aircraft Corporation (UAC) has come to a decision to merge three large Russian aircraft building companies. The merger details by merging two large companies will be submitted for consideration at the general shareholders meeting in January next year.

The event has already been announced on the official website of the UAC. The upcoming merger of UAC, RAC MiG and Sukhoi has been announced. The process of decentralizing the leadership of the three companies has already started. The governing powers of Sukhoi were transferred to RSK MiG, which transferred the management rights to the United Aircraft Corporation.

The head of the UAC, Yuri Slyusar, considers the upcoming merger to be an important event for national aviation. This year, Mikoyan only received contract from India to refurbish and deliver 21 old MiG-29s, said Yuri Slyusar. Bangladesh, Malaysia and Iraq have rejected Mikoyan’s offer to buy Soviet-era MiG-29. According to Slyusar, such a reorganization would give the Mikoyan Design Bureau a chance to remain in business.

At the same time, the number of management levels will be reduced, optimizing the industry’s organizational structure and reducing production costs.

In the spring of this year, personnel changes took place in the UAC leadership. Anatoly Serdyukov, who previously headed the board of directors, was taken by the head of Rostec, Sergei Chemezov.

Russian experts have different views on such a merger. Among their opinions, there is also the possibility of unpleasant consequences associated with the lack of competition between various design bureaus and the lack of foreign orders.

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