Monday, April 10, 2017

Final Exam Blog: COMAC, Not Feared By The Duopoly, but The Russian Irkut MC-21 May Cause an Uproar


On Monday, November 2, 2015, the first Chinese large-airliner aircraft rolled out, namely the C919. This aircraft was built by COMAC (Commercial Aircraft Corporation of China), intended to compete against the A320 and the B737, and seats approximately 168 passengers. Although the C919 is striving to attain Western certification from the FAA, it has yet to do so, thereby limiting the countries where the aircraft can operate. However, the Russian Irkut MC-21, which made its debut in January 2016, may prove to be more of a contender than the C919. Contrary to popular belief, the Russian aircraft is not the ‘underdog’ of this discussion. Albeit the MC-21 is not scheduled to enter service until 2020, it not only has the potential to truly rival Airbus and Boeing, but also possesses a stronger chance at attaining FAA-certification than the C919.

1.     Provide some background on Russia and their affiliation with the UAC. Furthermore, briefly describe the background/history of the UAC.

The PJSC UAC came into existence on February 20th, 2006, in accordance with RF Presidential Decree No. 140. The primary purpose of the company’s existence was to protect and develop the scientific and industrial sectors of the Russian aircraft industry (United Aircraft Corporation [UAC], 2017). This would be done in efforts to protect, develop, and enhance both the security and defense of the state (Russia) in addition to the concentration of the intellectual, industrial, and financial resources, thereby increasing the (successful) implementation of long-term aviation programs. According to the UAC (2017), In April 2015, the JSC UAC adopted a new name, rather, changed its full name to the Public Join-Stock Company “United Aircraft Corporation”, becoming known as the PJSC UAC. Presently, the UAC is one of the most prominent forces and key facilitators in the global aviation market, consisting of 30 enterprises, and holds rights to numerous world-renowned brands. Such brands include, but are not limited to, the following: Sukh, Yak, SSJ 100, and the MS-21 (UAC 2017).

According to the UAC (2017), the PJSC UAC’s primary priorities consist of the following: ensuring the production of goods/services are of top-quality, conducting timely execution of contracts under the State Defense Order, development of effective and full-scope international cooperation with foreign (aviation companies), and forming/developing technological advancement for the promotion of domestic products available on the global market.

Design, production, testing, operation, warranty, and service maintenance of aircraft for both civilian and military purposes comprise the bulk of the UAC priority activity areas. These service areas serve as important guidelines for the UAC as they provide structure (or principles) to the organization. According to the UAC (2017), these areas are primarily accomplished by the companies working and focusing on the spheres of modernization, repair and disposal of aircraft, and by means of emphasizing (proficiency) training and qualification upgrading of flight crewmembers. With the UAC being primarily owned by the Russian Government, it is no surprise the largest share in the UAC’s production structure is dedicated to the manufacture of military products. However, the military products being produced are for both the RF Ministry Defense (of Russia) as well as foreign buyers (UAC 2017). For this to occur, the UAC must be extremely efficient and effective in terms of production, quality, and assurance. This is denoted by the fact that in 2013, nine aircraft repair plants, which were previously owned by the RF Ministry of Defense, were transferred to the control of the UAC. According to UAC (2017), one year later, in 2014, the serviceability (i.e. product quality, assurance, and satisfaction) of the RF Air Force Fleet increased by 25% (from 40% to 65%). This 25% increase in the area of serviceability in only 12 months is significant and truly exemplifies the overall efficiency and effectiveness of the UAC. Albeit the PJSC UAC concentrates the majority of its focus on military production, the company intends to balance the scales by producing more civilian aircraft in the future. Specifically, the PJSC UAC hopes to substantially perpetuate its civilian market through the implementation of upgraded SSJ100s in conjunction with the launch of the MS-21 aircraft family (UAC 2017).

With respects to long-term viability, the company has developed a strategy extending to year 2025, in hopes to quadruple their current revenue. Subsequently, achieving such a revenue increase will empower the PJSC UAC to attain a sales-profitability level earning the company a minimum net profit of 10% (UAC 2017). Achieving a 10% (minimum) net profit is extraordinary, and the fact the company still has eight years to do so should instill fear in other manufacturers since the potential of increased competition and long-term viability are extremely plausible for the PJSC UAC.

The company is currently headquartered in Moscow, Russia, and has several assets located throughout the various regions of the country. However, the company also embarked in several business ventures with other companies within (foreign) countries, in attempts to grow, expand, and build relations to strengthen the PJSC UAC’s (aviation) presence and long-term viability (UAC 2017). Due to possessing working partnerships with companies operating out of India and Italy, the PJSC UAC employees over 98,000 individuals, which is quite remarkable for a company only 11 years old, relatively new to the industry, and not currently viewed as a contender by other aircraft manufacturers.

2.     What types of aircraft does the UAC currently make and/or specialize in? How does this differ from the types of aircraft COMAC manufactures?

The PJSC UAC currently manufacturers various aircraft in four main categories, which are as follows: Civil aviation, Military aviation, Transport (category) aircraft, and Special Purpose. The II-96-300, Tu-214, Tu-204SM, the Sukhoi Superjet 100, AN-148, and the MS-21 are the six aircraft that comprise the PJSC UAC’s civil aviation sector of production (UAC 2017). Of these six aircraft, the Sukhoi Superjet 100 is arguably the most successful because of its efficiency and prominence within the Russian industry. The newest aircraft in this lineup of civil aviation aircraft is the MS-21, which Russia intends to develop variants of and launch in efforts to begin balancing their military aviation production and perpetuate their global presence with respects to civil aviation. As I mentioned earlier, since the company came into existence in 2006, the majority of production efforts have focused on military production to not only enhance the RF Ministry of Defense, but also for the creation and later sale of military aircraft to foreign customers. According to the UAC (2017), the military aviation sector is composed of 14 aircraft with the most notable being the MiG-35, MiG-29K, and Yak 130. With respects to the category transport aircraft, the PJSC UAC only produces two aircraft, namely the MTS and II-76MD-90A. The Multi-Purpose Transport aircraft, or MTS, is currently in the design stage and is being developed by Hindustan Aeronautic Limited (HAL), which is based out of India (UAC 2017). The intended purpose of the MTS is mass transport, primarily transporting soldiers (or paratroopers), goods, technology, supplies, etc., for military purposes. The last category offered by the PJSC UAC is Special Purpose aircraft, which consist of only one aircraft, namely the Be-200. The Be-200 conducted its first flight in 1998, and is categorized as an amphibious type. According the UAC (2017), the primary function of this aircraft is to extinguish forest fires from either the water or air. When the Be-200 is not being used for special purposes (e.g. fighting forest fires), the aircraft can perform other functions including cargo transport, search and rescue missions, environmental monitoring, and patrol of the exclusive economic zone and maritime borders.

As mentioned previously, the PJSC UAC manufacturers aircraft to fulfill four main categories. This differs largely from the types of aircraft the Commercial Aircraft Corporation of China (COMAC) manufacturers primarily because COMAC only manufacturers one category (or type) of aircraft. That said, the only type of aircraft COMAC manufactures is for commercial transport. To facilitate commercial transport services, COMAC utilizes two aircraft, namely the ARJ21 and C919. The ARJ21 is a regional jet aircraft produced by COMAC and is akin to that of the CRJ-200 and -900 series. This aircraft seats approximately 78 to 90 passengers, has a range of 1201 nautical miles (or 2225km) to 1997 nautical miles (or 3,700km), and is the first short-medium range turbofan aircraft to be developed by China in accordance with regulations established by the International Civil Aviation Organization (Commercial Aircraft Corporation [COMAC], 2017). On December 30th, 2014, the ARJ21 obtained type certification from the Civil Aviation Administration of China (CAAC), but has yet to attain certification from the FAA despite submitting the appropriate certification paperwork described under FAR Part 25 (COMAC 2017). Albeit the ARJ21 was the CAAC’s first aircraft to be manufactured (and apply for Part 25 certification), it is not COMAC’s most notable or prominent aircraft. The C919 is COMAC’s pride and joy (more or less) and can seat approximately 158 to 174 passengers, has a range of 2200 to 2999 nautical miles (or 4075 to 5555km), and was created to compete against the Airbus 320 and Boeing 737 (COMAC 2017). The aircraft made its first debut on November 2nd, 2015, and recently received dual-simultaneous type certificates from the European Aviation Safety Agency (EASA) and FAA. Albeit the C919 has been more successful in terms of Chinese certification than its regional jet counterpart, the C919 has yet to receive (full) FAA certification, thereby limiting where the aircraft can be flown. Essentially, the PJSC UAC differs from COMAC in the fact that the UAC produces aircraft in four categories as opposed to COMAC who only produces one. Furthermore, the UAC currently manufactures six aircraft within the civil aviation sector, which is four more than that of COMAC.

3.     Describe the specifications of the Irkut MC-21. What makes this aircraft more of a viable threat to the Airbus NEO and Boeing 737 Max than the C919?

The MC-21 will come in two variants, the MC-21-200 and MC-21-300. Since the MC-21-300 is the base model of the Irkut MC program, it will be manufactured first followed by the MC-21-200 variant once the -300 model enters Russian air carrier service (Bhaskara 2017). The MC-21-200 variant, which is akin in size to the Airbus A320, will seat approximately 140 passengers in a traditional two-class configuration. The larger, MC-21-300 variant will seat approximately 170 passengers in the same traditional two-class configuration, and is similar in size to that of the Boeing 737-900ER (Bhaskara 2017). Additionally both the -200 and -300 variant aircraft are capable of flight over 3,000 nautical miles. Specifically, the -200 is capable of flying approximately 3,500 nautical miles while the larger, -300 possesses the capability to fly approximately 3,200 nautical miles (Bhaskara 2017). This 3,000 plus nautical mile range provides these aircraft with the capability to conduct transcontinental routes similar to those typically flown by Airbus and Boeing aircraft in the U.S. Consequently, when/if Russia enters these aircraft into service and/or attains the appropriate certifications, their MC-21 fleet will gain an advantage and become more of threat to Airbus and Boeing in terms of U.S. competition.

According to Russian Aviation Insider (2016), in a standard two-class configuration, the MC-21-200 and MC-21-300 are designed to accommodate 132 and 163 passengers, respectively. In this same two-class configuration, the maximum number of passengers the MC-21-200 and MC-21-300 can hold are 165 and 211, respectively. The Maximum Take-off Weight (MTOW), Maximum Landing Weight (MLW), and Maximum payload of the MC-21-200 are 159,967lbs. (72,560kg), 139,111lbs. (63,100kg), and 41,667lbs. (18,900kg), respectively. These same parameters in their respective order for the MC-21-300 are 174,716lbs. (79,250kg), 152,339lbs. (69,100kg), and 49,824lbs. (22,600kg). The maximum fuel for both the MC-21-200 and -300 is the same at 44,974lbs. (20,400kg) (Russian Aviation Insider 2016). With respects to aircraft dimensions, the MC-21-200 and -300 aircraft share the same wingspan (117ft. and 7in. or 35.9m), height (37ft. and 7in. or 11.5m), and fuselage width (13ft. and 3in. or 4.06m). According to Russian Aviation Insider (2016), the only measurement in which the MC-21-200 and -300 differ is in their aircraft length, in which the -200 is 110ft. and 8in. long (33.8 m), while the -300 is 29ft. and 6in. longer than the -200 series at 140ft. and 4in in length. In regards to the aircraft’s power plant, the new Irkut MC-21-300 will come equipped with two Pratt & Whitney 1400 Gear Turbo Fan (GTF) engines, empowering the aircraft to be achieve a maximum range of 3,239 nautical miles (or 6,000km). As an added bonus, the aircraft purchaser will have the option to outfit the MC-21-300 (or -200) with the traditional Russian-made PD-14 engines for the power plant system (Russian Aviation Insider 2016). The Pratt & Whitney power plant option is the most (fuel) efficient, but the fact the aircraft comes with a second power plant option only increases the viability of the new Russian aircraft, thereby making it more of a threat to the new aircraft made by Airbus, Boeing, and COMAC.

There are several factors, specifically pertaining to aircraft performance parameters, which make the Russian Irkut MC-21-300 aircraft much more of a viable threat (in terms of competition) to the Airbus NEO and Boeing 737 Max than the C919.

The first of these parameters is the power plant system. According to Russian Aviation Insider (2016), the COMAC C919 is equipped with two CFM LEAP-1C engines. Although these engines are fuel-efficient and recently received a dual-simultaneous type certification from the EASA and FAA, they do not provide adequate flight range. The CFM LEAP-1C engines only provide the C919 with a maximum range capability of 2200 nautical miles (or 4075km), which is 1309 nautical miles (or 2425km) less than what the power plant systems of the Boeing 737MAX and Airbus A320neo provide. However, the two PW 1400 GTF engines composing the power plant of the Irkut MC-21-300 provide the aircraft with a nautical range of 3239 nautical miles (or 6000km), which is 1039 nautical miles (or 1925km) more than the range of the C919 (Russian Aviation Insider 2016). The fact the MC-21-300’s power plant only provides 270 nautical miles less than that of the Airbus A320neo and Boeing 737MAX, but 1039 miles more than the C919 is a prime reason why the MC-21-300 is more of a viable threat.

The seating capacity of the MC-21-300 is yet another parameter in which this aircraft showcases its superiority to the C919. According to Russian Aviation Insider (2016), the number of passengers (in a traditional two-class configuration) the C919 can hold is 156, which is 6 and 9 less than that of the Boeing 737MAX and Airbus A320neo, respectively. The MC-21-300 however, can accommodate 163 passengers, meaning the MC-21-300 is the second-highest passenger seating aircraft in comparison to the Boeing 737MAX, Airbus A320neo, and the C919. In fact, the MC-21-300 not only seats 7 more passengers than the C919, but also seats 1 more than Boeing 737MAX, and only 2 less than the Airbus A320neo. Thus, not only can the MC-21-300 fly farther than the C919, this aircraft can also carry more passengers than both the C919 and the Boeing 737MAX. Consequently, the nautical range coupled with seating capacity makes the MC-21-300 aircraft more of a competitive threat to the new Boeing and Airbus aircraft than the C919.

The MTOW of an aircraft is an important performance factor that should also be considered. The MTOW of the C919 is 170,417lbs. (or 77,300kg), which is 10,780lbs. (or 4890kg) and 3748lbs. (or 1700kg) less than the MTOW of the Boeing 737MAX and Airbus A320neo, respectively (Russian Aviation Insider 2016). The MTOW of the MC-21-300 however, is 174,716lbs. (or 79,250kg), meaning it has the second-highest MTOW in comparison to the Boeing 737MAX, Airbus A320neo, and C919. Furthermore, the MTOW of the is 4299lbs. (or 1950kg) more than the C919 and 551lbs. (or 250kg) more than the Airbus A320neo. This entails the MC-21-300 is second only to the Boeing 737MAX (in regards to MTOW) by 6481lbs. (or 2940kg). The fact the MC-21-300 can take off with a higher payload than that of the C919 and the Airbus A320neo only strengthens the notion that the Irkut MC-21-300 is more of a competitive threat to the new Boeing and Airbus aircraft than the C919 is.






4.     Do you think the Irkut MC-21 will receive FAA certification before the C919, and if so, would it pose a threat to the newly refined aircraft manufactured by Airbus and Boeing?

Yes, I firmly believe the Irkut MC-21 will receive (full) FAA certification before the C919 because Russia has had great aircraft manufacturing success in the past, primarily with their Sukhoi Superjet aircraft. According to Bhaskara (2016), the Sukhoi Superjet was arguably one of the most successful aircraft to be manufactured (and distributed) outside of the global “Big Four” manufacturers, namely Airbus, Boeing, Bombardier, and Embraer. The success of the Superjet was denoted by its 368 orders, 100 of which originated outside of Russia from foreign air carriers (Bhaskara 2016). The fact the Sukhoi Superjet was such a success and attracted global popularity demonstrates the relatively new Russian aviation industry and its governing officials were on the right track with respects to their design, aircraft manufacturing quality, and global marketing. Russia’s initial success leads me to believe they know what they are doing and it is because of this why I believe the MC-21 will receive FAA certification before the C919.

The FAA certified the Pratt & Whitney 1400GFT engines in May 2016, only four months after the aircraft’s debut and with relative ease (since they were in the prototype phase). This coupled with the fact the PW 1400GFT engines are scheduled to be receive their Russian aviation authority certification in 2018, and certification from the EASA in 2019, exemplifies how quick, efficient, and knowledgeable the Russian aviation authority is with their aircraft certification application process (Russian Aviation Insider 2016). It has taken COMAC years (approximately nine) to get at least one part of the C919 certified by the FAA, specifically their CFM engines, while it has only taken Russia less than two. Furthermore, COMAC currently has two aircraft in the works, namely the C919 and ARJ21, of which the older ARJ21 has yet to be certified by the FAA. Thus, the fact the Russian MC-21 has already received certification of its power plant system with two more planned to occur within the next two years, is yet another reason why I believe the MC-21 will receive (full) FAA certification before the C919.

As stated previously, the Irkut MC-21 will come with two power plant options, which are the Pratt & Whitney 1400GFT and the (traditional) Russian PD-14 engines (Zhang 2016). Offering two types of power plants provides potential MC-21 customers with options, and no matter what the market, customers love having options, especially if one of those options will save them money long-term. The Pratt & Whitney 1400GFT will be the standard option equipped on the MC-21 because it is the more fuel-efficient option as opposed to the PD-14 Turbofan option, which is available if customers favor power (thrust) over fuel-efficiency. Albeit the power plants equipped on the Airbus NEO, Boeing 737MAX, and C919 aircraft were designed with fuel-efficiency and range in mind, the manufacturers did not offer more than one engine option. Therefore, the two power plant options provided by the Russian MC-21 is one aspect that makes it competitive against Airbus and Boeing, more so than the C919.

According to Zhang (2016), the MC-21 will be composed of a vast amount of lightweight materials such as carbon fiber reinforced plastic and fiberglass composite body panels. Consequently, the lighter parts will lessen the overall weight of the aircraft, thereby reducing the fuel used and saving the air carrier money when conducting flights. Additionally, since the MC-21 aircraft will be primarily composed of lightweight materials, it has the potential to carry a slightly heavier payload such as passengers and/or cargo, than its competitors (e.g. Airbus A320neo, Boeing 737Max, or C919). Furthermore, the cabin space of the MC-21 is also slightly wider than that of its competitors, ensuring the extra passengers the aircraft can carry are comfortable (Zhang 2016). Thus, if the MC-21 becomes FAA certified, I believe it will pose a threat to the newly refined aircraft manufactured by Airbus and Boeing because of its lighter-weight components, fuel-savings, and increased (passenger) cabin space.

One of the major selling or marketing points of the Irkut MC-21 conveyed by Russian manufacturers are how its unique design and layout will enhance passenger accessibility and ultimately increase (air carrier) operational speed. Anyone who travels (either frequently or infrequently) knows one of the most stressful aspects pertaining to commercial air travel are the processes of enplaning and deplaning. However, the Irkut MC-21 aims to mitigate the associated stress of deplaning by expediting this process through the use of pivot-type overhead bins (Zhang 2016). The goal of these pivot-type overhead bins is to enhance passenger accessibility, allowing passengers easy and quick access to their luggage, thereby preventing aisle congestion and pandemonium during the deplaning process. However, the true, broader aim of the Irkut MC-21 is to decrease the time it takes for an air carrier to complete a ‘turn’ by 20% (Zhang 2016). Based upon my previous work experience at a Part 121 air carrier, ‘turns’ for an aircraft akin to the size of the MC-21 were allotted 40 minutes for completion. The MC-21 will supposedly empower air carrier ground crew(s) to reduce this 40 minute ‘turn time’ by 20% (or 8 minutes), meaning the aircraft can be in and out of the gate in only 32 minutes, which is extraordinary. This 20% ‘turn time’ reduction will be facilitated not only through the use of pivot-type overhead bins, but also larger lavatories. These larger lavatories will grant aircraft cleaners’ enhanced maneuverability within the lavatory to clean and/or replace necessary items, resulting in a decreased cleaning time and faster boarding process. The fact the Irkut MC-21 was designed with a time-saving layout and includes amenities to reduce air carrier turn times by 20% is one of the more prominent reasons why I believe the MC-21 will pose a threat to aircraft manufacturers such as Airbus and Boeing if it were to receive FAA certification.

Essentially, I strongly believe the Irkut MC-21 will receive FAA certification before the C919 not only because Russia has had extreme success in the aviation industry with their Sukhoi Superjet, but also because the MC-21 has already received (engine) certification from the FAA. Furthermore, this certification from the FAA came within two years of the aircraft’s debut as opposed to the nine years it took COMAC for their C919. Additionally, there are several (performance) reasons why I believe the MC-21 would pose a viable threat to the newly refined Airbus and Boeing aircraft more so than the C919. These reasons include the following: the MC-21’s power plant system will consist of Gear Turbo Fan technology and be more fuel-efficient, customers will have the option between two power plant systems, the aircraft can carry more passengers and a heavier payload, possesses a higher MTOW, and can fly significantly further due to its nautical range.



References
Bhaskara, V. (2016). Farnborough: can the Irkut MC-21 follow in the superjet’s footsteps? Airways. Retrieved from https://airwaysmag.com/industry/farnborough-can-the-irkut-mc-21-follow-in-the-superjets-footsteps/
Commercial Aircraft Corporation of China (COMAC). (2017). ARJ21. Products & Service. Retrieved from http://english.comac.cc/products/rj/
Commercial Aircraft Corporation of China (COMAC). (2017). C919. Products & Service. Retrieved from http://english.comac.cc/products/ca/
Russian Aviation Insider. (2016). MC-21 Irkut: newest Russian narrow-body aircraft. Russian & CIS Commercial Aviation Insights. Retrieved from http://www.rusaviainsider.com/irkut-mc-21-russian-aircraft/
United Aircraft Corporation (UAC). (2017). History. United Aircraft Corporation. Retrieved from http://www.uacrussia.ru/en/corporation/history/
United Aircraft Corporation (UAC). (2017). Products. United Aircraft Corporation. Retrieved from http://www.uacrussia.ru/ru/aircraft/
Zhang, B. (2016). Russia just unveiled its new Airbus and Boeing challenger. Business Insider. Retrieved from https://amp.businessinsider.com/russian-irkut-ms-21-airbus-boeing-2016-6 

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