Sukhoi and MiG companies will cease to exist

Russia's renowned aircraft makers Sukhoi and MiG design bureaus will be merged into one  corporate aircraft manufacturing center in order to resolve issues of financial stability and aircraft competitiveness. This will also be done to meet the country's needs for modern aircraft for air transportation purposes, the head of Rostec Corporation, Sergei Chemezov, said.

"Systemic reforms should improve the structure of the company and solve issues of its financial stability, increase the competitiveness of domestic civil aircraft and cover Russia's significant needs in modern aircraft for passenger transportation," he said.

Chemezov also confirmed that he intended to personally head the board of directors.

The press service of Rostec explained that the forthcoming changes are to strengthen the economic stability of the United Aircraft Corporation (UAC), which includes MiG and Sukhoi, as well as optimize personnel, reduce debt and non-production costs.

Optimization measures will not affect the engineering and design personnel. In addition, the design schools will remain independent. The new legal entity will be headquartered in Moscow.

In Moscow alone, the UAC has about 20,000 employees, of which 15,000 are designers and engineers. Managers account for 5,000. The reform will be carried out in stages over several years.