Sukhoi and MiG design bureaus to be abolished and merged into one

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.

• The decision to merge Sukhoi, MiG and UAC into one single legal entity - the Corporate Aircraft Building Center - was made at the meeting held on March 16.
• Tupolev, Ilyushin and Irkut companies will be subordinated to the new center.
• The UAC staff will be cut by several thousands of people.
• Personnel optimization will affect only the administrative and managerial personnel of the UAC, Rostec representatives said.

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.