RUSSIAN AND US AEROSPACE INDUSTRIES FEEL THE SAME PRESSURES – COMPETE FOR THE SAME CONTRACTS
KOGAN 2006 [Eugene - Defense analyst with PhD from University of Warwick, “The State of the Russian Aviation Industry and Export Opportunities,” Conflict Studies Research Centre, January] TTATE
As far back as May 2002 it was reported that US Congressional analysis suggested that the American and Russian military aviation industries shared similar pressures; among them the need for continuing consolidation and the drive to sell more aircraft overseas. Non-Russian research contracts in 2002 made up 32 per cent of the work of TsAGI, which is the major Russian aviation research facility. Only 10 per cent comes from Russian aviation companies.16 It can be said that in the early 1990s the engine industry lost people and capability. For instance, up to 1999 the number of workers employed in the enterprises and the design bureaus decreased yearly by 10 per cent, then from 2000 the number of workers increased annually by about 2 to 7 per cent.17 As a result, the industry has not fully recovered from the losses of the early 1990s. In addition, several design bureaus in the engine sector have ceased to exist. As a result, organisations such as the Moscow-based Salyut Machine-Building Production Organisation and/or Association (also known as MMPP Salyut and/or Salyut) and the Ufa Machine-Building Production Organisation (also known as UMPO) took over and/or set up their own design bureaus. According to Valery Bezverkhnyy, `Much of the real manufacturing capability has already been lost. Today the capacity is really very small´.18 How small remains unknown. It also needs to be stressed that a large number of domestic suppliers and manufacturing facilities ceased to exist because of a lack of domestic orders. In order to understand fully what constitutes the current aviation industry sector, we will now examine the company profiles.
US AND RUSSIAN AIRCRAFT INDUSTRIES DIRECTLY COMPETE WITH EACH OTHER
US INTERNATIONAL TRADE COMMISSION 1998 [“The Changing Structure of the Global Large Civil Aircraft Industry and Market: Implications for the Competitiveness of the U.S. Industry,” November, papers.ssrn.com/sol3/Delivery.../SSRN_ID1452731_code1052262.pdf] ttate
For the last 50 years, the United States has been the leading supplier of LCA to the world. Changes in the structure of the global LCA industry and its market may ultimately affect the U.S. industry’s continued dominance, as competition increases and aspiring producers seek to enter the market. The most notable structural change is the merger of Boeing and McDonnell Douglas, which essentially reduced the global LCA industry to two major LCA manufacturers -- Boeing of the United States and Airbus Industrie, a consortium of four European partners, headquartered in France. Boeing has gained significant resources from McDonnell Douglas, but faces numerous challenges as well. The ongoing restructuring of the Airbus business operations could, if successful, significantly lower its cost of doing business and enhance its competitive position visàvis Boeing. New competition for Boeing and Airbus may come from Russia and/or Asia. While the Russian LCA industry has a long history of aeronautical design and manufacturing for its own and former Soviet bloc markets, capital constraints have caused significant delays in bringing its new designs to market. The industry has nearly collapsed since the breakup of the Soviet Union; industry consolidation and corporate restructuring are essential to the industry’s survival. While the current economic crisis in Asia has curtailed the availability of capital, Asian countries remain resolute in their desire to manufacture LCA. Asia’s high passenger traffic growth rates are an incentive for Western producers’ participation in offset agreements, which would further Asian understanding of aircraft and parts manufacturing processes.
RUSSIA EXPANDING ITS SPACE EXPLORATION EFFORTS NOW – SHUTTLE FLIGHTS, MOON EXPLORATION, MARS EXPLORATION
Huffington Post, April 10, 2011, Russia Plans Space Program Expansion And Moon Base By 2030: Reports, accessed June 22, 2011, http://www.huffingtonpost.com/2011/04/10/russia-space-program-expansion-_n_846702.html, MD
Russia is planning a massive increase in its space launches and may even build a base on the moon as part of a manned mission to Mars in the next two decades, according to reports. Prime Minister Vladimir Putin said Thursday that his country's plans go well beyond transporting crews to the International Space Station. With a 2010-2011 space budget estimated at 200 billion rubles ($7.09 billion), Russia is the world's fourth-largest spender on space after U.S. space agency NASA, the European Space Agency and France, Reuters reports. "Russia should not limit itself to the role of an international space ferryman. We need to increase our presence on the global space market," Putin is quoted as having said at his residence outside Moscow. The meeting was planned specifically to coincide with the 50th anniversary of Yuri Gagarin's pioneering space flight. Other reports cite official documents which claim a manned Russian mission to Mars could be possible in 2030 following the creation of a moon base. "Above all, we are talking about flights to the moon and the creation of a base close to its north pole where there is likely to be a source of water," read one of the documents, according to the Telegraph. Russian scientists are also said to have touted the moon as a potential source of energy, saying it contains large reserves of helium 3, a sought-after isotope that may be the key to a new way of generating power.
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