Air Cargo Barriers of the 21st Century

1
Air Cargo Barriers of the 21st Century as
viewed from Russia

• Alexey A. Isaikin
• President
• Volga-Dnepr Group

2
From introduction of a new product to the stage
of the recognition of the need to deliberate
consumption. AN -124 Global customer base
nowadays
Reduction in the US-EU cargo traffic
US-EU cargo traffic dominance
High scale air and relief operation within
Afghanistan and Iraq
China-US and China-EU cargo traffic increase
High scale humanitarian operations under the UN
missions
3
From occasional usage to long-term partnerships
and initiatives AN-124 market

• Barriers of the 90-s
• Lack of confidence in AC of Soviet manufacture
  (products unknown)
• Shortage of Western expertise and professional
  managers
• Crisis of the Soviet aviation industry
• Lack of understanding of the outsize and heavy
  market capacity

conversion
Average rate ?N-124-100 market growth 10-12
per annum while that of the Global Market 6,3
Long-term contract
30 per year 3,3 - global growth
11 per year 7,7 - global growth
27 per year 9,6 - global growth
Understanding of capabilities and testing the new
product (ad-hoc charter operations, one-off
programs)
Planned consumption (long-term programs BP,
Lockheed Martin etc.)
4
Market projection transfer from long-term
project-specific partnerships to the orders of
specific aircraft and their use...
Long-term contracts growth from 20 to 50
Civil version of C-17 (BC-17X)
?
Beluga LCF
Introduction of the existing products Russian
ramp-loaded aircraft enter the market
Small aircraft (up to 30 tons) family
?N-124 IL-76 families
Creation of new products (by joint efforts and
meeting Customers requests)
5
. . . 2030
Oil and Gas
Heavy Industry
Light Industry
Airspace
Aid and Relief

• Reduction of the Life circle and accelerated
  entrance of the products to the market
• Increased globalization of the world economy.
• Implementation of major projects in the Third
  World countries, rapid industrial development of
  the Pacific Market

• Upturn of humanitarian operations, emergency
  response
• Antiterrorist operations initiated by UN and
  other international organizations

• Global integration and cooperation in airspace
  equipment manufacture
• Development of Space Projects, realization of
  major military equipment export contracts

6
Anticipate Customers expectations (jointly
address the industry for new Aircraft and
technologies)
Year 2030
Year 2005
Global air cargo market 150 billion
Global air cargo market 59 billion
Transportation by main deck freighters 58,1
billion/ 98,5
Transportation by ramp-loaded freighters 0,9 mln
/ 1,5
Transportation by ramp-loaded freighters 7,2
billion / 7
Ramp-loaded freighter transportation market
expands with a rate exceeding the growth of the
main deck freighter cargo operations market.
- Creation and appearance of new AC and
transportation technologies in accordance with
individual requirements of the customers - Aid
and military cargo transportation, - Wider use
of ramp-loaded AC for the needs of industrial
equipment logistics chains.
7

• Thank you for your attention!
• Your questions are welcomed!