Leadership: MiG Manufacturer Worth Pennies


September 25, 2009: Russia has determined that the company that produces the MiG-29 (and all earlier MiG combat aircraft) is worth less than a nickel (about 3.5 cents, to be more precise). This valuation was calculated by auditors who were ordered to determine the worth of the company prior to a reorganization. Russia is taking its state owned military aviation companies (RSK MiG, Sukhoi, Tupolev, Irkut and others) and merging into one large firm; UAC (United Aviation Corporation). Russia wants to start UAC off on a firm fiscal footing, at it plans to invest billions of dollars into the new corporation, and does not want the money wasted, as was the case with RSK MiG (which, as of first of the year, owed $1.5 billion, and lost $363 million last year). Executives associated with RSK MiG are being prosecuted for corruption. In comparison, Sukhoi's worth was estimated to be $230 million, and the firm has been making money (on brisk sales of its Su-27/30 line of jets).

MiG's woes appear to go on and on. Over the Summer, if was discovered 80 percent of Russian Air Force MiG-29 fighters had serious corrosion problems in their tail sections. Five months ago, India and Russia had to examine their MiG-29s for similar structural flaws in another part of the aircraft. Russia was so concerned about this that they grounded all 300 of their own, and found 90 of them had serious corrosion problems. On the positive side, India did not find similar corrosion problems in its 64 MiG-29s. Russia believes it can repair its MiGs.

But all this comes at a bad time for India. Last year, they sent the first six of their 78 MiG29 fighters to Russia for a major upgrade. This will cost about ten million dollars per aircraft, and extend their service life from the current 25 years, to 40 years. Thus India is planning on keeping its MiG-29s around until the 2030s. But that plan may be aborted if major corrosion problems are later discovered. It got still worse recently when Russia said the upgrade program would take a year longer than planned, because of delays in receiving Indian equipment for the upgrade.

The MiG-29 entered Russian service in 1983, as the answer to the American F-16. Some 1,600 MiG-29s have been produced so far, with about 900 of them exported. India received its first MiG-29s in 1986, with deliveries continuing into the 1990s. The 22 ton aircraft is roughly comparable to the F-16, but it depends a lot on which version of either aircraft you are talking about.

RSK MiG could make a lot of money upgrading MiG-29s. Not just adding new electronics, but also making the airframe more robust. The MiG-29 was originally rated at 2,500 total flight hours. At that time (early 80s), Russia expected MiG-29s to fly about a hundred or so hours a year. India flew them at nearly twice that rate, and now Russia is offering to spiff up the airframe so that the aircraft can fly up to 4,000 hours, with more life extensions upgrades promised. This won't be easy, as the MiG-29 has a history of unreliability and premature breakdowns (both mechanical and electronic). Compared to Western aircraft, like the F-16, the MiG-29 is available for action about two thirds as much. While extending the life of the MiG-29 into the 2030s is theoretically possible, actually doing so will be real breakthrough in Russian aircraft capabilities.

The Indian upgrade program will equip their MiG-29s to handle long range missiles, like the AMRAAM the U.S. is selling to Pakistan. That means installing a phased array radar. The Mig-29s will also get a modern cockpit, inflight refueling capability and dozens of minor tweaks. India is getting nervous about their MiGs, and one reason RSK MiG is being merged into UAC, is to assure the Indians that there will always be someone there to upgrade their MiG-29s.

All things being equal, the MiG-29 should be the equal of a F-16 or F-15. But in all combat so far, the MiG-29s have had the inferior pilots, and have lost. Indian pilots are probably the best trained, and most experienced, that are flying the MiG-29. If India should go to war in the future, while the MiG-29s are still in service, air force commanders will watch with interest how the aircraft does in the hands of world class pilots. But first it will have to survive its construction defects, at least in the Russian Air Force.




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