MRTA: HAL and Irkut’s Joint Tactical Transport Project
Sep 12, 2010 14:05 EDT
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Dimensional diagrams. (Feb 27/11)
In late December 2006, Hindustan Aeronautics (HAL) announced a $700-million joint venture (JV) agreement with Irkut Corporation of Russia for manufacturing 60-tonne multi-role transport aircraft (MRTA). Under this 50/50 arrangement with HAL, Ilyushin Design Bureau of Russia would design the MRTA and Irkut corporation of Russia will develop the aircraft, while series production would be taken up by the transport aircraft division of HAL at Kanpur. Irkut is a major investor (40% of project expenses), and will be the coordinator of the Russian side. For HAL, the move is part of an effort to forge new partnerships with global aviation majors for military and civil projects, with an eye on trebling their annual turnover to $3 billion by 2011.
The project has moved very slowly, even as competitors like the C-130J gained traction around the world, including in India, and future rivals like the KC-390 began picking up international partners. Now, a joint venture is supposed to get underway to build 145 aircraft for its initial customers in Russia and India.
- MRTA and the Per-Ton Price Constant
- MRTA: Contracts and Key Events [updated]
- Additional Readings [updated]
MRTA and the Per-Ton Price Constant
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The MRTA was described in initial news reports as a 60-ton, 100-seat aircraft aimed at the military freighter market, creating some confusion about its ultimate carrying capacity and competitive niche. Was it destined to replace the Ilyushin IL-76s India flies? Compete with the 120-troop capacity A400M? Further research with Irkut showed it to be a 60-ton total takeoff weight aircraft with a cargo capacity of around 18,500 kg/ 20 tons, giving it similar capacity and dimensions to the Russian An-12 or the USA’s C-130J Hercules. Illustrations showed a jet aircraft whose requirements produce a design somewhat reminiscent of the canceled 1970s US AMST Program that eventually led to the much larger C-17.
Ultimately, however, the plane’s fate may well rest on whether it can break the per-ton price constant in the military market.
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Consider:
The Alenia/CMAS C-27J Spartan has a 12-ton capacity and costs about $35-40 million per plane. Lockheed’s C-130J Hercules carries 20 tons and costs about $65 million. the Airbus A400M is projected to carry 35-37 tons and cost about $120-150 million. At the high end, the 80-85 ton capacity C-17 Globemaster III sells for about $200-240 million. That appears to give us something approaching a per-ton constant for Western fixed-wing military transports that can carry tactical vehicles: around $3 million per ton.
Beyond the 20-ton target market of AN-12 and C-130 owners, Irkut also envisions this new plane as an attractive option for customers of the much smaller An-26. If they wish to realize that ambition, and some of their broader goals as well, the question boils down to this:
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Can Irkut and HAL offer an ICAO-certifiable military transport with modern avionics near a C-27J’s price range, with a C-130J’s performance and some short field ability?
If so, they may have a winner with good global prospects. If not, India and Russia will have a new transport, and both countries’ aviation industries will still derive some benefits from the program. Irkut claims that the Indian Air Force plans to acquire 45 of these aircraft, and they also see market demand in Russia’s military and civil sectors for another 100 transport aircraft within 12 years of introduction. Subsequent Indian reports are already adjusting the number down slightly to 40, while Russia’s interest remains firm.
Introduction is expected between 2015-2020.
MRTA: Contracts and Key Events
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Feb 27/11: LiveFist’s Shiv Aroor offers concept pictures of the MRTA, including planned interior and exterior dimensions.
Sept 9/10: A shareholders agreement is signed to set up the MRTA’s joint venture company, between India’s Hindustan Aeronautics Limited (HAL), Russia’s United Aircraft Corporation (UAC), & Russia’s Rosoboronexport arms export agency.
India’s defense ministry pegs the total development cost at around US $ 600.7 million (approx. Rs. 2900 crore), to be equally shared by both the sides. The joint venture will be based in Bangalore, india, and aims to produce 205 aircraft (45 India, 100 Russia, 60 hoped-for exports), with 50:50 work share between HAL and the Russian partners. India MoD | India’s Business Standard | India’s Economic Times | India’s financial Express | Times of India | UAE’s Emirates News Agency.
Oct 9/09: The Indian Ministry of Defence issues a release regarding the 9th meeting of the Russia-India Inter-Governmental Commission on Military-Technical Cooperation on Oct 14-15/09:
“Both sides will also review the progress on the MTA, on which the Inter-Governmental Agreement had been signed during the visit of Dr Manmohan Singh’s to Moscow in November 2007. Both sides have been discussing the formation of the Joint Venture company which would execute the project involving design, development and production of the Medium Transport Aircraft in the 15-20 tonne class to meet the requirements of the Russian and Indian Armed Forces. Both sides are likely to conclude the Agreement to form the JVC shortly. “
Aug 21/09: The Indian government’s DDI News reports that India and Russia are expected to sign the MRTA contract deal during Defence Minister A K Antony’s September 2009 Moscow visit [DID: later moved to October]. HAL General Manager V. Balakrishnan told DDI that the Russian government has cleared the formalities for the creation of 50-50 JV, and Prime Minister Vladimir Putin has allocated funds for financing Russia’s share.
Balakrishnan is also quoted as saying that the IAF is interested in buying about 40 aircraft, while the Russian air force has confirmed its readiness to buy 100 planes. DDI News | Daily India.
Aug 3/09: In an official reply to a Parliamentary question, India’s Ministry of Defense states:
“An Inter Government Agreement (IGA) between Government of India and Government of Russian Federation was signed for formation of Joint Venture (JV) in November 2007 to develop a new Multirole Transport Aircraft (MTA) for Defence Sector with Hindustan Aeronautics Limited (HAL) as the Indian Partner. A preliminary project report prepared in 2006 envisaging a development cost of USD 600 million for a transport aircraft of weight class 20 tons. It is expected that commencement of production of the aircraft will take seven to eight years from ‘Go Ahead’ sanction.”
While the government agreement exists, the formal contract and go ahead have yet to be announced. If 7-8 years is the timeline thereafter, the program launch date is already past 2015. Meanwhile, Brazil’s Embraer intends to have its KC-390 competitor available by 2015, and Lockheed Martin is gaining traction with its C-130J around the world – including India.
Feb 12/09: The Times of India quotes Russian UAC President and Chairman Alexey I. Fedorov during his Aero India 2009 visit. Federov says that that India and Russia will establish the MRTA joint venture “in the next few months.”
The cost is now listed at $600 million, and Russia will reportedly identify its participants in the next few weeks. Consolidation has brought most of Russia’s aerospace firms under the United Aircraft Corporation banner.
April 23/08: In an official release, India’s Ministry of Defence says:
“Government proposes to relax the Foreign Direct Investment cap of 26 per cent in defence sector to facilitate co-development of multi-role transport aircraft by Hindustan Aeronautics. The matter is under process to get approval of the competent authority.”
It is unclear whether this foreign investment ceiling is being relaxed more generally, or just for this specific project; the latter interpretation appears to be more likely.
December 2006: Hindustan Aeronautics (HAL) announces a $700-million joint venture (JV) agreement with Irkut Corporation of Russia for manufacturing 60-tonne multi-role transport aircraft (MRTA). Under this 50/50 arrangement with HAL, Ilyushin Design Bureau of Russia will design the MRTA and Irkut corporation of Russia will develop the aircraft, while series production would be taken up by the transport aircraft division of HAL at Kanpur.
Irkut is a major investor (40% of project expenses), and will be the coordinator of the Russian side. For HAL, the move is part of an effort to forge new partnerships with global aviation majors for military and civil projects, with an eye on trebling their annual turnover to $3 billion by 2011. Economic Times of India report | The Hindu report
Additional Readings
- Irkut – Tactical Transport Aircraft
- DID – C-17s for India. Provides heavy airlift of up to 84 tons, far above the C-130J-30 or MRTA.
- DID – India Buys 6-12 C-130J-30 Hercules for Special Forces. That contract could also expand. The C-130J has carved out a strong special forces niche, and is available immediately.
- DID – India Refurbishing its AN-32 Transport Fleet. Light tactical transports, one level below the C-130J-30s and MRTA.
- DID Spotlight – A400M Delays Creating Contract Controversies. 2015 would appear to be crunch time for the global market, as several entries plan to debut. The A400M is likely to debut in 2013, but clearing its order backlog will take several years.
- DID – Embraer Launches KC-390 Tactical Air Transport Program. Now a multinational effort. This 21t capacity twin-jet airlifter will compete in the replacement C-130 market too, along with the Lockheed Martin C-130J, China’s Yunshun AN-12 derivative, the MRTA, and of course the Airbus A400M as a higher capacity option.
- Forecast International (Feb 3/11) – A400M, KC-390 Will Reshape Transport Market
