United Aircraft Corporation: Company Strategy & Performance Analysis


United Aircraft Corporation was founded in 2006. The former name of the company was Obyedinyonnaya Aviastroitelnaya Korporatsiya (OAK). It operates in three key business segments such as military aircraft, civil aircraft, and transport aircraft. The key subsidiaries of the organisation are Sukhoi Company, Sukhoi Civil Aircraft and Irkut Corporation. Over the course of its operations, the company formed alliances with many leading companies in the global civil aerospace industry. Some of the key alliances include partnerships with the Russian Academy of Sciences and The State Research Institute of Aviation Systems. It continuously invests in research and development for expanding and enhancing its aircraft.

MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading commercial aircraft manufacturing companies. The report details company operations in key geographies and offers a comprehensive analysis of each firm’s growth strategy and financial performance. The reports benchmark company performance via key indicators, including orders, deliveries

Key Highlights

Strong order backlog to drive future growth

UAC reported an order backlog (civil and transport) of 270 in 2015 as compared to 263 in 2014, reflecting a growth of 2.7%. However, in terms of monetary values, the order backlog decreased from US$18.6 billion in 2014 to US$13.3 billion in 2015, indicated a decline of -28.3%. In local currencies, it posted an increase of 13.9%. The increasing number of contracts from airline operators enhanced the order backlog. For instance, in 2015, Yakutia Airlines and Sukhoi Civil Aircraft, a subsidiary of UAC signed a contract to deliver three Sukhoi Superjet 100s.

Aircraft construction contract segment driving overall operating revenue

Operating revenue increased at 10.2% growth rate from US$5,679.9 million in 2015 to US$6,258.6 million in 2016. However in local currency, it posted an increase of 20.5%. The increase is primarily attributed to the growth in the sales from aircraft components followed by the increase in the revenues from aircraft construction contracts. Revenue from Aircraft Construction Contracts increased at 10.6% growth rate from US$3,387.2 million in 2015 to US$3,744.7 million in 2016. However, in local currency, it posted an increase of 20.9%. This was due to an almost twofold increase in military aircraft construction.

Growth in exports drove sales of aircraft components

Revenue from the sales of Aircraft Components increased at a 76.0% growth rate from US$460.6 million in 2015 to US$810.7 million in 2016. However, in local currency it posted an increase of 92.4%. The company plans to buy a stake in the 558 Aircraft Repair Plant, a plant which is specialized in the repair and modernization of aircraft. After buying a stake it plans to convert it into a producer of components for civil aircraft. This will further help it to increase its revenues.


  • Company Snapshot - Details key indicators and rankings of United Aircraft Corporation in terms of revenue, net income, and operating income.
  • Company SWOT Analysis - Outlines United Aircraft Corporation’s strengths, weaknesses, and opportunities and threats facing the company.
  • Growth Strategies - Provides an overview of United Aircraft Corporation’s corporate goals and strategic initiatives and evaluates their outcomes.
  • Company Performance and Competitive Landscape - Analyses the company’s performance by geographical segment and provides a peer comparison on parameters such as revenue and market share.
  • Key Developments - Showcases United Aircraft Corporation’s recent corporate events and initiatives.
  • ICT Spending Prediction - Details how the company allocates its ICT budget across the core areas of its business, specifically hardware, software, IT services, communications and consulting.

Reasons To Buy

  • How does United Aircraft Corporation rank among its peers in terms of revenue and market share?
  • What are United Aircraft Corporation’s main growth strategies and how successful has the company been at implementing them?
  • How has the company performed since 2014?
  • How has United Aircraft Corporation performed in comparison to its main competitors?
  • What are United Aircraft Corporation’s strengths and weaknesses and what opportunities and threats does it face?