Progress Design Bureau Splits from State Aviation Alliance

A representative from the design bureau Progress announced that the firm intends to break away from the state corporation “Aviation of Ukraine”, which is allowed by the corporation’s statute, and function independently. Earlier this year, Progress signed an agreement to form an integrated design-production corporation with Motor Sich (MSICH: BUY). Inna Perepelytsya: The government’s logic in including the design bureau in the state aviation alliance was questionable in terms of actual benefits from integrating development. As an innovative designer of helicopter and airplane engines, Progress’ move away from the state structure will allow it to continue its plans for close cooperation with Motor Sich. Both companies would reap greater benefits from synergies through new helicopter and airplane engine development, and the engine after-market business.