Chinese market: personal view

Interview with Yuri Ridzel, General Director of ‘AVIAHELP’

— To what extent is Chinese market important and attractive for your company? What share does this area hold in your foreign economic operations?
— AVIAHELP regards Chinese market of aviation spare parts dedicated to Russian-made helicopters as one of the most promising in the world. Even today China is the second largest export market of Russian-made helicopters in the world. The number of Russian-made helicopters in China now exceeding 300 aircraft keeps growing strongly. Meanwhile so far the Chinese market share in our foreign operations structure is not more than 10%. We are sure that due to our service quality in the coming years we will be able to significantly increase Chinese share.

— What can you tell us about China and Asia-Pacific-related export history?
— AVIAHELP entered the Chinese market in 2010. As early as 2014 our sales volume increased several times. It is worth noting the success, we think, has been achieved mostly due to us being involved in a partnership with Russian EXAR Insurance Agency and a contract concluded in this regard as to export credit insurance related to Russian-made aircraft spare parts supplied to China.

— What is your main exclusiveness and competitive strengths for Chinese partners?
— AVIAHELP is the largest Russian third-party supplier of aircraft spare parts and expendables delivering only genuine products. The number of countries where our group transacts business through its sub-companies as of year-end 2015 is 38. AVIAHELP operations meet every requirement of the company-implemented quality management system approved by Quality Management System Certificate of Conformity GOST ISO 9001-2011 (ISO 9001:2008), GOST RV 0015-002-2012, and EASA Part-145.
Besides, as a result of a voluntary certification in FGUP ‘GosNII GA’ we have received SDS OGA (Voluntary Certification System of civil aviation authorities) certificate, which confirms that AVIAHELP complies with requirements applied to aircraft spare parts suppliers.
Thanks to corporate ERP-system we are able to manage any goods item available in our Moscow and Cincinnati warehouses, maintain products life cycle including warranty and post-warranty repairs. Steady and long-term relations, authorized dealership and direct contracts with more than 100 Russian leading manufacturers and enterprises, retailer status and well-functioning logistics ensured that AVIAHELP has been maintaining delivery time and terms of delivery for nearly 20 years now.

— What do you think is a special nature of working with Chinese partners?
— I think it is the highest requirements to acceptance of aircraft parts in China including professional skills of Chinese personnel who accept products and requirements to approved suppliers. The current Chinese acceptance system has become a rather efficient barrier against counterfeit goods. Taking into account AVIAHELP’s approach based on products (supplied both by us and competitors) authentication carried out in cooperation with FGUP ‘GosNII GA’ and manufacturers, the above-mentioned of all others helps us be confident in AVIAHELP future on Chinese market.

— What vectors of development of export supplies and cooperation with Chinese partners do you broadly consider as the most promising?
— To increase China-oriented export by Russian leading holding companies and manufacturers of aircraft parts AVIAHELP has established ‘Single Window Sales’ program.
Within the frameworks of the project AVIAHELP takes up full export service in favor of a partner on Chinese market, i.e. from research of sales market and investments in exhibition participation to funding contracts and fighting counterfeit products.

— What are your plans for near and long-term relations with China and Asia-Pacific region as a whole?
— AVIAHELP suggests establishing a refillable pool of parts for Russian-made helicopters in China and in cooperation with China. In our opinion, this will decrease costs spent by Chinese operators to maintain Russian-made helicopters air worthiness.