Ukraine’s MROL sector

at Global perspective

Sector overview and identification of opportunities

for development

MROL – Maintenance, Repair, Overhaul and Logistics on Flying Vehicles

Prepared for the First National Consultation for the development of

Ukrainian Export Strategy for selected Sectors

7-8 June 2018, Kyiv

Prepared by Sergei Korzh – expert in Aviation,

with contribution from Vladimir Polischuk (MAUtechnik)
 1. Provide general description of the MROL sector in Ukraine
Objectives of
presentation 2. Overview of the place of MROL sector of Ukraine within
the Global (Civil) Aviation MRO Industry and its
European/Eastern European region
3. Identify bottlenecks and their reasons/prerequisites
4. Provide ground for identifying opportunities for sector
development and related Roadmap of actions

Approach on sector General Industry description methodology

overview (market, industry, supply chain, factors, developments, etc,)
Good example - UK MROL Industry analysis (2016)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/att
achment_data/file/502588

Who are Stakeholders of the MROL sector in Ukraine - ?

Who are Beneficiaries of the MROL sector development in Ukraine – ?

№ Contents slide
1 Prerequisites (Предпосылки) 4
2 MROL services and their place within Air Transport Industry 5-6
3 Ukraine’s Aviation Industry and its development 7-9
4 MROL sector structure (various dimensions) 10-12
5 MROL sector – Global context 13-18
6 Ukraine’s Aviation, MROL sector 19-23
7 Factors that affect MROL sector in Ukraine 24-28
8 Competitive environment for the MROL sector in Ukraine 29-32
9 SWOT-analyses of the MROL sector in Ukraine 33
10 Potential developments of the MROL sector in Ukraine 34
11 Next steps in Strategy elaboration 35
Attachment
A 2016.5 MRO Market update with focus on CEE region (ICF presentation) separate
file
B MRO CEE trends and outlook 5-10 years (2015 conference summary) 37-41
C Global Indexes of countries in areas related to business development 42-48
1 Предпосылки

- Почему Сектор Aviation MRO ?

- Что в Секторе Aviation MRO «инновационного» и «высокотехнологичного» ?

Общий подход в разработке Стратегии (отрасли, бизнеса):

- Какое наше Видение сектора-деятельности в Украине ?
- Какими могут быть Цели в достижении этого Видения (поконкретнее,
измеримые, реалистичные, с примерными сроками) ?
- Какие есть, могут быть и должны быть Направления развития, деятельности
для достижения этих целей и Инициативы конкретных действий по этим
направлениям ?
- Должны быть Измерители развития (реализации Стратегии) – milestones, KPIs
- Далее идет конкретика – Бизнес-среда, Условия (для развития),
Возможности, Стратегические инициативы, типы бизнес-проектов
- Укрупненный План реализации Стратегии по годам (Дорожная карта)
2 What are MROL services and their place within Air Transport Industry
MROL providers

1 Airlines - provide services on

own operated aircraft

2 OEMs - original equipment

manufacturers provide
services & spares on earlier
produced «own» original units

3 Independent organisations
capable to manufacture
components and provide
1 2
3 services w/o OEMs or aircraft
operators
3 4
4 4 MRO-related third parties -
4 3 3 provide various support
works/services to above listed
4 types, such as logistics
2 What are MROL services and their place within Air Transport Industry
Types of Aircraft operators:
MROL sector services comprise:
•Airlines, air transport and cargo operators operate
•Maintenance that relates to the process of
schedules that require high levels of utilization, service
preserving a complete aircraft in an airworthy
availability at minimum cost.
condition;
•Corporate, VIP or business aviation operators
•Repair or replacement of damaged items
require the availability of aircraft to fly to diverse
that do not function properly;
destinations at short notice.
•Overhaul that relates to reconditioning a
•Helicopter operators unlike the airlines operate locally
system that has deteriorated due to worn out
within a relatively small area of operation and require full
parts or degradation in performance or
MRO capabilities on-site.
strength to their original characteristics;
•Military aircraft operators require high service
•Logistics that relates to the resale of
availability and reliability of very complex and special
serviceable and airworthy components.
aircraft that operate in harsh and hostile environments.
Logistics organisations store them and
MRO activities are carried at home base and in
supply at a premium price as and when and
operational areas.
where they are needed anywhere in the
•Special Mission operators include air ambulance, law
world. These service relieves some operators
enforcement aircraft, research and surveillance.
of the cost and logistics of carrying an
•General Aviation operators include leisure operators
extensive parts inventory in stores, which
of privately owned light aircraft that is not as large and
may never be used.
intensive in MRO as airtransport sector.
3 Ukraine’s Aviation Industry – position in Global context – Europe (WE+EE+CIS)

EE+CIS
3 Ukraine’s Aviation Industry – position in Global context
USSR

Global Centers with fully capable Aviation industry – USA+Canada, EU, USSR, China
2d line Aviation countries with partly capable aviation industry –
Brazil, Japan, Izrael, Turkey, UAE, S.Korea, India, Mexico, Iran, Pakistan, SAR

Fully capable industry – R&D, New materials and technologies, New model development,
Manufacturing, Assembling, Testing, Certification, Modification, MROL, Technical education, etc.
3 Ukraine’s Aviation Industry – position in Global context

4
1
3 2

Where Ukraine
could go in
today’s alignment ?

3
Integration with the West Collaboration and serving
1
scenario 2nd line aviation countries
scenario

2 Drifting to the East scenario 4 Drifting to the ex-USSR scenario

4 MROL sector structure by activities and elements
To carry out MRO work on aircraft requires what is called «Part 145 Approval» or its
equivalent that is provided by National Aviation Authority in which an aircraft is
registered.
Maintenance organisations are classified according to their capabilities or specialities
of their approval Class and Rating.

The approval Class is based on the aircraft major subsystem and classified as:
• Aircraft (Airframe)
• Engines
• Components (various systems)

• Specialized (painting, non-destructive testing, welding, other)

• Modifications
4 MROL sector structure by activities and elements

Each independent approval Class has to satisfy the MROL objectives:

1.To ensure the inherent safety and reliability levels of the aircraft.
2. To restore the inherent aircraft safety and reliability when
deterioration has occurred.
3. Minimising unplanned or unscheduled Maintenance which could
disrupt operations and create logistic and resource problems if such M
has to take place away from the operator’s base.
4. To obtain necessary information for design improvements of
items whose inherent reliability proves to be inadequate
5. To maintain these objectives at a minimum cost, while maximizing
aircraft service availability (minimising «out of service» time).
4 MROL sector structure by activities and elements
MRO activities are categorized as follows:
1. Line or ramp maintenance
2. Base or heavy maintenance
3. Unscheduled maintenance and aircraft recovery
4. Integrated fleet management (IFM)
5. Other services (painting, modifications, special, …)

airframe engine components special

Line yes yes yes
Base
A-check every ~100 flying hours (7-9 days), need 10-20 man-hours
B-check every 2 months (500-600FH), hangar, 100-200MH, 1 week
C-check every 2 years (~2000-3000FH), overhaul, 10,000-20,000MH, 3-4
weeks
D-check every 6-8 years, ~50,000MH, ~2 months
Unscheduled yes yes yes yes
IFM yes yes yes yes
other yes yes yes yes
5 MROL sector – Global context (extract from Attachment A)

WE fleet = ~25% of Global

Fleet MROL volume $
~6500 vehicles

WE MROL = 26% of Global

EE fleet = ~20% of WE
~1200 vehicles

EE+CIS=25% EE+CIS MRO

WE MRO of WE
demand $
demand $
5 MROL sector – Global context

Global top - 20 MROL Providers (in alphabetical order) – by type

3 - AAR Corporation 1 3 - Iberia Maintenance

1 3 - Air France Industries KLM Engineering & 1 3 - Lufthansa Technik AG
Maintenance 2 - MTU Aero Engines AG
2 - Airbus SAS 2 - Rolls-Royce plc
1 3 - Ameco Beijing (JV Air China – LT AG) 1 3 - SIA Engineering Company Ltd
2 - Boeing Company 1 3 - SR Technics
2 - Bombardier Inc 1 3 - ST Aerospace Ltd (historically MRO
1 3 - British Airways Engineering for Singapore military)
1 3 - Delta TechOps 1 3 - TAP Maintenance & Engineering
2 - GE Aviation 1 3 - Turkish Technic
1 3 - Hong Kong Aircraft Engineering Company 2 - United Technologies Corporation
(HAECO) Ltd

14
5 MROL sector – Global context

15
5 Sample - UK MROL sector key characteristics (UK MROL Industry analysis-2016)

UK Product code - ONS SIC 33.160

(MRO services on flying vehicles)
5 Sample - UK MROL sector key characteristics (UK MROL Industry analysis-2016)
5 Sample - UK MROL sector key characteristics

Providers of MROL services in the UK (UK MROL Industry analysis - 2016)

18
6 Ukraine’s Aviation = Air Transportation Market

Key figures on the scale of Ukrainian Air Transportation Market

characteristic 2017 2017/2016 trend
Total # of Ukrainian airplane operators 32
# of airplanes in operation (civil) > 120…
of them - passenger 18
performed commercial flights 93,000 + 17%
passengers served 10,55 mln + 28%
# of cargo operators 23
volume of cargo processed 83,000 ton + 11%
# of non-Ukrainian airplane operators 29
General aviation Ukr. operators that provided 19
services for agro-sector

Ukraine has product code 50210000 – MRO services on flying vehicles

What is the volume of Demand on MRO services for Ukrainian Operators ?
It could be assessed indirectly (very rough level) as follows:
• For Passenger Airlines:
via total volume of RASM – CASM – DOC – share of MRO in cost structure (15-20%)
• For Freight Operators:
via total volume of RTK – CTK – DOC – share of MRO in cost structure (15-20%)
6 Ukraine’s Aviation = Aviation OEMs + MROL providers

2 OEMs - original equipment manufacturers 1 Ukrainian Airlines

OEM aircraft – Antonov, Kharkiv Aviation Plant (passenger transportation)
OEM engines – Ivchenko-Progress designer, Motor Sich designer and manufacturer Number of airlines 18
OEM components ~30 large and medium companies including known brands (FED, Khartron, etc) Number of airplanes 118
of them leased 102
Boeing models 50
Airbus models 17
McDouglas 14
Embraer 8
Saab 8
Antonov 13
Largest fleet (MAU) 41
Airlines >10 vehicles 3
Airlines 5-10 vehicles 5
Airlines that use An 3
Average age, yrs 22

1 Cargo Airlines (23)

3 Independent organisations from operators and OEMs

Independent airframe – 7 aircraft MRO state companies, 1 helicopter MRO state company, non-state providers
Independent engines – 1 company (Motor plant)
Independent components – MRO state companies, unclear number of non-state providers
20
6 Ukrainian Aviation - MROL sector structure – import and export services to/from
Ukraine
MROL sector = Import/Export of services on Western/non-Western aircraft models
(W) Western aircraft models (NW) Non-Western aircraft models
(A) Airplanes - Boeing, Airbus, Embraer, Bombardier,
ATR, Saab, Bae-RJ, Airplanes – An (Ukraine), Tu, Yak, IL, Su, MIG (Russia)
Helicopters – Augusta-Westland, Eurocopter, Helicopters – Mil, Ka (Russia_
Sikorsky, Bell, Robinson, others Engines – Ivchenko-Progress Design Bureau + Motor-
(E) Engines – Rolls-Royce, Pratt&Whitney, General Sich (Ukraine), Russian manufacturers
Electric, Snecma-Safran, IAE, Allison, APUs Components – Specialised OEMs (numerous
(C) Components – Specialised OEMs (numerous sub- subsegments), Ukraine (some), Russia (most)
segments)

Ukrainian Independent MROL Ukrainian Independent MROL

E-W-A E-NW-A providers – export of services on
providers – export of services on
services from

E-W-E
Export MRO

Western models for non- E-NW-E non-Western models (airplanes,

Ukraine

E-W-C Ukrainian customers on helicopters, engines, components)

E-NW-C for non-Ukrainian customers on
Ukrainian territory and outside
Ukraine (examples ?) Ukrainian territory
Ukrainian OEMs – export of components Ukrainian OEMs – export of components
of Western models (FED, ?) of non-Western models
MRO services

I-W-A Ukrainian Airlines – import of MROL I-NW-A Ukrainian Airlines – import of MROL
to Ukraine
Import of

services on Western models services on non-Western models

I-W-E I-NW-E performed by non-Ukrainian
performed by non-Ukrainian
I-W-C providers I-NW-C providers

I-W-L Ukrainian Airlines – import of I-NW-L Ukrainian Airlines – import of

components of Western models components of non-Western models
6 Ukrainian MROL sector structure – import and export to/from Ukraine

MROL sector = Import/Export of services on Western / non-Western aircraft models

1. What subsectors are most interesting and prospective for Ukraine ?
2. What are potential and driving factors for growth of volume of services and
manufacturing components for each subsector? - fleet base and intensity of its
operation
3. What are the barriers and limitations for growth in each subsector ?
(W) Western aircraft models (NW) Non-Western aircraft models

E-W-A E-NW-A
services from

Export to third
Export MRO

Export to third
Ukraine

E-W-E countries E-NW-E countries

E-W-C E-NW-C Export to Russia
E-W-L E-NW-C
Export / Import Control Regime of
Dual-Use Services / Goods
MRO services

I-W-A I-NW-A
to Ukraine
Import of

I-W-E I-NW-E Import from

1 1
I-W-C I-NW-C Russia
I-W-L I-NW-L
6 Ukrainian MROL sector – import and export, Western / non-Western models

Potential for growth for MRO services in Ukraine

(or provided by Ukrainian MRO companies outside Ukraine)
Western aircraft models
MRO services inside Ukraine on
Western models for non-Ukrainian
operators
Non- Fleet base – very large and
Ukrainian increasing (WE, CEE, EMEA):
operators • Airframe – Narrowbodies, RJs,
turboprops, widebodies (?)
• Engines (?)
Volume/intensity of operation
(hours/cycles flown) - high
MRO services inside Ukraine on
Western models for Ukrainian operators
Fleet base ? – small and increasing
(Ukraine):
• Airframe – NBs, RJs
Ukrainian
• Engines - ?
operators • Components - ?
Volume/intensity of operation
(hours/cycles flown) ? - high
Non-Western aircraft models
MRO services inside and outside Ukraine
on non-Western models for non-Ukrainian
operators
Fleet base – large and decreasing :
•Airframe – Antonov, ARPs(Independent)
•Engines - Motor Sich, ARP(Independent)
•Components – OEMs, Independent
Volume/intensity of operation
(hours/cycles flown) ? - different
MRO services inside and outside Ukraine
for Ukrainian operators
Fleet base – small and decreasing :
•Airframe – Antonov, ARPs(Independent)
•Engines - Motor Sich
•Components – OEMs, Independent
Volume/intensity of operation
(hours/cycles flown) ? - different
7 Factors that affect MROL sector activity and development (in general and in Ukraine)

Long list of factors (as in UK MROL industry analysis 2016 report)

• Degree of vertical integration (split between Operators-OEMs-Independent)
• Capabilities and size (Part 145, Part 147), aircraft types
• Capacity (skills, facilities, equipment) The key factor is
• Business viability and risks: Volume and dynamics of the
• reliance on a single or few customers
Air Transportation Market
• OEM dominance vs OEM collaboration
• Supply Chain weaknesses (quick customs clearance for spares)
that stimulates
• Competitive advantages: its supporting
• Access to resources and their costs MROL services sector
• Access to customers
• Access to knowledge and training
• Impact of new technologies in aircraft life cycle and MROL activities
• Airworthiness and Regulatory considerations:
• Harmonization of regulatory requirements between EASA and National Ukrainian
• Harmonization of regulatory requirements between major CAAs (of neighboring countries)
• Streamlining of MRO requirements between operators
• Political implications
Все факторы влияют, вопрос –
• Economic implications
• Entity registration, taxation, capital allowances в какую сторону, + или – ?
• MRO relationships and industry consolidation (partnerships, M&A) в какой степени ?
• … other (specify)
7 Factors that affect MROL sector development – technology and innovations

Sample of reduction of volume of Heavy Checks (extract from Attachment A) - 1

7 Factors that affect MROL sector development – technology and innovations

Sample of reduction of volume of Heavy Checks (extract from Attachment A) - 2

7 Factors that affect MROL sector development – technology and innovations

Sample of reduction of volume of Heavy Checks (extract from Attachment A) - 3

7 Factors that affect MROL sector development – technology and innovations

Sample of reduction of volume of Heavy Checks (extract from Attachment A) - 4

8 Competitive environment for the MROL sector in Ukraine

Некоторые события в сфере MROL:

• В 2017 Boeing анонсировал агрессивную стратегию роста aftermarket services Global
Fleet Care Program в 3 раза в течении 10 лет, с ~$17bln до ~$50bln
• Turkish Technic, MRO подразделение Turkish Airlines, увеличило свой потенциал
«независомого провайдера услуг MRO» присоединением к Программе Boeing’s Global
Fleet Care (30 May 2018)
• Airbus планирует утроить объем услуг до €6bln ($7.3bln) в 2020
• Компания "Silk Way Technics» (Азербайджан) впервые среди стран СНГ выполнила С-
Check Boeing 787-8 (декабрь 2017) в объеме 1680нч (плановых) и 174нч (внеплановых).
Перед этим С-Сheck выполнены на Boeing 747-8
• "Silk Way Technics“ выполняет line and base maintenance моделей и компонентов
Boeing 747-400, 747-8, 757-200, 767-300, 787-8, Airbus A319/320/321 и А340-500/600,
Embraer 170/190, ATR42
8 Competitive environment for the MROL sector in Ukraine

See Attachment A – Position of Ukraine in Global ranking of countries in areas

related to Hi-Tech and overall Business development

Rating Index 2013 2014 2015 2016 2017 2018 scale

WEF Human Capital (HCI) 63 31 26 24 of 130 strongest economies

WIPO Innovation (GII) 71 63 64 56 50 of 127-141 strongest economies

ITIF Innovation C&D 52 of 56 strongest economies

WB Doing Business (DBI) 137 112 96 83 80 85 of 190 strongest economies
WEF Competitiveness 82 84 78 79 85 81 of 127 strongest economies

IMD Competitiveness 49 60 59 60 59 of 60 strongest economies

Harvard-MIT Economic 42 place based on 2008-2009 statistics of 128 strongest economies

Complexity (ECI)

• These are different Rating Systems from different Organisations that use different
methodologies, groups of dimensions and criteria for assessment, but each Index
provide historical trend and reflect overall development
• Within each Rating it is useful to compare Ukraine with the leading Aviation
countries, 2nd line Aviation countries and CEE countries
8 PEST analysis of the MROL sector in Ukraine

Political factors
• x
• x
• x

Economical factors
• x
• x
• x

Social factors
• x
• x
• x

Technological factors
• x
• x
• x
8 Competitive environment for the MROL sector in Ukraine

Зафиксировать идеи о:

• положении Сектора MROL (civil) в Украине,

• бизнес-среде,

• возможностях для роста

9 SWOT analysis of the MROL sector in Ukraine

+ Strengths - Weaknesses
• Skilled workforce • Lack of modern technologies and materials
• Aviation traditions and culture • Soviet «Heritage» and related myths
• Close geographical position to EU • …
and EEU
• …
How to enforce Strengths How to reduce Weaknesses

For elaboration of propositions during open discussion

+ Opportunities
• Integration into supply chain of
Western products
• Joint projects/products with «2nd line
countries»
• Globalisation and standardisation in
manufacturing and supply chain
• …
- Threats
• Brain drain to other Centers of Aviation
• Tendency of diminution in the number and
variety of new models of large and medium
flying vehicles (airplanes, engines, systems
and units for them)

Identify and capture Opportunities How to mitigate Threats

10 Potential development of the MROL sector in Ukraine

Regulation Subsectors
• x
• x
• x
Support from the State
central and local authorities
• x
• x
• x

Training
• x
For elaboration of propositions
• x
during open discussion
• x

Academic Technical education

• x
• x
• x
11 Next steps by September
 Attachment A

MRO Market update with focus on CEE region (ICF)

2016 May 30-31, London

ICF presentation
(separate file)
 Attachment B

Airline Engineering and Maintenance: Central &

Eastern Europe and Russia,
2015 November 18-19, Tallinn, Estonia

Industry trends and outlook 5-10 years

(conference summary points)
Attachment B - Airline Engineering and Maintenance: Central & Eastern Europe and Russia,
2015 November 18-19, Tallinn, Estonia

“2015: MRO in CEE are struggling”

• Wages:
– 1990: 15% of WE
– 2015: 60% of WE
• CEE airlines fleet is only 4-8%
of global fleet
• 2015: Crisis with orders from
RU and KZ (~60% volume)
• Engines, components – went out the
region to WE and USA
• MRO left with labor-intensive work (C-
checks)
• No key differentiators in MROs
• Lack of qualified personnel in the region –
insource from RU & CIS countries
• Difficult to access the cash / investment
for development
Attachment B - Airline Engineering and Maintenance: Central & Eastern Europe and Russia,
2015 November 18-19, Tallinn, Estonia

Fleet development & MRO market

• 2016: Turkey and Caucasus
– Most orders are still for A320, 737NG, CRJ, Ejet countries could be
– 63% of in-service aircraft are >10 yrs old considered as CEE
– Engines: CFM56, 66 region
– With fuel costs going down freighters show some
positive dynamics
but in 2017-2018 – fuel costs are going up

• 2025:
– Breakdown point: A320neo / MAX
dominate over A320/737NG
– Engines: CFM56 remain largest
till 2028
– Average engine retirement age: 24 yrs
– OEMs keep next generation fleet
maintenance “in-house”
Attachment B - Airline Engineering and Maintenance: Central & Eastern Europe and Russia,
2015 November 18-19, Tallinn, Estonia

Future 5-10 years, what we see:

• 3 key groups MRO:
– Hangar-based start-ups
– “Just because” – backed up by the Government
– Few ones who look for differentiators (JVs, OEM alignment, new
technologies, IT, invest in R&D, coop with Universities, etc)

• Threats for MROs:

– Zero orders from RU at end 2015  No clarity of future
opportunities
– Proposal >> Demand
– Labor cost rise in CEE region
– Lack of qualified staff
– OEM keeps the documentation and maintenance for next-
generation fleet in-house
– No access to cash for new technology and innovation
development
Attachment B - Airline Engineering and Maintenance: Central & Eastern Europe and Russia,
2015 November 18-19, Tallinn, Estonia

MRO in CEE: Call for action

• Lean = Survive, and there is a big room for efficiency
• From Cost-centric => Customer-centric
• High competition. Customer now looks for good Service and
Communication, complex solutions, not only low price
• Do not rely only on labor-intensive works: wage benefit disappears in 3-
5 years
• Keep qualified engineers & staff – easy to lose to WE & US
• Look for some “uniqueness” (everyone focus on A320/B737)
• Invest in new technologies, innovations, partnership with OEMs, JVs
with research institutions etc.
• Develop services for Cabin differentiation & modernization:
– e.g. 85% of pax call Wi-Fi as most important in cabin service
– Interior repair, upgrade & new technologies
 Attachment C – Position of Ukraine in Global ranking of countries in areas
related to Hi-Tech and overall Business development

Rating Index 2013 2014 2015 2016 2017 2018 scale

WEF Human Capital (HCI) 63 31 26 24 of 130 strongest economies

WIPO Innovation (GII) 71 63 64 56 50 of 127-141 strongest economies

ITIF Innovation C&D 52 of 56 strongest economies

WB Doing Business (DBI) 137 112 96 83 80 85 of 190 strongest economies
WEF Competitiveness 82 84 78 79 85 81 of 127 strongest economies

IMD Competitiveness 49 60 59 60 59 of 60 strongest economies

Harvard-MIT Economic 42 place based on 2008-2009 statistics of 128 strongest economies

Complexity (ECI)

• These are different Rating Systems from different Organisations that use
different methodologies, groups of dimensions and criteria for assessment,
but each Index provide historical trend and reflect overall development
• Within each Rating it is useful to compare Ukraine with the leading Aviation
countries, 2nd line Aviation countries and CEE countries
 Attachment C – Position of Ukraine in Global ranking of countries in areas
related to Hi-Tech and overall Business development
2 de
HCI-2015 5 us
us 7 us 8 cz
10 13 us
17 us 12 de 12 de 15 de
22 de 22 iz 19 iz
23 iz 25 pl
ru 25 cz cz cz 25 pl
26 pl 24 26
29 iz 28
ua 35 pl 36 cz
31 46 pl 42 ru 42 ua
48 ru 52 ua 51 ru 46 ru
58 tr 53 iz
ua 56 developed
64
countries
ECI-2015
GII-2015 IT and Innovation 83 ua
Foundation
124 rated «Impact on Global
Innovation – DBI-2015 128 rated
countries
Contributors and countries
World Economic Destructors»
Forum 141 rated Harvard-MIT
«Human Capital Index» countries «Economic
ITIF-2016
Complexity Index»
INSEAD, WIPO World Bank
«Global Innovation «Doing Business
Index» Index»
189 rated
countries
 44
Attachment C Level of Ukraine in Innovation economy – Human Capital Index

HCI
124 countries

US

De

Iz
Cz
Ru
Pl
Uk

http://widgets.weforum.org/human-capital-2015/
 45
Attachment C Level of Ukraine in Innovation economy – Global Innovation Index

GII GII comprise several groups of criteria

141 countries Ranking Ukraine on
US
each group of criteria
Iz
De Institutions 98

Cz
Human Capital
and Research 36

Uk
Infrastructure 112
Pl
Ru
Market 89
sophistication

Business
sophistication 78

Knowledge and
technology 34
outputs

Creative outputs 75

https://www.globalinnovationindex.org/content/
page/GII-Home
 Attachment C – Position of Ukraine in Global ranking of countries in areas
related to Hi-Tech and overall Business development

Global Innovation Index-2016 (GII) dimensions and criteria

Position of Ukraine among 141 countries

Інституційне Політичне Регуляторне Бізнес-

98 середовище середовище
112 середовище
89 середовище
92

36 Людський капітал 25 31 Дослідження та 45

Освіта Вища освіта
і дослідження розробки

Інформаційні Загальна Екологічна

112 Інфраструктура
технології 89 інфраструктура 127 стабільність 121

Привабливість Торгівля і
89 ринку
Кредитування 60 Інвестиції 136 конкуренція
66

Привабливість Знання Інноваційні Поглинання

78 бізнесу працівників 52 зв'язки 105 знань 88

Наукові та
Створення Узагальнення Поширення
34 технологічні
знань
14 знань
98 знань
65
досягнення

Створення Створення
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 47
Attachment C Ranking «Contributions to and Detractions from Global Innovation»

US
ITIF De
56 most developed Cz
countries

Pl

Iz
Certain countries for comparison:
• Russia - RU, RUS
• Poland - PL, POL
• Chech - CZ, CZE
• Turkey - TR, TUR
• Lithuania - LT, LTU
Uk • Bilorus - BY, BLR
• Izrael - IS, ISR

Ru

https://itif.org/publications/2016/01/20/contributors-and-
detractors-ranking-countries%E2%80%99-impact-
global-innovation
 Attachment C – Position of Ukraine in Global ranking of countries in areas 48
related to Hi-Tech and overall Business development

Harvard-MIT Economic Complexity Index

ECI De
128 countries Cz
US
Pl
Iz
Uk

Ru
 49
Profile of Sergei Korzh
1983.4–1993.12
Aviation engines design bureau «Progress», Zaporozhye. Design engineer, department manager:
Design, development, support of manufacturing and testing of aircraft engines D18 (An124) and D-27 (An70)
Startup activities on foreign relations, work with delegations of the leading western aviation companies, study of
the global aviation industry and air transport services. Preparation for and participation in aviation shows.
1986.2–1988.4 Aviation of Air Defense Forces. Serviced as officer at engineering positions. Performed
technical service of the combat planes MIG-23 and SU-27.
1992.7–1993.8 University of Wisconsin-Madison School of Business – MBA Education.
1994.1-2002.6 Coopers&Lybrand, from 1998.7 - PricewaterhouseCoopers, Kiev - professional services
for business organizations. Management consultant, group manager. Performed tasks and projects:
Company diagnostics and performance assessment, Marketing of industrial and consumer products, Strategy
Development, Investment management, Elaboration of business-plans, Managed projects, funded by EBRD,
World Bank, IFC, ТАСIS.
Since 2003 Senior positions on Business Development at Ukrainian businesses and business groups,
including special metallurgy, machine-building, telecommunications, chemical products, construction.
Since 2014 More activities on Aviation Industry and Air Transportation Market.
Professional interests and knowledge in aviation and Hi-Tech machine building – have been constantly
monitoring and systematizing information on the industries, topics and trends:
• Global trends in Aviation Transport, new model Design & Development, Manufacturing, MROL, Aircraft
engines, Supply Chain, etc.
• Global innovations in new structural materials (titan, heat resistant super alloys, lightweight alloys,
composites), advanced technologies, CAD-CAM-CAE, metal-cutting and additive manufacturing
technologies, manufacturing and assembling.
• Innovations in machine-building, renewable energy, energy sources and storage, electric transport vehicles,
robotics, automation.
• «Digitalisation and connectivity» in Aviation and B2B on monitoring performance of equipment and new
opportunities.
• Integration of Ukrainian markets, economy and Hi-Tech industries with «Western» industries and markets.