Dörtkaşlı: Talks with SSM and TAF are Continuing for the Mass Production of Hürkuş
Mr. Muharrem Dörtkaşlı,CEO of TAI made important statements to the Defence Turkey Magazine before IDEF fair. Mr. Dörtkaşlı evaluated the year 2012, TAIs public offering procedure, delivery process of Atak helicopters, future of the General Purpose Helicopter, the indigenous Light-Class General Purpose Helicopter project that is under development, the joint works within the scope of TX/FX project and other important programs executed by TAI to our magazine.
Defence Turkey: Mr. Dörtkaşlı, TAI has grown tremendously especially within the last decade. Could you please assess 10 years of change? How 2012 has been for TAI?
Within the last 10 years, there have been changes in the structure of our shares and administration and then in our organizational structure. In one sense, from a company which acted as a contractor and laboured the ideas of others, TAI now turned into a company that generates intellectual ideas and products which are indigenous and dominant in the market. This is the transformation of the company within last 10 years. I believe, in addition to the contributions of the change in the shareholding structure and administrational organization, the start of long-term planning in supply policies in Turkey and the increase in the demand for putting indigenous and dominant products in inventories helped as well. Besides, in my opinion, the funds related to R&D and incentive policies affected this change. Taking a look back, not only to TAI but also the whole Turkish defence industry, we witness a great and severe change in defence and aviation in general compared with the current situation. This could be indicated concretely with the figures, both in sense of turnover and the number of staff and engineers employed, number of patents and export amount. Therefore, there is a serious change in the sector, there has been a great change in TAI as well but we have not finished yet, we have a lot of work ahead. Still, there are strong indicators that TAI is advancing on the track of becoming an aviation company with dominant products.
Defence Turkey: TAI is preparing for a public offering that will take place soon and with the accomplishment of this process a new term will start for TAI. What are your studies and expectations regarding this issue?
We obtained the required approvals from the relevant councils and we made the necessary agreements with the local and foreign banks and legal consultancies. We formed a convenient team for this procedure within our internal structure and I am trying to follow the studies in regular periods. Surely, this public offering will take place in an appropriate date and in a suitable conjuncture. We presume it will happen within this year and working with the stock market brings several legal novelties to the company. Our infrastructure is strong enough for such adapt smoothly to this new procedure.
Defence Turkey: Many countries in the world, USA and European countries in particular have gone through severe cuts in the defence expenses. Thereforenovelty and we have always been a transparent and well-settled company. Still, there were some works needed to be completed and we have accomplished most of them. We believe we will aa recession was observed in the production scales of the big players. Could this turn into an opportunity for Turkey and TAI from the export point of view?
Actually, this could be considered in two aspects. The budgetary cuts will direct the prominent defence and aviation companies of those countries to external markets and therefore they would feel the need to hunt, the decrease in the number of internal customers and projects will canalize them to the foreign markets aggressively. Considering the fact that these companies have had their products earlier than us and that they are more experienced, this means an increase of competition in the foreign markets. As Turkey, we started working in this sector late. Yet, I believe that all Turkish companies are more competitive and market oriented and that they would have the countrys geography as an advantage. We present very challenging and high-performance products, we are not introducing ordinary products in the foreign markets. We will break into market with a product that entered into one of the most respected armed forces of the world. I presume the competition will be very strong owing to the products of high standards having high technologies. I hope that these will result in favour of the Turkish companies. Of course the issue does not end with the convenience of prices in defence products export. The policies of the government and their political influence in relevant markets enable them to have a say in exports as well. Governments that select products based on their competitiveness start making strategic evaluations at some point. There are a number of topics we consider ourselves advantageous in this strategic evaluation. I believe that Turkey will be highly competitive and that we will bring excitement to the international market.
Defence Turkey: What are the status of Delivery Helicopter project and the studies of the second configuration at an amount of 50? What will be the delivery schedule? Related to this which kind of solutions regarding the balance issue in T129 A helicopters have been produced?
We could talk about this within two stages. There will be 2 different configurations in the program we name as Atak. This is usual in aviation projects and our studies are continuing. We have studies regarding the acceptance procedure with our customer and intensely with the Undersecretariat for Defence Industries (SSM) and with our Armed Forces on the other hand. Their level of requirements is high and great in number so their verification takes a while. Maybe such a comprehensive study within such a complex system is being executed for the first time and therefore it takes time. But we have had a great progress. Important advantages have been gained both in qualification and flight tests and I believe that we are reaching the final point. This is important for both our companys internal performance and for showing how we achieve delivering to our Armed Forces the most appropriate product in time to our potential foreign customers closely following our works. After the launch of the first acceptance we will rapidly accomplish the first 9 and we are planning to deliver approximately 4 helicopters within the scope of the Atak project. In summary, I could say that we budgeted 13 helicopter deliveries in the beginning of the year.
Defence Turkey: And about the solution produced regarding the balance problem?
This is what we apply as the configurations of aerial vehicles change. Several equipment and systems over T129 A (Delivery Helicopter) are not existing or different than the ones over the second configuration of 50 helicopters. As a result, we are using ballast in order to place the centre of gravity to the correct point. We do not regard a severe technical problem in lifting the ballast and we are presenting our customer a satisfying solution in this case.
Defence Turkey: Atak helicopter was shortlisted among very important competitors in South Korean tender on attack helicopters. What is the current stage at the tendering procedure and what advantages do you think Atak helicopter has considering the regional circumstances and requirements of the country?
I am aware that you are closely watching the activities regarding exports as a magazine and I would like to state that I am pleased with this. We are in a procedure that started approximately 1,5 years ago and within the time past South Korea published the specifications and collected the offers. South Korea verified these offers both in documents and also attempted to verify them in ground tests, flight tests and shooting tests in the facilities of the competing companies. South Korea is a strong customer who knows what she wants and we succeeded in these evaluations. We are competing with our T129. The remaining 2 American products are from FMS. Therefore, when we went to the final price competition, there were only representatives of the American Government besides us in the commission room, meaning there were no representatives of Boeing or Bell. We negotiated on the prices with them for 2 days in an environment where the officials of DAPA existed. It lasted for 25 rounds and we presented our final offer and returned. I presume the source selection report may be prepared nowadays and that they accomplished their presentations to the top levels within their procedures. We initially heard that the selection was to be announced in the beginning of April but now we learnt that it may be late. But we do not think that this delay would be longer than a few weeks. Actually, I would like to congratulate the South Korean officials, both from DAPA that managed the supply program and officials of Aviation. They administrated a very rapid procedure and our Government also closely followed this process. Consequently, existing among the 3 products in the shortlist and reaching this point in this competition is also a concrete evidence of our products performance. I could confidently state that our company TAI and our foreign partners have exerted great efforts during this procedure. The following evaluations would be more strategic. In order to export an armed helicopter the country has to contribute as a whole. We are aware that our competitors have governmental sales as well and that they are active in the region. So, I could tell that in case of a selection that is based on conditions more competitive than the RFI conditions, our chances are very high.
Defence Turkey: You are facing an important credit mechanism such as FMS within this scope. Recently a crediting mechanism related with Eximbank came into effect. Do you reckon that this new mechanism could be included in the project now? Or do you think it is late for that?
I think we ran out of that period. I do not think that South Korea took these offers from USA via FMS because there have been obstacles in payments rather than that from this I understand that USA prefers to render offers through FMS. I believe that if we aim to become a serious exporter in our sector besides this Korean tender then we have to include the credit within the package as an essential part of competitive elements. Therefore I consider this regulation very helpful. On behalf of our sector, I would like to thank our Undersecretariat for Defence Industries (SSM), Eximbank officials, our Undersecretariat for Treasury and to our Ministry of Defence for their contributions. Our company and some of our colleagues produced and presented highly competitive products and conditions in tenders but failed because of the credit mechanisms. We are aware of the fact that Eximbank could not support the export of armed systems because of its structure and the resource funds it uses. Other than that, regarding the systems that do not have arms or in sub-products I think that Eximbank credit would be very helpful. One of the most important accelerators of the export boom we aim to actualize in the following term are our internal certification, studies for developing products that would appeal to our customers and this credit.
Defence Turkey: What is the current status of the General Purpose Helicopter project?
The decision on the general purpose helicopter project was made 2 years ago. In the competition between the American Sikorsky firm and the Italian firm, Sikorsky was selected. A model of TAI as the main contractor, Sikorsky as the sub-contractor and with the participation of Aselsan and a lot of companies was constituted. Within the scope of the project that contains a supply of 109 helicopters, 7 users demands are aimed to be covered in Turkey. The talks are still continuing. Though the negotiations between SSM, TAI and Sikorsky are inclined to a point of signing, we still could not achieve the signing procedure. Our customer desires the project to be actualized soon, as well. There are a few issues beyond our capacity. Regarding some issues, Sikorsky is stuck in difficult positions due to the governmental policies. Our governments policies also affect us. The solution of these few problems would contribute to the efforts exerted. I would like to point out that after reaching a certain point, the pace of progress is behind the desired level.
Defence Turkey: The acceptance of Anka unmanned aerial vehicle was completed successfully. Following this stage, the aircrafts will be taken into use under your responsibility before they enter in the Turkish Armed Forces inventory. Which capacities do you expect Turkey and TAI will gain as a result of this procedure? What are the developments in the negotiations regarding Ankas mass production?
Our agreement was on prototype development and we developed the prototypes in line with the demanded amounts. We successfully accomplished the ground tests, flight tests and other required activities within a period of nearly 2 years. Turkish engineers developed a very extensive product that is rare in the World and delivered to a customer with high expectations and requirements. The procedure regarding the prototyping is accomplished. This is a study to prove the trust gained was deserved. This hast to enter the Turkish Armed Forces (TSK) inventory as a range product moreover we have to export Anka since it is an extensive product which is also rare in the World. SSM Executive Committees approval of this product range is obtained. Our talks on this topic are continuing. Our studies within the scope of prototype development contained activities covering the mass production. Therefore we do not have any problems regarding this topic. This is merely a procedure and it carries on. Besides, we are at the evaluation stage regarding this ranges final configuration. I am hoping that these studies will be accomplished soon and we will sign the mass production agreement. On the other hand our activities are continuing and we do not have any problems in industrialization. Our main objective was to conduct studies to obtain orders that required mass production. We are executing the same studies in the development process of Hürkuş. There existed no concepts of site visits to the region and actual functioning in operations in the original contract regarding Anka which was developed as a prototype. We are conducting our tests in an air base provided to our company by our Air Forces. We will continue to make the additional tests and other activities for maturing the product in an airbase close to the region. We shall render the product available for operational usages with the data we would gather close to the end user and with the help of the hot operational environment. Tests have been conducted under severe circumstances but I believe that such a feedback, results of the lessons learnt would be reflected to the product would be useful. These are the reasons of visits to the region.
Defence Turkey: What is the current status of the studies regarding Anka Plus - the improved version of Anka? Is there a probability of other countries participation to this project in the future as a result of the capacities Turkey and TAI gained?
In summary this product would be the big brother of Anka. Considering Anka as a product of 1,5 tons, since the final draft design and configuration are not finalized yet we assume that Anka Plus would be a product that weighs around 5 tons. The resolution on this products development within the registry of TAIs administration was made by the Defence Industry Executive Committee (SSIK), but we have not signed the agreement yet. Our studies with the SSM and our relevant Forces regarding this issue are continuing. The signing process efficiency depends on the level of the maturity of the preliminary studies. We presume the product would have common systems with Anka. Therefore, we plan to produce Anka SİHA (Strategic Unmanned Aerial Vehicle) within a shorter period at least bring it to the level of first flight. There was an initiative in Europe a few years ago regarding an international association yet I do not know if they would apply to this case and there were no SSIK resolutions on this issue. So, we made a study within a consortium of Germany, Spain and Italy. However, they changed their partnership structure and specifications regarding the product in time. When these were altered our executive committees resolution was made. Therefore, our motivation regarding a partnership in a project in Europe would be different than four years ago. We are presently conducting our activities within a setup that we could carry on by ourselves. If any interested parties in the project emerge after we start our journey, their joining is always possible. Talks on similar partnerships in various models could be carried out with all the actors interested in joining the project as a market, a customer, as an industrialist or a user. For the time being we are carrying out the SİHA or Anka Plus project alone.
Defence Turkey: Could you please inform us about the studies executed for the conceptual design projects of TX/FX jet trainer and combat aircraft and their present state?
The procedure for these studies started nearly 1,5 years ago and we are planning to complete them 6-7 months later. This is a procedure we name as conceptual design. Regarding these studies, the Air Forces personnel, personnel of relevant SSM departments and our specialized team of experts are working at an edifice of TAI. Probably for the first time in Turkey such a team is collaborating at a common study. We are supporting these studies from with our activities at the centre. Additionally, people from our industry and from universities are contributing to the project in the way they can. The objective here is to complete the feasibility report about the project expected from us by the time the last quarter of the year arrived. Under the 8-9 headlines within the report, the performance characteristics of the product, industrialization model, analysis on the foreign markets will be presented to our customer. Besides, a budgetary offer would be included to be used in the decision making procedure of the SSIK regarding the projects continuity. FX project should be perceived as a governmental project of Turkey because I believe that it would require lasting and stable policies in addition to great resources. It has been conducted in this manner till now. This is a project that should be contributed from all persons, institutions and associations specialized in aviation in addition to our company. I would like to correct a misunderstanding at this point. It is about the news that we have reached a final agreement with the SAAB of Sweden and that we would built a jet plane together. Actually, this agreement contains a very low-budget service agreement on getting consultancy services from SAAB at the conceptual design stage and it is limited merely to this phase. We have negotiated with Americans and Europeans in the beginning. After considering and evaluating the intellectual property rights and approaches regarding the proper ways of usage and past experiences the aforementioned consultancy service of 3-5 million US Dollars was decided to be taken from SAAB and there is nothing beyond this. Assigning other meanings to this and interpreting this service as the establishment of a new partnership is not appropriate in my opinion. We are a party on this agreement. Surely the election was made together with the SSM and Air Forces Command. Therefore there exists no extensive agreements and I do not have any comments on the developments of the future phases. Probably the following two topics combined. We have a regional passenger plane project that is conducted under the coordination of our Ministry of Transport and there is an effort to build a concept. Within this framework, talks have been made with companies of Ukraine, Sweden, Netherlands and USA. There emerges a need for a specialized actor when a short-term solution is considered for the regional passenger plane project. The full concept has not settled yet but as far as I could comprehend we have studies in order to obtain an authentic regional passenger plane through establishing a partnership in the short run. Both our Ministry of Transport and THY (Turkish Airlines) personnels input and our contribution in an expert level is at stake. SAAB was one of the firms that have been discussed and when these two were combined there might be a misunderstanding that an agreement was made with SAAB. As I mentioned before there arent any final decisions yet.
Defence Turkey: When will the first flight of Turkish Primary and Basic Training Aircraft Hürkuş take place? Could you inform us on the scheme of the Project?
Our Hürkuşs exit from the hangar took place in the summer of 2012 and since then our studies are continuing intensely. Our original plan was to actualize a Hürkuş flight just before the IDEF. We have a number of tests to be accomplished ahead of the first flight. As you know, we conduct all our tests in collaboration with the European Aviation Safety Agency (EASA). The second aircraft produced for the static test operations is tied to the testing apparatus currently and measurements are carried out through approximately 1600 censors all over the aircraft under various loads and analysis are made. In order to measure the ultimate resistance of the aircraft the static test aircraft will be crushed. Ground tests for our first plane are continuing. We are collecting various data from all the systems over the aircraft and we will continue to collect inputs during the flights as well. We shall pass through approximately 600-650 sorties that would last for 3 years. We have suppliers in Hürkuş that have certified products and if any problems arise during the ground test we collaborate with them and naturally the length of their solution producing period influences us negatively. We foresee that there would be a slight delay limited to weeks at this stage. Therefore we are planning to make the initial flight that we failed to make in the beginning of May, within June or towards the end of June. Our studies for the mass production order of Hürkuş are continuing with SSM and TSK. In the coming term, there may be a resolution regarding this at the first meeting of SSIK, there are some efforts on this. If these become clearer they would also motivate us. We name the model of Hürkuş we developed that is to be granted with a certificate from the European Aviation Authority the A model. Hürkuşs model B shall be a military version in form of a full glass cockpit. Meanwhile, we will have another model of Hürkuş that is armed and named as Hürkuş C. This model shall be an aircraft that could be used with the New Generation Light Attack/ Reconnaissance Aircraft concept. As you may know there is an agreement finalized on this issue in the United States. While we are continuing negotiations on Hürkuş B and configuration determination studies with the Air Forces our Land Forces became interested in this product too. In addition to the existing inventory of our Air Forces, a Basic Training Aircraft requirement shall be in agenda for both its own needs and for the training services to be provided to ally countries. We aim to cover this requirement with Hürkuş. These issues will be clearer within the next few months.
Defence Turkey: How are the export activities going on regarding Hürkuş?
I presume that the serious demands for Hürkuş and export booms would emerge with Turkish Governments serial order and with the emergence of New Generation Light Attack/Reconnaissance Aircraft as the concepts are evolving towards this direction and we are becoming aware of the fact that they could be used in a cost-efficient manner. Pre-negotiations are being carried out presently and maybe it would be better to observe the future developments first and leave the concrete talks regarding the names of countries and amounts to the 2nd half of the year.
Defence Turkey: Negotiations on an agreement to cover the TAFs requirement of training helicopters and light-class general purpose helicopters with an indigenous designed platform are in proggress. What are your comments on this?
This project is one of the indicators of the growing respect and trust in our sector of our authorities. The goal is to obtain the flight permits from the international civil aviation authorities for a light-middle class product weighing nearly 5 tons after an amazing period of 5 years and accomplishment of its certification after 6,5 years. Within the scope of the studies for enabling this product to serve in military, civil and paramilitary institutions, establishment of an infrastructure that would cover our deficiencies regarding the helicopter technologies such as transmission transfers, rotating wings and the design accomplished by our engineers is aimed. We have gone through a special structuring for this very challenging procedure. We are forming a staff to consume time merely to this project. We do not consider any international partnerships for the time being. We suppose that our product will be strongly demanded in the markets.
Defence Turkey: What are your comments on Göktürk-1 Project? What are the studies regarding the first aerospace systems installation, integration and test centre that would be among the capacities gained as a result of this project?
Göktürk-1 Project is a project conducted under the leadership of an Italian-French consortium as the main contractor. We are directly participating to this project. These studies are continuing within the direction as we planned. There is some news in the press from time to time that there would be some delays stemming from the works of the main contractor.
The experiences that could be gained through this project in sense of system engineering, satellite and satellite sub-system designs with the direct participation in the project is more important than the amount of money that would be gained from the project. We are producing a part of the panels of the flight model within the scope of Göktürk-1 Project. As a result of this production done for an international company named Thales Alenia Space, TAI has obtained the capacity and techniques for producing satellite components aligning with the European Space Agencys (ESA) standards for the first time in Turkish aerospace sector.
The most important gain to be obtained from this project is the completion of the Satellite Installation, Integration and Test (UMET) Facility which was mounted for the final installation and testing of Göktürk-1 and of which we plan to accomplish the qualification with Göktürk 1. This facility shall serve in the projects regarding intelligence and communication satellites consequently.
As you may know, this facility that would be considered among limited similar facilities in Europe shall be a state-owned property that would be operated by us. This type of a model would be applied for the first time. The edifice that is being constructed within TAI Akıncı campus is almost finalized and the installation of testing equipment started. The final acceptance of the facility will be realized towards the end of this year and its operational rights shall be transferred to TAI. The final installation and testing activities of the Göktürk-1 satellite will be done in this Facility. The installation of the testing equipment and their availability for usage is of vital importance for the testing of Göktürk-1 in the Facility. Our Göktürk-1 satellites farewell to the launching field from TAI facilities and its efficient use as a result of a successful launch is our greatest wish.
Defence Turkey: The reconnaissance and surveillance satellite Göktürk-3 project that features Synthetic Aperture Radar (SAR) is decided to be conducted by TAI with the support of Aselsan and TÜBİTAK according to the SSIK resolution of 2012s end. What is the status of these studies and what capacities Turkey shall have with this satellite project?
Göktürk-3 satellite will have a capacity to capture images in both night and day and under all weather conditions. The SSIK resolution regarding this stipulates the development of Göktürk-3 satellite in a model that consists of our company as the main contractor and by benefiting from the aerospace capacities of Aselsan and TÜBİTAK. Our negotiations with SSM and other relevant institutions are continuing on this matter. The execution of the Göktürk-3 Project in a diphase approach has been adapted as a model. Within the scope of the initial phase the design of the satellite system shall be brought to a certain point. Another agreement encompassing the detailed design studies, production, installation, integration and testing activities, launching and operations regarding the placement in the orbit which constitutes the second phase shall be signed. While the agreement on the initial phase continues, we are planning to initiate the second phase and thus complete the Göktürk-3 Project.
Defence Turkey: Lastly, what would you like to express to the readers of Defence Turkey?
I would like to thank you for your visit and for your contribution to our defence sectors international activities in particular. I personally believe that the sector would be formed in this way. You are a prominent player of this sector as Defence Turkey. What I would like to say to the readers rather than the sector is this. As you also mentioned in your first question, a sector having its indigenous productions and an export capacity was created within 8-10 years period as a result of Turkeys appropriate supply policies and by attaching importance to the engineering issues. I am not saying that the procedure is over, we have a lot of work ahead of us, I do not want to be misunderstood. Presently we are speaking of the reputable point we arrived, of exports and competition and Eximbank credits. I strongly believe that this fire could be flamed more with this policies supply methods benefiting from Turkeys growing economy. I am certain that our export policies especially in foreign trade and foreign sales could be supported in this sense. We are naturally aware that the companies in the markets we hunt for projects and works are searching for projects in Turkey too. These projects could be in energy, transport or health sectors. Therefore, we have to use this opportunity properly. I wish our efforts in aviation sector constitute great examples for these sectors and I believe with our indigenous brands having high added values would contribute to our goal of reaching 500 billion USD by 2023. As a result, I would like to state that I wish our efforts in the aviation sector expand to all the sectors in our country.