Alexander Zakharov, ZALA AERO - ЗАЛА АЭРО

Release Date: 2010-12-08

Alexander Zakharov, Director General of ZALA AERO, has been interviewed by Russianavia.net to discuss the history of ZALA AERO, its huge commercial success on the Russian market of UAVs and the prospects of A-level air systems internationally.

Mr. Zakharov, what inspired you to found ZALA AERO back in 2001, predicting the future success of this business?

There is nothing surprising about it. In fact, we have been in this industry for almost 10 years. This industry is very specific because it is represented by a small community in the world where there are no stranger companies. Besides, Russia has long gained a reputation of a very strong player with all the prerequisites, the necessary knowledge of technology and technical education that has been proven at various Radio Controlled Aero modeling World Championships (WC) such as WC 2003 in Japan, where ZALA AERO was the only participant from Russia. Our serious competitors are USA, Germany, Japan and France. During ParcAberporth exhibition in the UK where we participated a few years ago, it was unanimously acknowledged that the Russians ‘stole the show’.

As for our track record in Russia, we made our first performance at MAKS 2005 and at INTERPOLITEX 2005 where Rashid Nurgaliyev, Interior Minister of Russia, approached us. By that time, the Interior Ministry was already committed to start applying UAVs due to their exceptional efficiency and low cost. My answers to his questions at INTERPOLITEX convinced him to realize this potential and, thanks to the poignancy of the Interior Minister, his Ministry very quickly became the most advanced on the Russian market due to their special involvement in cooperation with this industry. Moreover, this will benefit the Ministry of Defense and other related authorities. During the G8 summit 2006 in Saint-Petersburg, ZALA AERO was the first company in Russia to use UAVs to provide monitoring from the sky for the needs of the Interior Ministry of Russia.

ZALA AERO is based in Izhevsk, a famous Russian city with strong military production. We are a fully autonomous company, which is key for our successful development. Out of our entire production chain, we only outsource chips and modules.

Creation of such a commercially successful company, it takes a strong and qualified team…

We never needed extra efforts to attract wonderful staff because we are ready to provide the best conditions for the best professionals. Again, this business is very specific. In our case, we based this business with private investments that we applied to support our team. We could not predict the final result, though, however we realized that this direction would be very successful because in such a quick type of business as ours we knew what it takes to be in the vanguard. It was our highly qualified team that has developed and started production of a few types of UAVs on the basis of a unique automatic control system in 2004.

How would you define your niche on the Russian market?

This is a difficult question. Our main unbeatable argument is that our products are easy to use and exceptionally reliable. Besides, we constantly update our software and process the data that we obtain. Besides, unlike other companies, we can perform up to three flights per day, and it takes us much less time to test our developments as compared to the industrial enterprises.

A lot of companies trying to enter UAV industry are unaware that it requires a lot of time and resources. It has to be literally your passion that you dedicate 20 out of each of your 24 hours. And, besides, you need to know a lot about aviation, avionics, aerodynamics, and it takes ages to grasp it.

You claim you are confident enough on the Russian market. As for the international market that you approach under the banner of A-level air systems, what are your tasks and ambitions?

Currently, we have no global ambitions on the international market because it is too segmented, whereas some countries are Russia’s historical markets. Moreover, ZALA AERO has to coordinate its international policy with the Federal Service for Military and Technical Cooperation. If Russia wants to expand on certain markets, we have a lot to contribute with. Besides, the volume of the Russian market is huge enough.

Is A-level air systems your specific brand?

We have introduced it in order to break away from the traditional UAV abbreviation that we find too generic.

Speaking about your products and their wide application across different industries, one of the most attractive markets is oil and gas sector where ZALA AERO has been present for four years. Concerning your products, what industry seems most attractive?

As a matter of fact, we are flexible enough to perform customized solutions. The potential of each market is unpredictable and it changes every year. Moreover, companies that use piloted systems find it painful to make a transition to unmanned systems. Nevertheless, statistically, 90% of tasks for aviation centers are solved by unmanned aviation (as of 2008).

Some of our biggest clients are the Interior Ministry of Russia, Gazprom, Emergency Situations Ministry of Russia, The Antiterrorist Centre, Fisheries Agency, Forestry Agency, Rosatom and Russian Railways. We also cooperate with Gazprom Space Systems, a Gazprom subsidiary. In fact, this direction has a very high potential because the monopolies are very interested in implementing new technologies. For instance, Russian Railways have introduced new LED lamps in their express trains. As they train most of their young management in international Universities and knowledge centers, they are used to closely monitor all the new technologies.

Is there any competition presented by foreign manufacturers on the domestic market?

Our main argument is a significantly lower cost of products and a reliability that is as high as that of the U.S. and Israel, some of the strongest international players in this industry. But it is important to remember that this market is so specific that I know no other business with equally intensive development.

Company:	ZALA AERO - ЗАЛА АЭРО
Position:	Director General
Country:	Russian Federation