Russian Prime Minister Vladimir Putin (center) tours the Ulyanovsk Higher Aviation School, September 9, 2008.
Photo: Vasily Shaposhnikov
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Putin Keeps Aviation on Its Toes
Russian Prime Minister Vladimir Putin held a session dedicated to the civil aviation industry yesterday in Ulyanovsk. Deputy Prime Minister Sergey Ivanov and Minister of Economic Development Elvira Nabiullina were also present. The aviation industry was represented by United Aircraft Corp. head Alexey Fedorov, Sukhoi head Mikhail Pogosyan and Aeroflot head Valery Okulov.
The cancellation of the 20-percent duty on the import of foreign aircraft was expected to be discussed. Planes carrying less than 19 or more than 300 passengers have already been exempted from the duty. Nabiullina announced yesterday that the exemption would be extended to planes with a capacity of up to 50 passengers beginning next year. She made it clear that she opposed complete repeal of the duty, however.
Putin began his address with the same issue. He was cautious in his attitude toward lowering the duty, but noted the delays that plague the Russian aircraft industry. The prime minister noted that shortages of parts are partially to blame for the holdups, as Fedorov had pointed out in his report. Fedorov also mention the noncompetitive prices of Russian products.
Fedorov asked for financial support for the industry. He said that his corporation would operate in the red until 2012. After the meeting, Deputy Minister of Industry and Trade Denis Manturov told Kommersant that changes would be made to the budget to provide 2 billion rubles to subsidize credits.
Analysts consider the outcome of the meeting a victory for the aircraft industry over regional airlines. They say, however, that a compromise will have to be found eventually. Otherwise, Russian airlines will become uncompetitive and charge their passengers overprices fares.
www.kommersant.com
All the Article in Russian as of Sep. 10, 2008
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