RUSSIAN AVIATION IN HIGH SPIRITS DESPITE CRISIS, Focus Communication
Release Date: 2009-03-28
Building, flying, working for planes is not for the faint of heart, especially when demand for flights and aircraft drops alongside the value of your national currency, while prices of commodities sky-rocket, credit crunches and your piers calling to check how you are doing; something they never bothered doing in times of plenty. The Russian aviation received a thorough review during the second annual conference AVIAFORUM, held last 27th of March in Moscow, where as many as 100 leaders across the industry, from State officials, regional governors to company owners and aviation specialists – animatedly debated the state of the industry before and during the current economic crisis.For some, this crisis might be just what the doctor prescribed; a much needed opportunity to reinvent their industry and hit the ground running. As Alexander Fedorov, head of Russia’s State conglomerate of manufacturers UAC (United Aircraft Constructors), put it; “We regard this crisis as a starting point for further growth; the start of the crisis coincided with our initially low profile, so we have nowhere to fall anyway, and, similarly, our growth will coincide with the end of the global crisis and growth in cargo and passenger transport.” UAC plans to launch its brand new products – such as the regional jet SSJ100 - and even go public before 2015. From then on, Fedorov forecast “sustainable growth,” as long as he gets the 150 billion rubles from the State coffers he needs for production and development.
Not everybody was as optimistic. Sergey Morozov, Governor of the Ulyanovsk region, home to one of the country’s aviation complexes, was apocalyptic in his pledge for more State support for the industry. “If nothing is done, there is no future for new hi-tech projects in civil aviation. Avionics enterprises cannot implement their unique innovation projects because their financial opportunities don’t allow it and the State is doing nothing, the same happens with civil aircraft construction,” he said.
The role of the State and the actions of its current Government vis-a-vis the crisis were subject to thorough examination. Vladimir Chertok, the Head of the Federal Agency for Air Transport (Rosaviation), reassured the airlines that the Russian Government was considering prolonging subsidies, introduced by decree last December 20th and went on to enumerate other stimuli offered to date. But these actions were evaluated by the head of regional private airline UTair. A. Martirosov as “the regulator took measures to provide State guarantees; unfortunately, actions were partial, but it is a viable instrument to increase lending resources.”
With the State expanding its presence in a so-called ‘strategic” industry, born - and burnt - from the ashes of the once mighty Soviet aviation, some are vocal in their quest for the creation of a market environment to guarantee survival and development.
Russian millionaire and politician, and owner of national airline Aeroflot, Alexander Lebedev, made again his case: “Until companies with State participation become transparent and comply with world standards, it will not be possible to consolidate anything. To make a professional consolidation, the State should be a regulator and not the owner… The first thing to clarify is the role of the State. “
As the conference drew to a close, the priorities seemed clear for all camps: securing cash flow; adapting demand and supply, and an improving the tax regime to make the big Russian bird flap its wings yet again.
AviaForum was organized by Russian Daily, Vedomosti, from the Financial Times group. Focus Communication, B2B specialist and publisher of www.RussianAvia.net, participated as media partner of the event.
| Type: | NORMAL |
| Company: | Focus Communication |
| Country: | Russian Federation |