Anastasia Dagaeva
Will charges for foreign aircraft be abolished?
Prime Minister Vladimir Putin warned domestic aircraft makers that duties on all civil aircraft imports could be abolished if the Russian industry "acts too slowly".
Yesterday, Mr Putin visited Aviastar-SP aircraft factory in Ulyanovsk, which manufactures Tupolev Tu-204 passenger airliners and has around 75% of its shares in the UAC ownership. The visit began with an excursion, as usual. Nina Yerakhtina, head of the Trade Union Committee, expressed optimism, saying: "The [aircraft] industry is reviving." "Not too fast," Mr Putin replied temperately.
At the beginning of the meeting, which was attended by Deputy Prime Minister Sergei Ivanov, UAC president Alexei Fyodorov, Economic Development Minister Elvira Nabiullina, and others, Mr Putin pointed out the sources of his discontent.
Russia's aircraft industry has just begun to overcome the system-wide crisis, with only six aircraft manufactured in 2007, and 15 expected to be made this year, Mr Putin noted. There's a positive trend, but the current output will not enable the country to influence the global market. As of the end of 2007, Airbus and Boeing had sold 453 and 441 planes, respectively.
Mr Putin reported that he has often been told that the 20% import duties should be abolished for all foreign-made civil aircraft, as Russian airline carriers experience a shortage of aircraft, with only planes with a capacity below 19 seats and over 300 exempt from import duties. "I will leave this possibility open, in case our aircraft manufacturers act too slowly," the Prime Minister remarked.
In autumn, measures will be conceived to ensure import tariff abolition for a pre-determined number of certain types of foreign-made aircrafts, Ms Nabiullina said after the meeting. These measures mainly concern the most marketable medium-haul passenger airliners, equivalent to the Russian Tupolev Tu-154s and Tu-204s, with a seating capacity between 150 and 200 and a range between 4,000 km and 4,500 km. The Minister did not elaborate, however, on when and for what term this scheme would be introduced. Starting January 1, 2009, planes with a capacity of up to 50 seats are expected to be exempt from import duties for nine months, Ms Nabiullina said. She is against full abolishment of import duties, as it would lead to airline carriers completely re-equipping their fleets with foreign-made aircraft and losing interest in planes of domestic origin.
The UAC president is not worried by the possible duties abolishment, saying that his company will be able to compete with foreign products.
The UAC's plans to manufacture civil aircraft are partially being hindered by engine shortages, Mr Putin admitted. The Government is therefore ready to consider abolishing import duties on air engines and other elements if the domestic industry fails to launch production of up-to-date and affordable equivalents, the Prime Minister disclosed.
Mr Putin's Criterion
The UAC's efficiency criterion should be not the quantity of aircraft mock-ups, prototypes or tests, but the number of serial airliners sold, Mr Putin stated. "It's high time we stopped saying that we are ready to manufacture almost anything," the Prime Minister insisted. The product line for the industry has already been determined and includes the modernised Tu-204, MS-21 and the regional medium-haul airliner, Sukhoi Superjet 100.