Russia aerospace industry needs consolidation: Ilyushin chief
12/04/2004 at 14:17:34
Date line: MOSCOW
A single Russian aerospace company must be built if the sector is to survive in Russia, the head of Russian aircraft maker Ilyushin said Monday.
Victor Livanov told a press conference consolidation was needed in order to “ensure the future” of the industry in Russia, adding that “if we don’t it will disappear”.
He said consolidation in the Russia aerospace industry could also include firms in other former Soviet countries, particularly the Ukraine and Uzbekistan.
Russia should follow the example of Boeing in the United States or the European Aerospace, Defence and Space Company (EADS) in Europe, but “political will” was needed for that, Livanov said.
Plans for consolidation in the Russian aerospace sector have circulated for about four years and have been approved in principle by President Vladimir Putin, although no real progress has been made.
There are currently six Russian aircraft makers. Livanov said “this competition has a horrible effect on the industry” because domestic demand was too limited.
Domestic competition was also hurting the industry’s prospects abroad, with several Russian firms pitted against each other to build aircraft for the same market.
He pointed to the example of a joint project between MiG and Tupolev’s regional 102-seat plane, the Tu-334, competing with a venture between Boeing and Sukhoi and Ilyushin who are also building a regional aircraft which is supposed to hit the market in 2007.
Livanov said that if a single Russian aerospace group were to emerge the government should hold onto a 25-percent stake plus one share.
Alexander Lebedev, a member of parlement who has sat on the boards of several aerospace firms, told the press conference that Russia should have a state-controlled leasing firm which would allow Russian airlines to modernise their fleets with Russian aircraft.
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whether it happens or not is another thing
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April 13, 2004 at 8:39 pm