The Russian government is considering proposals from domestic industry and airlines to immediately scrap the country’s 40% tariff on imported aircraft in exchange for a commitment to buy local aircraft later, and also encourage foreign manufacturers to bring more work to Russia.

The proposal has been made by Valeri Bezverkhny, head of Russia’s emergent OAK, or United Aircraft holding company.

Airbus A320

Russian carriers are complaining that the 50% rise in kerosene prices since 2004 has made the lack of fuel efficiency of the older Soviet-built aircraft in their fleets an even more pressing issue. Only Aeroflot and Transaero have mostly Western-built fleets.

Many within the industry fear that unless the import ban is lifted, few Russian carriers will survive and the industry will collapse in the face of foreign competition.

Deputy transport minister Alexander Misharin says: “For Russian carriers to maintain their competitiveness, it is essential to modernise their fleets with aircraft like those in Western firms. The government should devise a solution to this problem this year.”

Details of the initiative are likely to be thrashed out by 16 August in time for the MAKS air show in Moscow, Bezverkhny says.

A deal is likely to involve immediate scrapping of tariffs in exchange for a commitment to buy domestically produced modern 100-seat regional designs – principally the Sukhoi RRJ – when production is up and running, which is planned for 2007.

“If we do not lift the duties for Western jets, we will not be able to sell the RRJ overseas,” he says.

Part of the deal to lift tariffs would also probably involve increased Russian workshare in producing Western aircraft in Russia. This has been picking up recently, but remains limited.

Boeing and EADS have invested in Russia, with subcomponent production and design work.

HOWARD GETHIN/MOSCOW

Source: Flight International