[170813.EN.AIR] Russia Approves US$9.5 Billion Aviation Programme For 2013-2015

RUSSIA is to invest RUB308.8 billion (US$9.5 billion) in its aviation sector over a three-year period from 2013 to 2015 to be more competitive in the international market.

Its investment during 2013 will amount to RUB78.3 billion, RUB107 billion in 2014 and RUB123.5 billion in 2015 with additional sources of funding to include two special federal programmes, as approved by Prime Minister Dmitry Medvedev who ordered the construction of an aircraft manufacturing plant in Kazan in June.

Central Aerohydrodynamic Institute spokesman Yuriy Zaharchenko said Russia's accession to the WTO means government can now directly finance producers of the aviation industry.

It is "most likely United Aircraft Corporation will start to pay for superjets", and kickstart the realisation of the Irkut MS-21 (a series of three twin-engine short-range and mid-range Russian jet airliners) and a range of Aircraft-2020, he added, cited a report from London-based BRICS Post.

The aviation programme will support Russia's domestic travel sector which is ripe for potential with many destinations still only reachable via Moscow. State carrier Aeroflot plans to start a low-cost unit in 2014 to tie in with the government initiative.

According to the government, the investment will triple output of the country's aviation manufacturing in the international market, both civil and military.

Source : HKSG.