DEPUTY TRANSPORT MINISTER ON RUSSIAN AIRCRAFT INDUSTRY'S PROBLEMS

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MOSCOW, October 19 (RIA Novosti) -- Russia has been granted a three-year reprieve from fines for its companies flying old aircraft in the European Union. However, the country is not immune from such fines in the future. In a Nezavisimaya Gazeta interview, Deputy Transport Minister Sergei Aristov said the nation's aircraft industry was highly unlikely to fulfil ICAO (International Civil Aviation Organization) requirements before the end of the year.

According to him, EU demands to the effect that Russia upgrade its aircraft engines are quite justified. However, no well-substantiated evidence of their negative environmental impact has been produced. "The environmental issue is being used to oust rival companies from the European market," Mr. Aristov noted.

Russian airlines are trying to buy Western planes, while the Russian aircraft industry wants to sell its products elsewhere, Mr. Aristov noted. "Obviously, just like any other country, we should guarantee the nation's priority in this field if we want to remain a global air power," Mr. Aristov stressed. However, Russia has curtailed aircraft production at this stage. "We clearly can't compete with major international aircraft companies, including European ones," the deputy minister noted. He added that the main measures to protect the aviation industry should be state support for producers. In his opinion, leasing plans and state guarantees, rather than financial programs alone, could be applied. However, anti-trust laws and norms mean that principles of economic competition and the market will not be endangered.

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