Rostec works on ways to bring UAC, aviation sector out of crisis

MOSCOW, Oct 2 (PRIME) -- Russian state industrial corporation Rostec has sent a list of proposals to the government on financial recovery of United Aircraft Corporation (UAC) and ways to bring the national aviation industry out of a crisis, a spokesperson for Rostec told PRIME on Wednesday.

“Taking into account the real economic situation in UAC, we’ve sent the most objective depiction of it to the federal authorities together with a list of proposals aimed at improvement of the financial health of the company and at bringing the national aviation industry out of a crisis. These solutions are not finalized, they only contain scenarios that the government has to consider in order to decide on a further strategy,” the spokesperson said.

UAC’s key problem is labor productivity, which is seven to 10 times lower as compared with the industry leaders like Boeing and Airbus. Rostec’s proposals are also aimed at reduction of operating costs, optimization of excessive capacities, stuff cuts, mainly managerial positions, restructuring of UAC’s critical debt, and stimulation of demand in the civil aviation segment, the person said.

One of the options includes creation of an airline that should become one of the key consumers of Russia-made planes.

“Future successes of the government in the sphere depend on the measures it will take, and the level of competitiveness of our aviation industry on the Russian and foreign markets depends on its as well,? the spokesperson said.

“We will be able to comment on specific steps as soon as corresponding decisions are approved at the level of the state.”

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