8/12/07

Restructuring of Russian Aviation Industry

Created in February 2006 and officially registered in November of the same year, the United Aircraft Building Corporation (UABC) is a reform of the Russian aviation industry currently focused on resurrecting the collapsed civilian airliner industry in Russia. Encompassing nearly every major "player" in the industry, its effects on military production and export haven't been clearly defined yet, but can be expected to be significant.

A brief overview of the company is available on wikipedia (English).

A more detailed description is available in Russian on realeconomy.ru (official government information portal for issues on development of industry, transportation and technology).

A quote:

"As a result of the work conducted [on determining the demand for aircraft produced by member companies of UABC in the domestic and international markets], a plan for aircraft production was developed and confirmed for the 2008-2012 period, including the Il-96 family - 15 units, Tu-204/214 - 84 units, SSJ-100/Tu-334 - 236 units, as well as An-148 - 96 units."

The move has come under considerable criticism of centralization and monopolization. The English-language opinion piece by RIA News on 2/9/07 weights both sides of the argument.

It should be noted that similar reforms are under way for the ship-building industry and the atomic energy industry.