Second demonstration in Moscow (310 words)

Published: 2/23/2001

Representatives of the aerospace workforce of Ulyanovsk joined a picket of almost a thousand people from the Russian aerospace industry and Aeroflot at the White House in Moscow on the 22nd of February, as part of the growing campaign to dissuade Aeroflot from making further aircraft acquisitions from foreign makers, with the Boeing and Airbus, not unsurprisingly, singled out for mention on the protests banner and chants. The Aviastar plant remains particularly perturbed by the plans, subsequently denied, for Aeroflot to buy additional Airbuses, although there are plans to operationally lease an another A-320 during 2001. On the basis that the plant believes the Tu-204 is a more than adequate competitor and the Russian state carrier should be buying Russian aircraft. Deputy Prime Minister Ilya Klebanov talked to the crowd and is reported to have assured them that the matter of leasing of domestic aircraft to domestic operators will be discussed at a special session of the Russian Government on the 15th of March with the possibilty of "long term and low interest credits". “Aeroflot will buy Il-96 and Tu-204, and Transaero Tu-214”, commented Klebanov , although added somewhat erroneously, that “purchases of foreign airplanes were justified because older indigenous airplanes were banned from flying to many foreign airports”. The meeting of the 22nd of February, was organized largely by the trade unions at Voronezh VASO and follows the first action on the 18th of February organized by KAPO. The driving elements behind the protest however, appear to be the management of the industry, who are keen to force the government towards the right decision on leasing, which they see as 100% state guarantees on leases and reforms of the tax treatment of leases for those providing finance.Klebanov did indicate that the government may be considering 85% guarantees, but warned that the almost bankrupt companies within the industry should resolve and restructure their tax debts lest they should lose any revenues to seizure by the tax authorities. In the Samara region the trade union federation held a special session on the 22nd of February attended by government officials and senior industry managers complaining that there was insufficient suport for the regions aircraft and engine producers. As part of the wider campaign to put pressure on the government State Duma members also tabled a question of Prime Minister Mikhail Kasyanov asking whether a new sale of Airbus aircraft to Aeroflot is economically and politically justified. Alexander Neradko of the GSGA, despite a withering attack on the PS-90 in the agency's review of 2000, said in a TV interview that his agency would favour airlines operating the new Russian equipment when granting licences. Which could be seen as a direct dig at Aeroflot, which is increasingly using foreign aircraft on its growing domestic routes. In response to the various critisism Aeroflot been fighting a rear guard action arguing that Russian aircraft simply do not meet their needs of high availabilty and efficient operation.

Article ID: 2371