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Red dawn
01 April 2000
Russia’s aviation industry may be on the edge of a modest recovery. Seemingly workable leasing schemes are coming into play after years of slow and, sometimes, non-existent sales.
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[airline]
[Airlines]
[Aviation]
[Aircraft value]
[aircraft lease]
For almost a decade, Russia?s airlines and aircraft-makers have
been moving to and fro in a most vicious circle. Lack of affordable
funds prevented the carriers from buying new equipment to make
profits, to fund future expansion. In turn, the absence of orders
strangled aircraft manufacture almost to zero, stripping production
plants of proceeds and raising the spectre of their outright
dilapidation.
The sad irony is, that while Russian aircraft-makers are starved
of new orders, domestic airlines are desperately in need of new
aircraft. Overall, 500 has been suggested as an adequate fleet
replacement volume over the next 10 years at a minimum cost of $50
billion, assuming the bulk are manufactured domestically.
Today, operating leasing is generally considered a key, if not the
only, condition for reviving the capital investment process in
Russia?s aviation industry and carrying out fleet-renewal plans.
All the more so, given that long-awaited government support in...
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