Russia's Government is expected to cancel high customs duties on imported components for all foreign aircraft types in a further step towards easing a severe capacity shortage.

An ad hoc joint advisory panel, representing the ministries of transportation and economic development, has recommended introducing a blanket tax-free regime for purchases of material for repairing Western-built equipment. The cabinet should make a final decision about the matter during its meeting next week.

If the proposal is approved, local maintenance providers and an increasing number of foreign aircraft operators would be capable of saving up to 20% in related maintenance costs and cut the time needed for clearance procedures by up to two weeks.

Russian low-cost carrier SkyExpress, which uses nine leased Boeing 737s, says that maintaining each of them currently sets it back around $300,000 plus $200,000 in the form of a guarantee deposit.

Skyexpress 737 
 © Skyexpress

In 2007, the Government halved customs duties on passenger aircraft with cabin capacity below 19 seats and eliminated them for those accommodating more than 300 passengers, until the end of this year.

Transportation minister Igor Levitin says Russian airlines particularly need foreign-built jets in the mainstream 50- to 250-seat segment, given the lack of types produced by domestic manufacturers.

Source: Air Transport Intelligence news

Source: Flight International