Country's restrictions could soon be eased, leading to further orders from airlines with fleet modernisation plans

Western airframers expect an end to Russia's import restrictions and taxes in the near future, leading to further orders from airlines keen to modernise their fleets.

Airbus says it has around 50 orders awaiting a change in the law, while Boeing is anxious to promote the 7E7.

All foreign-manufactured aircraft are subject to a 20% import tax, on top of which the value-added tax of 20% is levied.

Airbus general director for Russia Igor Bocharov says the company has received letters of intent from KrasAir and Siberian Airlines as well as government airlines for A320-family aircraft ahead of strict European Union stage four noise rules being implemented in 2006.

Siberian operates A320s on wet lease from Armenian carrier Armavia. "Russian aircraft that can meet the demands of the market, such as the Tupolev Tu-334 and MS-21, will not be available in time, so the airlines will face a problem," says Bocharov. Airbus estimates there is a need for 100 aircraft with 100-150 seats over the next seven years.

The Russian government granted flag carrier Aeroflot a "temporary exemption" from the import charges for its acquisition of A320 family aircraft. The first of 18 will be delivered in October. Aeroflot is finalising its fleet mix before a meeting in September and is expected to include A321s.

Boeing vice-president sales for Russia and the CIS, Craig Jones, says: "It is a matter of 'when', not 'if' import taxes will be lifted. There is no doubt of the requirement for new aircraft in Russia and, if something doesn't happen soon, the Russian market will go to foreign carriers, compliant with European noise rules."

Dmitri Zaitsev, Lufthansa Technik's regional director Russia and the CIS says: "Russian industry is not capable of meeting the demand for 6% growth in the timeframe required."

Airbus and Boeing, while insisting that the issue is "internal", are stressing their industrial co-operation with Russian industry. Boeing's Moscow technical research centre has carried out around one-third of the design work for the 7E7, while floor components for the Airbus A380 are to be supplied by Kaskol, subject to plant certification.

Source: Flight International