MOSCOW. April 17 (Interfax-AVN) - Viktor Livanov, the director general of the Ilyushin Aircraft Corporation, believes that Russia ought to raise import duties for Western-made aircraft.
"We do not fear competition, but conditions must be fair. Boeing and Airbus aircraft imported to Russia are exempt from VAT and customs duties, while airplanes manufactured in Russia are not exempt from VAT," Livanov said in an interview published in Izvestia on Thursday.
Due to a drop in passenger traffic after the September 11, 2001 terrorist attack, airlines have many redundant planes aging seven to ten years. "The West offers these planes at low leasing rates, and Russian companies find themselves under unequal economic conditions," Livanov noted.
"If it is impossible to exempt Russian-made craft from VAT, we ask the government to spare us customs duties on the Western- made parts that Russia must import," Livanov said.
The aviation industry needs to form integrated organizations, he said. "Aircraft manufacturers should unite - we can't make planes alone," he said.