Russia to spend over $177 billion on aviation in next decade

[News_Editor]

Russia to spend over $177 billion on aviation in next decade

2011-04-02 02:44:31 GMT+7 (ICT)

GORKI, RUSSIA (BNO NEWS) -- Russian President Dmitry Medvedev on Friday announced that the government will spend over $177 billion (over 3 trillion rubles) on aviation within the next ten years.

"The federal budget will allocate over 5 trillion rubles for aviation before 2020. This is ten times more than the amount put into the sector over the last decade," said Medvedev during a meeting on long-term state policy in the aviation sector.

The funding will be allocated mostly from within the state armament program. In addition, funds will be granted from other six programs. Medvedev called for using the monetary resources efficiently.

The Russian leader also delivered the main outlines for development efforts in the aviation sector over the coming years. The main tasks will be modernizing airport infrastructure, upgrading civil aviation fleets, raising the quality of air transport services, and building up the country's military aviation capability.

According to official data, passenger traffic increased by an average 10 percent a year over 2000-2010 in Russia while freight traffic doubled over the same period. It is estimated that this trend will continue in the coming years.

Medveded added that $16.62 billion (470 billion rubles) of federal budget will be allocated for modernizing of civil aviation airports and upgrading the unified air traffic management system, including facilities in Moscow, Sochi, Vladikavkaz, Kazan, and on the Kuril Islands.

The second task considered in this budget is the upgrading of the civil aviation fleet. Russia's passenger planes flying the main routes have an average age of 17 years while regional aircraft have up to 30 years of age.

"We need to improve the quality of the aircraft we produce and develop the most promising and advanced models," added Medvedev. "We need above all to modernize the aircraft manufacturing sector and encourage innovative development through new designs and closer cooperation with partner."

In regards to military aviation, the Russian President instructed the Defense Ministry to establish several aviation bases that take into account deployment needs and will improve the existing aviation groups' combat capabilities, including drones.

"It is important for Russia to develop its aviation sector. This is a key condition for making our economy more competitive," concluded President Medvedev.

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