The Ukrainian government intends to speed up the adoption of an aviation industry development program designed to run until 2020, which will foresee the corporatization of aircraft enterprises in order to improve their competitiveness, First Deputy Prime Minister and Minister of Economic Development and Trade Andriy Kliuyev said in an interview with Interfax-Ukraine.
"There are orders from the president and the prime minister regarding the corporatization of the entire industry. We should make its operation more efficient and create proper, civilized market-based conditions of work," he said.
Kliuyev said he expects that the program will be adopted within a month.
"Of course, we will require an increase in government support for aircraft engineering," the first deputy premier added.
He said Ukraine had missed the right time for the corporatization of the aviation industry.
"We went on this path as early as in 2006, [by] creating the Antonov Concern. But then, in 2007, early elections were forced, the government was changed and the launched work was stopped. Now we have to start anew," Kliuyev said.
The first vice premier added that the government would also carry out debt restructuring in aviation industry. He said the government wanted to attract private capital into the industry.
"But I doubt that any private company could afford such volumes. Take Airbus, for instance, virtually all EU member states have united their enterprises into the corporation," he added.
According to him, the law on public procurement should be also changed, because the state-owned enterprises, even after actually receiving orders, have to execute the contracts very slowly because of the complexity of the procedures.
Commenting on the establishment of a joint venture between Ukraine’s Antonov state aircraft manufacturing concern and Russia’s OJSC United Aircraft Corporation (UAC), he explained that the slight delay in this process was due to lengthy internal procedures.
"In fact, they have been already completed, and this joint venture will start working in time," the first vice premier said.
He said Ukraine cannot implement by itself such projects as resuming the production of the An-124 transport aircraft.
"Resumption of its production is only possible together [with Russia]. It will require significant financial resources," Kliuyev said.
On the whole, he noted that aircraft manufacturers have many problems, but none were insoluble.
Russia’s United Aircraft Corporation (UAC) and Antonov state concern signed an agreement in October 2010 for forming a joint venture on a parity basis using UAC Civil Aircraft as a base.
The joint venture will coordinate aviation industry programs in Ukraine and Russia and work on marketing and after-sale services.
It will also draft proposals on further integration of the aviation industries of the two countries.
The agreement doesn’t envisage contributing tangible or intangible assets into the joint venture.
The Antonov state aircraft manufacturing concern, created in 2008, includes the Antonov State Enterprise, Antonov Serial Plant (formerly Aviant), 410th Civil Aviation Plant (all in Kyiv) and Kharkiv State Aircraft Manufacturing Company.
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