Putin'den Yerli Havacılık Sanayisine Geliştirme Toplantısı

Meeting on the development of the domestic aviation industry

The President held a meeting on the development of the domestic aviation industry at the Gromov Flight Research Institute. The meeting was attended by First Deputy Prime Minister Denis Manturov, Deputy Prime Minister Vitaly Savelyev, Deputy Prime Minister – Presidential Plenipotentiary Envoy to the Far Eastern Federal District Yury Trutnev, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Minister of Industry and Trade Anton Alikhanov, Minister of Transport Andrei Nikitin, Minister of Economic Development Maxim Reshetnikov, Finance Minister Anton Siluanov, Central Bank Governor Elvira Nabiullina, Head of the Republic of Tatarstan Rustam Minnikhanov, Head of the Federal Air Transport Agency Dmitry Yadrov, Chairman of the Management Board and CEO of Aeroflot – Russian Airlines Sergei Alexandrovsky, Scientific Director of the National Research Centre Zhukovsky Institute Boris Alyoshin, CEO of United Aircraft Corporation Vadim Badekha, President and Chairman of the Management Board of Sberbank German Gref, CEO of the National Research Centre Zhukovsky Institute Andrei Dutov, S7 Group shareholder Vladislav Filyov, Rostec CEO Sergei Chemezov, and Chairman of the State Development Corporation VEB.RF Igor Shuvalov. * * * President of Russia Vladimir Putin: Colleagues, good afternoon. Today’s agenda covers civil aviation development. We will discuss the air transport sector and the aircraft manufacturing. I would like to emphasise once again that, for Russia, the aviation industry is, as we all understand, of particular importance. The state of this sector directly affects transport connectivity of the regions across our vast country, and the speed and convenience of travel. What is crucial is the ability to independently produce the full range of military and civilian aircraft. This is a key indicator of the country’s technological, scientific and industrial sovereignty. Indeed, just a few countries possess such unique competencies, and Russia is one of them. My colleagues have just made the point that even highly developed nations – those with long-standing traditions and impressive aircraft manufacturing records – continue to benefit from broad international collaboration. For a variety of reasons, chiefly sanctions pressure, the landscape here has shifted. Russia was compelled to pursue a policy of full import substitution, and has demonstrably risen to that challenge. Moreover, looking at the technology that has just been showcased, it is clear that in several areas we have not only matched the best global benchmarks, but in certain components have even surpassed Western standards. What is particularly striking and deeply encouraging, as I am told by test pilots currently flying these aircraft, is that many of these designs are being led by remarkably young engineering and design teams, with an average age of 32 to 35. That is a very heartening sign, and it bodes well for the continued vitality and strengthening of our engineering and design schools. Furthermore, Russia is one of only four countries worldwide capable of maintaining the full production cycle for aircraft engines – a significant indicator of our capability in its own right. That said, I would add that we must now accelerate the pace and scale of delivery. That much is self-evident. Nevertheless, the fact that we have reached this point is already a considerable achievement. And, as one of the senior aviators and test pilots I spoke with earlier put it – and I have heard this refrain since 2014 in agriculture, and now increasingly in aircraft manufacturing – how good it would be, he said, if the sanctions were not lifted soon. His reasoning was that they have created a market for domestically produced goods, which in turn has allowed us to rebuild – or rather, to revive and reinforce – our engineering schools. The existence of that market provides the essential platform for further development. In that context, it is clearly vital that we build on our existing competencies and continue to strengthen our technological sovereignty in this sector. Let me also recall that Russian carriers and manufacturers were among the first to feel the effects of the sanctions I referenced earlier, as well as the broader attempts by a number of unfriendly governments to isolate Russia economically. In particular, they faced breaches of supply and maintenance obligations for aircraft, together with restrictions on international flight operations. I vividly remember when the MS-21 ran into issues with its wing. Unfortunately, that pushed the entire programme back by almost two years. However, Rosatom, a Russian company, managed to overcome this challenge. Notably, it backfired on those who imposed the restrictions, primarily airlines, and to some extent manufacturers. After all, we used to purchase this equipment from them in large quantities. We discussed his issue back in 2022 and adopted a number of urgent measures, such as instructions to support our airlines, ensure their stable and regular operations, and guarantee the affordability and accessibility of air transport for passengers. Overall, those tasks were fulfilled. At the same time, given the circumstances, we need to consider further steps to improve civil aviation. Today, demand for air travel on domestic and international routes from passengers and economic agents is on the rise. The demand is soaring. The state, airlines, and the aviation industry must create proper conditions for increasing passenger traffic and improving safety and comfort of flights. Cargo transport should not be overlooked either. Working to achieve our national development goals, we agreed to significantly increase the population’s air mobility. However, there is risk that the targets for passenger air traffic volumes set by the Government may not be achieved. I would like the Ministry of Transport to report today on the updated forecasts for passenger traffic, as well as to outline additional measures to be taken to fully meet the demand for air travel. Of course, the key and most important condition for achieving this goal is to increase the supply of modern domestically produced aircraft, which I mentioned at the beginning of this meeting. There is no doubt that, through the joint efforts of the state, aircraft manufacturers, and airlines, we will do everything necessary to ensure that Russian carriers operate mainly domestically produced aircraft. To this end, based on the actual demand for air transport, we need to determine the projected requirements for the aircraft fleet of Russian airlines. Please report these parameters to me today. In fact, we are talking about a massive long-term order that should keep aircraft manufacturing plants, their suppliers, and contractors fully occupied, and about a significant increase in the production of domestic aircraft and the development of new aircraft line-ups. Importantly, the order system must be structured with the coordinating role of the Ministry of Transport, the Ministry of Industry and Trade, and the airlines. Of course, Russian manufacturers are facing a very challenging task. Domestic aircraft must compete – and not merely compete, but compete successfully – with foreign aircraft in terms of quality, reliability, and technical performance. We certainly possess such potential and have a number of promising aircraft models. These include the medium-range Yakovlev MC-21, now equipped with its own domestic engine, the new Sukhoi Superjet for short-haul routes, and, of course, the Ilyushin Il-114–300 designed for regional flights. As you may recall, we initially developed the Superjet together with our partners from Italy and France. They withdrew from the project, and we replaced all the foreign components. Moreover, pilots are now telling me that we have not simply reproduced what was previously done together with our partners – we have improved it and enhanced its performance characteristics. This is very encouraging. As I mentioned, we have just inspected these aircraft, and their quality is very high and highly respectable. Significant investments have already been made in the development of these and other models. These investments must now be translated into concrete results, enabling manufacturers to operate steadily, continue improving the technical characteristics of their aircraft, and ensure their price competitiveness. One of the key issues here is how cooperation is organised in such areas as engines, components, and materials. We will discuss these matters today as well. I know that the government has prepared a financial model for the upcoming work, including the activities of airlines, leasing companies, financial institutions, and aircraft manufacturers. Let us examine these issues in detail. In conclusion, I would like to draw the attention of the leaders of aircraft manufacturing enterprises, as well as their suppliers and related companies, to the following: we have provided support to the aviation industry, and we will continue to support it in the future. However, personal responsibility and high standards with regard to results, deadlines, and quality will always remain essential requirements for the management. Let us get down to work. Please, begin, Mr Alikhanov.