Growth continues during downturn
While the near-term economics are slowing, some countries in the region are still showing solid GDP growth. The long-term outlook for the region's economy remains strong, with GDP forecast to grow 3.7 percent per year, slightly ahead of the 3.1 percent world average for the next 20 years.
To accommodate the region's economic growth, Russia and Central Asia will need a fleet of 1,570 airplanes by 2028. The region will take delivery of 1,050 new airplanes to reach that total. New deliveries will account for 67 percent of the 2028 fleet. Boeing market share in the region has grown to 24 percent from 4 percent in 2000.
Liberalization advances
Russia has reinstated third-country codeshare permission for U.S. airlines, which was discontinued in the mid 1990s. U.S. airlines can implement up to eight codeshare operations, two of which are reserved for freight. In Russia, aircraft taxes and duties are being temporarily reduced or even lifted altogether. Import duties on regional jets under 50 seats were suspended for nine months. For the 115- to 160-seat category, duties are suspended for five years. For airplanes in the over-300-seat category, duties are suspended with no expiration date at this time. Duties on engines and components for the under-50-seat category also have been removed temporarily.
Infrastructure and aviation services
Larger fleets and expanded operations are driving enhancements to infrastructure and aviation services. S7 Airlines is installing two 737 simulators and a procedural trainer near Moscow Domodedovo Airport. Ukraine International Airlines has received regulatory approval to open in-house training facilities for their 737 fleet. In 2008, Belarus, along with IteraVnukovo, announced plans for a new maintenance, repair and overhaul (MRO) center in Minsk, offering maintenance service for western-built aircraft. Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan have agreed to establish a joint aeronautical agency to enhance air traffic management and safety in their airspace. Moldova has received 25.5 million Euros from the European Bank of Reconstruction and Development (EBRD) to modernize Chisinau International Airport.
