Reforming the Russian aviation industry

This paper discusses the question of whether the Russian aviation industry has restructured sufficiently to create a position for itself as a supplier of aircraft. It describes the collapse of the market for aeroplanes in Russia which wiped away domestic demand for airplanes and discusses the policies of privatisation and restructuring of the industry. The results are of a mixed nature. On the one hand, a deep restructuring has been avoided only to become more pressing. On the other hand, firms have shown great creativity in surviving and the Putin government pursues a process of further concentration and consolidation.