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Economic Analysis: Theory and Practice
 

A high mission of general aviation

Vol. 15, Iss. 3, MARCH 2016

PDF  Article PDF Version

Received: 10 November 2015

Received in revised form: 21 November 2015

Accepted: 5 February 2016

Available online: 29 March 2016

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: G34, L19, L93, O33, O57

Pages: 4-16

Sobolev L.B. Moscow Aviation Institute (National Research University), Moscow, Russian Federation
sobolevLB@yandex.ru

Importance The small aircraft segment of Russia is on the wane. Meanwhile, in many countries, income from small aircraft manufacturing and servicing is considerably higher as compared to large and military aviation, not to mention employment opportunities.
Objectives The aim of the study is to find feasible solutions to revive the small aircraft production in Russia.
Methods The study draws upon the comparative analysis of operations of global small aircraft producers.
Results The analysis shows that they may be divided into three groups: large conglomerates, specialized companies producing a wide range of products, and small and medium-sized manufacturers. The study includes case studies demonstrating the directions where success in small aircraft business revival has already been achieved.
Conclusions and Relevance For United Aircraft Corporation, its involvement in the problems of small aircraft is an opportunity to diversify production and generate additional income, to get experience in designing and manufacturing for innovators, and to load idling production facilities. The successful cooperation of Rostec Corporation with Diamond Aircraft Industries, an Austrian company, is the second direction. The support to small domestic aviation companies (the Technoavia case) and cooperation with higher aviation schools and research institutes is the third direction. The fourth direction is the diversification of commodity and metallurgical corporations through the purchase of assets of small aircraft (the purchase of Aircraft Industries, a small Czech company, by the Ural Mining and Metallurgical Company).

Keywords: small aircraft, general purpose aviation, business aviation, diversification, conglomeration

References:

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