Economic Analysis: Theory and Practice

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Labor productivity and remuneration in aircraft industry

Vol. 18, Iss. 10, OCTOBER 2019

Received: 20 May 2019

Received in revised form: 13 June 2019

Accepted: 18 July 2019

Available online: 30 October 2019


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

Pages: 1881–1893

Sobolev L.B. Moscow Aviation Institute (National Research University) (MAI), Moscow, Russian Federation

Subject The article discusses productivity of labor and remuneration of the world's leading aircraft manufacturers.
Objectives I analyze the labor productivity and competitiveness of Russian aviation companies based on the experience of successful Western companies, trends and forecasts of the global aircraft industry development.
Methods The article employs general scientific methods of analysis, reports of leading airlines.
Results The analysis shows that the gap in labor productivity in the aircraft industry of Russia in relation to Western aerospace corporations is increasing despite significant government investment in the industry, the introduction of information technologies and technical re-equipment of major facilities.
Conclusions The main obstacles to labor productivity growth in the Russian aviation industry is monopolization, weak management, the lack of motivation for productive labor. To meet the domestic demand for air transport service and the development of the civil segment of aviation industry in accordance with global trends, it is important to create a strong civil aviation company that would be attractive for private capital (including international), and competitive suppliers at all levels.

Keywords: labor productivity, aviation industry, revenue, personnel, cost saving


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