newstodate.aero
Dec 22, 2006 (newstodate): Russian negotiators in TWO talks have bargained for a seven-year grace period to end Russian taxation of imported commercial aircraft.
Taxes and VAT on imported western aircraft run up to almost 50 percent of the aircraft price as a means to protect the Russian aircraft industry that has, however, been able to produce only 10 new commercial aircraft in 2006.
As Russia's airlines are in dire need for new aircraft and cannot in most cases afford to buy new aircraft, carriers are left with only two options: either to acquire second-hand western aircraft, or to operate aircraft with foreign registration on a lease basis.
Taxes and VAT on imported western aircraft run up to almost 50 percent of the aircraft price as a means to protect the Russian aircraft industry that has, however, been able to produce only 10 new commercial aircraft in 2006.
As Russia's airlines are in dire need for new aircraft and cannot in most cases afford to buy new aircraft, carriers are left with only two options: either to acquire second-hand western aircraft, or to operate aircraft with foreign registration on a lease basis.