RUSSIA TO CREATE AIRCRAFT-BUILDING COMPANY

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KAZAN, August 10 (RIA Novosti's Alexander Gavrilenko) - The Russian integrated aircraft-building company will be established by the end of this year, Vladimir Dmitriev, director of the Zhukovski Central Aerohydrodynamic Institute (TsAGI) told the press conference on Tuesday.

It was held within the framework of the International Exhibition and All-Russian Scientific-Practical Conference Aerospace Technologies and Equipment. Kazan-2004, which opened on Tuesday.

"Before coming here I talked to Boris Aleshin, in charge of the Industrial Agency. To all appearances, the integrated united aircraft-building company will be established in the end of the year", Dmitriev said.

"It will create aviation equipment for the civilian and military industry", he said. Work on the company has already begun, Dmitriev added.

As reported before, last February Aleshin said that such a company would take two years to establish.

He said that a principle for alliance between state-run and private companies has been worked out. It is private companies who have the most of assets in the aviation industry, he explained.

At the first stage, an agreement is to be developed on the establishment of a consortium, in which "all the participants will have part". It was planned to set up, later on, a management system of the consortium.

Structurally, the integrated company will be like the Boeing concern, Aleshin said.

One of the key goals in view Aleshin called the optimization of the line of models of Russian aircraft. "Today Russia has in service only 14 medium-haul aircraft", he noted. "Servicing such a fleet of different machines is dissipation of resources", he said.

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