"In comparison with 2004 [levels], production was 98.3% in the military sector and 97.4% in civilian aviation," said Yevgeny Gorbunov, head of the aviation department of the Federal Agency for Industry.
According to Gorbunov, Russia produced eight civil aircraft in 2005, compared with 13 the previous year.
"The reason for this situation is that aircraft-manufacturing enterprises are unprofitable," the official said. "Moreover, growing fuel prices prevent Russian aviation companies from buying Russian aircraft, forcing them to turn to foreign secondhand markets."
Gorbunov said profits among Russian aviation companies in 2005 were 36.8% of the previous year's levels, and their workload was only 35%-40%.
Gorbunov also pointed to a 6.5% decline in staff at the enterprises. "The average employee is of near-retirement age, and the industry is far from attractive to young people," he said.
His proposal for the development of the sector was to stabilize the prices for aircraft components for at least three years.
Oleg Barmin, deputy head of air force armaments, said it was necessary to support the competitive branches of the aviation industry, primarily military aviation and dual-purpose technologies.
Barmin said that although government aircraft orders in 2006 had doubled in comparison with 2005, funding was nevertheless insufficient.
