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TO COMPETE WITH FOREIGN PRODUCERS RUSSIAN HELICOPTER MANUFACTURERS ARE TO UNITE

As Anton Danilov-Danilyan, head of economic working group under the Russian presidential administration, believes, incorporation of Russian helicopter producers into one holding is the only reasonable reaction to the pressure of foreign competitors.

“Our aircraft producers, including helicopter manufacturers, recently have been facing very tough competition at the world markets. Consequently, their market share constantly decreases. At the moment it is about 10%, though when we started ten years ago it was one fifth of the market” – said Mr. Danilov-Danilyan at press-conference in “Interfax” main office.

Meanwhile, he pointed out that “this is the consequences of the situation when different helicopter producers act at foreign markets as immediate competitors”. While the world tendency lies in active integration of different companies and creation of major holding companies.

Given these circumstances, in his opinion there is only one alternative – “either some sort of integration appears on the Russian territory (in this case it is of no importance what is the center of integration – be it the sate or some private organization) or Russian producers may be simply driven out of the market.” Due to the atomism our producers have no sufficient capitalization to attract major creditors and to carry out some profound research activities.

“Right, there may be a monopoly inside the country, but it is not so in terms of global world, globalization and capturing new markets” says Mr. Danilov-Danilayn.

According to him “taking into consideration these peculiarities of globalization, we can not say that this is monopolization of the market, this is an integration of both developers and manufacturers into one major organization that could compete with foreign producers and developers effectively”. “Otherwise this industry sector will cease to exist”, added Mr. Danilov-Danilyan.

He said: “The state-owned share, including acquisition of substantial private shareholding in “Kamov” company, increase due to completely different tendencies. And it can not be fitted into seemingly solid framework. This is an absolutely different thing”.

“We will support this integration also in the future as well as we will not object against formation of major integrated organizations in other industry sectors. But only on condition that it is vital for survival of relevant Russian producers. Otherwise they will simply be taken over, foreign production will force out”, he said. "

Mr. Danilov-Danilyan did not agree that Russian variant of “monopolization” in this industry sector is definitely a wrongful one. “The process that we are witnessing when the state-owned shareholding increases not only in certain industry sectors but in the economy upon the whole, is not to be considered as solid (homogenous) one. It is diverse,” said Mr. Danilov-Danilyan.

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