Putin's idea to merge aircraft makers met with resistance

Airline Industry Information, Feb 25, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

The idea from Russian President Vladimir Putin to merge Russian military aircraft makers would contradict market economy principles, according to the Russian anti-monopoly agency.

Putin approved a plan earlier this week to merge MiG, Sukhoi, Tupolev, Irkut and other businesses to make them more competitive with Western companies like Boeing, the Russian newspaper Kommersant reported.

While some analysts agree that such a move could damage the competitive ability of the companies, voices have also been raised to suggest that such a move would be part of the Kremlin's plan to tighten state control over key industries.

((Comments on this story may be sent to aii.feedback@m2.com))