Russia's $1 Billion Aircraft Complex

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Russian president Vladimir Putin has ordered the creation of an aircraft manufacturing complex, to be built near Moscow and to include facilities for design, construction, testing and marketing of aircraft. The goal of the project is to revive Russia's aircraft industry from its current 10 commercial aircraft per year and raise that schedule to 5,800 aircraft by 2025 (of which 2,600 would be commercial aircraft). Putin also hopes the consolidation of facilities will provide a foundation for Russian aircraft manufacturing to cooperate and compete with other manufacturers like Airbus SAS and Boeing. The state-owned OAO United Aircraft Corp. would take on creation of the center, but no timeline has yet been announced. OAO envelops Sukhoi, Tupolev and Aeroflot aircraft, among other holdings.

Putin will step down from his position in May, but may retain significant political influence. Questions remain over how the new facility, to be located in Zhukovsky, would be staffed -- particularly, what personnel would be relocated and how other facilities already in place elsewhere would be utilized.