Still, the government is expected to be the main driver to modernize airport infrastructure and ground support service since private investors remain reluctant to make investments in the industry. According to analysts at Vnesheconombank, one of the largest banks in Russia, private capital to the industry is difficult to attract because of its low profitability and long payback periods.
The continuing state monopoly in the industry, however, also prevents further development and the inflow of private investments. Unlike the European Union, the whole airfield infrastructure in Russia, in accordance with local legislation, is owned by the state and cannot be transferred to private owners
About the author: Eugene Gerden is an international free-lance writer covering the global aviation and ground support industry. He writes for numerous industry publications and can be reached at email@example.com.
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