Economic Analysis: Theory and Practice
 

Economic aspects of military aircraft engineering

Vol. 17, Iss. 4, APRIL 2018

Received: 13 February 2018

Received in revised form: 12 March 2018

Accepted: 22 March 2018

Available online: 27 April 2018

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: G34, L19, L93, O33, O57

Pages: 600–613

https://doi.org/10.24891/ea.17.4.600

Sobolev L.B. Moscow Aviation Institute (State University of Aerospace Technology), Moscow, Russian Federation
sobolevLB@yandex.ru

ORCID id: not available

Importance The article analyzes the economic aspects of military aircraft construction, like the volume of the world market, market segmentation, main producers, revenues of major manufacturers of military aviation, etc.
Objectives To improve the economic efficiency of Russia's military aircraft industry in conditions of the civilian segment weakness, economic sanctions and budget constraints.
Methods The research methodology rests on a comparative analysis of performance of leading aircraft manufacturers and identification of trends in the development of military segments.
Results The analysis shows that in general, the Russian military aircraft industry is up to the world standards, though, in technical aspect, it concedes to the USA in the serial production of the fifth-generation multirole jet fighter (T-50) and military electronics, and in the economic aspect – in efficiency of production and labor. At the same time, the operations performance of the leading foreign aircraft manufacturers increases as the share of civil aviation segment and diversification of production grow.
Conclusions The military aviation market share expansion is associated with the introduction of full-scale production of the fifth-generation aircraft, the use of 'economies of scale' to reduce product costs, and product differentiation through military electronics, information systems and participation in space projects.

Keywords: military aircraft construction, segmentation, diversification, export of military aircraft engineering

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