LEGISLATION FACTORS AFFECTING FOR THE BUSINESS AVIATION GROUNDHANDLING INVESTMENT ATTRACTIVENESS AND ECONOMIC GROWTH

The absence of a particular legislative base in such a branch of civil aviation as business aviation slowing down the amount of investments into its complex generous development, and also affects the slowdown of the economic growth of the entire branch. The stable financial model of long-term investment into the regional business aviation infrastructure is not attractive to the stakeholders due to the governmental one-party requirements, significant risks, and the small quantity of flights that does not cover even the current costs of the infrastructure maintenance. Despite the high interest from the potential investors, the business aviation ground handling infrastructure are launching only at the airports of the Moscow Aviation Hub and St. Petersburg. Extremely high additional costs paid by investors due to the absence of specific legislation are covered by stable quantity of flights and higher price of services provided, which effects on the flights frequency and number of business aviation aircraft in the Russian Federation, as well as financial and economic growth in related economic areas of regions and countries. The unstable financial and economic situation in the country since 2014 is one of the leading factors reducing the number of business aviation flights performed in the interests of residents. This situation is due to the increasing ground handling costs at the airports, both in direct value terms and due to airport charges in US dollars and Euros, the rate of which has significantly increased in relation to the national curr ency. The implementation of the creating and approval procedure of particular legislation in the field of business aviation ground handling into real life proposed by the author based on the results of this science research will create the necessary legislative framework in the shortest period of time and will contribute to fundamental changes in the industry due to the improvement of the investment climate. Investments into the business aviation infrastructure development at regional airports will make it possible to increase the volume of these flights regional aircraft owners, the influx of domestic and foreign tourists and investors, it will also be possible to open new companies and enterprises, provide additional workplaces and, consequently, increase economic growth and gross regional product.

business aviation, handling company, operator, airport, legislation, investments, development, act, ground handling, infrastructure, aircraft, competition, economic growth.

Tsutskarev V. K. Legislation factors affecting for the business aviation groundhandling investment attractiveness and economic growth // Business. Education. Law. 2019. No. 1 (46). Pp. 345–351. DOI: 10.25683/VOLBI.2019.46.124.