No export of airplanes without support from State - Kraljevo-based Aero East Europe seeks help

Kraljevo-based factory of ultralight airplanes Aero East Europe states that it has exported to European market everything it manufactured during 2.5 years of existence.

People in that company say that they can not accept new big orders, like the one that came from South African Republic (SAR), without the help from the State because the company has no funds to finance production in advance.

Milorad Matić, CEO of the only factory of the kind on the territory of former Yugoslavia, explains that company can not accept the latest order for construction of 30 airplanes for the needs of the SAR Air Force because it is not able to finance the production that big because of "much too high interest rates".

According to his estimate, minimum 0.5m euros are needed for a serious production cycle. For such loans, banks ask for guarantees that are impossible to provide. He points out that they can mortgage only registered real estates, but, as he claims, 95% of real estates in Serbia are not registered.

Since it is impossible to provide mortgage, Matic has also failed to "draw" 135,000 euros worth of incentives approved by the Ministry of Economy and Regional Development last year.

Depending on the built-in equipment, the prices of airplanes range between 36,000 and 60,000 euros. The prices of such airplanes in the West are 20,000 euros higher.

Matic explains that the airplanes are manufactured according to global regulations, including famous Cesna or Paper, they are equipped with top-quality Rotex engines that spend 12 to 14 liters of unleaded gasoline per hour, which is 5 to 6 liters per 100 kilometers.