Bye Bye Boeing And Au Revoir Airbus As Russia And India Build New Aircraft

By Rhod Mackenzie

India and Russia's partnership in the production of the SJ-100 aircraft will transform the global aviation global industry and break  monopoly of  the US and EU entities of Boeing and Airbus

Today I want to talk about aviation and how the US and EU will now be wondering how to deal with the latest about the deal between Russiand and India in aircraft production.Could it be Bye Bye Boeing and Au Revoir Airbus
Now India, having unappolegetically  declined the US's request to cease its oil imports from Russia, has now taken additional measures to increase its business and industrial cooperation with Russia . The coounty now looks forward to close collaboration with Russia in the domain of civil aviation, a sector that has undergone a significant transformation in the past few years thanks to the giant strides the Russians have made in developing their own aircraft industry  independent of the western technologies and components .
After the withdrawal of western companies from cooperation with Russia in bulding their new aircraft instead of closing down production and surrendering , the Russian continued their development of substituting western components abd technology tos achieve a new level of aviation development that is both unique and impressive, and now which is the envy of the US and EU.
What is the new nature of the relationship between India and Russia in the aviation sector?
The United Aircraft Corporation in Moscow signed a memorandum of understanding for the production of its SJ-100 civilian aircraft with the Indian state-owned corporation Hindustan Aeronautics Limited (HAL). The Indian company announced this on the social media platform X (formerly Twitter, blocked in Russia).
The agreement, signed in Moscow on Tuesday, represents a significant milestone in India's ongoing efforts to manufacture a passenger aircraft for the first time.

The Superjet SJ-100 is a Russian regional passenger aircraft, already in commercial service. It is a twin-engine, narrow-body aircraft, and more than 200 units are currently in operation with 16 different airlines worldwide. Following the new arrangement, HAL will be responsible for manufacturing the aircraft in India for customers from the Indian market.

As stated by HAL, the model is set to play a pivotal role in enhancing regional air connectivity under the Centre's UDAN scheme. This statement references an Indian government regional development initiative.

HAL noted that "mutual trust" between the two companies is what has enabled the latest Indo-Russian civil aviation partnership. The last such project was the production of AVRO HS-748, which commenced in 1961 and concluded in 1988," the Indian company stated. 

At the Aero India 2023 air show in Bangalore, the former UAC CEO Yuri Slyusar confirmed that the company was actively exploring the possibility of agreeing with their Indian partners on the organising of production of the basic version of the SJ-100, certified in Europe, at HAL facilities.

However, things have changed since the basic certified version and  the global and Russian aviation industries diverged  and no longer cooperate. In 2022, production of the SJ-100 was halted due to the impact of Western sanctions. All efforts and resources were focused on creating a new version of the aircraft, fully import-substituting, including one with domestic engines. The serial production of this new aircraft is scheduled to commence in 2026. Plans are in place to deliver 14 fully import-substituting SJ-100s to its main customer, Aeroflot by the summer.
It is obvious that cooperation with a another state whether a partent in BRICS or not  in such challenging conditions of the confrontation and restrictions placed on Russia by the G7 and the EU is a notable occurrence. But obviously cooperation with India has been ongoing through these times, with India becoming the largest buyer of Russian oil by sea, is a particularly interesting development.

What potential areas of consensus cooperation have the Indians and the UAC have identified in Moscow?

"This could involve the creation of joint production facilities with technology exchange between Russia and India. The project may also encompass the supply of aircraft for the Indian market, though perhaps not fully finished. Some aircraft would be partialy assembled in Russia, with final assembly taking place in India. A third option would involve the full localisation of production of this aircraft in India for the domestic market. However, it is possible that the SJ-100 will also be produced in India for export to other countries in the future," comments Dmitry Baranov, leading expert at Finam Management.
HAL has announced that India is set to require over 200 civil jets within the next decade in order to cater to regional demand, with an additional 350 aircraft needed to serve international destinations in the Indian Ocean region. 

For Russia, the priority task in aviation is to increase production for the domestic market, so it is unlikely that there will be talk of export deliveries of aircraft and components before 2030.But there again it takes years to set up the production chain of parts and components for the building of a new aircraft.
Anastasia Prikladova, Associate Professor of the International Business Department at the Plekhanov Russian University of Economics, believes: The memorandum between UAC and HAL is likely to encompass the development of cooperation until and after 2030. In the initial phase, it is feasible to establish production of individual components in India, followed by subsequent import to Russia, to facilitate the fulfilment of the production plan. One potential avenue for achieving this could be the establishment of a joint venture between UAC and HAL. In the second stage, after 2030, it is possible to deepen cooperation and establish semi-knocked-down assembly of civilian aircraft in India," Prikladova explains.

What are the reasons for Russia's decision to establish full-scale production in India and to share its technologies? "From Russia's perspective, this approach is logical, as it would alleviate the pressure on domestic aircraft manufacturers, enabling them to prioritise meeting domestic demand. Furthermore, this option would increase the export potential of the domestic aviation industry and help it circumvent various restrictions," Baranov believes.
In the case of India, it has been earning superprofits for four years now by purchasing Russian crude oil for its refineries. Despite the potential impact of US tariffs, the company has remained steadfast in its position. It is understandable that there is a desire to expand this lucrative partnership.

"India's population is growing, and air travel of all types is expanding rapidly, requiring more aircraft. The Russian-made SJ-100 has the potential to become one of the most widely used aircraft in the country's fleet."

– Baranov believes.

Thanks to our collaboration with Russia, India will have the opportunity to develop its aviation industry, increase budget revenues, create new jobs, and train highly qualified personnel, the expert adds. This is a mutually beneficial scenario for the Indian economy as a whole.

The SJ-100 proved particularly popular during the pandemic, when flying Boeings and Airbuses with twice the capacity became economically unviable. However, the SJ-100 has proven to be a highly durable and reliable piece of equipment. A key benefit of the updated version is its complete independence from Western components and technology. This is a unique advantage of the Russian aircraft. This is an unparalleled product in the market. The production of Boeing and Airbus aircraft involves a significant number of components, which are manufactured across a global supply chain. In the United States, the aircraft is not manufactured; rather, it is assembled from numerous imported parts, akin to a construction kit.
Baranov has stated that Russia could potentially transfer some, but not all, of the technology as part of the project. He is confident that UAC will retain control over key technologies and documentation. Such products must be protected when they are no longer needed. For instance, it is strategically sound to maintain aircraft engine production in Russia rather than transferring this operation to other countries. Russia is among a select group of countries with the capacity to manufacture aircraft engines. It is unlikely that such technologies will be handed over.

The UAC deal with India to produce Russian aircraft also has geopolitical significance. The US is currently engaged in negotiations with India, seeking to secure a trade agreement that is unfavourable to India and insisting on maintaining its stance of refusing to purchase Russian oil. The decision to cooperate with Russia in a new sector, particularly one as high-tech as this one, represents a strategic move by Delhi to engage with Washington in a new way. Russia, as a major player in the aviation industry, has historically experienced challenges in its relationship with the West. The current situation, in which Russia has aligned itself with India on this matter, is a testament to these challenges.