Home / Airline news / The support and promotion of Russian aircraft MS-21 requires 200 billion rubles

На поддержку и продвижение отечественного самолета МС-21 требуется 200 млрд рублей

The MS-21. Photo: Fyodor Borisov

The Ministry of industry and trade and United aircraft Corporation (UAC) with the involvement of the leasing companies and the Ministry of economic development discuss support for the sales of MS-21 aircraft. It will take until 2025 to about 200 billion rubles, told “Vedomosti” three Federal officials. But the figure is based on a large number of variables – the sales plans, anticipated lease rates in 3-4 years, so is constantly changing, say two interlocutors. By the end of the year program should be generated, adds a third.

Part of the KLA “Irkut” began to develop the MS-21 in the early 2000’s, the rollout of the aircraft took place in June, the flight is scheduled for I quarter of 2017 , the start of deliveries to airlines at the end of 2018. This medium-range aircraft with a capacity of 211 seats and a potential competitor to the most common liners in the world such as Boeing 737 and Airbus 320/321.

At the end of 2015 MS-21 was invested 90 billion rubles. budget and 38 billion rubles extra-budgetary (debt and equity “Irkut”) means, in General, the development will cost around 245 billion rubles., says the Federal official. This roughly corresponds to the international practices, the creation of new medium-haul aircraft costs about $6-7 billion.

About 100 billion rubles is planned to subsidize the leasing companies that they have established for the MS-21 a competitive rate, says one of the interlocutors. Another 75 billion will go to the “Irkut” – to create a system of after-sales maintenance and guarantee of the residual value, he continues: the latest is a tool to promote a little-known technique, the manufacturer undertakes to purchase from the owner (airline or leasing company) in 12 years of operation, 40-50% of its value. Of this amount, it is also planned to support exports and output of production at full capacity – 70-80 planes a year, adds another Federal official.

On request “Vedomosti”, the Ministry of industry and trade, UAC and Irkut have prepared a joint response: the market-haul aircraft divided between the two manufacturers. Annually, these companies produce hundreds of aircraft, and still there is a flexible system to support sales through various financial institutions, such as government and parastatal development banks and insurance companies.

To compete in the market as serious competitors, it is first necessary to offer a product with attractive specifications and price and also low cost after-sales service, says the response. The extent of support is not commented upon.

“Irkut” has already received solid advances and orders for 175 MC-21. This is enough to start the serial production and capacity utilization for several years, said in response, the Ministry of the KLA and “Irkut”.

“Export MS-21 will be needed only until 2030 it is planned to produce 900-1000 MS-21, the market of Russia and CIS need about 400 ships. After 2030, will expire on the so-called life cycle of the aircraft – obsolete technologies and fixed assets, will have to enter the market with a new model,” the official said.

“Well, what the manufacturer is thinking about this program right now, so there is an understanding: the new aircraft will be susceptible to childhood diseases, which will have to fight first to customers”, – said General Director of “UTair” Andrey Martirosov. It is very important to organize high-quality system of after-sales service, he adds.

“Practice of supporting producers through lending instruments and leasing, especially in the first stage, there in the world, – says a leading researcher of the Institute of transport Economics Fyodor Borisov. – This measure is the most effective and most market. In comparison, for example, protective customs duties, which does not help to develop the production and worsen the situation of the airlines.”

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