Transportation Industry

Company Watch - Sukhoi Aircraft

AirGuide Business, May 5, 2008

May 5, 2008

Russia's long-delayed test flight for its first new airliner since the fall of the Soviet Union will take place in the first half of May, a source in Russia's state aircraft holding company said. Sukhoi's Superjet 100, the fruit of almost a decade of efforts by Russia's largest warplane maker, is Moscow's biggest hope for returning to the global market for airliners. The first flight was originally planned for late 2007 but then moved to the first months of 2008. The regional Superjet is part of President Vladimir Putin's bid to revive Russia's once mighty aviation industry, which collapsed after the fall of the Soviet Union. Built by warplane maker Sukhoi, the Superjet is being developed together with Boeing. May 2, 2008

Superjet will have to make about 100 flights to get certification after its first test flight. Sukhoi has also drawn up aggressive export targets together with Italian partner Alenia Aeronautica. At stake is the market for regional jets dominated by Brazil's Embraer and Bombardier of Canada, though that is relatively small compared with the USD$60 billion spent annually on big jets made by Boeing and Airbus. Sukhoi's new civil battle also pitches it against Chinese and Japanese firms racing to invest in regional jet transport -- a market that offers a chance to flex industrial muscle without the colossal sums needed to challenge Airbus or Boeing. Key to the Superjet's success is a deal between Sukhoi and Italian aerospace firm Finmeccanica, whose Alenia Aeronautica unit has 25 percent of Sukhoi's civil division. Alenia, which co-owns Franco-Italian turboprop maker ATR with Airbus parent EADS, plans to provide after-sales service and support that are both crucial for winning contracts. May 2, 2008

The Superjet has a list price of USD$29 million and Sukhoi hopes to sell at least 800 with production of 60 to 70 planes a year by 2010. It has firm orders for about 73 of the aircraft. Putin has forged a giant new state aircraft holding company, known as United Aviation Corporation (UAC), to spearhead the revival of Russia's aviation industry. Sukhoi is part of UAC. Russian flagship carrier Aeroflot, which is controlled by the state, has ordered 30 of the planes, with first deliveries set for the end of 2008. Other major purchasers include Russia's Air Union, with an order for 15 planes and Russia's Finance Leasing Company with an order of 10 planes, the planemaker said. UAC head Alexei Fyodorov said last month that delivery of the Superjets to Aeroflot could be delayed. May 2, 2008

Editorial eMail: edit@AirGuideOnline.com

For Air Transport & Travel Business Experts contact our Director of Content Aram Gesar eMail: bizintel@AirGuideOnline.com

To Advertise: advert@AirGuideOnline.com