Taking Off on a Superjet: India-Russia bet on SJ-100. But will buyers come?

Economic Times
Economic Times
1M ago
55 views
Hindustan Aeronautics Limited partners with Russia's UAC to produce the SJ-100 aircraft in India, addressing global aviation shortages. The deal's success hinges on market demand and operational challenges.
Taking Off on a Superjet: India-Russia bet on SJ-100. But will buyers come?
A What happened
Hindustan Aeronautics Limited (HAL) has entered into a partnership with Russia's United Aircraft Corporation (UAC) to manufacture the SJ-100 regional aircraft in India. This agreement, signed in Moscow, is part of India's broader ambition to develop its commercial aircraft manufacturing sector. The global aviation industry is currently facing a shortage of aircraft, creating a potential opportunity for new entrants. However, the deal raises questions about the specifics of production and market viability, as the SJ-100 is not currently operated by any Indian airline. Industry experts express skepticism about the aircraft's appeal due to its past reliability issues and the competitive landscape dominated by established players like Embraer and Airbus. While the partnership signals India's intent to enter civil aerospace manufacturing, significant challenges remain, including securing airline commitments and establishing necessary support infrastructure.

Key insights

  • 1

    Strategic Collaboration: The partnership aims to boost India's civil aerospace manufacturing capabilities.

  • 2

    Market Uncertainty: No confirmed buyers exist for the SJ-100, raising doubts about its commercial viability.

  • 3

    Geopolitical Factors: Russia seeks new partnerships amid sanctions, while India aims to diversify its aircraft manufacturing.

  • 4

    Operational Challenges: The SJ-100's past reliability issues could hinder its acceptance among Indian airlines.

Takeaways

The HAL-UAC partnership represents a significant step for India in the civil aerospace sector, but its success will depend on overcoming market challenges and ensuring the aircraft meets operational standards. The future of the SJ-100 in India remains uncertain without confirmed buyers and a robust support system.

Topics

Business & Markets Economy Health & Medicine Aging

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