Recently, the United Aircraft Corporation (UAC) of Russia has been actively campaigning for the localization of civil aircraft assembly abroad. In a recent interview, Vadim Badeha, the CEO of UAC, underscored that the company is in the process of negotiating with several countries to establish joint production projects. These projects would enable the assembly of Russian airliners at foreign locations. It is crucial to note that this negotiation is not about the direct delivery of completed aircraft; rather, it is about the establishment of joint ventures, which presents new opportunities for long-term collaboration and market expansion.
In addition to traditional partners from the CIS countries, negotiations are being conducted with a much broader spectrum of states, as Badeha observed. He proposed the establishment of an assembly facility for the MC-21 medium-haul airliner in Latin American countries as an illustration. Localizing production is becoming a global trend in both civil and military-technical aviation for significant countries, according to him. This method not only enhances the appeal of Russian aircraft to foreign consumers but also broadens their global market presence.
The corporation has already achieved favorable results through its collaboration with India, which is a focus of UAC’s attention. The Russian side is prepared to provide Indian partners with the polished product, as well as the transfer of engineering and production competencies, which will enable India to develop its own aviation industry. UAC proposed the possibility of localizing the production of the SSJ-100 aircraft in India in 2023 and also extended an offer of collaboration on the Il-114 and MC-21 programs. Hindustan Aeronautics Limited, a company with extensive experience in the production of both military and civil aircraft, is currently in the process of negotiating.India has made an active effort to secure the manufacturing of aircraft in the country from Boeing and Airbus. The two countries have not outright rejected assembling aircraft in India; however, they have indicated that the current volume of orders from Indian airlines is insufficient to justify the establishment of a final assembly line for commercial aircraft in the country. Boeing has explicitly stated that it would not consider establishing a final assembly line in India until a significantly higher volume of aircraft orders is received, despite the Indian government’s strong advocacy and ongoing discussions. Boeing’s leadership has underscored that, despite India’s swiftly expanding aviation market, the business case for local assembly necessitates a scale that exceeds current demand. In the same vein, there is no public evidence that Airbus has made a commitment to establishing a full-scale commercial aircraft assembly line in India. Boeing and Airbus are both maintaining solid supply chain and component manufacturing partnerships in India and continue to monitor the market.
In contrast to the majority of Western competitors, the Russian company is prepared to provide aircraft, exchange technology, participate in joint development, and train specialists. This method fosters a more profound level of collaboration and aids in the advancement of the national aviation industries of its partners. Badeha underscored that UAC is prepared to collaborate in a manner that facilitates the technological independence and expansion of Indian aviation.
The company and Russian aircraft manufacturers both benefit from the decision to localize production abroad. It enables the expansion of the market, the establishment of long-term alliances, and the reinforcement of Russia’s position in the global aviation market. Nevertheless, Badeha observed that a successful export strategy is contingent upon a well-developed after-sales service system. The SSJ-100’s export mistakes, when the service infrastructure was unprepared for new aircraft, should not recur.
The MC-21 could be rendered more competitive in international markets by enabling Russia’s United Aircraft Corporation (UAC) to circumvent import restrictions or tariffs through local assembly. Several countries in Latin America are seeking to modernize their fleets, as the aviation market in the region is expanding. Local production may be of interest to governments and airlines that are interested in industrial cooperation and job creation. Establishing a production center in Latin America could potentially diversify UAC’s customer base and reduce dependence on domestic or CIS sales, as Western sanctions have restricted Russia’s access to traditional markets.
Additionally, the successful operation of these aircraft within Russia is directly correlated with the attraction of foreign customers. Increased interest from foreign clients is contingent upon the domestic aviation sector’s demonstration of the reliability and efficacy of new models. In general, UAC regards localization as a critical instrument for improving competitiveness, particularly in light of Russia’s efforts to develop aircraft that are entirely import-independent, such as the SJ-100 and MC-21.
Therefore, the decision to relocate the assembly of Russian aircraft abroad is not solely a commercial strategy; it is also a political and technological one. Its objective is to fortify the Russian aviation industry’s global market position by forging sustainable partnerships and transferring critical competencies to international partners.
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