The United Aircraft Corporation is one of the key players in the global civil and military aircraft market. Its competitors are the world’s largest aircraft manufacturers, such as Airbus, Boeing, Lockheed Martin, Embraer and Bombardier.
According to IАТА, in 2017 the global air passenger market was steadily growing: with aviation fuel prices relatively low, the passenger turnover increased by 7.6% over the past year (an uptick of 1.1 p.p. from the decade’s average), whereas the average passenger load factor went up 0.9 p.p., reaching a historical high of 81.4%. The air cargo traffic in freight tonne kilometres was up 9%, the strongest growth since 2010. The current market trends have driven the airlines’ demand for new civil aircraft.
In 2017 a total of 1,754 new aircraft was delivered globally to the global market, which is 24 aircraft more than in the previous year. Most of the new aircraft (1,088 aircraft, or 62%) were long-haul narrow-body aircraft; the remaining part were wide-body and shorthaul (regional) aircraft: 385 and 281 aircraft, respectively.
In 2017 the Corporation delivered 36 civil aircraft to the market and ranked the world’s No.6 with an aggregate market share of 1.8%. Notably, in the regional jets category— currently the Corporation’s key segment—the UAC ranks No. 2 with a market share of 19% (30 aircraft).
The UAC supplies SSJ 100 aircraft to the external market. In 2017 the list of SSJ 100 operators increased to include Brussels Airlines (Belgium) which wet-leased three SSJ 100 aircraft.
LARGEST FOREIGN SSJ 100 OPERATORS
6 SSJ 100 aircraft, as of end-2017
Largest foreign SSJ 100 operators as of end-2017
22 SSJ 100 aircraft, as of end-2017
Civil aircraft deliveries by UAC (units)
A total of 32 SSJ 100 aircraft is operated by foreign companies, including InterJet (Mexico, 22 aircraft) and CityJet (Ireland, six aircraft). According to the Corporation’s long-term projections, in the next 20 years the average compound growth rate in air passenger traffic will amount to around 4.5%. Total demand for new passenger aircraft with a seating capacity of more than 20 passengers is estimated at 41,900 aircraft. It is expected that a total of 27,900 narrow-body aircraft, 7,500 wide-body aircraft and 6,500 regional aircraft (including 4,100 jets) will be delivered.
Given the industry’s growth prospects, the Corporation aims to further strengthen its presence in the global civil aircraft market. To this end, the UAC has worked on expanding the operational capabilities of SSJ 100 and has implemented the programme for designing and building the new МС-21 aircraft. In addition, the long-haul wide-body CR929 aircraft will be built in cooperation with the Chinese COMAC aerospace manufacturer: in 2017 Russia and China established the China-Russia Commercial Aircraft International Corporation, a joint venture that will act as the programme’s operator
Increasing the operating attractiveness of SSJ 100
Entering new markets is a key objective of JSC Sukhoi Civil Aircraft, manufacturer of SSJ 100. With this in mind, the company has worked on increasing the operating attractiveness of the aircraft. In particular, in December 2017, in the city of Zhukovsky (Moscow Region), an SSJ 100 aircraft featuring sabre-like wingtips made its first flight. The new wingtips dubbed ‘Saberlets’ reduce fuel consumption by at least 3%, and improve the aircraft’s performance during take-off and landing phases, which may be quite useful in hot climates. In addition certification was obtained for the auxiliary fuel tanks that will extend the flight range of Sukhoi Business Jet to 7,000 kilometres.
Another milestone in expanding the operating capabilities of Sukhoi Superjet 100 was obtaining certification for a new B100 option from the European Aviation Safety Agency (EASA). The new SSJ 100 B100 has an increased thrust and can use shorter runways of airports located within the city boundaries or high in the mountains. Such characteristics could potentially be of interest to Western European and BRICS operators.
The Russian air transportation market that had been declining throughout 2015 and 2016 due to the dire economic situation finally stopped its downward trend in 2017. The key market indicators improved substantially, hitting fresh all-time highs: total air passenger traffic was up 20.3% to 259.4 billion passenger-kilometres, while the number of passengers carried increased by 18.6% to 105.1 million passengers.
Russian freight turnover rose 15.4%, which is slightly below the previous year’s growth rates (20%), but is still 80% above the decade’s average.
RUSSIA’S LARGEST SSJ 100 OPERATORS
42 SSJ 100 aircraft, as of end-2017
Russia’s largest SSJ 100 operators, as of end-2017
16 SSJ 100 aircraft, as of end-2017
Aircraft deliveries to the internal market by UAC
RUSSIA’S LARGEST SSJ 100 OPERATORS
10 SSJ 100 aircraft, as of end-2017
5 SSJ 100 aircraft, as of end-2017
According to the Federal Agency for Air Transport, as of end-2017, Russia had 110 commercial air transport operators. In 2017 the country’s five largest air carriers accounted for 65.5% of passenger traffic and carried 65.9% of passengers.
In 2015–17 Russia’s airlines increased their fleet by 318 aircraft (both new and used), including 93 (29%) domestically manufactured aircraft. New aircraft accounted for 57% of the total number of aircraft purchased (an uptick of 1 p.p. from the previous year).
In 2017 the UAC delivered 34 aircraft to the internal market, including 28 SSJ 100s. As of end-2017, 86 SSJ 100s were operated by Russian commercial companies; another 6 SSJ 100 aircraft were used by government departments and business aviation.
According to the UAC’s long-term projections, in the next 20 years passenger air traffic in Russia will be going at a compound annual growth rate of 4.1%, which is below the projected global average of 4.5%. It is expected that Russian airlines will need 1,150 new passenger aircraft in the said period (around 2.7% of the global market).
In addition to globally positioned aircraft (SSJ 100, MC-21, CR929), the Corporation’s advanced model range in the Russian market also includes the Il-114-300 regional turboprop and the Il-96-400M long-haul wide-body aircraft (development of the modernisation project is currently in progress).
Military, military transport and special-purpose aircraft
In 2017 the UAC retained its leadership position in the global military aircraft market. It delivered 94 combat aircraft, including 38 exported aircraft. As of end-2017, PJSC UAC had a market share of 22% in terms of military, transport and special-purpose aircraft of all classes by size/type and mission delivered to customers.
It is expected that of all the UAC’s products the demand for Su-30/35, MiG-29 and Yak- 130 families will be the highest in the external market in the years to come. It is also very likely that the list of combat aircraft offered for export and the number of buyers will be extended (the countries of the Middle East, Southeast Asia and Latin America are regarded as potential importers of Russian military aircraft).1.
In addition, the Corporation manufactures special-purpose aircraft systems and intends to put more effort in the development of this segment, in particular, the tanker support, reconnaissance, radio relay, mission control, location and strike, designation and jamming aircraft, as well as maritime patrol, anti-submarine and naval aircraft
In the long-term, one of the UAC’s key focus areas in terms of special-purpose aircraft will be the development of versions specifically intended for exports and gradually strengthening the Corporation’s presence in the global market. It is planned that before 2035 the Corporation will deliver special-purpose aircraft for a total of no less than RUB 2 trillion. Another strategic focus of the UAC is building medium and heavy unmanned aerial vehicles for use in a wide range of missions.
Market projections and strategic goals of the UAC before 2035
• Lockheed Martin (США)
• Airbus (France))
• Lockheed Martin (USA)
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• Ensure that a roughly equal number of aircraft is delivered at each of the future long-term planning stages.
• Ensure material growth in the manufacturing and deliveries of military transport aircraft after 2020.
The Corporation manufactures military aircraft for the Russian Ministry of Defence under the State Armaments Programme 2020 approved by the President of Russia and finalised in the state defence order.
The UAC offers to the Ministry of Defence a wide model range of aircraft that caters to the demand of the country’s Air Force for top-grade state of the art weapons.
Transport and special-purpose aircraft
In 2017 the UAC proceeded to deliver on its contract for the manufacturing of Il-76MD- 90A with the delivery timeframe specified by the customer, the Russian Ministry of Defence. UAC’s vast experience in operating, maintaining the airworthiness of and commercialising the Il-76 family, and the current orders for the delivery of Il-76MD-90A from a number of Russian and foreign customers make it possible for the Corporation to create a balanced longterm manufacturing and marketing programme for this type of aircraft.
In 2017 the UAC continued with its Il-112V military transport aircraft programme in line with the agreed schedule, and in 2018 it began the production of two prototypes.
In compliance with the state contract of 11 May 2011, the UAC delivered three serial Be-200 ChS amphibious aircraft to the Russian Ministry of Emergency Situations.