The Russian Aviation Industry: Is the Future Optimistic?
Aircraft manufacturing amounts to the majority share in Russia's economic profile. Additionally, it provides employment opportunities to a large number of people. The Russian aviation industry is highly competitive at the international level with numerous buyers. Western aircraft manufacturers are Russia's long-standing contender. However, lately, Russian aircraft have been gaining popularity with their new generation civil airlines and fighter jets.
Historical Account
The Russian aviation industry was at its peak during the period of Soviet rule. Russians were manufacturing aircraft even at the outbreak of the First World War, albeit production was limited and the manufacturers were dependent on foreign supplies. Later under the Soviet economic structure, there was a high demand created by the Soviet air forces. Moreover, the intention was not mass-production but to enhance the research and development in this sector. State research institutes would provide studies on aerodynamics and other working systems to the manufacturers for building high-quality aircraft. Earlier production was meant for sufficing domestic needs and none of the manufacturers were obliged to export overseas. Russia’s aviation requirements were served well under the working mechanism connecting all the states under the Soviet Union. In the period of 1980s, the Soviet Union accounted for 25 percent of the global civilian and 40 percent of global defense aircraft manufacturing [1]. However, with the dissolution of the Soviet bloc, there was a visible disconnect in the supply chains and the manufacturing of various aircraft got distributed among the former Soviet states. From 2000, the aircraft industry in Russia finally picked up its pace with more export. Hence, the rate of production began to increase again. In 2005, the Russian government planned a major overhaul with an industry consolidation initiative wherein all aircraft manufacturing companies were brought under a single overarching organization i.e., the United Aircraft Corporation (UAC). The corporation receives financial support from the government, therefore, ramping up the production of the aircraft. During the 2008 global financial crisis, when economies were in shambles, the Russian aviation industry managed to expand production and sales. This sector is highly significant and the most technology-driven. The aircrafts accounted for more than 50 percent of the arms exports undertaken by Russia. The presence of Russian aircraft in the international market is unquestionable, however, there are many obstacles yet to overcome.
Global Competition
Western manufacturers such as Airbus and Boeing are somewhat threatened by Russia's lucrative aircraft manufacturing. This is in the context of the civil airlines business. Due to a lack of domestic production, the western counterparts only dominated the Russian markets. The most recent development is certification of service given to Russian MC-21 passenger service, openly challenging the western brands [2]. To the surprise of many, this model was able to provide better performance compared to the usual designs sold by Airbus and Boeing. However, it is not all hunky-dory, the pace of manufacturing has been moderate. Few of the elaborate Russian design companies such as Tupolev and Ilyushin have not developed any new design for the past 30 years. The Russian manufacturers are still dependent on multiple western components, especially for engines and composite materials. Furthermore, the Russians are certain that in the current political environment, the country cannot rely on such western supply chains. Therefore, Russia must develop its capacity of constructing indigenous aircraft at a faster rate. For instance, Sukhoi Superjet 100 (SSJ) is a project aimed to implement import substitution of components, assemblies, and aircraft systems [3]. On the other hand, military aircrafts MiG-29 and Su-57 are projected to revive the fortunes of the Russian aviation industry. The latter is entirely designed and produced in Russia and is considered exemplary among the generations of fighter jets and unmanned aerial vehicles.
New Projects
Russian aviation expo MAKS 2021 has unveiled the rising potential of Russian aircraft manufacturing. Manufacturer Sukhoi, a subsidiary of UAC, exhibited its new fighter jet 'Checkmate'. It is reported that this fifth-generation fighter jet is similar to the American F-35 jet [4]. President Putin has vowed to enlarge financing for the Russian defense industry. Although the United States remains at the topmost position in terms of defense manufacturing, Russia proudly stands second outranking both Western Europe and China.
Presently, MC-21 is the star of the Russian civil aviation sector. Experts suggest it can easily compete with the Airbus 320 and Boeing 737 [5]. It has a greater carrying capacity and is lighter in weight, unlike the others. The manufacturer of MC-21, Irkut, has received orders from the state-run companies, though it needs much more traction. Russia strategizes to sell it in the countries with which it has established contracts for military equipment and has some political influence.
Conclusion
The Russian aviation industry which was overshadowed after the fall of the Soviet Union stood back on its feet over the years. Russia treads carefully in organizing the manufacturing base for numerous aircraft. The government-owned UAC targets to occupy 12-15 percent of the global market by 2025 and hopes to become the third-largest aircraft manufacturer in the world [6]. The Middle East and African nations are considered the most promising customers. However, it is severely exhausting to compete with western manufacturers.
Aviation demand and supply have also been obstructed due to the pandemic, though the UAC claims it has not affected the pace of Russian production much. For example, manufacturing was already dwindling from 24 aircraft pieces in 2018, to 18 pieces in 2019, and 11 pieces in 2020 [7]. Russia outlined the positive effects of the pandemic upon its civil aviation industry. New prospects for the SSJ 100 is visible as it is proven to be more profitable than the heavy large-seater planes produced by Airbus and Boeing. The government of Russia has many ambitious plans to rebuild the aviation industry. But the question is that of the future being too optimistic because, despite state subsidies to manufacturers, leasing companies, and clients; the Russian aircraft are not creating any buzz in the international markets. The aviation industry is extremely capital intensive and the European, as well as the American counterparts, leave no stone unturned. Additionally, though the Russian aircraft industry has developed vast domestic technologies, it still fails to replace imports from abroad completely which is a risky business.
References:
[1] https://en.wikipedia.org/wiki/Aircraft_industry_of_Russia
[2] https://www.dw.com/en/airbus-and-boeing-face-new-competition-from-china-and-russia/a-60406728
[3] https://www.youtube.com/watch?v=Y20DX0_-fg0&ab_channel=AerospaceTechnologies
[4] https://www.defensenews.com/industry/techwatch/2021/07/27/see-russias-new-checkmate-fighter-jet-unveiled-at-defense-expo/
[5]https://www.youtube.com/watch?v=PsIqgFxRN70&ab_channel=LongHaulbySimpleFlying
[6] https://carnegiemoscow.org/commentary/64118
[7] https://realnoevremya.com/articles/5305-russian-aviation-industry-what-new-aircraft-expected-in-new-decade
Pic Courtesy-https://www.airforce-technology.com
(The views expressed are those of the author and do not represent views of CESCUBE.)
