Russia Allocates Over $3B For Commercial Aircraft Lease Plan

The Russian government has allocated RUB237 billion ($3.2 billion) to facilitate the deliveries of new locally made commercial aircraft to the country’s domestic carriers. 

In the government decision, approved Feb. 16, money will be taken from the National Wealth Fund and inserted into two government-owned leasing companies—GTLK and Avia Capital Services—through additional share issue. The lessors are expected to spend this cash to purchase 81 fixed-wing aircraft and 107 helicopters in 2023-2026.

The program includes three so-called investment projects. The largest one is valued at RUB175.4 billion and calls for delivery of 34 Superjet-NEW regional jets, 18 Irkut MC-21s and 11 Tupolev Tu-214 narrowbody passenger aircraft to Russia’s largest carrier Aeroflot Group. These 63 aircraft are in fact the first firmed-up batch out of Aeroflot’s preliminary order for 339 aircraft, which the group expects to get until 2030. All aircraft will be leased through Avia Capital Services, a subsidiary of the Rostec industrial conglomerate.

According to Russia’s Minister of Industry and Trade, these 63 aircraft will be delivered to Aeroflot in 2023-2026 while the first two Superjet-NEW aircraft are to be handed over before year-end 2023. 

The latter task puts the type’s manufacturer United Aircraft Corporation (UAC) in very rigorous conditions as it has just 10 months to certify the Superjet-NEW modification. The variant is stripped of all Western-made components. For now, UAC is only assembling first test prototypes which can start flying later in 2023 only after the type’s new Russian-made turbofan engine—the PD-8— ends certification trials. 

Another project calls for delivery of 86 Mil Mi-8AMT/MTV-1 heavy transport helicopters with a total value of RUB44.5 billion via GTLK. They will be handed over to 17 Russian operators in 2023-2026. 

The same lessor will also deliver 39 aircraft in 2024-2026 to Aurora Airlines which operates in Russia’s Far East. The deal includes eight Superjet-NEWs, 10 nine-seat LMS-901 Baikal commuter aircraft, and 20 Mi-171A2/A3—the latest modifications of the famous Mi-8/17 heavy transport rotorcraft family. GTLK is promised to receive RUB49.6 billion from the National Wealth Fund and should borrow another RUB5.5 billion for this project from the market.

The approved projects are the first step under the government plan to roll out more than 1,036 locally made aircraft and 764 helicopters through 2030 to replace the Western-made fleets of Russia’s air carriers.