Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Russian airlines bet on domestic recovery with airshow deals

Stock MarketsJul 22, 2021 12:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
2/2 © Reuters. FILE PHOTO: Russian President Vladimir Putin inspects a new Russian LMS-901 plane during the MAKS-2021 International Aviation and Space Salon in Zhukovsky, outside Moscow, Russia, July 20, 2021. Picture taken July 20, 2021. Alexander Zemlianichenko/Pool v 2/2

MOSCOW (Reuters) - Russia's airlines struck deals for more than 80 regional jets at its flagship airshow this week, according to state-backed aerospace and leasing companies, as carriers bet on a partial market recovery driven by domestic flights.

Russia, like other countries, has heavily restricted international air traffic due to the coronavirus since last year, but domestic flight routes are already recovering.

State-owned companies backed by state leasing companies dominated the ranks of buyers and sellers at the MAKS-2021 biennial airshow that opened on Tuesday near Moscow.

Five airlines, three of them state-owned, signed agreements to order 58 Sukhoi Superjet 100s and 22 new Ilyushin Il-114 regional jets, according to state-backed aerospace group United Aircraft Corporation (UAC) and state-owned leasing company GTLK.

The domestically-made Superjet is a regional aircraft that entered service in 2011.

State-run Red Wings signed an agreement for the delivery of 25 Superjet planes; private airline Azimuth and Aurora, which the government wants to turn into a far east regional carrier, signed agreements for the delivery of 10 and eight of the planes, respectively, UAC said.

Flag carrier Aeroflot's Rossiya subsidiary ordered 15 Superjets. The deals point to the rising role of the aircraft on regional Russian routes. The aircraft is only used by Russian airlines and has struggled to find foreign buyers.

Azimuth also ordered six Airbus A220-300 jets on Wednesday, with deliveries set to begin next year.

Mikhail Ganelin, a senior analyst at Aton, said it could be profitable for airlines to acquire Russian regional aircraft because of favourable terms offered by state leasing companies and subsidies for flights that don't pass through Moscow.

"The crisis is severe, but the domestic market is very good, it has almost recovered," he said.

Russian airlines lost half of their revenue last year. But domestic flights have helped to start a recovery, with local routes almost reaching 2019 levels between January and May and since then even exceeding those levels.

Total passenger traffic, including international flights, is still far from pre-crisis levels, however. It was down by almost a quarter in January-June compared with 2019.

Aeroflot has said it expects a full market recovery in 2022-2023.

Russian airlines bet on domestic recovery with airshow deals

Related Articles

Airbus in talks on sales of A350 freighter -exec
Airbus in talks on sales of A350 freighter -exec By Reuters - Sep 21, 2021

By Tim Hepher TOULOUSE, France (Reuters) - Airbus (Pa:AIR) is in talks with several potential customers for a new A350 freighter while seeing signs of demand for smaller A320...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email