Russia's Ambitious Regional Jet Project Faces Skepticism and Competition

As global aerospace giants Boeing and Airbus engage in a high-stakes battle at the Paris Air Show, Russia is poised to unveil its own ambitious project: the Russian Regional Jet (RRJ). Developed by Sukhoi and its partners, the RRJ is a family of three aircraft designed to cater to the growing demand for regional jets in emerging markets. With a catalogue price of $26 million and a fuel efficiency rating of 15% better than its competitors, the RRJ aims to capture a significant share of the global market.

However, despite Sukhoi's confidence in the project's potential, the company faces significant challenges in securing orders and navigating the complex landscape of international cooperation. As Mr. Subbotin, director of Sukhoi's civil aircraft division, notes, "It is the only (Russian) project that has the right to exist because it is not only targeting Russia but the global market." Sukhoi expects to sell approximately 800 regional jets by 2020, with most of them being sold abroad.

Key Takeaways:

• The RRJ is a family of three aircraft (60, 75, and 95 passengers) with a catalogue price of $26 million, envisioned to capture a significant share of the global regional jet market.
• Sukhoi has partnered with over 20 western component suppliers, including Snecma, to develop the SaM 146 engine for the RRJ series, with the French government committing €250 million in guaranteed loans to finance Snecma's part of the engine work.
• Despite Sukhoi's confidence in the project, orders for the RRJ are slow to arrive, with Boeing's 787 Dreamliner already having orders and commitments for 266 aircraft from 21 countries, of which 112 are under firm contract.
• Russian and foreign airlines are cautious about the national and production risks associated with the RRJ project, with Aeroflot shortlisting the RRJ but postponing a final decision, and Siberia Airlines non-committal about firming up its preliminary agreement for 50 95-seat RRJs.
• Western carriers are taking a wait-and-see approach, with Air France's regional fleet director stating that it is "too early to make any commitment" and that Sukhoi "has taken up the best of what is available and is, in principle, on the right path" but "falls short of a breakthrough".

Statistics:

• Sukhoi expects to sell approximately 800 regional jets by 2020, with most of them being sold abroad.
• Boeing's 787 Dreamliner has received orders and commitments for 266 aircraft from 21 countries, with 112 of them under firm contract.
• The RRJ is expected to be 15% cheaper, more fuel-efficient, and more comfortable than its competitors.
• The SaM 146 engine developed by Snecma will be fitted on the RRJ series.
• The French government has committed €250 million in guaranteed loans to finance Snecma's part of the engine work.

Sources:

• "We expect to announce contracts with some of our western suppliers at the Le Bourget show," says Viktor Subbotin, director of the civil aircraft division at Sukhoi.
• According to Sukhoi, the RRJ will be 15% cheaper, more fuel-efficient, and more comfortable than its competitors.
• Sukhoi expects to sell approximately 800 regional jets by 2020, with most of them being sold abroad.
• Boeing's 787 Dreamliner has received orders and commitments for 266 aircraft from 21 countries, with 112 of them under firm contract.
• "It is the only (Russian) project that has the right to exist because it is not only targeting Russia but the global market," says Viktor Subbotin, director of Sukhoi's civil aircraft division.