Latest news with #commercialjets
Yahoo
4 days ago
- Business
- Yahoo
Russia's struggle to build commercial jets reflects deeper industrial malaise
Russia's struggle to build commercial jets reflects deeper industrial malaise By Gleb Stolyarov and Alexander Marrow (Reuters) -Russian aircraft makers have delivered only one of 15 planned commercial jets this year, data from Swiss aviation intelligence provider ch-aviation shows, as sanctions on foreign components stall production and high interest rates crimp investment. Since Russia's February 2022 invasion of Ukraine, Western sanctions have cut off access to foreign-made aircraft and spare parts. With a fleet of more than 700 planes dominated by Airbus and Boeing jets, Russian airlines now rely on complex, indirect import routes to source critical components. "There is no component base, no technology, no production facilities, no engineers," said one Russian aviation industry source, who declined to be named due to the sensitivity of the matter. "To create all this from scratch takes years, if not decades." Given Russia's geographical challenges as the world's largest country, it depends on commercial aircraft for domestic freight and passenger transport across its 11 time zones. Recent major incidents highlight an urgent need to prevent the fleet degrading. In late July, a Soviet-era Antonov An-24, built in 1976, crashed in the country's far east, killing all 48 people on board. Days later, flag carrier Aeroflot grounded dozens of flights following a crippling cyberattack. The aviation sector's struggles to become self-sufficient are part of a broader industrial slowdown. Russia's factory output contracted at its fastest pace since March 2022 in July, according to Purchasing Managers' Index data, and industrial growth continues to decelerate. High interest rates have played a part in dwindling car production, coal sector bankruptcies, slowing export volumes of commodities like metals and oil products, as well as the missed plane-building targets, officials and businesses have said, contributing to slowing economic growth. "Industry is being hit faster and harder by tight monetary policy," said Dmitry Polevoy, head of investment at Astra Asset Management, warning that the industrial sector was on the brink of recession. PRODUCTION DELAYS AND NEW TARGETS In 2021, Russia added 52 new commercial aircraft to its fleet — including 27 from Airbus, three from Boeing, and 22 Sukhoi Superjets built with imported parts - for airlines including Aeroflot, S7, Red Wings, Rossiya, and Ural Airlines, data from ch-aviation shows. Since then, only 13 new planes have been added: 12 Superjets used by several Russian airlines and one Tupolev Tu-214, a twin-engine, narrow-bodied jet designed for medium-haul flights, the data showed. The Tu-214 is being used by First Deputy Prime Minister Denis Manturov, according to a person familiar with the matter, FlightRadar24 data, and Russian media reports. The government has repeatedly revised its production goals. In mid-2024, it cut the 2024–2025 delivery target to 21 from 171 aircraft. Last month, officials said targets would be revised again, citing high interest rates, which have made financing more expensive and slowed production. State conglomerate Rostec, which oversees production of the Superjet-100s, Tupolev Tu-214s, Ilyushin passenger planes and the new Yakovlev MC-21 jet, has struggled to meet deadlines. Rostec CEO Sergei Chemezov told Reuters last year that Russia would produce its own passenger planes, but delivery dates have repeatedly slipped. The MC-21 aircraft, built entirely with Russian-made parts, was much heavier than the version built with imported parts, reducing range and fuel efficiency - so airlines have been reluctant to adopt it, according to the Russian aviation source. On Tuesday, Chemezov told Prime Minister Mikhail Mishustin that serial production of the MC-21, SJ-100, and IL-114 jets would begin in 2026, two years later than originally planned. United Aircraft Corporation, the Rostec subsidiary that manages all the conglomerate's aircraft production, did not respond to a request for comment. SANCTIONS AND SUPPLY CHAIN Despite efforts to localise production, Russia continues to rely on foreign suppliers. Customs data seen by Reuters shows that parts worth at least $300,000 were imported in 2024 via intermediaries in Turkey, China, Kyrgyzstan, and the UAE. These included components from France's Safran, U.S. Honeywell, and Britain's Rolls-Royce. There is no evidence of these companies having violated sanctions. Russia has developed a system of parallel imports, allowing goods to enter the country through third parties without the manufacturer's knowledge or consent. Safran did not immediately respond to requests for comment. Honeywell said it is not providing any equipment, parts, or products to any company in Russia and is "actively working to identify and interrupt any possible diversion of our products into Russia via third parties." Rolls-Royce said it does not do business with sanctioned persons or entities. "We also operate an active and robust sanctions compliance programme which includes counter-party screening and actively monitoring and reporting suspicious enquiries to government regulators," a spokesperson said. Russia is trying to solve a unique and "hypercomplex" problem, Industry and Trade Minister Anton Alikhanov said last month. "No other country in the world produces fully import-substituted planes," Alikhanov said. Reduced aircraft supply while demand remains high is pushing up prices for consumers, with ticket prices rising steadily throughout 2023 and 2024, Rosstat data shows. Meanwhile, Moscow has been forced to get creative, asking airlines from Central Asian countries like Kazakhstan and Uzbekistan to run domestic Russian routes. Solve the daily Crossword
Yahoo
02-07-2025
- Business
- Yahoo
Brazil's Embraer delivers 61 aircraft in Q2, a 30% rise year-on-year
SAO PAULO (Reuters) -Brazilian planemaker Embraer said on Wednesday it delivered 61 aircraft in the second quarter of 2025, a 30% increase from a year earlier. The deliveries in the quarter through the end of June included 19 commercial jets, in line with the same quarter last year, and 38 executive jets, a 41% jump in the same time frame, Embraer said in a securities filing. The company added it also delivered four defense aircraft in the period, from one delivery a year earlier. The Brazilian firm expects to deliver between 77 and 85 commercial planes and between 145 and 155 executive jets this year. Embraer is set to release its full second-quarter earnings on August 5, according to its investor relations website.
Bloomberg
06-06-2025
- Business
- Bloomberg
Boeing Poised to Restart Jet Handovers to China Amid Trade Spat
Boeing Co. has begun shipping commercial jets to China for the first time since early April, indicating a reopening of trade flows amid the long-simmering tariff war between the US and Asia's biggest economy. A Boeing 737 Max registered N230BE took off for Hawaii on Friday morning, according to Flightradar24 flight data. It is the first stop in a journey across the Pacific to the US planemaker's center in Zhoushan, China where it typically finalizes delivery of that model for domestic customers.
Washington Post
23-05-2025
- General
- Washington Post
Pentagon lost contact with Army helicopter on flight that caused jets to nix landings at DC airport
WASHINGTON — Military air traffic controllers lost contact with an Army helicopter for about 20 seconds as it neared the Pentagon on the flight that caused two commercial jets to abort their landings this month at a Washington airport, the Army told The Associated Press on Friday. The aborted landings on May 1 added to general unease about continued close calls between government helicopters and commercial airplanes near Ronald Reagan Washington National Airport following a deadly midair collision in January between a passenger jet and an Army helicopter that killed 67 people.
Yahoo
10-05-2025
- Business
- Yahoo
US probing impacts of imported jets, aircrafts on national security
The Trump administration is currently probing the impact of imported commercial jets, engines and other aircraft parts on national security, according to a copy of the federal notice made public on Friday. The Commerce Department started the investigation on May 1, per the notice. The department is seeking public comments on the current and projected demand for commercial aircraft and jet engines, the role of foreign supply chains in meeting U.S. demand for commercial jets and the 'impact of foreign government subsidies and predatory trade practices on the competitiveness of the commercial aircraft and jet engine industry.' The probe marks the latest use of a Section 232 provision under the 1962 Trade Expansion Act. It also comes after President Trump imposed sweeping tariffs last month on steel and aluminum coming into the country. Delta Air Lines said last month that it is figuring out how to avoid the additional cost due to tariffs when receiving jets from Airbus this year. 'We will not pay tariffs on any aircraft deliveries we take,' Delta's top executive Ed Bastian said in early April. 'We will defer any deliveries that have a tariff on it.' The Commerce Department also opened up a probe into the impact of imported medium-duty and heavy-duty trucks on national security. GE Aerospace CEO Larry Culp said that he met with the president in April and that he pushed for re-inserting a duty-free option for the aerospace industry, arguing under the 1979 Civil Aircraft Agreement, the sector was able to enjoy a massive surplus. 'I have argued that it was good and would be good for the country,' Culp said in an interview with Reuters in April, adding that the administration 'understood' the company's position. The investigation also comes as the administration works to negotiate trade deals with foreign trade partners after Trump imposed a 10 percent baseline tariff on nearly all foreign nations. The president has since paused the majority of reciprocal tariffs for 90 days. Trump on Thursday announced the U.S. had reached its first major trade deal with the United Kingdom since the 'Liberation Day' tariffs were rolled out. U.S. officials are also in Switzerland Saturday for talks with Chinese counterparts. China, the world's second largest economy and a major U.S. trading partner, last month ordered its airlines to ditch jet deliveries from Boeing — an American company — amid the trade war. The nation, notably excluded from the 3-month tariff pause, currently faces a 145 percent import tax, though the White House has suggested it could be significantly reduced. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
