UAC moves Superjet 100 from Sukhoi to Irkut in company restructure

Russia’s Superjet 100 is no longer part of the Sukhoi product line as parent company United Aircraft Corp. (UAC) rearranges its structure to separate its commercial and military aircraft manufacturing assets.

UAC’s board at the end of November decided to transfer the shares of Sukhoi Civil Aircraft Co. (SCAC), the Superjet designer and manufacturer, from its Sukhoi Holding subsidiary to its Irkut Corp. subsidiary. Irkut will become the home of UAC’s commercial division. Sukhoi is a well-established manufacturer of combat aircraft for the Russian military and export customers, and commercial aircraft is not a focus, a company source explained.

Sukhoi set up SCAC in 2000 to separate the Superjet 100 project, known then as the Russian Regional Jet, from its traditional military programs. It regained 100% share in SCAC in early 2017, when strategic partner Leonardo pulled out because of Superjet’s poor financial performance.

The decision to merger all UAC commercial programs under a joint management was made in 2017. Although Superjet 100 is the only commercial product generating revenues for UAC, Irkut was chosen to house the commercial activities because it heads Russia’s key civil-aircraft development program, the MC-21 narrowbody airliner. This aircraft is expected to get the Russian type certificate in 2020.

The new division will manage at least three commercial programs, Superjet 100, MC-21 and Russo-Chinese CR929 widebody. But two other commercial programs at the development stage—Il-114 passenger turboprop and modernized IL-96-400 widebody will be left with Ilyushin, which could emerge as a new transport aircraft division once programs are further established.

In addition, SCAC and Irkut, the new commercial division will include Yakovlev Design Bureau, avionics specialist UAC—Integration Center and composite manufacturer AeroComposit.

UAC considered separating the new commercial division from the rest of the company to help avoid sanctions. But such a move now appears unlikely following the Russian government’s decision in October to place UAC under industrial giant Rostec. Both Rostec and its CEO, Sergey Chemezov, are also under Western sanctions.