Prices of civilian airliners made in Russia soared, sometimes almost doubled as Western sanctions on the Ukrainian war continued to bite. In particular, the cost of basic materials and electrical components has been passed through the stratosphere, which has made Russia's long-term goal to wean from Western aircraft.
According to the Moscow Times, Russia's answer to the Boeing 737, the price of MS-21 rose nearly 60% in just one year. The smaller turboprop, the IL-114, is almost twice as good as it was a year ago. Other Russian-made aircraft have growth rates of 45% and above. Inflation may be bad everywhere, but it's just a killer.
The Russian aviation sector claims that as production increases, economies of scale will begin and save a day. At least in its own country, it should get a lot of business, as the driver here is the fact that Aeroflot can no longer buy from Western companies like Boeing and Airbus. When the sanctions were first abandoned, the Russian Airlines simply stole more than 400 such aircraft and they refused to return to them for lease. But in the long run, Russia will fly its own plane to avoid dealing with the West. However, at these prices, the plan doesn't look very reasonable.
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Gray sky and grey market
Boeing 737 operated by Russian Airlines S7 – Boarding/Getty Images
When Russia began its full invasion of Ukraine in 2022, Russian-made aircraft accounted for only 37% of the entire Russian civilian fleet, according to Novaya Gazeta Europe. This makes the country's civil aviation sector highly dependent on foreign manufacturers, especially in the West. Indeed, the entire fleet must be rooted for the lack of engine parts, so Russia needs to figure out how to replace two things: the spare parts of the aircraft and the plane itself.
To build your own actual aircraft, Russia's domestic industry will need to strengthen the game, which is much more difficult when basic materials are also approved. But for these parts, Russia figured out some solutions in the most possible way. The first is to simply smuggle parts into the country, the damn sanctions are damn. As detailed in a report by Finnish Outlet YLE, the gray market for aircraft parts in western Russia is nearly 1 billion euros (about $1.2 billion). The trick is to buy these parts from airlines in other countries such as Turkey, China and the United Arab Emirates. They shouldn't sell approved parts to Russia, but we're here.
The second plan is that Russia itself only manufactures foreign parts, essentially making fake Boeing and Airbus components. As Politico pointed out, this violates international rules, and it is well known that it is something Russia is deeply concerned about. These parts should be as reliable as the counterfeit Rolex you bought for $20. Except they get on the plane with them.
Falling from the sky
Russian IL -114 Takeoff – Artyom_anikeev/Getty Images
Obviously, it’s better to make your own plane than to make fake parts from others. Unless, of course, your plane has the habit of not leaving space. Novaya Gazeta Europe found that from 2000 to 2022, 80% of the crash deaths in Russia were on aircraft registered in the country (which means they were serviced and maintained by Russia, regardless of where the aircraft was originally made). So, do you want to get on a Russian plane? Don't think so.
This will only get worse because Russian Airlines flies foreign aircraft with fake parts or cuts around corners to save costs. Obviously, this is not good for anyone living there, but it is also bad for any country that still accepts Russian flights. Although not the West now, many countries in the Middle East and Asia are still the same. A bad plane could crash like a motherland.
The Russian civil aviation sector is together and is in a state of turbulent weather. It had to produce many new aircraft to replace Western aircraft, but they were less secure and more expensive than before. By contrast, making Boeing’s problem look like a slick flight.
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