Russia plans to cut cost of MC-21 airliner below 7.5 billion rubles

The Russian Ministry of Industry and Trade plans to reduce the cost of the MC-21 medium-haul airliner, which currently stands at 7.5 billion rubles. The goal is to lower the price by several billion rubles in constant prices to ensure the aircraft is financially attractive to airlines by the time mass deliveries begin.

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MC-21

Minister Anton Alikhanov stated that the price reduction will be achieved without compromising quality or reliability. The strategy involves optimizing internal processes within the United Aircraft Corporation (UAC) and diversifying the supply chain by engaging alternative second- and third-tier suppliers. This repricing effort will cover the entire value chain, from raw material procurement to final assembly.

Economist Artem Loginov told Pravda. Ru that while the state covers initial development costs, the aircraft must eventually be sustainable through market mechanisms and strict component cost control to compete with global manufacturers.

A primary driver for lower costs is the transition to large-scale production. A contract with Aeroflot for 90 aircraft, to be delivered between 2029 and 2032, provides the necessary volume to distribute fixed design and tooling costs across more units. This guaranteed demand allows suppliers to fix favorable prices for avionics, composite materials, and metals.

Financial analyst Nikita Volkov noted that the Aeroflot agreement acts as a financial foundation for UAC, improving cash flow and reducing the need for expensive commercial loans to modernize assembly lines.

Certification for the MC-21, conducted according to ICAO standards, is expected to conclude in the summer of 2027. Commercial deliveries are scheduled to begin the same year. The aircraft, with a capacity of up to 211 passengers, is designed to replace aging Soviet-era fleets on domestic routes.

Business appraiser Anton Dorofeev suggested that keeping the price below 7.5 billion rubles would give the MC-21 an advantage over foreign competitors, whose costs are currently affected by sanctions and logistics complications.