Russian Aircraft Prices Surge Amid Rising Production Costs
The cost of Russian-manufactured civilian aircraft has surged significantly in recent years, according to internal documents from Russia’s Ministry of Transport cited by the publication Izvestia. The report reveals sharp increases in aircraft pricing across several key models, reflecting both inflationary pressures and evolving market dynamics.
Among the most notable changes is the price of the Irkut MC-21 mid-size airliner, which has risen by 65% from initial projections. The current cost of the aircraft stands at 7.6 billion rubles, or approximately $9.6 million. The MC-21 is one of Russia’s most ambitious aviation projects aimed at competing with Western aircraft in the narrowbody market, and this price hike underscores the financial challenges involved in bringing it to full-scale production.
The regional turboprop Ilyushin Il-114-300 has also seen a dramatic cost increase. Originally priced at 1.44 billion rubles, or about $18.2 million, the aircraft is now listed at 2.6 billion rubles, or around $32.9 million—an 80% jump. The first three units, still undergoing certification with completion expected by the end of 2025, could be even more expensive, with costs reaching up to four billion rubles, or roughly $50 million each.
Smaller aircraft have not been immune to inflation. The UZGA LMS-901 Baikal, a single-engine utility aircraft designed to replace aging Soviet-era models, is now expected to cost around 320 million rubles, or approximately $4 million. This marks an increase of nearly 80% from its earlier projected price of 178 million rubles, or $2.25 million.
Industry insiders quoted by Izvestia attribute these cost increases to changing economic conditions, including supply chain disruptions, higher input costs, and reduced access to foreign components due to international sanctions. However, they also suggest that prices may come down by 2030 as production scales up and efficiencies are realized.
To address the affordability concerns faced by domestic carriers, Russian authorities have reportedly instructed the state-owned aircraft leasing firm GTLK to develop financing solutions. These are expected to include extended lease terms of seven to ten years and possible subsidies from the National Welfare Fund, one of Russia’s sovereign reserves. The subsidies would aim to lower interest rates on leases, easing the financial burden for Russian airlines and promoting the adoption of domestically produced aircraft.
These developments are part of Russia’s broader strategy to reduce dependence on Western-made aircraft and rebuild its aviation manufacturing capabilities. While rising prices present a challenge, government-backed financing and increased production may help stabilize the domestic aviation sector in the long run.
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