On the sidelines of the first-ever INNOPROM trade fair organized by Russia’s Ministry of Industry and Trade and India’s Ministry of Commerce and Industry, Russia’s state enterprise United Aircraft Corporation (UAC) announced that it plans to sign a contract for the supply of Superjet (SJ-100) aircraft to an Indian operator at the Aero India 2027 exhibition.
Jointly organized by Russia’s Ministry of Industry and Trade and India’s Ministry of Commerce and Industry, the event features over 200 companies from both nations showcasing technologies in mechanical engineering, mining, metallurgy, chemicals, IT, pharmaceuticals and medical equipment.
UAC is also close to finalizing a contract with HAL that would allow the Indian state corporation to facilitate localization of SJ-100 production in India.
Russian officials assessed that the negotiations are over 80% complete and that a licensing deal could be signed by the end of 2026.
In February 2026, speaking to journalists at the NAIS-2026 aviation forum in Moscow, UAC General Director Vadim Badekha had stated that HAL had projected an approximate three-year timeline for the first SJ-100 assembled in India (pointing to 2028–2029) and that an annual rate of 20–40 aircraft would be a good pace once production was established.
He estimated the potential of the Indian and nearby markets at 200–300 aircraft.
He reiterated the assessment in June during an interview with TASS ahead of SPIEF-2026.
In March 2026, HAL Chairman Devasri Kutti Sunil had projected India’s requirement for the SJ-100 at 200.
HAL may have revised its market demand estimates because Russian officials at INNOPROM, citing HAL, now estimate Indian market demand at 300 aircraft.
Superjet SJ-100
The SJ-100 is a twin-engine Russian short-haul, narrow-body airliner. More than 230 Superjet/SJ-100 aircraft have been built. About 160 remain in Russia, of which roughly 140–160 are with airlines; they are operated today by about seven to eleven Russian commercial operators.
The aircraft are positioned for India’s regional connectivity needs. HAL believes the SJ-100 will be a game changer for short-haul connectivity under India’s UDAN Scheme.
In the Indian market, the SJ-100 would likely face competition from the Brazilian aircraft manufacturer Embraer, which in January 2026 entered into a similar agreement with the Indian conglomerate Adani Defense & Aerospace for local assembly of its aircraft.
Embraer’s mid-size E190-E2 provides a capacity of up to 114 passengers, as compared to 100 in the case of the SJ-100.
HAL’s Civil Aviation Foray Pivots Around SJ-100
SJ-100 local manufacturing is pivotal to HAL’s plans to diversify its business, which currently depends on military contracts for 95% of its revenues, with a major foray into the civil aviation segment.
HAL wants to generate 25% of its revenues from the civil aviation segment in 10 years, up from the current 4–5%.
HAL plans to lease around 10 to 20 aircraft in a phased manner after contract signing to gather operational feedback on maintainability, ground support, MRO requirements, and support systems. The company will start rolling out aircraft from its existing facilities in about three years, assembled using semi-knocked-down kits.
Operating Costs
UAC is a novice manufacturer in the civil aviation sector. Before Western nations imposed civil aviation-related sanctions in 2022, as part of their wide-ranging economic war against Russia, UAC was developing aircraft and engines for civil aviation at a leisurely pace.
When it was first developed during the pre-sanctions years, the SJ-100 featured many Western assemblies and systems. It was also powered by an engine jointly developed with France—the PowerJet SaM146 (Safran–NPO Saturn).
Post-sanctions, pursuing import substitution in mission mode, Russia has replaced all Western systems in the aircraft with domestically developed analogs and swapped the engine for the domestically developed PD-8, which has a slight performance edge over the PowerJet SaM146.
While import substitution on the aircraft has been an impressive success, it has added both cost and weight to the aircraft, negating some of its performance advantage over competing short-haul airliners.
Visionary Thinking or Gamble
As such, the SJ-100 is likely more expensive to acquire and operate. Under the circumstances, some may question HAL’s decision to collaborate with the UAC, equating it to a reckless gamble.
UAC Chief Vadim Badekha acknowledges the challenge of breaking into the market with a more expensive aircraft, higher operating costs, and a limited track record.
“Today, our aircraft are more expensive than foreign-made aircraft in terms of both cost and operating costs, but not dramatically so. It’s important to understand that these are our first aircraft, so judging prices by them isn’t entirely accurate. I’m confident that once we reach full-scale production, we’ll be able to offer competitive pricing on par with Western manufacturers.”
HAL’s decision to locally manufacture the aircraft is likely guided by the same mindset. The extent of technology shared by Russia – airframe and engine – will likely far exceed what would be on offer from a competing manufacturer. HAL would have the option to participate in developing future iterations of the aircraft with significant technology contributions, as was the case with BrahMos.
To minimize costs and remain competitive, HAL will import major assemblies, set up the required facilities and test equipment, and complete final assembly domestically.
In January 2026, the HAL Chairman told the ToI that HAL will keep investments low by leveraging in-country industry capacity, its own factories and its established vendor base.
Airline operating costs are largely dependent on fuel and maintenance costs. Domestic production of spares would increase availability and reduce costs compared with competing airliners.
HAL plans to partner with private-sector players besides using its large Nasik complex and its Kanpur factory for sub-assemblies.
Conclusion
Local manufacture of the SJ-100 would allow HAL to enter the civil aviation market segment, working with a partner it has worked with for many decades.
HAL is likely to negotiate a very good deal because the fear of US sanctions will not allow many aircraft manufacturers to collaborate with UAC. With its very low dependence on US entities, HAL can withstand the threat of US sanctions.
It is interesting to note that no Indian operator has publicly revealed an interest in the SJ-100. However, it is possible that HAL will name at least one or two operators when it officially signs the local manufacturing contract with UAC later this year.
In contrast, the Russian Il-114-300 turboprop airliner, which HAL may also eventually assemble locally, has drawn more attention. Operators who expressed interest during INNOPROM include Sleek Aviation for 35 Il-114-300 aircraft plus a training center with a full-flight simulator, Air Kerala for up to 20 Il-114-300 aircraft (total potential of 105), and Flamingo Aerospace for six Il-114-300s. However, that is another subject.
- Vijainder K Thakur is a retired IAF Jaguar pilot, author, software architect, entrepreneur, and military analyst.
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- Follow the author @vkthakur
