Rostec to Supply 50 Medium-range MC-21 Aircraft to Aeroflot for $5B

Rostec has received a firm order to supply 50 medium range MC-21 passenger aircraft to Aeroflot.

Under the firm order, Rostec leasing subsidiary Aviacapital-Service will supply Aeroflot with 50 MC-21-300 aircraft on operating leases. Aeroflot will become the largest Russian leasor of the latest Russian-built aircraft. The leasing payments and reserves for maintenance will total more than $5 billion, Aeroflot said in a statement Thursday,

The aircraft will be configured for Aeroflot to carry 169 passengers, with 16 business-class and 153 economy-class seats. In the first phase of the contract the aircraft will be delivered with engines produced outside Russia. From the 26th aircraft Aeroflot has the option to receive aircraft with new Russian-built PD-14 engines, which are currently undergoing certification testing.

The first aircraft is scheduled for delivery to Aeroflot in the first quarter of 2020, with the order planned to be completely fulfilled by 2026. Each aircraft will be leased for a term of 12 years, with the option of two-year extensions on the lease no more than three times. Aeroflot plans to operate the aircraft on both domestic and international routes.

"Elements of the MC-21 that Rostec produces include titanium and composite parts, on-board electronics, chassis components, other systems, and the 'heart' of the aircraft - the PD-14 engine," Sergey Chemezov, CEO of Rostec said.

The MC-21 is a medium-haul, narrow-body aircraft produced by Irkut Corporation (part of United Aircraft Corp., UAC) in cooperation with leading Russian manufacturers. Rostec subsidiaries involved in the production of the aircraft were VSMPO-AVISMA, United Engine Corporation, Technodinamika, Concern Radio-Electronic Technologies, and RT-Chem-composite.