Sukhoi Civil Aircraft JSC – Through Hardships to the Stars

Vladimir Prisyazhnyuk,

President of Sukhoi Civil Aircraft JSC*

*From 1st February 2013 succeeded by Andrey Kalinovskiy

One can often hear the question: why on earth the Sukhoi Design Bureau renowned for its designs of military aircraft embarked on designing a civil aircraft? But, firstly, the Sukhoi Design Bureau has some experience in this field. The S-80 aircraft, developed by Sukhoi in a passenger and a cargo version, performed its maiden flight on 4th September 2001. Secondly, when one has many years’ experience in the development of aircraft, why shouldn’t one try one’s hand in the financially remunerative field of civil aircraft, the demand for which is growing with every passing year.

To tackle this task, the Sukhoi Civil Aircraft JSC (SCA) was formed within the Sukhoi Holding Company in 2000. In the course of the short period of its existence the company has succeeded in creating only one aircraft bearing the name Sukhoi Superjet 100 which brought to its creators praise and publicity, on the one hand, and torrents of criticism, on the other. One may well say that the history of aviation knows no other aircraft that was the object of so many fantasies, cock-and-bull stories and idle talk. However, the aircraft is flying, and this is the best testimony to the viability of its creators.

So, the SCA Company was formed in 2000 for the purpose of developing new aircraft designs for civil use. The main directions of activity of the company are: design and manufacture of aircraft; marketing and sales; management and development; training; post-sale technical support of the aircraft developed by the company. From the outset the company was oriented towards creating a high-technology product that would be capable of competing successfully on the world market.

The company’s main project is the programme for the development of a family of the Sukhoi Superjet 100 family of regional aircraft intended for sale on the world market. Stockholders of the company are the Sukhoi Holding Company (75% minus one share) and, from 7th April 2009, a strategic partner – the Italian company Alenia Aermacchi (25% plus one share). The Sukhoi Superjet 100 (abbreviated to SSJ 100 – certification name of the family of aircraft known as RRJ – Russian Regional Jet) is a Russian short-haul passenger aircraft which has been developed by the company with the participation of a number of foreign companies.

The family of the Sukhoi Superjet 100 aircraft consists of two versions, capable of carrying 75 or 95 passengers (the number of passengers can vary depending on the cabin layout) in a configuration with the basic range (SSJ100/75B and SSJ100/95B) and with the extended range (SSJ100/75LR, SSJ100/95LR). As of October 2012, all the Superjet aircraft manufactured so far belong to the version for 95 passengers. The aircraft is a narrow-body low-wing monoplane with a 5-abreast seating in the economy-class cabin and 4-abreast seating in the business-class cabin. The versions under development at present include a configuration combining business-class and VIP seating and a version with an extended fuselage and increased passenger capacity. This does not mark the final point in the plans for the development of the project – on 17th May 2012 the United Aircraft-building Corporation (UAC) submitted to the Ministry of Industry and Trade a bid for participation in the contest for developing yet another version – a short-haul trunk-route aircraft of a new generation (NG). The price of the contract exceeds 2.5 milliard roubles.

From the very beginning of the implementation of the Sukhoi Superjet 100 project the SCA Company opted for a strategy which envisaged a parallel certification of the aircraft according to the standards of the IAC AR (Interstate Aviation Committee Aviation Register) and to EASA standards. The company adopted a policy of international cooperation with partners and suppliers reputed to be the best in the world aircraft industry. On 23rd June 2010 the EASA certificate was issued for the SaM146 engines, and on 3rd February 2012 the SSI100 airliner received its EASA type certificate. Bearing in mind the limited capacity of the Russian market, the hopes were put in the international market which would require up to 600 Superjets. Earlier, on 3rd February 2011, the aircraft had received a type certificate issued by the Aviation Register of the Interstate Aviation Committee.

Well then, how popular is the firstling of the SCA Company, how sizeable is the demand for it? Let us turn to figures and facts. The table below contains information on the orders and deliveries of the aircraft as of the late 2012.

Table 1. Information on orders and deliveries of the SSJ100 airliner

Signed contracts on deliveries							Number of machines delivered
Date of signing the contract	Customer	Time of delivery	Type	Number of machines ordered	Option	Notes
7th. December 2005	Aeroflot – Russian airlines	2011	95B	30	15	Firm contract	10
14th September 2007	Armavia	2011	95B	1		Deliveries completed[	1
21st August 2009	Yakutia	2012	95B	2	1	Within a contract with Finance Leasing Company	1
19th May 2010	Lao Central Airlines	From 2012		3	6	Firm contract
19th July 2010	Kartika Airlines	2013-2015	95B	30		The contact has been frozen
21st July 2010	Pearl Aircraft Corporation			30	15	An agreement on deliveries
2nd September 2010	Willis Lease Corporation	from 2012	95LR	6	4	Preliminary agreement
17th January 2011	Interjet	from 2012	95B / 95LR	20	10	Firm contract
22nd June 2011	Blue Panorama Airlines	First half of 2013	95B	4	8	An agreement on deliveries
16th August 2011	PT Sky Aviation	2012-2015	95B	12		Firm contract
17th August 2011	UTair	from 2014	95LR	24		Firm contract
17th August 2011	Gazpromavia	2013-2015	95LR	10		Firm contract
17th February 2012	Transaero	2015-2017	SSJ	6	10	Firm contract
5th. May 2012	Air Indus		SSJ	3	5	preliminary
5th May 2012	Ministry of Defence of Myanmar	2013	SSJ	2		preliminary

As of December 2012, 18 production aircraft have been manufactured (12 have been delivered to the customers) plus four pre-series machines, one fatigue test airframe and yet another one for static tests; 24 production aircraft were under construction in varying degrees of readiness, 11 of them being in the final assembly workshop.

The number of orders could be greater – in December 2006 the first firm orders were concluded with the AiRUnion and Dalavia airlines, but the two air carriers went bankrupt. Later, contracts were signed with Armavia and Aeroflot who became launch customers for the Superjet 100.

Deliveries for 2011 were planned to comprise 7 aircraft; due to a low rate of manufacture - one aircraft being completed approximately every two months – only 5 machines were delivered. Of these, four went to Aeroflot and one – to Armavia. In 2012, in addition to Aeroflot and a carrier in Yakutia, deliveries were commenced to the Mexican air carrier Interjet and to the Indonesian carrier Sky Aviation.

The first production aircraft intended for Armavia took to the air on 4th November 2010. On 12th April Armavia and SCA signed in Komsomolsk-on-Amur the technical acceptance report for the Sukhoi Superjet 100 (serial No. 95007). On 21 April 2011 the first commercial flight was performed from Yerevan to Moscow by an aircraft of the Armenian airline Armavia (serial No. 95007, registration EK-95015) which bore the name of Yuriy Gagarin, the first cosmonaut of the planet. The airliner had more than 90 passengers on board on that occasion. In the course of operation, after 577 hours had been logged and 234 flights performed, problems with the engine came to light. On 9th October 2011, when performing flight U8-15 from Amsterdam to Yerevan, the total number of flying hours logged by Armavia’s Sukhoi Superjet 100 (SSJ100) in commercial flights reached the 1000 flight hour mark. The 2000 hour mark was attained by the aircraft on 12th May 2012; this happened during the flight from Yerevan to Nizhniy Novgorod, the aircraft’s 818th commercial flight. In August 2012 Armavia announced its decision to relinquish the Superjet airliner acquired earlier. According to information from the SCA company, Armavia had not paid the full price for this airliner.

The Sukhoi Civil Aircraft Company and the Armavia airline reached an agreement on the terms for operation of the SSJ100 airliner (MSN 95007). The parties signed a leasing agreement which becomes valid after the customs formalities have been fulfilled and financial encumbrances have been eliminated. In the nearest future Armavia will resume the operation of this aircraft. Armavia will remain the operator of the aircraft, and SCA will be the lessor. This leasing agreement will remain in force for six months, whereupon the parties will meet again and will discuss their further actions. On 2nd October 2012 the aircraft MSN 95007 arrived in Yerevan. The parties continue discussions on the second aircraft (MSN 95021) which was built for Armavia under the terms of the previously signed contract and which is also stationed in the Flight Test Centre of the SCA Company at present.

The first commercial flight of the aircraft registered RA-89001 (serial No. 95008) in Aeroflot livery took place on 16th June 2011; it flew on the route from Moscow (Sheremetyevo, terminal D) to Saint Petersburg (Pulkovo). Aeroflot’s second SSJ100 RA-89002 (serial No. 95010) took onboard its first passengers on 27th August 2011. Operation of both aircraft proceeded without problems. As of 6th November 2011, the two Aeroflot machines performed 824 flights totalling more than 1293 flying hours.

On 9th November 2011 Aeroflot introduced into service its third Sukhoi Superjet 100 RA-89003 (serial No. 95011) which performed flight SU713/714 on the route Moscow – Nizhniy Novgorod on that day.

In 2011, when Aeroflot had put four first machines into operation, a setback took place. The airline ordered a different cabin layout for the aircraft. Although Aeroflot had already put four SSJ100s into operation, they, in the opinion of the customer, did not correspond to the previously stated requirements as regards the weight and the cabin layout; hence, the aircraft delivered in the first batch were to be replaced by new ones. Instead of the four machines delivered initially, Aeroflot received new aircraft featuring an increased number of galleys and toilets.

This was not the only complaint from the customer. On 15th April 2011 the Minister of Transport of the Russian Federation Igor Levitin declared that the Aeroflot airline would ask the government to introduce penalties against the SCA Company for the delay of the deliveries of the Sukhoi Superjet 100 aircraft. He also noted that Aeroflot had complaints with regard to Superjet’s lower fuel efficiency in comparison with what had been expected. However, the penalties were not introduced and Aeroflot refrained from claiming fines.

As of 22nd January 2012 Aeroflot’s four SSJ100 aircraft performed 1418 commercial flights, logging in all 2381 flying hours. The best results as regards the number of flights per month and the number of flying hours logged per month were obtained in August on the RA-89001 (149 flights and 229.3 flying hours) and in September on the RA-89002 (151 flights and 231.5 flying hours).

On 23rd January and 29th February 2012 the SCA Company and Aeroflot signed delivery/acceptance reports on the fifth and the sixth Sukhoi Superjet 100 aircraft. The fifth aircraft received the registration RA-89007, the sixth – RA-89005; as distinct from the previous models, it wore the livery of the Sky Team alliance.

On 3rd April 2012 the SCA Company and Aeroflot signed in Komsomolsk-on-Amur the delivery/acceptance report on the seventh Sukhoi Superjet 100 aircraft (registration RA-89008); on 17th May, in the same city, they signed the delivery/acceptance report on the eighth aircraft Sukhoi Superjet 100 (registration RA-89006). On 28th July 2012 Aeroflot took delivery of the tenth Sukhoi Superjet 100 (registration RA-89009). On 2nd August it went to its permanent base in the Sheremetyevo airport, and on the following day it performed its first regular flight to Odessa.

Well, how did the SSJ100 acquit itself in the Aeroflot’s fleet? On 21st August 2012 Aeroflot’s chief Vitaliy Savelyev said that he, as the leader of the operator enterprise, had no special complaints with regard to the Superjet. Troubles that come to light, he said, are merely teething troubles of a new aircraft. The machine does have its teething troubles, but this is a perfectly normal thing. After all, a child, too, often falls ill before it acquires sufficient immunity. Failures and malfunctions happened on the A320 and the A330, as well as on the An-148 which is operated by Aeroflot’s subsidiary – the Russia State Transport Company. But the machine as such has shown a normal behavior in operation. “All speculations to the effect that Aeroflot is dissatisfied with the aircraft are absolutely groundless”, - said Valery Kalmykov, Deputy Director-General – Commercial Director of Aeroflot.

As of 31st December 2011, the SSJ100 airliners operated by Armavia and Aeroflot logged in all 3499 hours in 1750 flights.

Yet another customer –Yakutia Airlines – placed a firm order for two Superjets, each with a seating capacity for 93 passengers. In December 2012 a machine intended for this airline and registered RA- 89012 was sent to the Czech Republic to be painted. After that the aircraft returned to Komsomolsk-on-Amur where the customer took delivery of the machine. On 21st December 2012 the delivery of the first Sukhoi Superjet 100 to the second Russian customer – Yakutia Airlines – was marked by an official ceremony in Yakutsk. The ceremony was attended by representatives of the Government of the Sakha (Yakutia) Republic, of the SCA Company and Yakutia Airlines, as well as by representatives of the regional mass media and others. At the opening of the ceremony the first vice-chairman of the Government of the Sakha (Yakutia) Republic Aleksey Struchkov said: “Delivery of the Sukhoi Superjet 100 aircraft to our region is a part of the work conducted by the Yakutia airline with a view to raising the quality standard of passenger air transportation. I think that the new modern airliner manufactured in Russia will show a reliable service in the skies of Yakutia”. Earlier, on 18th December, the SSJ100 (MSN 95019) left Ulyanovsk where the cabin interior installation had been performed and the machine was painted in the livery of the Yakutia airline, and made a normal landing in its base airport of Yakutsk.

Yakutia Airlines became the second Russian customer, after Aeroflot, to receive the Sukhoi Superjet 100 aircraft, but it was also the first such customer in the Far-Eastern part of Russia.

“We were extremely happy to deliver this aircraft to Yakutia Airlines. We see that this is the biggest air carrier in the Far-Eastern part of Russia who is not going to stand still and intends to develop his business. The Sukhoi Superjet 100 incorporates the best technical features that exist nowadays, and this will enable the airline to tackle successfully its tasks”, said Igor Vinogradov, First Vice-President of the SCA Company with responsibility for development and certification.

At the opening of the ceremony Ivan Prostit, General Director of Yakutia Airlines, said: “It is symbolic that the Sukhoi Superjet 100 was delivered to the Yakutia airline precisely on the day of its 10-year jubilee”. He added that the airliner that had arrived was of great importance because it was the first airliner developed in Russia in the recent 20 years. The arrival of the first Sukhoi Superjet 100 airliner in Yakutia is a joyful event, but at the same time it places great responsibility on the company. “A new thing is a new thing. No doubt, the entire Russia will follow attentively our activities. We will endeavour to make the flights of the Superjet not only economically efficient, but also safe”, - declared he to the audience. At a press-conference for the representatives of mass-media on the occasion of the presentation of the first Sukhoi Superjet 100 airliner in the fleet of Yakutia Airlines Ivan Prostit told his audience that the aircraft would be put into operation before the end of the year, with the first commercial flight to Khabarovsk. The airline’s passengers will be able to appreciate the advantages of the new airliner during flights from Yakutsk to Khabarovsk, Blagoveshchensk, Vladivostok and to other cities of the Far East and Siberia. Yakutia Airlines also plans to introduce this aircraft on international flights from Yakutsk to Harbin (China), Niigata (Japan) and Seoul (South Korea).

Igor Vinogradov paid special attention to the advantages of the Sukhoi Superjet 100, among which he singled out the following three as the main ones. Firstly, this is the safest aircraft in the world; this is testified by certificates which have been issued by aviation authorities of Russia, the European Union, Mexico, Indonesia and Laos. Secondly, it is designed expressly for the passengers. It incorporates the best features ensuring passenger comfort, convenient boarding, convenience in flight and many others. Incidentally, this particular machine became the first in the production batch to be fitted with a system of ventilation with individual overhead outlets for each passenger. Thirdly, it boasts the highest fuel efficiency in its class. As regards the fuel efficiency, it is superior to its competitors.

Among the participants of the press-conference was Sergey Orishchenko, captain of the crew of the SSJ100 operated by Yakutia Airlines. He mentioned that that before converting to the new aircraft he had worked as crew captain on the Tu-154. Surely, the Sukhoi Superjet 100 has a completely different set of equipment: it features the glass cockpit in which all the information is presented at displays, whereas the Tu-154 is equipped with electromechanical instruments and indicators. The pilots experienced some difficulty only in integrating all the incoming new information, but otherwise no special difficulties arose during conversion training for piloting the SSJ100. All the more so when they had at their disposal the excellent FFS flight simulator for the Sukhoi Superjet 100. Actually, immediately after having completed the simulator training the pilots can perform flights on the real SSJ100 aircraft.

Answering the question: “Is there anything that in full right can be called a distinctive feature of the Sukhoi Superjet 100?”, Sergei Orishchenko answered without a pause: “Its excellent ergonomics! Virtually any instrument is always within easy reach”.

Bearing in mind the fact that Yakutia Airlines plans to operate this aircraft under harsh climatic conditions of the North, including flights to Arctic airports, official representative of the Sukhoi Commercial Aircraft company noted that in early November 2012 the Sukhoi Superjet 100 had received a Supplement to the type certificate which contains a broader range of conditions for its operation when performing flights in northern latitudes. Test flights have confirmed the normal functioning of the aircraft’s avionics systems, above all the inertial navigation system and the GPS and GLONASS satellite navigation systems, under the conditions of high northern latitudes – up to 78 N and in temperatures as low as minus 54 degrees.

Both aircraft are being delivered to the customer in the configuration featuring 8 seats in the business class and 85 seats in the economy class. The second Sukhoi Superjet 100 aircraft will be delivered to Yakutia Airlines in the first quarter of 2013.

The after-sales support during the introduction of the aircraft into operation is ensured by the SuperJet International joint-venture company at all levels – deliveries, training of aviation personnel, technical documentation, support, operational maintenance and integrated solutions concerning the after-sale support. In October 2012 the company completed the training of the first four crews in the training centre in the town of Zhukovskiy. Training of the next group of pilots and engineering personnel is planned for early 2013.

The tragedy of 9th May 2012 had no influence on the decision of Indonesia’s aviation authorities. On 29th December 2012 the SCA Company and Sky Aviation of Indonesia signed in Ulyanovsk the delivery/acceptance report on the first Sukhoi Superjet 100 airliner. Ferrying flight of the aircraft with MSN 95002 from the delivery centre in Ulyanovsk to the base airport in Indonesia was planned for January 2013; the airline planned to start commercial operation of the Sukhoi Superjet 100 n the same month. In accordance with the document signed by the two parties, the aircraft is delivered to Sky Aviation together with a full complement of operational documentation and property. The airliner meets the declared performance, is ready for airline operation and for performing commercial flights according to Sky Aviation’s schedule. Earlier, Indonesia’s aviation authorities had validated the type certificate for the Sukhoi Superjet 100 aircraft. Validation of the type certificate confirms that the SSJ100 meets certification requirements of Indonesian aviation authorities and the aircraft can be exported to Indonesia and operated by airlines of that country without limitations. The Sky Aviation airline was founded in 2010; it is based at the Halim Perdanakusuma International Airport (Jakarta, Indonesia). The airline performs regular flights and charter flights in Indonesia.

In early January 2013 painting was completed in Ulyanovsk of the first SSJ100 aircraft manufactured for the Lao Central airline of Laos. The Sukhoi Superjet 100 airliner with MSN 95026 will be the first SSJ100 to be delivered to the second customer in South-East Asia – the Lao Central airline. Manufacturer of the SSJ100 and the Lao Central airline signed a contract providing for the delivery of three aircraft in a two-class layout with a seating capacity for 93 passengers, with an option for a further six aircraft. Lao Central plans to introduce the Sukhoi Superjet 100 both on internal and international routes: from Laos to Bangkok, Hanoi, Ho Chi Minh, Singapore and other cities. Earlier, the Civil Aviation Agency of the Ministry of Public Works and Transport of the Laos People’s Democratic Republic had validated the type certificate for the Sukhoi Superjet 100 aircraft, confirming thereby that the SSJ100 meets the certification requirements of the Laotian aviation authorities and may be exported to Laos and operated by airlines of that country without limitations. Delivery of the first Sukhoi Superjet 100 to the Lao Central airline is expected to take place early this year.

What are the plans of SCA for the nearest future? A further development of the series production of the SSJ100 requires substantial financial resources which can be provided only by the state. The government of Russia granted to the SCA company (77% of its stock minus one share belongs to the Sukhoi Company, 25% plus one share is owned by Alenia Aermacchi of Italy) a state guarantee for 1 milliard dollars from a credit line opened in co-operation with Vnesheconombank (the Bank of Foreign Economic Activity). On 31 July 2012 the SCA company and Vnesheconombank reached an agreement on the terms for the credit; these stipulate that the obligation to repay the credit enters into force from 1st January 2015, the credit is to be repaid fully in no more than 12 years. Financial resources are needed by the holding company for the research and design work and for keeping up the series manufacture of the Sukhoi Superjet 100 aircraft. The credit line opened by Vnesheconombank is intended to help repay the main debt arising from credits which had already been obtained for financing the Sukhoi Superjet 100 programme. When one takes into account all credit repayment obligations, the deal with Vnesheconombank can yield no more than $1.8 milliard. Thus, the credit from Vnesheconombank shall become an instrument for restructuring the main debt. As of 30th June 2012 (according to Russian Accountancy Reporting Standards - RSBU), the long-term obligations of the SCA company stemming from the credits obtained totaled 42.68 milliard roubles, corresponding sum for short-term obligations being 8.97 milliard roubles. Experts point out that the sales of the GGJ100 as yet are falling short of the planned level, but thanks to the support from the authorities the holding company can reduce financial risks and concentrate its efforts on eliminating the “teething troubles” of the airliner that have manifested themselves in the process of its operation.

Earlier, the SCA Company declared a dead loss (according to IFRS) for the first half of 2012, amounting to $10,025 million, the receipts being $5.63 milliards. According to the appraisal made by experts, to break even the company shall have to sell no fewer than 300 aircraft, which is expected to happen by 2015-2016. Catalogue price of the baseline version is $35.4 million; the price of the version with extended range is $36.2 million. However, the contract prices are different in every particular case.

Analysts are of the opinion that thanks to the state support the financial situation of the SCA Company must improve. The state guarantee will reduce the risks faced by the creditor in connection with the credit line now opened; in consequence, the credit interest rates must be lowered. The SCA Company will be in a position to re-finance a part of its debt on more advantages terms. The SCA Company needs this, taking into account some slackening of the sales. After the disaster in Indonesia on 9th May 2012 some of the potential customers delayed signing the contracts until the publication of the results of the investigation. The SCA Company had hoped that deals for the sale of some 40 aircraft to customers in the south-East Asia would be signed before the end of 2012. At present the SCA Company has two preliminary agreements. The Air Indus airline of Pakistan has announced an order for three SSJ100s in late 2012, supplemented by an option for a further 5 aircraft. The Ministry of Defence of Myanmar reckons with ordering two aircraft in the course of this year. The Interjet airline of Mexico partially converted its previously announced option for five SSJ100s into a firm contract. A firm contract has also been signed with the Transaero airline – it is an order for six aircraft with an option for a further ten, with deliveries planned for 2015. The SCA Company also hopes to conclude a form contract with UTair in the first quarter of 2013.

The manufacturer also pays much attention to the training of aircrews for the SSJ100 aircraft (our magazine dealt with this subject in detail in the issue No. 1-2, 2012). It is only to be added that in connection with the expanding export sales the Russian-Italian joint enterprise Superjet International delivered to Venice the FFS full flight simulator for the SSJ100. It will be used for the training of the pilots of the interjet airline of Mexico.

Thus, Sukhoi aircraft designers have proved that they are capable of creating modern passenger aircraft. Judging by the marketing research studies and the results of operation, the SSJ100 shall not repeat the fate of some Russian aircraft which are being manufactured in small numbers. The demand for passenger aircraft is growing with every passing year. According to figures presented by GosNIIGA (State Research Institute of Civil Aviation), the volume of required deliveries of passenger aircraft to Russian airlines in the period between 2012 and 2020 is assessed at 1,030-1,200 aircraft, including 710 to 840 aircraft for trunk routes and 320-360 aircraft for regional services. Taking into account the requirements of the market, the company intends to manufacture some 30 aircraft in 2013, and to reach the production tempo of 60 machines per year from 2015. Accordingly, engine manufacturers, as well as manufacturers of equipment and other items, are also facing the task of increasing the volume of their deliveries. The Saturn Science and Production Association envisage the delivery of 96 SaM146 engines in 2013, and a rate of up to 150 engines per year at the peak of production.