MOSCOW (Reuters) – A unit of Russian conglomerate Rostec said on Tuesday it was ready for an out-of-court settlement with Boeing over its order for 35 Boeing 737 MAX jets, a spokesman for Rostec’s subsidiary Avia Capital Service told Reuters.
Boeing MAX 737 jets have been grounded worldwide and airlines are cancelling multimillion contracts following crashes in October and March that killed 346 people.
Earlier on Tuesday, Rostec said its unit had filed a lawsuit in the United States to cancel its order for the 35 MAX jets. The Financial Times, which first reported the move, said Avia Capital Service gave Boeing a cash deposit of $35 million.
A spokesman for Avia Capital Service told Reuters that delivery of the jets was first scheduled for October 2019 but was moved to March 2022. The Rostec unit had paid Boeing a deposit and was suffering losses from non-delivery, he said.
“If Boeing executives show a good will, we are ready to hold talks and find a mutually-beneficial out-of-court settlement for compensation of the losses we have suffered,” he said.
He added that the jets were ordered for a number of Russian air companies, including domestic low-cost firm Pobeda, a unit of the state carrier Aeroflot.
Russia is mainly using Boeing and Airbus jets for passenger flights, with a number of domestic airlines also adding Russian-made regional Sukhoi Superjet aircraft to their fleets.
The Rostec subsidiary now wants the deposit to be returned by Boeing with interest, along with $75 million in “lost profit” and about $115 million in compensatory damages, plus “several times the amount” in punitive damages, the FT said.
Rostec declined to provide further details about the lawsuit.
(Reporting by Gleb Stolyarov; writing by Anton Kolodyazhnyy and Tom Balmforth; Editing by Sherry Jacob-Phillips/Katya Golubkova and Emelia Sithole-Matarise)
Aeroflot has flown at least 129 fewer Sukhoi flights since the crash
Petition to ground plane has over 200,000 signatures
MOSCOW, June 3 (Reuters) – Russian airline Aeroflot has scaled back the number of Sukhoi Superjet 100 flights it operates after one of its planes made a crash-landing last month, killing 41 people, according to data provided by a flight tracking website.
Flightradar24 data shows Aeroflot has also at times substituted Airbus or Boeing planes for the Superjet, the first new passenger jet developed in Russia since the Soviet Union collapsed.
Fallout from the crash risks undermining the aircraft’s reputation at a time when Russia is promoting another domestically made passenger plane, the M-21, as a rival to Boeing and Airbus.
Aeroflot and Sukhoi Civil Aircraft, the Superjet’s maker, declined to comment on the data or on the use of other aircraft instead of the Russian plane. Both the airline, Russia’s national flag carrier, and the manufacturer have said in the past that the aircraft meets all relevant international safety standards and will continue to be made and used.
The cause of the May 5 crash, the second deadly accident involving the Superjet in nine years of service, has not yet been established. Russian authorities said afterwards there was no reason to ground the Superjet.
Yet Aeroflot flew 129 – or about 7% – fewer Superjet flights in the two weeks after the crash than in the previous fortnight, the Flightradar24 data showed.
In one case, frightened passengers on a Sukhoi refused to continue their journey after an aborted take-off, forcing Aeroflot to lay on an Airbus instead, an airline industry source with direct knowledge of the matter said, a version of events corroborated separately by Russia’s RIA news agency.
Aeroflot after the crash began paying extra attention to safety checks and to scale back the Superjet’s usage to try to reassure passengers, the same source said.
More than 213,000 people have signed a petition demanding the plane be grounded since May 5.
‘WHO NEEDS IT?’
Some Russian and foreign operators have complained about the difficulty of servicing the Superjet due to delays in sourcing spare parts. Irish airline CityJet and Belgian carrier Brussels Airlines turned their back on the Superjet citing those reasons.
State officials and airline executives say the airliner spends about half its time on the ground undergoing maintenance, and can fly only about a third as much as foreign-made rivals in a 24-hour period when in use.
They blame a lack of readily available spare parts and the complexity of servicing its engines.
Vitaly Savelyev, Aeroflot’s CEO, told Russian news agency TASS in 2017 that his company, which is majority-owned by the Russian state, might not have bought the Superjet at all if it was a private company.
Aeroflot, which has promised to buy a further 100 Superjets on top of the 49 it has already, is in a difficult situation because of the project’s political importance for Russia.
There are signs however that even some allies of President Vladimir Putin are growing weary of the aircraft.
Valentina Matviyenko, speaker of the upper house of parliament, in November publicly rebuked the transport minister over the large sums she said had been pumped into the Superjet in vain.
Russian newspaper Novaya Gazeta estimated in 2012 that $7 billion had been spent on the project, while Sukhoi has put the figure at $2 billion.
“Who needs it? … It’s not good for anything,” said Matviyenko. “Aeroflot says we bought them and they sit on the ground. Nobody abroad is buying them … What have we achieved?”
Mexican low-cost carrier Interjet, citing maintenance and parts problems, told Mexican daily newspaper El Universal just over a week after the crash that it was trying to sell its 20 Superjets and favoured Airbus 320s instead.
Regional carrier Yamal Airlines, Russia’s second biggest Superjet operator after Aeroflot, said a day after the crash that it was cancelling its planned purchase of 10 of the planes. It cited high servicing costs.
And RusLine, another regional carrier, told Kommersant it was scrapping provisional plans to obtain 18 Superjets as part of a leasing deal. The paper cited RusLine’s owner Nikolai Ulan as saying he thought the plane was safe but that passengers would be afraid to fly on it, making it harder for him to break even. RusLine did not respond to a request for comment.
PASSENGER FEARS
The Superjet, which entered service in 2011, is predominantly operated inside Russia by regional airlines, corporations and government entities. Sukhoi had hoped to sell hundreds, but slack demand means only 138 of the planes are in use.
On the Moscow-Murmansk route, the one taken by the plane involved in the fatal crash, Aeroflot replaced the Superjet with either Boeing 737s or Airbus A320s in the five days after the accident, a practice it partially continued the week after.
This was done in direct response to the crash in order to try to calm passenger fears, the same airline source said.
There have been a spate of safety-related incidents and cancellations since May 5.
In one case, a Superjet flight from Moscow to Riga was held up after passengers noticed a burning smell and demanded a new plane. Engineers found nothing wrong, one of the passengers told state TV.
In another, on May 18, passengers on a Moscow-bound flight from the city of Ulyanovsk took fright after their Superjet aborted take-off because of a warning about the hydraulic system.
“Passengers were told that the flight was being delayed for technical reasons. Of course, after the catastrophe, they started to panic and refused to fly on the same plane. The psychological factor came into play,” the airline source with direct knowledge of the situation told Reuters.
Aeroflot flew the passengers to Moscow the next day on an Airbus A320 and engineers found nothing wrong with the Superjet involved in that incident either, the transport prosecutor’s office said.
Yevgeny Dietrich, Russia’s transport minister, said the situation was not “radically changed” from the pre-crash period.
“In fact, delays and cancellations occurred previously. You simply wrote about them less,” Dietrich told reporters.
His statement and the crash have highlighted the fact that many Superjets do not fly very often.
Flightradar24 data shows that 37 of 127 Superjets in commercial use globally did not make a single flight from April 22 until May 19, and that 45 did not make more than 10 flights during that period.
That tallies with expert reports, which have said foreign-made planes in Russia average nine hours flying time in every 24-hour period compared to between just three and four hours for the Superjet.
The same industry source said only about 50% of Aeroflot’s Superjets flew regularly and that Superjet pilots, who are paid for completed flights, had their salaries topped up to compensate for time spent on the ground.
(Writing by Andrew Osborn and Gleb Stolyarov; Editing by Giles Elgood)
This image taken from a video distributed by Russian Investigative Committee on Sunday, May 5, 2019, shows the Sukhoi SSJ100 aircraft of Aeroflot Airlines on fire, at Sheremetyevo airport, outside Moscow, Russia. At least 40 people died when an Aeroflot airliner burst into flames while making an emergency landing at Moscow’s Sheremetyevo airport, officials said early Monday. (The Investigative Committee of the Russian Federation via AP)
FRANKFURT, Germany (AP) — The Aeroflot-operated SSJ100 passenger jet that caught fire during an emergency landing in Moscow is part of Russia’s efforts to maintain a presence in civil aviation in a market dominated by companies like Boeing, Airbus and Embraer.
Here’s a quick look at the SSJ100 and the Russian company that built it, the Sukhoi Civil Aircraft Company:
THE PLANE
The
SSJ100, or Superjet 100, is a short- to medium-haul narrow body jet
with two engines that can be configured to carry up to 103 people.
At
that size, it’s intended to substitute for larger planes such as the
Boeing 737 or Airbus 321 on shorter, less travelled routes and during
slower travel seasons. Regional aircraft are an important part of
Russia’s transportation system, given the country’s enormous distances
and many remote towns. The Superjet succeeds older, Soviet-built planes
such as the Tu-134 airliner.
The plane is built at the Sukhoi Civil Aircraft Company’s plant in Komsomolsk-on-Amur in Russia’s distant Far East region. Although the design is Russian, the company says it uses the latest Western technology as well. The engines are made by PowerJet, a joint venture between France’s Safran Aircraft Engines and Russia’s Saturn.
The Sukhoi Superjet 100 aircraft of Airflot Airlines, center, is seen after an emergency landing in Sheremetyevo airport in Moscow, Russia, Sunday, May 5, 2019. (Moscow News Agency photo via AP)
The
plane first flew in 2008 and entered commercial service in 2011. It is
certified by the European Union Safety Agency but is mainly used in
Russia and has not made much headway against international competitors,
not just from Boeing and Airbus but also from Brazil’s Embraer.
Aeroflot
is the biggest client with 50 of the planes. Mexico’s Interjet said
Sunday it operated five of the planes “under the highest safety
standards.”
Interjet
earlier operated 22 Superjets but referred in a recent earnings report
to the “gradual phase out of the fleet of SSJ100.” The company reported
lost sales after the planes were grounded due to a defect in the tail
section in December 2016 and said it was seeking “contractual recovery
of amounts related to maintenance costs” for the planes.
Ireland’s CityJet, which supplies planes and crews to other airlines, stopped operating several Superjets in January.
People gather around the damaged Sukhoi SSJ100 aircraft of Aeroflot Airlines at Sheremetyevo airport, outside Moscow, Russia, Monday, May 6, 2019. Russia’s main investigative body says both flight recorders have been recovered from the plane that caught fire while making an emergency landing at Moscow’s Sheremetyevo Airport, killing at least 40 people on Sunday. (AP Photo/Pavel Golovkin)
THE COMPANY
The
Sukhoi Civil Aircraft Company bears the name of the legendary Soviet
aircraft designer, Pavel Sukhoi, who was responsible for a series of
Soviet military aircraft starting before World War II.
Today’s
firm is part of Russia’s United Aircraft Company, which consolidated
many of the legendary names of Soviet aviation such as MiG, Sukhoi,
Tupolev and Yak. UAC was established by a decree from President Vladimir
Putin in 2006 to promote the Russian aircraft industry, which is seen
as essential for the security and defense of the country. Much of its
production goes to the military, while the SSJ100 is the key project
aimed at maintaining a Russian presence in civil aviation.
TROUBLES
On
May 9, 2012, a demonstration flight hit Mount Salak in Indonesia,
killing all 45 on board, after the pilot disregarded six alarms from the
terrain warning system on the apparent assumption there was a problem
with the terrain database, according to the report from Indonesia’s air
safety regulator. The plane had unintentionally left a circling pattern
after the crew was distracted by a prolonged conversation not related to
flying the plane.
And a Superjet skidded off the runway at Iceland’s Keflavik airport in 2013 with landing gear up during flight certification tests involving landing on one engine; one crew member suffered minor injuries.
In this photo taken on Tuesday, April 30, 2019, the Sukhoi SSJ-100 aircraft of Aeroflot Airlines that made an emergency landing on Sunday, May 5, 2019 in Moscow’s Sheremetyevo airport, takes off from the Siberian city of Tyumen, Russia. Russia’s flagship airline Aeroflot says the plane that caught fire at Moscow’s Sheremetyevo Airport, killing at least one person, had been forced to turn back after taking off for the city of Murmansk because of technical reasons. (AP Photo/Marina Lystseva)
On April 12, 2019, Azimut Airlines recieved its ninth SSJ100 according to the terms of the Agreement with State Transport Leasing Company. The aircraft, tail number RA–89136 performed its ferry flight from the SCAC Delivery Center in Zhukovsky to Krasnodar where the aircraft will start operations.
The aircraft is equipped with 100-seated layout. The layout might be changed from single-class to two-class layout for 93 passengers, depending on the actual needs of the Operator.
Azimuth Airline gives you the opportunity to take flights at affordable prices. Journey in the new Sukhoi Superjet 100 airplane integrating the best solutions of modern aircraft construction will allow feeling the advantage of comfortable cabins which are highly competitive with the cabins of high capacity long-haul airplanes.
DUBAI (Reuters) – Iran needs some 500 planes and would likely back buying the Sukhoi Superjet 100 if Russia is willing to sell them to its airlines, Iranian news agencies reported the country’s top civil aviation official as saying on Wednesday.
Iran needs to upgrade its ageing passenger fleet and is seeking to avert U.S. sanctions on Tehran.
The U.S. Treasury has revoked licences for Boeing Co (BA.N) and Airbus (AIR.PA) to sell passenger jets to Iran after President Donald Trump pulled the United States out of the 2015 Iran nuclear agreement in May and reimposed sanctions.
Most modern commercial planes have more than 10 percent in U.S. parts, the threshold for needing U.S. Treasury approval.
But Russian officials have been reported as saying Sukhoi is working on reducing the number of U.S. parts in the hopes of winning an Iranian order for up to 100 aircraft.
“If the Iranian airlines want to use this aircraft (Superjet 100 ) and the seller is willing to sell it to Iran, the Civil Aviation Organization is ready to issue its final comment on this aircraft,” the semi-official Fars news agency quoted Ali Abedzadeh, head of the Civil Aviation Organization, as saying.
“But this aircraft has adhered to world standards and is flying currently, therefore there is no reason for us to reject it,” Abedzadeh told Fars.
Flag-carrier IranAir had ordered 200 passenger aircraft – 100 from Airbus, 80 from Boeing and 20 from Franco-Italian turboprop maker ATR (LDOF.MI) before U.S. licences were revoked.
“The airlines have proposals for plane purchases and we are trying to devise regulations that will ease their aircraft imports. Considering Iran’s very large market, we need 500 planes now,” Abedzadeh was quoted as saying by the semi-official Tasnim news agency.
Reporting by Dubai newsroom; Editing by Alexander Smith
DUBAI (Reuters) – IranAir is looking to buy planes from any company not requiring U.S. sales permits and may consider Russia’s Sukhoi Superjet 100, the flag carrier’s head was quoted as saying, as Iran tries to renew its ageing fleet despite facing U.S. sanctions.
The U.S. Treasury’s Office of Foreign Assets Control (OFAC)revoked licences for Boeing Co and Airbus to sell passenger jets to Iran after President Donald Trump pulled the United States out of the 2015 Iran nuclear agreement in May and reimposed sanctions.
“We welcome any (company) which is able to provide the planes needed by IranAir. We even have gone after planes such as Sukhoi 100 or planes made by non-European countries,” said IranAir Chief Executive Farzaneh Sharafbafi, quoted by Iran’s Roads Ministry website.
Most modern commercial planes have more than 10 percent in U.S. parts, the threshold for needing U.S. Treasury approval. But Russian officials have been reported as saying Sukhoi is working on reducing the number of U.S. parts in the hopes of winning an Iranian order for up to 100 aircraft.
“We will consider plane purchases if these companies can sell planes to Iran without an OFAC licence, and are willing to negotiate,” Sharafbafi added. She gave no further details.
IranAir had ordered 200 passenger aircraft – 100 from Airbus, 80 from Boeing and 20 from Franco-Italian turboprop maker ATR. All the deals were dependent on U.S. licences because of the heavy use of American parts in commercial planes.
(Reporting by Dubai newsroom, Additional reporting by Tim Hepher in Paris; Editing by Edmund Blair)
Interjet Airlines of Mexico is reportedly planning on phasing out some of its Sukhoi Superjet 100’s to make room for an additional 20 Airbus A320-neo aircraft. The plan is part of a new 3-year effort to restructure its fleet. The airline currently has 22 Sukhoi Superjet 100 aircraft in its fleet, with one of those units parked in storage. Interjet has 8 more of the aircraft on order, but will most likely convert those aircraft orders to the Superjet 130NG currently in development.
The 20 additional A320-neo’s its adding to its orderbook will be delivered over the course of the next five years. Interjet states that the fleet restructuring plan will bring it greater opportunities to be more competitive, further reducing its operational costs and enhance its profitability. The airline is looking to add more international business as it continues to grow. Interjet recently took delivery of its seventh Airbus A321-neo aircraft on September 9, 2018.
Interjet has experienced some operational challenges with its Sukhoi Superjet 100’s since adding the aircraft to its fleet in 2013. Issues with the airplanes stabiliser forced it to ground half of its fleet in early 2017, and some of the aircraft were grounded after being used for spare parts. Interjet plans to continue differentiating itself from other low-cost carriers, with free checked bags and complimentary snacks onboard. The airline also has continued to pursue global alliances with Lufthansa, Japan Airlines, EVA Air, and Emirates.
Sukhoi Civil Aircraft, manufacturer of the Sukhoi Superjet 100, posted a deeper than expected half-year net loss of 804 million rubles ($12 million), despite a 47% increase in revenue to over 16 billion rubles.
The Sukhoi Superjet 100 is a fly-by-wire twin engine regional jet that can carry up to 108 passengers. The closest North American operator of the aircraft is Interjet, a Mexico flag carrier, which has added another 10 aircraft to its original order for 20. Interjet has stated that the aircraft has a remarkable seat pitch for a regional aircraft of 34 inches, and the Pininfarina-designed SSJ100 interior gets high marks from the airlines customers.
CityJet, a regional airline in Ireland, has also picked the Russian-made aircraft to update its fleet. CityJet currently operates 7 SSJ100 aircraft, with 1 more still on order. CityJet will be the first airline in Europe to operate the Russian built aircraft.
The only major accident involving the Superjet occurred on May 9, 2012. During a demonstration flight with 37 passengers and eight Russian crew members on board, the airplane crashed into a mountain after it took off from the Halim Perdanakusuma Airport in Jakarta, Indonesia. Twenty minutes after take-off, the crew requested permission to descend to 6,000 feet, which was approved by air traffic control. This was the last contact made with the aircraft. Searchers later discovered the aircraft wreckage on the side of Mount Salak and found no survivors. All 37 passengers and 8 Russian crew members on board perished in the crash.
My wife and I actually flew on the Sukhoi Superjet 100 on an Interjet flight from Mexico City to Oaxaca City!
Air France-KLM reportedly plans to lease Russian Sukhoi Superjet 100 aircraft, according to sources. Air France-KLM will lease some of the planes from CityJet, who has announced that it chose the SSJ100 to boost its fleet and route network. CityJet placed an order for 15 of the Russian-built aircraft, with an options for as many as 10 more of the airplanes. CityJet was previously a subsidiary of Air France-KLM, but still flies some regional routes for Air France-KLM network.
