Support The Moscow Times!

Sukhoi Loses $900M Contract With Indonesia

United Aircraft Corporation lost a major contract to build 30 Sukhoi Superjet 100 passenger aircraft after Indonesian carrier Kartika Airlines went out of business, a news report said Tuesday.

Kartika Airlines became one of Sukhoi's main clients after signing a contract in 2010 to buy 30 SSJ100 aircraft for $900 million.

United Aircraft president Mikhail Pogosyan said Kartika's development plans relied heavily on the Indonesian Transportation Ministry's support.

The contract was not approved by Indonesian authorities because Kartika could not verify its financial solvency, a source close to the United Aircraft told Vedomosti.

Roman Gusarov, editor-in-chief of aviation portal Avia.ru, said Kartika's fleet consists of only three aircraft. The airline was banned from flying to the European Union in 2012.

"The contract with Kartika was mythical from the very beginning. A company cannot expand its fleet tenfold as a result of a single contract," Gusarov said.

Gusarov noted that a similar fate had befallen other potential buyers of SSJ100 aircraft.

Hungarian carrier Malev and Russia's Kuban stopped operating flights, and leasing company FLK went bankrupt.

The first buyer of the SSJ100, Armenia's Armavia, is also experiencing difficulties, Gusarov said.

However, Indonesia remains an important market for Sukhoi. In 2011, it signed a $380 million contract with Indonesian carrier Sky Aviation to supply 12 SSJ100 aircraft until 2015. The first plane was delivered last week, the company said.

Sukhoi, which is part of United Aircraft, has contracts worth $5.4 billion to build 179 SSJ100s. Russia's biggest carrier, Aeroflot, and Mexico's Interjet are among its main clients, Vedomosti said.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more