HAL's Sukhoi Superjet 100 Deal Challenges Airbus and Boeing's India Dominance

In a major move to reshape the global aerospace market, Hindustan Aeronautics Limited (HAL) has signed a landmark agreement with Russia’s United Aircraft Corporation (UAC).

This deal, a Memorandum of Understanding (MoU) signed in Moscow on October 27, 2025, grants HAL exclusive rights to manufacture the Sukhoi Superjet 100—rebranded as the SJ-100—for domestic carriers. This marks India civil aircraft production's return to full-scale manufacturing after nearly four decades. The initiative is a clear signal to the Airbus and Boeing duopoly: New Delhi expects a commitment to a Final Assembly Line (FAL) in India.

The Russian Pivot: SJ-100 and Il-114-300

The SJ-100 is a 75- to 100-seat regional jet designed to bolster the government's UDAN regional connectivity scheme. The aircraft is the "Russified" variant, featuring the new Aviadvigatel PD-8 Russian turbofans to sidestep Western sanctions. This "import substitution" ethos is a strategic hedge against geopolitical supply chain risks, a lesson learned from past sanctions on other nations.

Certification for the PD-8 engine was anticipated by the end of 2025. However, recent reports suggest a possible delay into the first quarter of 2026 due to challenges in achieving adequate thrust for a fully occupied cabin. Despite this, the SJ-100 is reported to be priced 20–30% below competitors like the Airbus A220 or Embraer E190, making it an attractive option for low-cost carriers.

Complementing the jet, Russia initiated talks for joint production of the Ilyushin Il-114-300 turboprop during the 23rd India-Russia Summit on December 5. This rugged 68-seater is ideal for short-hop routes to India's hinterlands and unpaved airstrips.

Strategic Market Impact and Subsidies

India's domestic air passenger traffic is projected to grow by 7% in 2025, with the market requiring over 200 regional jets in the next decade. This massive demand is the core of the government's leverage.

• Government Support: The project falls under the Atmanirbhar Bharat initiative (Self-Reliant India). Government subsidies, potentially up to 40% on development costs, could significantly reduce the unit price of the SJ-100 to a highly competitive $25–30 million, according to the source. This makes the HAL Sukhoi Superjet 100 a compelling choice for regional operations.
• Airline Interest: Early talks with IndiGo, which dominates 60% of domestic seats, suggest a pilot order of 50 units by mid-2026, as reported. This could erode up to 20% of the airline's dominance on sub-2,000 km routes currently flown by larger aircraft.

The Duopoly’s Resistance

Airbus and Boeing have resisted New Delhi's repeated pleas for a civil aircraft Final Assembly Line (FAL). While Airbus has a military FAL for the C-295 transport aircraft and a new helicopter FAL in Gujarat, it has been hesitant on commercial jets, citing overcapacity risks.

Boeing's India head, Salil Gupte, stated at Aero India 2025 that the business case for a civil FAL "has to be far larger than what the Indian market is," prioritizing US-based jobs. This stance, despite Indian carriers placing over $200 billion in aircraft orders, fuels the government's push for indigenous manufacturing.

India's strategy is to diversify its fleet and manufacturing base. Beyond Russia, talks with Brazil’s Embraer for co-production of the E175 regional jet were also reported at Aero India 2025, further pressuring the established Western manufacturers to commit to local production or risk losing market share to subsidized rivals.