War big setback for Russia’s answer to Boeing 737 Max

Bloomberg

International sanctions triggered by the invasion of Ukraine are poised to derail a Russian effort to challenge Airbus SE and Boeing Co in single-aisle jets.
Irkut Corp’s MC-21 jetliner, set to enter service this year, had already been hit by delays and cost overruns due to pre-existing sanctions. The plane, which features composite wings and is designed to carry as many as 211 people, is due to commence deliveries to Russian airlines this year, starting with flag carrier Aeroflot PJSC.
European aerospace firms are now halting exports and warning of losses on the program due to the imposition of much tougher restrictions following the country’s invasion of Ukraine. US suppliers like Raytheon Technologies Corp, which provides one of two engine choices, haven’t detailed their plans.
The MC-21 is the first full-size aircraft designed in Russia since the fall of the Soviet Union more than three decades ago, and represents the country’s bid to break the stranglehold of Airbus and Boeing on the short-haul jetliner market. A version using engines from Raytheon’s Pratt & Whitney division received Russian type certification at the end of last year.
But the fresh wave of sanctions unleashed by the Russian war in Ukraine could put the timing of the launch at risk, and potentially throw the whole project into limbo. “It needs to be reinvented and that’s going to take a bunch of years,” said Richard Aboulafia, an aviation analyst with consultancy AeroDynamic Advisory. “It’ll go from an interesting plane to a completely hopeless one.”
British aerospace firm Meggitt Plc, in line to supply the wheels and brakes for the MC-21, warned that it could see a “material” writedown in the next 12 months due to its involvement in the program. A spokesman said the company already ceased all import and export shipments with Russia.
Fellow British firm Senior Plc, which was due to provide the cabin air recirculation systems, told analysts last Monday that it can no longer participate given sanctions. Irkut, part of state-owned United Aircraft Corp, makes fighter jets for the Russian military. It initially targeted 2016 for the MC-21’s entry into service, but that timeline was set back by previous sanctions.
The company declined to comment. It found domestic partners to build composite wings for the jetliner after former US President Donald Trump expanded restrictions during his presidency to include civil aerospace programs.