India's state-owned aerospace manufacturer Hindustan Aeronautics Limited signed a landmark agreement with Russia's United Aircraft Corporation to produce the Sukhoi Superjet 100 (rebranded as the Yakovlev SJ-100) in India, marking the country's first domestic civil airliner production program in nearly four decades. The agreement was signed during Wings India 2026. The timing of this news is interesting because it falls into a shadow created by the Embraer/Adani news yesterday. Even ATR tried to catch the wave form Embraer/Adani by announcing today it sees "400+ viable new turboprop routes and confirms that India’s low-fare, fuel-sensitive market is best served by highly efficient ATR aircraft". The India turboprop story dates back some time. The Agreement The MoU (yes, another one) was signed in Moscow on October 28, 2025, by representatives of the two aircraft makers. The deal grants HAL license manufacturing rights for the 87-108-seat regional jet, with production aimed at serving India's domestic market and potentially for exports to South and Southeast Asia. The agreement allows HAL to manufacture the Superjet 100 under license, combining Russian design expertise with Indian industrial capacity, with HAL overseeing assembly and integration of aircraft components. Political Context and Timing Although this tie-up has reportedly been under discussion since at least 2023, the timing of the announcement, just days after the Trump administration imposed new tariffs on India for not cutting its Russian oil imports, is widely reported in the Indian media as a political gesture. Russia's UAC is currently under sanctions from both the US and the European Union, making this partnership particularly significant as both nations seek to deepen strategic cooperation despite Western pressure. The SJ-100 The revised SJ-100 is Russia's response to the 2022 sanctions, which severed access to Western aerospace components. The aircraft has undergone a full transformation, replacing all Western components with Russian equivalents—a process officials describe as "total import substitution"—and now incorporates more than 40 domestically produced subsystems, including avionics, landing gear, auxiliary power units, and environmental control systems. The SJ aircraft made its first flight with the Russian PD-8 engine in Komsomolsk-on-Amur on March 17, 2025, with serial deliveries scheduled for 2026. It should be remembered that the earlier, Westernized SSJ-100 was a failure at Interjet in Mexico and CityJet in Europe. India's Strategic Rationale India is one of the world's fastest-growing civil aviation markets, with passenger traffic reaching 161 million in 2024 and projected to reach 300 million by 2030. India's civil aviation sector is projected to require approximately 2,200 new commercial aircraft over the next decade. Over the next decade, India's civil aviation market is expected to require more than 200 regional aircraft, with a further 350 potentially needed for short-haul flights to nearby international tourist destinations across the Indian Ocean region. This is the cornerstone of the Embraer/Adani MoU. The UAC/Hindustan MoU is a direct conflict. You can immediately see the way this is going to move forward. Hindustan is state-owned, and this provides a certain level of protection. We can see both deals coexisting for a while. Our bet is on Embraer, though. The SJ-100 aligns with India's UDAN (Ude Desh ka Aam Nagrik - "flights for the common people") regional connectivity scheme, which aims to stimulate regional air transport through subsidies and airport infrastructure improvements. Historical Context The last domestically produced airliner produced by India was the Avro (later Hawker Siddeley) HS-748. A total of 89 of these British-designed aircraft were produced under license in India starting in 1961. HAL's last significant civilian aircraft program was completed in 1988. Any thought of an advantage for HAL is really dated as a consequence. India also has an ongoing agreement with Airbus to assemble the C295 multirole transport aircraft at a facility in Gujarat, with the first Indian-produced C295 expected in 2026. Current Fleet Status As of October last year, there were 137 SuperJets in active commercial service, all operated by Russian airlines, plus six aircraft in the VIP version, of which four are operated by non-Russian operators (three by the Royal Thai Air Force and one by the Kazakh Air Force). This underscores how thin this program truly is, which is why we are betting on Embraer. The SuperJet has struggled internationally. Remember, they even had a deal run out of Venice, Italy, to market the aircraft in the West. Its sole remaining Western operator, Mexican carrier Interjet, ceased operations in December 2020 and entered bankruptcy in April 2021, operating 22 SJ-100s. Safety Concerns The type has recorded 5 hull-loss accidents and 89 deaths as of January 2026. The most notable incident occurred on May 9, 2012, when a demonstration flight struck Mount Salak in Indonesia, killing all 45 aboard. Another serious accident happened in May 2019 at Moscow's Sheremetyevo Airport when an Aeroflot SJ-100 returned shortly after takeoff, landed hard and fast, resulting in 41 fatalities from a fire. Critics (wisely) question whether India should invest in an aircraft with limited international acceptance and a concerning safety record. This is a great moment to provide some historical context. HAL's relationship with Russian (formerly Soviet) aerospace technology spans over 60 years and represents one of the most enduring defense-industrial partnerships in modern history. This collaboration transformed HAL from a basic assembly operation into a sophisticated aerospace manufacturing powerhouse capable of producing advanced combat aircraft from raw materials. But HAL's Russian history is military-oriented. A commercial program is entirely different. A state (especially India) won't be as budget-focused as an airline. HAL's customer focus for the SJ-100 requires a significant change. Technical Challenges Ahead Several significant hurdles remain before Indian production begins: Certification: The SJ-100's Russian components require new certifications from India's Directorate General of Civil Aviation (DGCA) and potentially from international regulators such as EASA or the FAA for export prospects. Engines: It is not clear which engines would power the Indian-made Superjets. The initial engine option was the PowerJet SaM146, relying on French technology from Snecma. However, following the Russian invasion of Ukraine and subsequent sanctions, Russia aimed to replace that engine with the domestically developed Aviadvigatel PD-8, which is still undergoing certification. Supply Chain: Establishing local production of high-precision aerospace components demands significant infrastructure investment and vendor development. Market Acceptance: Convincing Indian carriers to pivot from proven Airbus, Boeing, and Embraer toward a Russian-Indian jet depends on reliability, cost, and after-sales support. This is the basis of our betting on Embraer. Wings India 2026 Showcase A Sukhoi SJ-100-95B "Superjet" was observed at the Zhukovsky airfield near Moscow sporting a unique livery that including Hindustan Aeronautics Limited branding and the Indian national flag. The aircraft was clearly being prepared for a static display at the Wings India 2026 exhibition in Hyderabad. The picture on the top of this story shows this aircraft in India. Crucially, this might not be exactly what the SJ-100 ends up being. Russian Order Book Domestically, the SJ-100 program shows some momentum. Russia's Aeroflot Group ordered 34 aircraft and will be the first operator of the PD-8-powered variant. In total, UAC has collected around 250 preliminary orders from Russian airlines and leasing companies, with plans to deliver 142 aircraft by 2030. Of course, Ruaia's airlines have nowhere else to go for new aircraft. The Western aircraft they have are increasingly running into problems due to a lack of spare parts. Broader Strategic Implications The HAL-UAC partnership extends beyond civil aviation. There are reports of discussions to provide India with up to 84 Su-57 (NATO: Felon) fifth-generation fighter aircraft, with more than half potentially assembled in India, helping India overcome struggles to produce its next-generation fighter aircraft. HAL and UAC stated jointly: "This collaboration stands as a testament to the mutual trust and long-standing partnership between HAL and UAC. It marks a new milestone in India's journey towards becoming self-reliant in civil aircraft production." Summary This agreement represents a gamble by India. While it advances "Make in India" goals and addresses critical regional connectivity needs, success depends on overcoming significant technical, regulatory, and commercial challenges. The SJ-100's limited international appeal, safety concerns, and dependence on Russian supply chains in a sanctions environment create substantial risks. For example, look to the more evolved production process at COMAC and note that this OEM struggles mightily to deliver. India is taking a big bet on UAC. and the risks are real and apparent. However, if executed successfully, the program could position India as a regional aerospace manufacturing hub, challenging Embraer in the regional jet segment while deepening Indo-Russian strategic cooperation. The next 12-24 months will be critical as HAL works toward certification and production readiness, with Wings India 2026 serving as a key proving ground for international credibility. Our bet remains as stated.