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Russian aviation spare parts’ market is the most promising in the region

Last year the Russian aviation market saw an increase in passenger flow by an impressive one third which, naturally, requires a certain forwardness and expansion of the existing capabilities by the service providers, i.e. airlines. At the moment two thirds of the entire Russian commercial aviation market is served by home companies together owning a fleet of more than 1.5 thousand aircraft.

According to experts, aircraft maintenance and repair solutions, including spare parts’ search and supply, is the area swallowing up the most of airlines’ expenses. ‘It is evident that enlarging aircraft fleet means increasing its upkeep. For instance, in order to maintain the existing Western-made (Boeing, Airbus) Russian fleet of 500 medium-haul aircraft airlines spend on average $150 million per year. The 300 long-haul Western-made aircraft cost the Russian providers approx. $120 million per year to maintain. In the meantime, the approx. 60 existing foreign-made regional aircraft’ (Bombardier CRJ) maintenance requires up to $18 million per month. There are also 600-800 locally produced Tupolev and Antonove types of aircraft. Their yearly maintenance costs add up to approx. 288 million.‘, – informed the Vice-president of Business Development Dmitry Voskresensky.

According to Mr. Voskresensky, the Russian aviation spare parts’ market is worth $600-700 million per year.

Sometimes maintenance and repair solutions amount to double the price they are worth in the global aviation market

‘The number shows the scale of the market segment that is open extraordinary possibilities for companies in the area. However, there are certain barriers to overcome. Doing business in Russia means dealing with certain customs’ formalities and then there is the lack of business connections with the Western providers. It certainly increases the costs related to aircraft spare parts supply and mounting. Sometimes maintenance and repair solutions amount to double the price they are worth in the global aviation market. And there is also the question of time consumption related to prolonged spare parts’ delivery to consider.’, – reviews the situation D.Voskresensky.

According to aviation market experts, Russian providers intend to get rid of around 300 Tupolev family aircraft, i.e. to change about a half of the locally-produced aircraft fleet. Other types of aircraft are under consideration too.

‘The local aircraft manufacturers, such as Sukhoi Superjet, due to smaller production capabilities, will simply be unable to satisfy the constantly growing demand in the Russian aviation market’, – commented D.Voskresensky.

The representative of Vytautas Vorobjovas sees this as yet another opportunity for companies producing Bombardier, ATR and Embraer to set a foot in the Russian aviation market. ‘Such changes implicate the growing demand for Western-type of aircraft parts making it extremely important for producers and suppliers to direct their attention to the region with so much potential.’, – said V. Vorobjovas. ‘The rapidly growing Russian aviation market calls for innovative solutions in attempting to satisfy the existing and future demand in aircraft spare parts and components.’

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