Commercial Aviation
Russia Advances with Second Fully Russified MC 21 Commercial Aircraft
The second import-substituted MC 21 prototype successfully flew, marking progress toward Russian aviation sovereignty and certification by 2026.
In the high-stakes world of commercial aviation, the development of a new passenger aircraft is a monumental undertaking. For Russia, the Yakovlev MC-21 program represents more than just a new product; it is a cornerstone of a national strategy aimed at achieving technological sovereignty and modernizing its domestic airline fleet. Originally conceived with significant international collaboration, the MC-21 was positioned to compete directly with industry giants like the Airbus A320 and Boeing 737. However, geopolitical shifts and subsequent international sanctions fundamentally altered the project’s trajectory, accelerating a massive import substitution effort.
This pivot towards self-reliance, often termed “Russification,” has been a complex and challenging process, necessitating the domestic development of everything from engines to avionics. The program’s progress is therefore watched closely, not just as a measure of engineering capability, but as a barometer of Russia’s industrial resilience. Each milestone achieved under these circumstances carries significant weight. The original MC-21-300, which first flew in 2017, relied on up to 50% foreign-made components, including its Pratt & Whitney engines.
The recent maiden flight of the second fully import-substituted MC-21 prototype marks a critical step forward in this ambitious endeavor. This aircraft, powered by Russian-made engines and equipped with a comprehensive suite of domestically produced systems, represents a tangible advancement in the quest to build a truly sovereign commercial airliner. Its successful first flight is a key validator for the numerous Russian design bureaus and manufacturing plants involved in replacing a global supply chain with a national one.
On October 28, 2025, the second prototype of the import-substituted MC-21 took to the skies from the airfield of the Yakovlev aircraft plant in Irkutsk. The flight, crewed by two test pilots and two flight test engineers, was a crucial test of the aircraft’s all-Russian systems. During the mission, which lasted approximately one hour, the jet reached an altitude of up to 3,500 meters (about 11,500 feet) and a speed of up to 500 km/h (270 knots). This initial flight was designed to check the onboard performance of the new domestic systems and the Russian-developed PD-14 engines.
According to the official statement from the flight’s captain and the United Aircraft Corporation (UAC), a subsidiary of Rostec, the mission was a complete success. All domestically-produced systems on board were reported to have operated normally, providing essential data for the ongoing certification process. This aircraft will now join the first prototype, which began its own test flights in April 2025, to accelerate the comprehensive certification program. The use of two prototypes in the testing phase is intended to expedite the validation of the new Russian equipment.
The significance of this flight lies in its completeness. While the first prototype featured a partial replacement of foreign parts, this second aircraft incorporates a much wider array of Russian-made components. This includes not only the engines but also the wing, which is constructed from domestically developed composite materials that have already undergone a full program of ground-based testing. The successful flight of a more fully “Russified” airframe is a powerful proof of concept for the entire program.
The flight mission was fully fulfilled and all domestic systems worked properly, Official Statement from the Flight Captain The import substitution effort for the MC-21 has been a top-to-bottom overhaul of the aircraft’s core components. The most prominent change is the replacement of the original Pratt & Whitney PW1400G engines with the Aviadvigatel PD-14 turbofans. Developed by Russia’s United Engine Corporation, the PD-14 received its domestic type certificate back in 2018 after years of rigorous testing, making it the foundational element of the aircraft’s “Russification.”
Beyond the powerplant, the substitution program encompasses nearly every critical system. The airframe now features a wing made from Russian composite materials, a key technological achievement. Inside the cockpit, a full suite of Russian-made avionics and controls has been installed. Other replaced systems include the fuel system, hydraulics, air conditioning, and the auxiliary power unit (APU). Even components like the high-lift devices, wheels, tires, and braking system are now domestically sourced. This comprehensive replacement is what makes the second prototype’s flight so noteworthy. It serves as an integrated testbed for how these disparate, newly developed systems work together in a real-world flight environment, a crucial step before the aircraft can be deemed safe and reliable for commercial service.
While the successful test flight is a major victory, the path to getting the MC-21 into the hands of airlines remains challenging. The timeline for the program has been adjusted multiple times, reflecting the immense complexity of certifying an aircraft with entirely new systems. The initial goal for deliveries has shifted, with the current official target for completing certification of the fully “Russified” MC-21 now set for the end of 2026. The first deliveries to airlines, including launch customer Aeroflot, are planned for the same period.
The certification process is methodical and exhaustive, designed to ensure the aircraft meets stringent international safety standards. Every component, from the engines to the smallest piece of software in the avionics, must be proven to be reliable. The involvement of two prototypes in the test program is a strategic move to gather flight data more rapidly and address any issues that arise in parallel, thereby compressing the overall timeline as much as possible.
To further expedite the process, UAC has stated that serial production aircraft are already being assembled at the Irkutsk plant concurrently with the certification tests. This approach, known as parallel production, aims to have a number of airframes ready for delivery as soon as the final certification is granted, avoiding a lag between approval and the start of commercial operations.
The Russian government has set ambitious targets for the MC-21 as part of its broader strategy to revitalize its civil aviation industry. The plan calls for the production of 270 MC-21 aircraft by 2030, with annual production rates ramping up to 36 aircraft per year. Some government documents have even floated a more optimistic goal of 72 aircraft per year by 2029. These numbers are designed to meet the pressing need of Russian airlines to replace their aging fleets of Western-made jets.
However, industry analysts and even some Russian officials have acknowledged the hurdles in achieving these production rates. Sanctions have reportedly created difficulties in acquiring some of the specialized manufacturing equipment needed for high-volume production. The Irkutsk Aviation Plant, where the MC-21 is assembled, has a stated capacity of 36 aircraft per year, which would make the higher target of 72 a significant challenge without further investment and expansion.
Furthermore, there are lingering questions within the aviation industry about the performance and cost of the “Russified” aircraft. Integrating new components can sometimes lead to increases in overall weight, which could affect the aircraft’s range and fuel efficiency compared to its original specifications. The cost of developing and producing these domestic systems has also reportedly risen, which could impact the final price point of the aircraft for airlines.
The successful maiden flight of the second import-substituted MC-21 is an undeniable engineering achievement and a critical milestone for Russia’s aviation industry. It demonstrates tangible progress in the country’s ambitious goal of creating a technologically sovereign commercial aircraft, free from reliance on foreign supply chains. This flight validates the performance of key domestic systems, particularly the PD-14 engines and Russian-made composites, moving the program one step closer to certification and commercial service. Despite this success, the journey ahead for the MC-21 program is still filled with significant challenges. The timeline for certification by the end of 2026 remains demanding, and scaling up production to meet the government’s ambitious targets will require overcoming logistical and manufacturing hurdles. The ultimate success of the MC-21 will depend not only on passing the rigorous certification process but also on its ability to perform reliably and economically for the airlines that will operate it. The coming years will be decisive in determining whether this landmark aircraft can fulfill its promise to redefine Russia’s place in the sky.
Question: What is the Yakovlev MC-21-310? Question: What is the main difference between the MC-21-310 and the original MC-21-300? Question: When is the MC-21 expected to enter commercial service?
Russia’s Aviation Sovereignty Takes Flight with Second “Russified” MC-21
The Milestone Flight
Flight Specifics and Objectives
A Fully “Russified” Airframe
Navigating a Complex Program
The Road to Certification and Delivery
Production Goals and Industry Perspective
Concluding Section
FAQ
Answer: The MC-21-310 is the designation for the version of the MC-21 medium-range passenger aircraft that has been fully “Russified” or import-substituted. It is equipped with Russian-made Aviadvigatel PD-14 engines and a comprehensive suite of domestically produced systems, replacing the Western components used in the original design.
Answer: The primary difference is the origin of its key components. The original MC-21-300 relied heavily on international suppliers, including Pratt & Whitney engines from the USA. The MC-21-310 was developed in response to sanctions and features Russian-made replacements for nearly all foreign parts, including the engines, avionics, and composite wing materials.
Answer: According to current official timelines from Russian aviation authorities, the certification of the fully import-substituted MC-21 is expected to be completed by the end of 2026, with the first deliveries to airlines planned for the same period.
Sources
Photo Credit: Rostec
Route Development
Singapore Airshow 2026 Marks 20 Years as APAC Leads Aviation Growth
Singapore Airshow 2026 highlights APAC’s 52% share in global aviation growth, new Space Summit, SAF Levy, and advanced air mobility developments.
This article is based on an official press release from Experia Events via PR Newswire and additional industry data.
The Singapore Airshow is set to return for its 10th edition from February 3 to 8, 2026, at the Changi Exhibition Centre. Organized by Experia Events Pte Ltd, this upcoming iteration carries the theme “20 Years of Shaping the Aerospace Landscape,” celebrating two decades since the event established itself as a standalone strategic catalyst for the global aerospace and defense sectors.
According to the official announcement, the 2026 event arrives at a pivotal moment for the region. Industry data indicates that the Asia-Pacific (APAC) region is projected to account for 52% of global aviation industry growth in 2025. This surge is driven by the world’s highest growth rates for both passenger and cargo traffic, cementing the airshow’s status as a critical marketplace for future aviation technology and policy.
The timing of the 2026 Airshow aligns with a massive resurgence in regional demand. Research data cited in reports surrounding the event highlights that APAC airlines are forecast to see a 9% year-on-year increase in Revenue Passenger Kilometers (RPK) in 2025. Furthermore, passenger load factors are projected to reach 84.4%, an all-time high for the region, signaling robust demand and capacity constraints that airlines must address.
While passenger travel rebounds, the cargo sector remains resilient. Despite global trade complexities, APAC air cargo demand reportedly grew by 5.6% in 2025, fueled largely by e-commerce expansion and supply chain adaptations. To support this volume, the region is undertaking significant infrastructure projects, including the development of Changi Airport Terminal 5 and upgrades at major hubs in India and the Philippines.
Beyond traditional commercial and defense aviation, the 2026 edition will expand its scope to address emerging sectors that are redefining the industry.
Preceding the main exhibition, the inaugural Space Summit will take place from February 2–3, 2026. With the global space economy projected to reach $1.8 trillion by 2035, this summit will focus on “New Frontiers: Shaping a Responsible and Inclusive Space Future.” Key topics will include treating satellites as critical national infrastructure, navigating dual-use technologies, and utilizing earth observation data for climate resilience.
“The global space economy is growing at record rates… Singapore’s established role as a hub for aerospace and technology makes it the natural home for the Space Summit.”
, Experia Events Press Statement
A central policy focus for the 2026 show will be the implementation of Singapore’s Sustainable Aviation Fuel (SAF) Levy. Originally announced at the 2024 show, this mechanism charges a levy on departing passengers to fund the purchase of SAF, aiming for a 1% uplift target in 2026. This initiative positions Singapore as a policy leader in the region, moving the industry from voluntary pledges to mandatory market mechanisms.
Building on momentum from 2024, which saw participation from major eVTOL players like Supernal and Lilium, the 2026 edition is expected to feature operational prototypes. Discussions will likely center on the regulatory frameworks required to integrate electric vertical take-off and landing aircraft into dense urban airspace.
The “20 Years” milestone commemorates the show’s evolution since its inauguration in 2008. The event has transitioned from the “Superconnector” era of 2010–2018,defined by massive widebody orders from Gulf and Asian carriers,to a more diversified platform focusing on technology and sustainability.
The economic footprint of the event is significant. According to post-event data, the 2024 edition generated over S$391 million in economic activity. Organizers expect the 2026 edition to match or exceed this figure, with projected attendance surpassing the record of approximately 60,000 trade visitors set in 2024.
“The key here is not just the numbers. We have 90% of the top 20 global aerospace companies here… making this a very good platform to discuss the future of aviation.”
, Leck Chet Lam, Managing Director of Experia Events
The shift in focus for the Singapore Airshow 2026 reflects a broader maturation in the Asian aerospace market. In previous decades, the headlines were dominated almost exclusively by order book totals,how many hundreds of jets were sold to rapidly expanding carriers. While fleet renewal remains vital, the inclusion of a dedicated Space Summit and the operational start of the SAF levy suggests that stakeholders are now prioritizing infrastructure resilience and regulatory leadership over pure capacity expansion.
We observe that Singapore is leveraging this event to secure its role not just as a transit hub, but as a “policy sandbox” for the region. By mandating SAF usage and hosting high-level space dialogues, the Airshow is pivoting to become a forum where the rules of the next generation of aerospace are written, rather than just a showroom where hardware is bought.
When is the Singapore Airshow 2026? Where is the event located? What is the “Weekend@Airshow”?
Singapore Airshow 2026 to Mark 20-Year Milestone as APAC Leads Global Aviation Growth
Asia-Pacific: The Engine of Global Aviation
New Frontiers: Space, Sustainability, and Mobility
The Inaugural Space Summit 2026
Sustainability and the SAF Levy
Advanced Air Mobility (AAM)
Historical Legacy and Economic Impact
AirPro News Analysis
Frequently Asked Questions
The event runs from February 3 to 8, 2026. The first four days are typically reserved for trade visitors, while the final weekend (Feb 7-8) usually opens to the public.
It will be held at the Changi Exhibition Centre in Singapore.
This is the public access portion of the event, featuring aerial displays from air forces and commercial manufacturers, along with family-friendly activities.
Sources
Photo Credit: Singapore Airshow
Aircraft Orders & Deliveries
Aircraft Lessors Show Stability Amid 2026 Geopolitical and Financial Risks
In 2026, aircraft lessors maintain steady lease rates and asset values despite supply shortages, trade disputes, and a $19.3B refinancing challenge.
Despite a global landscape fractured by trade disputes, rising interest rates, and what industry insiders are calling a “transatlantic rift,” the global aircraft leasing sector projects a unified stance of confidence. According to reporting by Reuters from the Airline Economics Growth Frontiers Dublin 2026 conference, top executives believe the industry is insulated from broader macroeconomic shocks by a single, undeniable reality: a severe shortage of aircraft.
The conference, which serves as the premier annual gathering for aviation finance, took place in late January 2026 against a backdrop of “jittery markets.” Reuters reports that while risks are accumulating, ranging from a $19.3 billion refinancing wall to potential U.S. tariffs on European goods, lessors are successfully “steering a steady course.”
The prevailing sentiment in Dublin was that the fundamental imbalance between high travel demand and low aircraft supply has created “guardrails” for the sector. With lessors now managing approximately 50% of the global commercial fleet, their role as critical intermediaries has never been more pronounced.
The primary driver of industry optimism is the chronic inability of manufacturers to meet delivery targets. According to the Reuters report, production delays at both Airbus and Boeing have kept lease rates high and asset values stable. This scarcity effectively protects lessors from the downturns that might otherwise result from economic volatility.
Steven Udvar-Hazy, Chairman of Air Lease Corporation, emphasized the magnitude of this demand during the conference.
“Backlogs have reached almost stratospheric levels.”
— Steven Udvar-Hazy, via Reuters
The reporting highlights a specific supply chain phenomenon known as “gliders”, newly built jets sitting at factories without engines due to component shortages. While this is a frustration for airlines desperate for capacity, it reinforces the pricing power of lessors who hold available inventory. Tom Baker, CEO of Aviation Capital Group, described the market to Reuters as “shockingly stable,” crediting the lack of supply for insulating the sector from the usual cyclical downturns.
While the supply-demand dynamic is positive, the Reuters report details significant headwinds facing the sector in 2026. These risks are categorized into geopolitical tensions and direct financial hurdles. A major theme at the Dublin conference was the deepening diplomatic dispute between the U.S. administration and European allies. Reuters identifies this as a “transatlantic rift,” triggered specifically by U.S. proposals regarding Greenland and subsequent threats of tariffs on European goods.
These tensions threaten to disrupt the traditionally tariff-free status of aircraft trading. However, industry leaders noted that the inherent mobility of their assets allows them to navigate trade barriers more effectively than fixed industries. Firoz Tarapore, CEO of Dubai Aerospace Enterprise, offered a cautionary note in the report, warning that “knee-jerk reactions” from governments regarding trade policy could evolve into “chronic” issues for the global economy.
Financially, the sector faces a massive maturity deadline. Reuters cites data indicating that approximately $19.3 billion in senior corporate debt is set to mature in 2026. This “refinancing wall” comes at a time when interest rates remain high, increasing the cost of capital.
Additionally, the report highlights concerns over a U.S. proposal to cap credit card interest rates at 10%. This policy could severely impact airline loyalty programs, which are major profit centers for carriers, potentially weakening the creditworthiness of the airlines that lease these jets.
The Reuters coverage contrasts the views of various industry titans regarding how manufacturers should proceed. Aengus Kelly, CEO of AerCap, dismissed recent market volatility, including spikes in gold prices, as “excessive reactions.” His advice to manufacturers was blunt:
“Focus on the factory.”
— Aengus Kelly, via Reuters
Kelly urged Airbus to prioritize delivering existing orders rather than launching new jet models. This contrasted slightly with Udvar-Hazy, who expressed support for a larger version of the Airbus A220 to fill specific market niches. Meanwhile, Lars Wagner, the newly appointed CEO of Airbus Commercial Aircraft, used the conference to commit to “execution” and production ramp-ups.
The Disconnect Between Macro-Chaos and Micro-Stability The reporting from Dublin illustrates a fascinating disconnect in the 2026 aviation landscape. On the macro level, the indicators are flashing red: trade wars, high interest rates, and political unpredictability. Yet, on the micro level of aircraft leasing, the indicators are green. This resilience is not accidental; it is structural.
Because manufacturers cannot build planes fast enough to meet travel demand, the asset class itself, the aircraft, has become a store of value comparable to gold in this specific cycle. Furthermore, the leasing model provides a geopolitical hedge. When a “transatlantic rift” occurs, a factory cannot move, but a leased aircraft can be redomiciled or repossessed and moved to a neutral jurisdiction. This mobility is the “guardrail” that allows lessors to sleep soundly while the broader markets remain jittery.
Aircraft Lessors Remain Resilient Amidst 2026 Geopolitical and Financial Risks
Supply Shortages Create Market ‘Guardrails’
Navigating the ‘Transatlantic Rift’ and Financial Pressures
The Geopolitical Trade War
The $19.3 Billion Refinancing Wall
Executive Sentiment: Focus on Execution
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: Alton Aviation Consultancy
Aircraft Orders & Deliveries
Falko Secures US$672M Financing for Regional Aircraft Fund II
Falko closes a US$672 million financing facility to refinance debt for its Regional Aircraft Opportunities Fund II, backed by 68 aircraft.
This article summarizes reporting by AviTrader and Heike Tamm.
Falko Regional Aircraft Limited, a leading asset manager specializing in the regional Commercial-Aircraft sector, has successfully closed a significant financing facility valued at US$672 million. According to reporting by AviTrader, the transaction was finalized in December 2025 and is intended to refinance existing debt within the Falko Regional Aircraft Opportunities Fund II (Fund II).
The deal underscores the continued financial viability of the regional aircraft market, specifically the 50–150 seat segment. As noted in the report by Heike Tamm, the facility is secured by a portfolio of 68 aircraft, providing a robust collateral base for the lending consortium.
The US$672 million facility involves a syndicate of major global financial institutions, highlighting strong market confidence in Falko’s asset management strategy. Based on data regarding the deal structure, the lead arrangers and structuring agents included:
According to the coverage, the primary purpose of this capital injection is to refinance existing debt facilities associated with Fund II. This move optimizes the capital structure of the fund, which was originally launched in 2019 as a vintage buyout fund targeting regional aviation assets.
Falko’s Fund II is dedicated to the regional sector, a niche that has shown resilience amidst broader aviation supply chain constraints. While a specific itemized list of the 68 aircraft serving as collateral was not released, the fund’s strategy focuses on generating stable cash flows through operating leases.
Industry data indicates that the portfolio likely includes a mix of modern regional jets and turboprops. Common asset types in Falko’s broader management portfolio include Embraer E-Jets (E170/E175/E190/E195), Bombardier CRJ900s, and De Havilland Canada Dash 8-400 turboprops. These aircraft are typically leased to major flag carriers and regional operators globally, with recent activity involving carriers such as LOT Polish Airlines and Air Canada.
This financing event follows a major corporate transition for Falko. In December 2024, just prior to this deal, HPS Investment Partners, LLC completed its acquisition of Falko from Chorus Aviation Inc. The sale, valued at approximately US$1.9 billion, transferred Falko to HPS, a global credit investment firm with over $100 billion in assets under management. This change in ownership appears to have provided Falko with substantial backing to execute large-scale financial maneuvers like the Fund II refinancing.
The Resilience of Regional Aviation The successful closure of a US$672 million facility with top-tier banks suggests that the financial markets view regional aviation assets as a stable, bankable asset class. Despite the volatility often seen in the widebody market, the 50–150 seat segment remains vital for connecting secondary cities to major hubs.
We observe that persistent delivery delays from major manufacturers like Boeing and Airbus have forced airlines to extend leases on existing aircraft. This dynamic keeps utilization rates and lease rates high for mid-life regional jets. For lessors like Falko, this supply shortage creates a favorable environment for refinancing, as the underlying asset values remain robust due to high demand.
What is the Falko Regional Aircraft Opportunities Fund II? Who are the lenders for this facility? What assets secure the loan?
Falko Secures US$672 Million Financing for Regional Aircraft Fund II
Transaction Details and Lenders
Fund II Portfolio and Strategy
Corporate Ownership Context
AirPro News Analysis
Frequently Asked Questions
Fund II is a vintage buyout fund launched by Falko in 2019. It targets investments in the regional aircraft sector, specifically aircraft with 50 to 150 seats.
The facility was arranged by a consortium including Citibank, Deutsche Bank, Goldman Sachs, Bank of America, and Royal Bank of Canada.
The US$672 million facility is secured by a portfolio of 68 regional aircraft managed under Fund II.
Sources
Photo Credit: Montage
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