Shares of Russian state-run aerospace company United Aircraft Corporation (UAC) experienced a significant surge of 45% on Tuesday following the successful maiden flight of the country’s first fully domestically-built aircraft. The Russian Industry Ministry confirmed that an SSJ-100, equipped solely with domestically-produced components, completed its first flight, reaching altitudes of up to 3,000 meters (9,800ft) and speeds of 343 kilometers (213 miles) per hour.
By 16:48 Moscow time, UAC shares, along with Yakovlev Design Bureau, the designer of the aircraft, were trading around 30% higher than the previous day. The positive news surrounding the maiden flight also had a positive impact on aviation stocks as a whole. Fueled by reports that the Russian government was contemplating allocating more than 650 billion rubles ($6.8 billion) from the National Welfare Fund (NWF) to support the industry, shares in various aviation companies experienced an upward trend.
According to an anonymous source close to the discussion as quoted by Interfax, the proposed allocation would involve nearly 410 billion rubles ($4.3 billion) dedicated to a long-term program aimed at upgrading the fleet of aircraft and helicopters. The remaining 240 billion rubles ($2.5 billion) would be allocated towards expanding the production of civil aircraft, engines, and assemblies throughout the industry.
To accommodate the growing demand for domestic aircraft, the SSJ-NEW is being manufactured at the Komsomolsk-on-Amur facility, situated approximately 500 kilometers (310 miles) south of Moscow. The Industry Ministry reported that approximately 40 systems have been upgraded on the new aircraft, all of which feature domestically-manufactured components.
Impressively, the SSJ-NEW aircraft went from preliminary design to first flight in a record time of just four years, according to Andrey Boginsky, the deputy general director for Civil Aviation of UAC and the head of the Yakovlev design bureau. It is worth noting that the original Sukhoi Superjet 100 (SSJ-100) aircraft, which made its maiden flight in 2008, featured foreign components, including the engines.
The successful maiden flight of the SSJ-NEW marks a significant milestone for the Russian aviation industry, as it demonstrates the country’s growing self-sufficiency in aircraft manufacturing. This achievement not only boosts the confidence of investors in United Aircraft Corporation (UAC) but also provides a significant impetus for the broader aviation sector.
The Russian government’s commitment to supporting the industry by allocating funds from the National Welfare Fund further enhances the prospects for the growth and development of the domestic aviation sector. These funds will play a crucial role in upgrading existing aircraft and helicopter fleets while also fostering the expansion of production capabilities for civil aircraft, engines, and assemblies.
The Russian aviation industry is positioning itself to become a global competitor with leading aircraft manufacturers such as Airbus and Boeing. The successful development and maiden flight of the SSJ-NEW showcases Russia’s determination and capability to create an alternative to these established players. This breakthrough not only strengthens the country’s position in the aerospace industry but also offers new opportunities for economic growth and technological advancements.
In conclusion, the maiden flight of Russia’s first fully domestically-built aircraft has resulted in a significant surge in shares of United Aircraft Corporation (UAC). The successful flight, accompanied by the government’s commitment to allocate funds to support the industry, reinforces Russia’s position as a formidable player in the aviation sector. The achievement not only bolstered investor confidence but also marked a crucial milestone in the country’s quest to establish itself as a leading manufacturer of civil aircraft, engines, and assemblies.
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