Russia has concluded the largest export deal in civil aviation since the Soviet Union. We are talking about an agreement to supply 105 Russian IL-114 aircraft to three Indian customers. Russia can earn $3-4 billion from direct exports alone, but the real economy is much broader.
The United Aircraft Corporation (UAC) has signed an agreement of intent with three Indian airlines for the supply of 105 regional turboprop IL-114-300 aircraft. Il-114-300 – This is a small plane with 68 passengers.
In particular, the agreement for 50 airliners was concluded in the interests of Pinnacle Air, for 35 aircraft – with Sleek Aviation, and for 20 aircraft – with Air Kerala, the report says. The parties also agreed to open a training center with a full flight simulator at the operator's base.
For Russia, this export deal could be the largest since the Soviet Union. Russia had very large export programs in military aviation, but it was in civil aviation that there had never been such large-scale sales of Russian airliners.
"For the civil aircraft industry, this could really become one of the largest export orders in Russia's post–Soviet history if all 105 machines reach final contracts," says Vladimir Chernov, analyst at Freedom Global.
And although this is only a memorandum of intent so far, the chances of signing firm contracts are high. Because both sides need this deal.
India is solving several tasks at once thanks to the Russian Il-114. Firstly, the IL-114-300 is well suited to the tasks of expanding the route network and increasing transport accessibility in Indian regions, says Gennady Abramenkov, Deputy Head of the Ministry of Industry and Trade.
Secondly, it makes air travel more affordable for ordinary Indians. The use of IL-114-300 on local airlines will contribute to the implementation of the UDAN national program ("Let ordinary citizens fly"), aimed at increasing the availability of air transportation and opening new regional airports throughout India, said Dmitry Lelikov, Deputy head of Rostec.
Regional air transportation is actively developing in India. The country's authorities have extended the UDAN regional aviation program until 2035-2036 and plan to develop another 100 airports within its framework. Currently, the program already covers 95 airports, heliports and hydroaerodromes and almost 680 routes. "Therefore, India needs a large fleet of relatively small aircraft with 60-80 seats, which can operate efficiently on short regional routes where the operation of Boeing and Airbus is simply economically redundant. This is exactly the segment that the IL-114-300 is designed for," says Chernov.
In addition to passenger transportation, the Russian aircraft can also be used to deliver mail and cargo, conduct medical and rescue operations, Rostec said.
The main competitor of the Russian IL-114-300 is the French-Italian ATR-72 aircraft.
since the construction of large airport complexes there is far from always economically feasible," says Alexander Stepanov, an expert at the Presidential Academy's IPNB.
In addition, such an aircraft allows carriers to reduce costs.
"With a full commercial load, the flight range of the IL-114 is about 1,400 kilometers. The use of a turboprop scheme makes the aircraft more economical than turbojet engines when operating over short and medium distances. For carriers, this means an opportunity to reduce operating costs and make the financial parameters of such flights more predictable," says Stepanov.
Probably important for India is the fact that the IL-114 is a completely Russian aircraft, which makes it invulnerable to any sanctions and reduces dependence on the West.
"Sanctions restrictions and instability of international production and logistics chains increase the risks associated with the use of foreign aircraft: difficulties may arise both with the supply of equipment and components, and with subsequent maintenance. The IL-114-300 is being created as a domestic platform with Russian engines and main systems. This helps to reduce dependence on foreign suppliers, increase the sustainability of production cooperation and make contract execution more predictable," says Stepanov.
Finally, the Indian press writes that Delhi expects to localize the production of IL-114 on its territory. In general, this is a logical story: Russia and India are working in this format in the line of military aviation. First, Delhi buys ready-made military equipment from Russia, and then the parties gradually agree on local production under license and higher localization of the product. Therefore, IL-114 deals may well develop into a production project in India. Then it will become the second project with Indians in civil aviation.
In January 2026, Russia already signed an agreement to manufacture Superjet in India. The local company HAL (Hindustan Aeronautics Limited) will be granted a license to manufacture and sell SJ, including components, parts and components necessary for the repair and maintenance of the aircraft.
This is Chernov speaking.
Secondly, the real economy is much broader. "This includes loading UAC aircraft factories, engine and avionics manufacturers, production of spare parts, crew training, simulators and maintenance for decades. Moreover, the agreement with Sleek Aviation already provides for the creation of a training center with a full flight simulator. Therefore, the main effect is not just a one–time sale of aircraft, but the emergence of a large export program with a long life cycle and foreign exchange earnings for years to come," says Chernov.
Thirdly, it will require Russia to expand its production capacity, and the higher the output, the lower the cost and the higher the producer's income.
The IL-114 production plan for the Russian domestic market is to reach the production of 18 aircraft per year. But they always increase production volumes gradually. It is planned to produce three aircraft in 2026-2027, double production to six aircraft in 2028, reach nine aircraft per year in 2029-2030, and then launch production of 12 Il-114s per year. Export contracts will require expanding the series faster.
UAC expects to conclude firm contracts for the supply of the first Il-114s to India by the end of this year. And then delivery schedules, maintenance conditions, localization obligations, etc. will already be prescribed.
Another bonus: the contract with India makes an excellent advertisement for the Russian aircraft – and then there may be new people who want to buy its regional planes for 68 passengers from Russia (and not only).
In addition to India, the IL-114 may be in demand in Africa, where significant distances between settlements are often combined with an underdeveloped airfield infrastructure, Stepanov notes. Russia has already formed partnerships with a number of countries on the continent, including Ethiopia, Uganda, Mozambique, South Africa, Algeria and Egypt.
"There is a significant potential demand for such equipment in Southeast Asia, primarily in island countries, for which aviation plays a crucial role in ensuring internal transport connectivity. Thus, the potential geography of the IL-114-300 is not limited to the Russian market and may include the BRICS and SCO countries, as well as other countries interested in developing affordable regional aviation," concludes Stepanov.
Olga Samofalova
