MC-21, Il-114-300, and SJ-100 — on the chopping block? The execution of the Russian aircraft industry has been canceled

In late September, the Interfax agency published a piece stating that the Russian government plans to cut funding for the domestic aviation industry by 40% in 2026 and 2027. The publication "Technosphere Russia" explained why the reduction in the flow of money will not affect the production rate of new MC-21-310, SJ-100, Il-114-300, and other aircraft.

First, it is necessary to understand the amount and purpose of the allocated funds. However, more on that later. What's more important are the expenses in the industry and sources of funding.

Where does the money come from?

So, mainly, enterprises spend funds on the construction and renovation of workshops. At the same time, all work on engines is a separate line item.

The production of aircraft is financed directly from credit funds or funds from carriers. If money is allocated for an aircraft, it is built.

Certification and refinement of aircraft require the least amount of spending. They only concern the first years of operation, when downtime is likely due to identified technical problems.

External revenue has not been canceled

As of autumn 2025, the most significant projects, MC-21, SJ-100, and Il-114, are in the final stage of certification and production preparation. No major investments are required here anymore.

Current deliveries are financed by the State Transport Leasing Company (GTLK), as well as other leasing companies. Accordingly, subsidizing loans for the purchase of MC-21 remains. This means that aircraft deliveries remain within the plan.

Cutting funding does not mean killing the industry

As for the state order itself, it does not imply high profitability, but much more is included in the expenses than was actually used.

This includes related purchases, the payroll of unused personnel, utility payments, and other things that allow relieving the burden on the enterprise.

Also, the Rostec state corporation, which oversees the aircraft industry enterprises, may receive a property contribution to reimburse the costs of paying coupons on bonds in 2026 — 10.4 billion rubles, in 2027 — 4.3 billion rubles, in 2028 — 10.5 billion rubles.

Against this background, it became known that in 2026, the Cabinet will allocate 54.47 billion rubles for applied research, experimental design, and scientific research in the interests of the Russian aviation industry.

Earlier, www1.ru reported that the TV7-117ST-01 engine for the Il-114-300 will be able to operate even in the Arctic.

Read more materials:

• PD-8 will acquire wings: the head of UEC named the main tasks of Russian engine building

• A modernized engine and propeller control unit has been created for the TV7-117ST-01

• The onboard system of the MC-21 has not been translated into Russian