Who Will Pay for the LMS-901 Baikal for the Regions? Seeking Simple Answers to a Complex Question

Oleg Panteleev: Airlines are concerned not with the cost of the aircraft, but with the monthly lease payment and subsidy parameters

Whether the cost of the LMS-901 "Baikal" aircraft will be affordable for local airlines is a question that currently has no answer. The aircraft is not mass-produced, and there is no transaction database yet. However, without subsidies from the regions, transportation will still be unprofitable, explained Oleg Panteleev, Executive Director of the Aviaport agency and aviation expert, to "Perviy Technicheskiy".

What Determines the Price

According to him, it will be possible to talk about the cost parameters of a specific transaction when the configuration parameters of the aircraft, the size of the supplied batch of aircraft, and additional parameters related to post-warranty service are fixed.

The extent to which the leasing company receives state support will significantly affect the transaction. Finally, even things like the cost of materials and purchased components can only be discussed in relation to a specific contract for the supply of aircraft. The current economic situation does not allow us to reliably judge how much the aircraft will cost in 2-3 years, Panteleev noted.

LMS-901 "Baikal"
LMS-901 "Baikal"
Airlines are concerned not with the cost of the aircraft, but with the monthly lease payment and subsidy parameters that the region can offer. Even if it costs a billion, the main thing is that the region has enough money for subsidies. If the region does not have money, then even a free aircraft will fly at a loss for the airline.
Oleg Panteleev, aviation expert

Panteleev added that the price per aircraft can vary by tens of percent depending on the specific configuration. Much depends on how the deal is financed. If the key rate decreases, the lease payment may also change.

Airlines Will Vote with Their Rubles

If you look at the situation through the eyes of the regions, which are the customers of the flights, the situation changes. They are faced with a choice: to order flight hours on Mi-8 family helicopters or on Baikal aircraft for flights on local airlines, the specialist added.

LMS-901 "Baikal"
LMS-901 "Baikal"
LMS-901 should be more attractive than 30-year-old Mi-8T helicopters in terms of flight hour cost and transport capabilities. If this advantage is maintained, the regions will vote for Baikals with their rubles.
Oleg Panteleev, aviation expert

Oleg Smirnov, Chairman of the Commission on Civil Aviation of the Public Council of Rostransnadzor, pointed to the problem that the Baikal, at a price of 200 million rubles, is not affordable for small airlines in Russia. "Perviy Technicheskiy" analyzed the oddities in the pricing of the LMS-901 in a large article.

According to the idea, the LMS-901 project will replace the outdated An-2. Designer Alexander Silin emphasized that the Baikal is superior to Soviet machines in terms of speed and fuel efficiency.

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