Aviation

S7 Airlines and UAC Ink Agreement for 100 Tu-214 Aircraft

In a significant development for Russian aviation, S7 Airlines (S7) has signed a Memorandum of Understanding (MoU) with United Aircraft Corporation (UAC) to acquire 100 Tu-214 airliners.

The deal was formalized on September 18, 2024, in Kazan, a city renowned for its aircraft production, specifically the Tu-214, by UAC. The agreement was signed by Yuri Slyusar, Managing Director of UAC, and Vladislav Filev, owner of the S7 Group.

The Tu-214, a modernized version of the Soviet-era Tu-204, is designed to replace popular Airbus A320 and Boeing 737 models within Russian fleets. As Russia moves towards greater self-reliance in aviation amidst international sanctions, this agreement marks a pivotal shift in the country’s airline industry.

UAC is aiming to scale up its Tu-214 production, with plans to produce 10 aircraft annually by 2025/26 and 20 per year by 2027. Historically, few international airlines have operated the Tu-214, with North Korea’s Air Koryo and Cuba’s Cubana de Aviación among the few.

However, the aircraft’s three-person cockpit, a unique feature of its Soviet-era lineage, sets it apart from more modern two-pilot designs. Despite these differences, Russian carriers, including national airline Aeroflot, are embracing the model. Aeroflot has already placed a significant order for 40 Tu-214s, reinforcing its strategic importance.

With S7 Airlines joining the ranks of Russian carriers moving towards domestically produced aircraft, the acquisition of 100 Tu-214s signifies a major step in UAC’s effort to reduce reliance on Western aircraft. As the new fleet takes shape, this deal strengthens the Russian aviation industry’s resilience, positioning it for a more autonomous future.

Aviation

No More Jet Airways. Supreme Court Says “No Choice”, Orders Liquidation

Jet Airways was once one of India’s leading airlines, known for its service and extensive network. Founded in 1993, it served millions of passengers, connecting cities across India and international destinations.

However, since grounding its flights in April 2019, Jet Airways has struggled to navigate financial turbulence, leading to years of efforts to revive the airline and return it to the skies.

On Thursday, the Supreme Court ordered the liquidation of Jet Airways, citing “no choice” but to take this decisive step after the resolution plan failed to meet creditor obligations. The court invoked its extraordinary powers under Article 142, which allows it to make orders for “complete justice” in any case, overriding previous tribunal rulings.

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The Jalan-Kalrock Consortium (JKC), which had won the bid to revive Jet, faced criticism for not fulfilling payment commitments to creditors, which included major banks like the State Bank of India and Punjab National Bank.

The Supreme Court’s ruling pointed to “peculiar and alarming” issues surrounding the resolution plan’s implementation, leading to its conclusion that liquidation was the only feasible outcome.

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Chief Justice DY Chandrachud, alongside Justices JB Pardiwala and Manoj Misra, emphasized that while liquidation should be a last resort, it was necessary as the resolution plan was “no longer capable of implementation.”

In line with this decision, the court ordered that the ₹200 crore already infused by JKC be forfeited and directed the National Company Law Appellate Tribunal (NCLAT) in Mumbai to appoint a liquidator to oversee the process.

JKC, a partnership between Murari Jalan, a UAE-based Indian entrepreneur, and Florian Fritsch, a Jet shareholder through Kalrock Capital Partners Limited, had taken ownership of Jet Airways two years after it was grounded. The consortium’s inability to fulfill its financial obligations has now led to this final verdict, marking the end of an era for Jet Airways in India.