Russian airline S7 operates 17 aircraft made by the Brazilian company
05/03/2022
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Embraer plane
Like Boeing and Airbus, Brazilian company Embraer halted the execution of maintenance services and the supply of spare parts for aircraft to customers in Russia and in certain regions of Ukraine.
The decision was taken after new sanctions were imposed by the international community on Russia, in response to the invasion of Ukraine. One of Russia’s largest airlines, S7 Airlines operates 17 Embraer aircraft, all E170s, according to information on its website.
Without providing details of the practical ramifications of the decision, Embraer stated “it is closely monitoring the evolution of the situation and has been complying, and will continue to comply, with the international sanctions imposed on Russia and certain regions of Ukraine”. As a result, “parts, maintenance and technical support services for customers affected by the sanctions” were suspended.
The suspension of commercial activities by aircraft manufacturers, combined with initiatives by leasing companies to ask for the return of jets operating in Russia, could leave most of the local fleet on the ground in the coming weeks.
But the risks aren’t just on the eastern side of that scale. For the world’s three largest aircraft manufacturers, suspending commercial ties with Russian entities is something expected to compromise access to titanium, the light metal used in the manufacture of aircraft and engines.
Russia’s VSMPO-Avisma, part of state-owned conglomerate Rostec, is the world’s largest producer of titanium and parts made from the metal. It is also the main supplier of material to aircraft manufacturers. In this group, the most exposed to the Russian state-owned company is the Brazilian company.
Virtually all of Embraer’s titanium needs are met by VSMPO-Avisma. Questioned, the company said on Sunday that the titanium supply was not a concern at the moment, as its stocks are high.
However, prolonged sanctions will force all companies to seek alternative supply. There are other suppliers in the world — China is the biggest — but costs are likely to rise with competition for the metal.
In the political field, Embraer’s decision is also not simple. The Brazilian government holds a golden share in the aircraft manufacturer, which gives it power over some of the company’s strategic decisions. And, in the Ukraine war, while Brazilian diplomacy approved the United Nations resolution condemning Russian attacks on Ukraine, the position of the head of state has been much less scathing.
Source: Valor International