Russia's first entirely new commercial plane for some time, the Superjet 100, has completed its maiden flight.
The plane, which will be able to carry between 75 and 110 passengers, will now look at being certified as airworthy.
Built by Russian manufacturer Sukhoi, the first planes are due to be delivered at the end of 2008 but the project has been hit by delays.
China, Japan and India are all seeking to become mid-range planemakers and meet a rising demand for air travel.
Industrial prestige
The manufacturing market for so-called "regional jets" is dominated by Brazilian firm Embraer and Canada's Bombardier.
The Superjet project was championed by former President Vladimir Putin as a way of displaying Russia's industrial sophistication and technical knowhow.
Hopes are high for the Superjet, with Sukhoi seeking to ramp up production by 2010 and ultimately sell more than 800 planes, more than half to foreign airlines.
It currently has 73 confirmed orders, the bulk from Russian airline Aeroflot.
But the maiden flight had been delayed by more than six months, raising concerns about whether the first planes will be finished on time later this year.
"The plane took off... flew for an hour and then landed," a spokesman at Sukhoi told the Reuters new agency.
The Superjet is designed to replace the Tupolev 134, which entered service in the 1960s, and the more modern Yakovlev 42, which was introduced in 1980.
Foreign assistance
Sukhoi has welcomed foreign assistance to develop the plane, using European sub-contractors and bringing Boeing on board to advise on testing and after-sales support.
Italian aerospace firm Alenia Aeronautica has taken a 25% stake in the holding company responsible for the new plane.
"We are looking at a very highly developed aircraft which the Russian industry probably would not be able to build on its own," a spokesman for Flight International magazine said.
"It fills a gap in the market and it is going to have a lot of support from Russian airlines, it goes without saying."
Several of the world's most powerful economies are intent on becoming forces in commercial plane manufacturing to exploit the growing global demand for air travel.
China recently launched a new company to develop a mid-sized passenger jet capable of carrying up to 150 people and backed by nearly $3bn in initial funding.
Mitsubishi Heavy Industries confirmed in March that it was going ahead with a $1bn project to develop Japan's first home-grown passenger jet aircraft.
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