The upgraded Tu-204SM is much different from the production-standard Tu-204-100 earlier built by Aviastar. First of all, it is powered by 16,000-kgf PS-90A2 turbofan engines developed by Perm-based Aviadvigatel JSC assisted by Pratt & Whitney. The IAC Aircraft Registry certificated the PS-90A2 in December 2009. Unlike the production-standard PS-90A, the modified engine is fitted with an advanced high-pressure turbine, a sophisticated automatic control system and several other considerable improvements enabling it to meet the present-day international airworthiness and environment friendliness requirements. At the same time, there has been a hefty drop in the life cycle cost and an increase in the reliability of the engine. The Tu-204SM also is equipped with the latest auxiliary power unit, the TA-18-200M from Aerosila JSC in the town of Stupino.

Secondly, the airliner carries a heavily upgraded avionics suite. It has been furnished with the advanced SUOSO aircraft equipment control system, KSEIS-204E integrated display and warning system and VSUPT-85-204 automatic flight/throttle control computer system, and virtually all of the control consoles and panels in the cockpit have been redesigned. Advanced avionics has allowed introduction of new automatic control modes, particularly, Category IIIA automatic landing approach (the Tu-204-100's avionics allowed only Category II landing approaches), etc. The substantial uograde of the avionics suite has afforded a crew reduction from three to two, axing the flight engineer.

In addition, the airliner's empty weight has dropped, and a modified extended-life undercarriage, an up-to-date digitally-controlled air conditioning system and upgraded power supply and lighting systems have been introduced (the incandescent lights are ousted by LEDs, and those in taxi and landing lights are replaced with xenon lamps).

The estimated assigned life of the Tu-204SM has grown to 60,000 h, 30,000 landings and 25 years of operation (the production-standard Tu-204-100 has 45,000, h, 25,000 landings and 20 years of operation respectively). With a maximum takeoff weight of 105 t, the Tu-204SM carries 194 passengers in the single-class layout with the 810-mm seat pitch or 176 in the two-class layout (12 seats in business class with a pitch of 960 mm and 164 seats in economy class) at a distance of 4,800 km. Its maximum payload has grown from 21 t to 23 t and maximum payload range stands at 3,600 km.

According to a Tupolev news release, Tu-204SM deliveries are planned to kick off in 2014. However, there has been no news on firm orders for the new airliner. In its annual and financial accounts published at its website, Tupolev reported 41 orders placed by commercial carriers, the largest of which – for 15 units – had been awarded by the Red Wings airline, whose flight operations had to be suspended by Russian civil aviation authorities in February 2013 (the carrier is going to resume flights in June). Other potential customers for the Tu-204SM are VIM-Avia (11 aircraft), Aviastar-TU (5), Vladivostok Avia (6) and Alrosa (3). However, most of them, for a number of reasons, should be treated with a grain of salt, regarding them rather as preliminary ones.

The consolidated governmental procurement order for advanced domestically-made aircraft, which is being devised now, seems to be far more feasible. According to Tupolev, the order can cover the acquisition of 14 Tu-204SM planes for the Russian Defence Ministry, Ministry of the Interior and Emergencies Ministry. According to the Izvestia daily's report dated 24 December 2012, the Defence Ministry planned to order 11 Tu-204SMs and the Ministry of the Interior wanted nine.

At the Congress of the Russian Aircraft Manufacturers on 19 April 2013, Industry and Trade Deputy Minister Yuri Slyusar said a consolidated governmental order, stipulating procurement of a total of 124 planes and 224 helicopters to the tune of 324 billion rubles (over $10 billion) until 2018, has been drafted and forwarded to relevant federal authorities for approval. Therefore, news of the first Tu-204SM orders is likely to come soon.