Russia is seizing hundreds of commercial jets owned by US and European leasing companies, a further sign of the challenges the country’s airline industry faces due to sanctions following its invasion of Ukraine.
President Vladimir Putin signed a law Monday as part of the government’s anti-sanction measures that will allow Russian airlines to register planes leased from foreign companies in Russia, where they will be issued local certificates of airworthiness, according to a statement from the Kremlin.
The bill will make it possible for Russian airlines to keep their foreign leased aircraft and operate the planes on domestic routes, while making it harder for foreign companies to reclaim their jets without Russian government approval.
US and European sanctions imposed on Russia require leasing companies to repossess all planes they leased to Russian airlines by the end of the month.
Western aircraft makers such as Airbus (EADSF) and Boeing (BA) have already cut off Russian airlines’ access to the spare parts they need to maintain and safely fly their jets. Russian airlines operate 305 Airbus jets and 332 Boeing jets, according to data provided by aviation analytics firm Cirium.
Russia also has 83 regional jets made by Western manufacturers such as Bombardier, Embraer and ATR. Only 144 planes in the active fleets of Russian airlines were built in Russia.
Cirium data shows that 85% of those foreign-made planes are owned by leasing companies, and puts their combined value at $12.4 billion.
Western aircraft makers such as Airbus (EADSF) and Boeing (BA) have already cut off Russian airlines’ access to the spare parts they need to maintain and safely fly their jets. Russian airlines operate 305 Airbus jets and 332 Boeing jets, according to data provided by aviation analytics firm Cirium.
Russia also has 83 regional jets made by Western manufacturers such as Bombardier, Embraer and ATR. Only 144 planes in the active fleets of Russian airlines were built in Russia.
Cirium data shows that 85% of those foreign-made planes are owned by leasing companies, and puts their combined value at $12.4 billion.
What is Russia going to do with all these planes with no spare parts?
They can not use them for flying to other most other countries.
How long will the planes last with no spare parts?
The leasing companies can put the losses on their tax returns.
Western aircraft makers such as Airbus (EADSF) and Boeing (BA) have already cut off Russian airlines’ access to the spare parts they need to maintain and safely fly their jets.
Reports I heard said about 70% of the Russian commercial fleet is composed of western built aircraft.
What is Russia going to do with all these planes with no spare parts?
Profit opportunity. I bet China operates most of the types flown in Russia, and parts sales to China are not embargoed. India too.