Companies that lease airliners to Russian airlines such as Aeroflot and S7 (airline aircraft are routinely operated under third-party leases, rather than full ownership by the carrier) are in the financial crosshairs of the current Russia-Ukraine crisis. With Western sanctions on Russia’s aviation and financial sectors, lessors could be on the hook for $10 billion worth of aircraft that cannot be recalled due to flight restrictions.
On Monday (March 14) Russian President Vladimir Putin signed a new law enabling Russian airlines to re-register hundreds of airliners in Russia to fly within the country’s borders (since they are prohibited by sanctions from flying elsewhere), potentially leaving international leasing firms accountable for the value of the aircraft, including a brand-new Airbus A350 delivered to Aeroflot Feb. 24, the day Russia invaded Ukraine in what it called a “special operation” to demilitarize and “denazify” the country.
Under current terms, some 515 aircraft leased to Russia-based airlines are registered abroad, most in Bermuda or Ireland. Aviation authorities in those two countries suspended airworthiness certificates on the aircraft because they could no longer ensure they were safe for continued operation.
An unnamed source from one of the Russian airlines told Reuters, “The law provides a way to register in Russia, but does not oblige the airline to do so … It is the first step to the kidnapping of the airplanes. We hope to avoid registering our planes in Russia; we want to return them to leasing companies.”
Aeroflot flying Bahamian registered aircraft today! When were their CofAs rescinded?
The opening line parenthetical was probably worthy of being its own sentence.
What difference do international conventions such as leases and foreign Cs of A make anymore if the country’s president has established himself as a war criminal by bombing civilians seeking shelter in theaters? Engines will still run and wings will still plane the air till they run out of spares and enough money to refine crude oil into jet fuel regardless of who owns the aircraft and whether or not Cs of A have been rescinded.
The anonymous source saying that the airlines want to return the jets makes sense. As pointed out by Mentour Pilot on YouTube, if they were to actually try to keep those aircraft (or do maintenance on them in an unapproved way that would jeopardize their airworthiness), they would never be able to lease an aircraft again.
You wildly over-estimate the resolve of profit-seeking leasing companies.
“That never could happen” quickly will change to “that never could happen, again.”
The extant situation offers ample proof that stupidity overcomes reason.
“Fools and their money soon are parted.”