Russia's aviation in front of the collapse - sanctions crush airlines!

Russia's aviation in front of the collapse - sanctions crush airlines!

A dramatic setback for Russian aviation! Hundreds of western aircraft are stranded in Russia, and the sanctions against the country have devastating effects on domestic airlines. The Kremlin is faced with a possible bankruptcy of 30 airlines, which together cover 26 percent of passenger air traffic in Russia. The economic misery has been noticeable since the Ukraine War in 2022 than many companies began to no longer pay leasing fees. Now this decision could take revenge!

debt and bankruptcy threaten

The situation is alarming! Almost the entire fleet of Russian airlines is registered abroad and consists of leased machines. The monthly leasing costs for a used Airbus A320 can be between $ 80,000 and $ 150,000. Only the big airlines like Aeroflot were able to buy some planes back, supported by the Russian prosperity fund. But the mountains of debt grow, and the airlines fear an erosion of their economic stability. The Kremlin plans to allow the airlines for 2025 to write off its debts, but an income tax of 25 percent could further tighten the situation and lead to massive closures.

Russia's desperate measures

In a desperate attempt to keep control of the situation, Russia has "stolen" many of the planes now in its possession. In March 2022, Politico reported that around 515 aircraft worth over $ ten billion in Russia was stuck in Russia. The Kremlin passed a law that made it possible to transfer these machines to a Russian register, which made it almost impossible to return by leasing companies. But the biggest problem remains the dependence on western know-how and spare parts. Over 80 percent of the fleet of the 20 largest Russian airlines consist of foreign aircraft. Without the necessary spare parts, it could only be a matter of time before Russia's aviation industry stays on the ground!