Ban on non-Russian registered aircraft for Russian airlines
 

The Federal Air Transport Agency Rosaviatsiya is to ban Russian airlines from operating overseas aircraft
https://www.google.co.uk/amp/s/www.a...abroad%3fv=amp
This could have major impact on the leased fleets some 800 aircraft could be affected from 1/Jan/2022 !

Since Russia's dubious safety protocols might prohibit their aircraft from landing at certain international destinations, will this now mean a significant reduction in Aeroflot capacity on those routes?

It would mean no more leases. So instead the Russian state would have to buy all western aircraft first, register them domestically and then lease them on to Russian airlines?
I don't see it happening as they would loose their long range fleet and route network.

This story keeps revolving for good 15 years now with new deadlines announced from time to time. Nothing will happen, as usual

The AvgasDinosaur

"The Federal Air Transport Agency Rosaviatsiya is to ban Russian airlines from operating overseas aircraft"

The article doesn't actually say that - it's a proposal under discussion.

If it comes to the crunch, it will be interesting to see who blinks first: the Russian authorities or the lessors.

The biggest loser might be Bermuda and its civil aviation authority, losing big £££.

With the number of long haul aircraft sitting in deserts at the moment, there has never been a better time to buy, however given the current state of the industry huge expenditures won't be met from income any time soon.

Most countries expect their airlines to have aircraft which are legally imported and locally registered, foreign aircraft being used on a short term basis only. Leasing is quite common but normally something being added to the fleet on a long term basis gets a local number plate. The Isle of Man is an increasingly popular register for business jets with the Caribbean islands doing airliners. A similar situation to the shipping industry could develop, with flag of convenience countries such as Panama and Liberia being used.

Possibly a compromise will be found which enables the present situation to continue in return for a tax on their use.

True, provided that owners want to sell, which is definitely not the case of many financial institutions at the moment, because of book values of said aircraft.


The problem is not flag of convenience but the possibility for lessors/owners to repossess its aircraft when the rentals are not paid (for instance). Some jurisdictions - Russia but not only; Italy is an other good example - do not offer proper protections to lessors/owners in this respect, hence the requirement of a foreign registration (subject to bilateral airworthiness agreements being in place).

How do you repatriate EG 20 B.777s if the host country doesn’t want them liberated ?

The AvgasDinosaur

"How do you repatriate EG 20 B.777s if the host country doesn’t want them liberated ?"

While there are always issues involved in retrieving a leased aircraft, they are multiplied if it is registered in a country like Russia.

krismiler

Interest rates are still low enough . It is like free money hot of the press .

This issue is really what some people have already mentioned here, getting the aircraft back in case of delinquent payment.

I remember being at a GE party some years ago and talking to someone from ILFC about this very subject. They had had a 737 sitting in (I think) Krasnoyarsk for a couple of years that had been on a Russian registry. It had been impossible to get the aircraft out in one piece due to all sorts of hurdles being thrown up by various Russian agencies. So they were getting the aircraft back piece by piece. Disassembling it and bring out various components, a huge financial and administrative headache.

I remember him telling me that they would never register anything again on the Russian registry, after this whole ordeal.. Lease companies always need the option to get the aircraft back, be it to park it for better days or even part it out for components.

And that encapsulates the problem perfectly. It's got less to do with avoiding taxes and more to do with the leasing arrangements. There is a third factor, too. Registration in Russia requires certification in Russia, something most builders have been reluctant to do. The process is long, complex and expensive. I speak as one who went through this process 30 years ago, when dealing with Russia was a lot simpler than it is today.

Russian certification is still required to deliver aircraft to Russian commercial operators, irrespectively of the state of registration.