$10 billion in losses for landlords

Airplane Embraer E170 S7 Airlines
Image: Embraer

Russian President Vladimir Putin has enacted a law on measures to support civil aviation that allows registration of the rights of foreign aircraft incorporated through lease agreements by Russian companies, as well as the issuance of national certificates of airworthiness.

The move entails confiscating assets from Western companies for close to $10 billion, according to landlords and several analysts, partner website Aviacionline reported. The race to recover the planes among the companies that supplied them in leasing and Russian operators went frantic, culminating in this executive measure.

Changes to the Air Code of the Russian Federation and various legislative acts will allow Russian airlines to maintain the fleet of foreign aircraft and make it possible to operate on domestic routes.

Civil aircraft certification will be carried out with the participation of certification centers and testing laboratories, the requirements of which will be determined by the Russian Ministry of Transport.

The law aims “preserve the fleet of foreign aircraft of Russian Federation operators in order to ensure the uninterrupted operation of activities in the field of civil aviation”as part of the adoption of measures to mitigate Western sanctions.

The document also provides for the postponement from January 1, 2022 to December 31, 2023 of the deadlines for certification of technical means to guarantee the safety of transport, which “will allow transport infrastructure entities to redistribute the financial resources necessary for the certification procedure”.

Since the enactment of the law, the TASS agency has indicated that the airline Utair has transferred 50 aircraft to Russian registration, while the aircraft in its fleet whose airworthiness certificates have been suspended by Bermuda remain in “conditional” status.

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