Vladimir Karnozov

The Russian government has asked local airlines to weigh in on an idea to purchase Airbus and Boeing jets operating in the country from their Western lessors using money from the National Welfare Fund (NWF). Russian carriers continue to operate nearly 740 regional and commercial airliners owned by foreign lessors but forcefully kept in the country under the Kremlin’s order.

 


The Ministry of Transportation has distributed a letter on the subject to 20 key carriers. The responses from the airlines would help determine the feasibility of the plan.

 


In March, transportation minister Vitaly Saveliev approached the Russian government, asking for a decision on whether to buy approximately 500 foreign-made aircraft worth $20 billion from foreign lessors and banks. At the same time, he acknowledged difficulties with would-be transactions due to restrictions on financial operations with Russia imposed by the U.S. and EU.

 


The NWF&nbsp;would lend the money at a rate of 1.5 percent under a 15-year term. The airlines would have to repay the loans as a special measure to resolve the ongoing disputes with the foreign lessors. The ministry acknowledges potential difficulties associated with embedded risks and money transfers should all parties involved agree to the proposed plan.&nbsp;

 


The ministerial letter also asks the airlines to give their estimates of residual values of the leased jetliners in their fleets and offer opinions on whether it makes sense to purchase jets more than 20 years old.

 


Should the plan materialize, its practical implementation will likely not go farther than 500 jets because of the restrictions on financial transactions with the Russian governmental and commercial structures imposed by the U.S., the EU, and their allies worldwide. The EU has cleared European lessors to deal with the Russians only on financial&nbsp;lease contracts signed before the Russian invasion of Ukraine on February 24. Yet, Russian airlines have taken most of the Airbus and Boeing jets on operational lease terms. They acquired only 50 airliners under finance leases. However, Russian interests hope Washington and Brussels will consider waivers to resolve the matter.

 


In a separate move, the Ministry for Transportation has made “corrections” to its earlier decision on subsidies meant to cover Russian carriers’ operational losses resulting from the hostilities in Ukraine.

 


President Vladimir Putin voiced the need to subsidize local carriers in March. About three months later, the ministry selected 32 suitable airlines. Having analyzed their responses, the authorities decided to cut the initial budget of 100 billion roubles ($1.63 billion) for the whole of 2022 by some 3 billion roubles for each of the summer months because airline losses totaled less than expected. Aeroflot, which had been promised subsidies worth nearly 50 billion roubles, continues to receive them without correction.

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

Kremlin Proposes Russian Airlines Buy Seized Western Jets

Russian authorities have asked for consultations with local airlines over the possible purchase of Western airplanes that remain in Russia. 

2024 Corporate Aviation Leadership Summit

Charlotte Bailey

News and issues about aviation maintenance, repair and overhaul (MRO), covering all segments of the aviation industry; and modifications for aircraft and engines. Subjects include product support of aircraft, engines and avionics, MRO company mergers, acquisitions, announcements and personnel, Airworthiness Directives, Supplemental Type Certificate approvals and other topics.

News and information on safety procedures and concerns.

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

ATR 72 aircraft performs pre-modification flight in Toulouse

Kepplair Starts Converting ATR 72 Into Water Bombers

Curt Epstein

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Only the piston aircraft segment posted a decline

GAMA: Bizjets, T-props, and Rotorcraft Deliveries Up

Hanneke Weitering

Two captains held the prototype 33 feet above the water for 30 seconds

Regent Flies Electric Seaglider with Crew for First Time

News about bills, laws, regulations and other governmental decisions affecting aviation and aerospace. Topics include FAA re-authorizations, taxes on fuel and aviation activities, environmental legislation, ICAO decisions, governmental mediation of labor conflicts and World Trade Organization disputes and decisions.

Icing approval would open year-round service to northern communities

Horizon Begins Icing Tests for Cavorite X7 eVTOL

Kerry Lynch

Deal to close this year

Bombardier To Grow Manufacturing Capacity with MHICA Buy

David Donald

Essential news and analysis on the defense aerospace business. Your trusted source for new and ongoing programs and requirements in military aircraft (manned and unmanned), engines, avionics, weapons and associated systems, including ground-based air defense.

The two NATO allies will purchase seven of the tanker/transport aircraft

Spain and Poland Agree to Buy A330MRTT Tanker Transports

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

GE Aerospace has tested the GE9X, Leap 1A, Leap 1B, and more with the 747.

GE Aerospace Flies Boeing 747 To Test New Engine Tech

Charles Alcock

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

More In Aircraft