Russia Absconds with $10bn in Aircraft in Response to EU Sanctions

[Mr. Sparkle]

Source: Organized Crime and Corruption Reporting Project

Like a deadbeat who hides his car when the repo man comes calling, Russian airlines appear to have absconded with more than US$10 billion worth of rented airplanes rather than let them be repossessed. After the newest wave of EU sanctions banned not only the sale of aircraft and parts to Russian companies but also access over EU airspace for Russian planes, the country’s airlines responded by absconding with more than 500 planes valued at over $10 billion before they could be repossessed by their lessors. (Photo: Marat Gizatulin, Flickr, License)After the newest wave of EU sanctions banned not only the sale of aircraft and parts to Russian companies but also access over EU airspace for Russian planes, the country’s airlines responded by absconding with more than 500 planes valued at over $10 billion before they could be repossessed by their lessors, Bloomberg reported on Tuesday.

Cut off from international markets, supply lines, and aviation insurance providers, Russia’s wings are essentially clipped, which may be why its airlines resorted to withholding more than 500 planes leased to them by foreign firms in order to mitigate their losses. The news comes after Russia’s aviation regulator recommended on March 5 that all Russian airlines with planes leased from foreign carriers, and not registered in Russia, avoid flying overseas where the aircraft risked being detained upon arrival, according to TASS.

And so Aeroflot, Russia’s flag carrier, as well as the country’s other airlines, halted their international flights after ensuring that their leased aircraft were safely back and tucked away in Russian hangars. “The Russian aviation sector is now on footing that is similar to North Korea and Iran — and similar to where it was under Soviet rule,” said Rob Stallard, an analyst at Vertical Research Partners, in response to the country’s actions. In further defiance of the EU sanctions, the Kremlin also advised its airlines to re-register their foreign-owned aircraft, in what is seen as an effort to thwart the revocation of the planes’ certifications, Bloomberg reported. The airline industry was amongst those most severely hit by the coronavirus pandemic; commercial flights in 2020 suffered a drop of almost 3 billion passengers and earned almost $400 billion less in revenue than the year before.

Read more: https://www.occrp.org/en/daily/16063-russia-absconds-with-10bn-in-aircraft-in-response-to-eu-sanctions

[Bernardo de La Paz]

1. Cut off from parts, planes will rot. Russ airlines won't be able to lease planes for a decade+. nt

[Calista241]

21. Yeah, rather quickly too, unless those companies had parts lying around in warehouses inside Russia.

They have 60ish Boeing 777 and 737's, and 130 Airbus aircraft, mostly A320 and A321's, but with a few A350's.

They could switch to flying Ilyushin aircraft, but they'll still have to pay for construction somehow.

Basically, Russia's economy is fucked up, and they brought it on themselves.

[2naSalit]

22. I expect a lot of them...

Will be used for parts since they won't have access to them for a while now.

[C_U_L8R]

2. They can have a lot of fun flying from nowhere to nowhere.

Enjoy your hermit kingdom.

[cloudbase]

11. The Moscow to Pyongyang route is especially lucrative this time of year. n/t

[lastlib]

19. Moscow to Siberia seems to be turning a profit for Vlad.......

...given the many protesters arrested...

[DanieRains]

3. Take Russia's Frozen Assets And Pay Off The Planes

They're yours now.

Try making your own parts....

[multigraincracker]

16. Most of those that lease them out are

are groups of investors. They have reaped money for years as an investment(gamble). I wouldn't bail them out.

[2naSalit]

23. Some will be used for parts.

[cstanleytech]

4. Any flights from Russia other than diplomatic should be banned from any Western airport then.

That goes for outbound flights from Western airlines that are bound for Russia as well.

[Sancho]

5. The paddle on those confiscated yachts is more than what the Russians have in repo..

...besides, we have Mike Kennedy and Kevin Lacy!!

[KS Toronado]

6. So Russia is just like IQ4.5

Don't pay your bills and hide stuff, wonder who learned from who.

[multigraincracker]

15. Yep, he has his personal jet

sitting in storage because he can't afford parts and service too.

[LastLiberal in PalmSprings]

25. T****'s private jet had to make an emergency landing recently because one engine malfunctioned.

Three engines were still operable.

Who the f*ck flies a four engine jet anymore? With the exception of the Boeing 747, John Travolta's 707, and the Aerobus 380--which isn't manufactured anymore--the airlines have switched to twin engine aircraft, even for trans-oceanic operations. Four engines is more impressive than two, though, and Fat Donnie's ego must get a boost every time he sees that gas hog on the ramp, painted in his red-blue-white livery. Actually he once said that he wouldn't fly in a smaller business jet.

When he was installed by the Russians one of the first things he did was to have a model made of the way Air Force One would be painted. He created the design by himself without any professional help-- because nobody has better taste in designing things than himself. That's why it looks like an airliner, I guess.

I know that the current aircraft was redesigned by Kennedy and award-winning industrial designer Ramond Lowely. At one time IQ45 described the new paint scheme as "branding" the new aircraft. I wouldn't be surprised if T**** has arranged to be paid every year for the Air Force's use of his design.

[Marthe48]

26. The jet belonged to a donor

traitor's personal plane is in disrepair somewhere in upstate NY, rotting into the ground.

Here's a link describing the incident where an engine failed on the Dassault Falcon 900: https://www.washingtonpost.com/nation/2022/03/09/trump-plane-engine-failure-gulf-mexico-new-orleans/

[LastLiberal in PalmSprings]

28. Thanks for the link.

The article I read didn't get into specifics, so I jumped to the conclusion it was his personal campaign plane. The Dassault makes more sense.

[Marthe48]

29. YW

I'm surprised he had a donor that would lend him a plane, and then have another donor that would lend another plane.

[jaxexpat]

7. Have the businesses in the western world not stayed in touch with their own governments?

The moment their governments announced sanctions was the time to repossess their rented planes. Were they thinking it wasn't happening? Waiting for that "one more payment"? Capitalism is, apparently, not good at abetting non-combatant warfare. They can't change gears on a dime because their sense of proportion is all out of whack. They're accustomed to their sole motivation being contractual profit. When the contract breaks down as the "basic conditions" change, the document is void. Businessmen stand flatfooted wondering just how all this impacts their bonus schedule while the quickest wits grab what's not nailed down.

[NoMoreRepugs]

12. Solid summation.

[stopdiggin]

13. to be fair, 'sanctions and measures' against Russia

(as well as various actors within) were kind of opaque - patched together by various actors on the other side - and sort of a moving target right up until the actual invasion. Not sure if 'they should've known' argument for leasing agents holds very well in this case. On other measures - 'capitalism' has appeared to move with remarkable swiftness, on any number of fronts, in response to the naked aggression. Quite surprising actually.
----- -----

[jaxexpat]

20. You're right, of course.

However, if someone owed me rent on a moveable asset, as soon as I knew they would NEVER pay a dime again and I knew where it was parked, I'd grab that thing and put it in my garage. If their mother came to me and tried to assure me that they'd pay, it would not delay my repossession. How can huge companies whose business is literally traveling near to the speed of sound react so slowly and at such cost to their precious shareholders?

[Historic NY]

8. Eventually they will need repairs....

if they can't get the parts they become useless. If they fly its limited.

[2naSalit]

24. I imagine...

Some will be used for parts at some point. He's storing up a bank of parts.

[Chainfire]

9. Don't worry about the airlines, American flyer will pay for the planes with ticked prices

and we will will probably give them a big bailout with our taxes. The will end up profiting from the loss of the planes.

[Sherman A1]

10. Well, it is said that you pay for your education

I’m thinking that these leasing companies perhaps have just got a very expensive tuition bill.

[turbinetree]

14. Maybe someone should send them pictures of there heros' plane sitting on a tarmac

https://www.businessinsider.com/photos-reveal-trumps-broken-and-grounded-private-plane-2021-3


that what your future hold for you.....and you can register all you want once your out of your airspace....well they can be repossessed not services to fly again.....better bring refueling planes with you ....your fucked....

[dalton99a]

17. +1

[bucolic_frolic]

18. They will pay for them in rubles.

[Quanto Magnus]

27. Well

Putin did want a return to the USSR in a lot of ways...

“The Russian aviation sector is now on footing that is similar to North Korea and Iran — and similar to where it was under Soviet rule,”