In a series of agreements with foreign lessors, including the prominent Irish leasing company AerCap, the Russian government has completed a substantial aircraft acquisition worth nearly $2.06 billion. These acquisitions involve 92 foreign-built and foreign-owned aircraft that were previously seized during the War in Ukraine. These aircraft will be purchased and officially re-registered under the ownership of three major Russian airlines.
S7 Airlines, a Russian carrier, is set to be the primary beneficiary of this aircraft acquisition, with 45 of the planes being added to the carrier’s fleet. These aircraft primarily consist of medium-haul narrowbody models, including the Boeing 737 and Airbus A320.
Additionally, 28 aircraft acquisition deals have been finalized, with these planes to be re-registered under the ownership of the state-owned flag carrier, Aeroflot. Lastly, the remaining 19 aircraft will become the official property of Ural Airlines.
S7 Airlines secured an agreement with multiple lessors, including AerCap, Air Lease Corp, and SMBC Aviation Capital, for the acquisition of the 45 aircraft that will soon be incorporated into its fleet. Given that the carrier currently operates a fleet of 101 aircraft, including 84 A320 and 737 family jets, this acquisition represents a significant addition, accounting for nearly half of its existing fleet.
It is noteworthy that negotiations are ongoing, potentially leading to the transfer of more aircraft to these carriers’ ownership. S7 Airlines holds a unique position among Russian carriers as the largest privately owned airline in the country, having commenced operations shortly after the Soviet Union’s dissolution in 1992.
As a private company, S7 Airlines can navigate international sanctions against Russian companies more effectively. By re-registering these aircraft as Russian-owned, the carrier can operate them on international routes without concerns about potential seizures, bypassing the sanctions imposed on foreign-owned aircraft.
Concerning the lessors’ perspective, many remain dissatisfied with their situation, given the challenges they faced when attempting to reclaim leased aircraft following Russia’s invasion of Ukraine. Despite filing insurance claims for their assets, lessors are still uncertain about the outcome of negotiations and potential insurance settlements related to these aircraft.
In the broader context, with these aircraft now registered under Russian ownership, the country’s international aviation industry is poised to expand its operations. Routes that were previously avoided due to the risk of aircraft seizures related to sanctions are likely to be reinstated.
Sources: AirGuide Business airguide.info, bing.com, msn.com
