Russia Absconds with $10bn in Aircraft in Response to EU Sanctions
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 countrys 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 countrys 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, Russias 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 Russias 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, Russias flag carrier, as well as the countrys 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 countrys 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
(49,047 posts)Calista241
(5,586 posts)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
(86,840 posts)Will be used for parts since they won't have access to them for a while now.
C_U_L8R
(45,025 posts)Enjoy your hermit kingdom.
cloudbase
(5,525 posts)lastlib
(23,322 posts)...given the many protesters arrested...
DanieRains
(4,619 posts)They're yours now.
Try making your own parts....
multigraincracker
(32,736 posts)are groups of investors. They have reaped money for years as an investment(gamble). I wouldn't bail them out.
2naSalit
(86,840 posts)cstanleytech
(26,334 posts)That goes for outbound flights from Western airlines that are bound for Russia as well.
Sancho
(9,070 posts)...besides, we have Mike Kennedy and Kevin Lacy!!
KS Toronado
(17,369 posts)Don't pay your bills and hide stuff, wonder who learned from who.
multigraincracker
(32,736 posts)sitting in storage because he can't afford parts and service too.
LastLiberal in PalmSprings
(12,600 posts)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
(17,047 posts)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
(12,600 posts)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
(17,047 posts)I'm surprised he had a donor that would lend him a plane, and then have another donor that would lend another plane.
jaxexpat
(6,862 posts)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
(9,480 posts)stopdiggin
(11,387 posts)(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.
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jaxexpat
(6,862 posts)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
(37,454 posts)if they can't get the parts they become useless. If they fly its limited.
2naSalit
(86,840 posts)Some will be used for parts at some point. He's storing up a bank of parts.
Chainfire
(17,663 posts)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
(38,958 posts)Im thinking that these leasing companies perhaps have just got a very expensive tuition bill.
turbinetree
(24,726 posts)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
(81,636 posts)bucolic_frolic
(43,364 posts)Quanto Magnus
(900 posts)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,