Bermuda Revokes Russian Aircraft Airworthiness, And Why It Matters

Bermuda has just suspended the airworthiness certificates of all Bermuda-registered jets in Russia. This might seem random given all the sanctions that Russia is facing, but this is more significant than you might think… sort of.

Many Russian planes are registered in Bermuda

As of March 13, 2022, the Bermuda Civil Aviation Authority (BCAA) has provisionally suspended all certificates of airworthiness of Bermuda-registered aircraft operating in Russia. The reason this matters is because roughly half of the commercial jets in Russia are registered in Bermuda (including a majority of the planes that are leased).

International sanctions make it hard for Bermuda to maintain safety oversight of these Russian operated aircraft, meaning that Bermuda can no longer confidently verify that these aircraft are airworthy.

Why are so many planes flying in Russia registered in Bermuda? There are a few reasons, including lower import duties, better safety oversight, and easier and better insurance options. The process of trying to re-register aircraft in Russia is currently taking place, but that also has its complexities.

Hundreds of Russian jets are registered in Bermuda

Why this doesn’t matter all that much

Under normal circumstances, half of a country’s commercial aircraft losing their airworthiness certificates would be really significant. But at this point it probably doesn’t matter all that much:

  • Russian airlines have almost entirely suspended international flights, so demand for air travel is a fraction of what it once was; airlines don’t need all of their planes
  • With sanctions in place, hundreds of Russian jets are supposed to be seized, as lease agreements have been terminated; however, Russian airlines are refusing to return these jets, and repossessing them in Russia isn’t exactly easy right now
  • Many Russian planes are without insurance now, but even so, continue to fly

On the surface it’s significant that half of Russia’s commercial jets are officially no longer considered (legally) airworthy. Then again, Russian airlines are illegally refusing to return planes to leasing companies, so I’m not sure Russian airlines care much more here either?

Odds are that Russian airlines won’t care much about this

Bottom line

Aviation regulators from Bermuda have suspended the airworthiness certificates of the hundreds of jets registered in Russia. This move comes as the regulator can no longer confidently speak to the airworthiness of these planes.

While this would usually have major implications, Russia no longer cares about international laws, so this is likely all a moot point.

What do you make of Bermuda revoking the airworthiness certificates of planes in Russia?

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Brandon Guest

While Russia ( or the Russian operating companies) may seize these aircraft for a short term win, it will fundamentally destroy the creditworthiness of any of these Russian leasing and airline companies longer term. ( Not that the collapse of the ruble hasn’t started that process). It took Russia nearly ½ a century to rebuild its credit after the Revolution- and that was with the wind assist of WW2 lend lease.

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S Brown Guest

It will be interesting when Boeing, Airbus, Rolls Royce, GE, and Pratt and Whitney refuse send parts.

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Madhu Sameer Guest

A friend sent me the following information about the effect of sanction on Russia on aviation industry: All over the word airlines don’t own their own planes, they lease them. The European Union has imposed sanctions on Russia and obliged European leasing companies to take back all leased aircraft from Russia by March 28th. That is a total of 520 aircrafts. 1. The Russians say if you refuse to lease them to us, get them back yourself! How can we get 520 crews to Russia when the airspace in Russia, Belarus and Ukraine is closed? We can’t fly in to take them back. How the hell can the 520 aircrafts can be returned to Europe? 2. Once the handover has taken place in Russian airports, the planes are no longer Russian. But a non-Russian plane is not allowed to fly in Russian airspace – the Russian airspace is blocked! We won’t be able to fly out! 3. The leasing companies are the initiators of the termination of these leases. In the original calculation of the cost of fines in such a case, we will all be bankrupted at once. It’s easier and cheaper to go bankrupt than to take back the planes. 4. February is over and Russia has to pay the lease payments for the month. Russia is willing to pay but cannot pay because it is excluded from SWIFT. We ourselves have to pay fines because of the terminations, but in view of the lack of incoming payments from Russia we have no money for such payments! 5. Even if we take back these planes, what are we going to do with them? We don’t need them, nobody wants them and it’s impossible to sell them! 6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world’s No. 1 airline, bankrupting both the European leasing company and Airbus.

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Richard McWilliams Guest

My guess is that while the leasing companies cannot seize the planes in Russia, at some point they will regard those planes as having been stolen. Not a good thing. The moment any of those planes land in an EU country or country participating in sanctions they could be seized. While that may not happen for a while, I would imagine this has done greivous damage to Russia's ability to lease anything in the future. Through his wreckless actions, Putin is pulling the iron curtain down again, and I cannot believe Russian citizens are going to be too happy about that. No wonder many are fleeing.

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Brend Young Guest

So that is why Russia and China have soft currency- no respect for laws.

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