This is major, but also shouldn’t come as much of a surprise…
In this post:
Putin’s new law lets airlines register foreign planes in Russia
Russia’s invasion of Ukraine has led to all kinds of sanctions from the international community. As it impacts the aviation industry, we’ve seen the following:
- Dozens of countries have banned Russian airlines from their airspace
- Many aircraft leasing companies have been prohibited from leasing planes to Russian airlines, meaning that hundreds of jets should be seized; as a result, Russian airlines have been told to stop operating most international flights, in hopes of preventing the planes from being seized
- Hundreds of jets being operated by Russian airlines are registered in Bermuda (for tax and insurance reasons), and Bermuda has revoked the airworthiness certificates for these planes, given the lack of oversight that’s possible
With the challenges that Russian aviation is facing, Vladimir Putin has today signed a law that essentially legalizes Russian airlines stealing planes. With this new law, Russian airlines are allowed to place airplanes leased from foreign companies on Russia’s aircraft registry.
With well over 500 jets in Russia being leased from foreign companies, this formally allows Russian airlines to continue to operate these planes. As it’s described, this new law is intended as a measure “to ensure the uninterrupted functioning of activities in the field of civil aviation.”
With these planes now allowed to be registered in Russia (according to Putin), they’ll be able to get domestic airworthiness certificates. Admittedly airlines will be limited in where they can fly these planes, so you can expect that these re-registered planes will only operate within Russia.
Why this development is actually significant
On the surface this development is significant but not — it’s absolutely nuts that Russian airlines are trying to prevent planes from being repossessed, though it’s not terribly surprising, given everything that’s going on.
Up until now there have been questions about how long the current situation would last. Are we talking days, weeks, months, years, or decades? With this move from Putin, we’re more or less assured that the impacts on aviation will be long-lasting.
Aircraft can only be registered in one country at a time, so I think it’s safe to say that with Russia trying to register these aircraft in a different country without the permission of the owners, the current operators of these planes will never be allowed to fly these planes internationally again (well, perhaps aside from flights to Belarus, etc.).
This is a major no-no, and will have consequences. Russia’s decision here means that Russian airlines will face issues even after the current situation is over. Then again, in the grand scheme of what’s going on right now, it’s hardly the most significant development.
Bottom line
Putin has signed a law allowing Russian airlines to re-register foreign aircraft in Russia. Yep, that’s despite the fact that these planes are generally owned by foreign leasing companies, and they’re supposed to be seized. This is an unprecedented situation for commercial aviation, but then again, these are unusual and scary times.
What do you make of this new law from Putin?
So these aircraft owners should file suit against Russian federation as this is tantamount to conversion or civil theft! Obtain a judgement and move to collect judgement tapping into their frozen assets.
When I first saw the headline I busted out laughing. Putin has become a caricature of everything evil and wrong in this world. He can do whatever he wants until some Russian whacks him and takes over. That's the only way this ends well.
Reimburse the leasing companies by seizing Russian money in Western banks. If Putin wants to take the planes let him pay for them.
What lender in their right mind would ever finance another Russian airplane….
What will they do when they run out of Boeing parts?
Real and Fake parts will be made and or smuggled from China.
Don’t sell them parts to fix them.They can fly em til they crash.
Where will the spare parts come from
There are many airlines and distributors from friendly jurisdictions that will sell, in many cases they can do that from a third party, and in many cases they dont even know that it will be ship to Russia, Oman, Turkey, UAE, etc.
In other cases Russian airlines can use domestic and Chinese aircraft to replace in the future the existing fleet and they can also buy second hand Airbus and Boeing.
Abstaining from any comment after reading responses - The posts have alarmed me
SO good to see here that Russian Bots and TRUMP TRAITOR supporters are quickly pounced on. TRAITOR TRUMP SUPPORTERS, your time is finished! YOU BETRAYED YOUR country by supporting a traitor who betrayed our country and bowing to PUTIN like a dog. Never forget what he did in Helsinki.
I am sure Putin was inspired by Biden’s theft of $7 billion from the Afghan government. “Rules-based order” indeed!
Im surprise of the hate and anti-Russian sentiment in this post.
I cannot believe this is the same people that travel business and first class and lack the proper language and educated manners.
We need more diplomacy and understand the position of each part.
Most of the leasing contracts are with AerCap from Dublin with 152 aircraft close to $2.4 billion. We must remember that its the lessors who are terminating the...
Im surprise of the hate and anti-Russian sentiment in this post.
I cannot believe this is the same people that travel business and first class and lack the proper language and educated manners.
We need more diplomacy and understand the position of each part.
Most of the leasing contracts are with AerCap from Dublin with 152 aircraft close to $2.4 billion. We must remember that its the lessors who are terminating the contract before its due, not the Russian airlines, so this can be a very long legal battle and usually under normal conditions.
The russian airlines can continue pay in rubles even if its far from ideal, but its money at the end of the day, the complication here are the sanctions and the frozen of close to $300 billion of Russian assets and foreign reserves by US, Germany & UK.
So this action prevents the affected parts involved to solve the problem.
Conclusion: Make a negotiation for the sake of your business.
Im pretty sure that the leasing contracts with the UAE will be pay and will be honor.
Remember, Sanctions have no basis in international law, they are disruptive and they undermine international rules and harm all nations and people.
I am puzzled by your statement that sanctions are disruptive when I compare it to the 'disruption' the country in question has committed in an independent nation. Are you suggesting I should be sympathetic to the 'plight' of these airlines?
Well once the wars over, keep the ban in place unless they pay 3-5 times what's owed on each and every aircraft they got, do not sell them parts , let them rot, the insurance companies will be going nuts but hey ho thats what insurance is for.
Looks like “no trumptrads traitors “ and other libs simply can’t get over the fact that Trump WAS the president and Biden is NOW the president. You can deflect blame all u want but we all know who is the White House. I certainly do and am reminded about it every time I pay $5.00 gallon for gas, read about another illegal who just arrived and who has already committed a crime, shop at the grocery store where half of the shelves are bare and …… so on.
Must be nice being so incredibly ignorant of how things actually work. Typical MAGA mouth breather.
@Andrew, hey Russian bot Andrew! Go back to Putin and polish his boots, because that is all he will have left. Tell Putin that his minion is not there, and real Americans are willing to pay whatever for their gas because they love their country and democracy, and the Traitor Trump is gone! And the Russian economy is finished.
What is also of concern is how the leasing companies are going to survive not to mention the loss of jobs/redundancies in those companies. Putins actions are grand theft on a huge scale
Sort of no different than US Corporations filing bankruptcy here, reneging on leases and debt to reorganize and “steal” from investors and creditors. No?
A legal form of theft allowing others to reorganize instead of liquidating and sticking it to creditors pennies on the dollar.
Well lesson learned, the question is what will Russia do in 5-6 years when they need to replace aircraft. Good luck
Biden's weakness has made the world a dangerous place. For the first time Ill be voting Republican.
Russia troll no allowed to USA vote.
Sure they are. All they have to do is mail in a ballot. Many states won't even check the return address, let alone require an ID. Or just give to friends (Russian mobsters operating in the US?) and they can drop them in unattended ballot boxes.
you are far from alone
Weakness? How?
Please be specific.
Specifically isn’t it funny that Putin waited until Trump was out of office to invade. That in itself speaks volumes. Open your eyes and look around. Unfortunately Your 1 term POTUS has two more years left. God help us all.
Of course he waited until Trump was out of office, he didn't want to make his puppet look bad. He waited until he no longer had a puppet in the White House.
Also, quite watching Fox and OAN.
It’s bad for your brain. Makes you even stupider.
Hey remember when Trump downplayed NATO? And withheld Ukraine defense funding as a quid pro quo? Yeah actions have consequences.
Remember whose beloved son worked as a high-rank executive in Unkrain energy corp?
This is a lesson to be learned for aircraft leasing companies. From now on they should consider installing a device or software program in every leased aircraft that can be used to remotely lock a key operating feature of an aircraft, that makes it unusable.
Do we know that they have not?
Good luck trying to get parts when these aircraft break down.
Geez, now I'm just "guest" ;)
@ RetiredATLATC -- Seems that for the first comment you weren't logged in with your username? Still working on resolving the issue re: you showing as a "New Member," hope to have it resolved soon. Sorry about that...
the mark of a great site host!
Bad for the lessors, but Russian airlines likely faces bans everywhere, and even if things were to settle down, it will take a long time before these planes will be cleared to land at most airports outside of Russia as their airworthiness, certifications, etc...and likely revoked, invalid, or out of date, making them now a hazard.
Not sure the carriers, reading the tea leaves, will actually listen and register the planes in RU knowing they can never leave the country again.
They may not return the planes or pay leases but nationalizing them is a line once crossed, makes Russian carriers pariahs forever, end of their airline industry.
Not to mention violating the Chiago Convention of 1944 rules about registration and ignori g the Capetown treaty. Leasing companies will be very hesitantto place assets with Russian carriers for many many years!
After carefully reading, I can't see how this law is stealing?
If you mean operating a leased aircraft without consent, then regardless of registration or not, it already was stolen.
Just having a new registration on an already stolen plane doesn't make this new policy about stealing planes.
This law doesn't mean anything unless I'm missing some ICAO rule that Russia is trying to be compliant.
"After careful reading...."
When you start a sentence like that, I knew you were about to tell a really, really, really big whopper!
And you haven't been paying attention to the intricacies of the war either, have you? Give it a rest, Eskimoo. Give it a rest.
After carefully reading, I can't see what Burger King's signature sandwich have to do with Putin.
I appreciate that you being my loyal fan, but please don't forget to give credits to the blog owners too.
And if you don't mind, could you please explain the intricacies of the war that you are referring to and what does that have to do with a really really big burger?
Russian troll no understanding the engrish
Came here for some level headed discussion and sane comments!
Wasn’t disappointed in the least.
…….NOT!
This is a great comment.
OP provided some new insight.
...NOT!
Wayne and Garth from 1992 called. They went their joke back.
It'll make Putin 'feel' good for a while. But short/medium/long term this is a bad tactic for Russia. The leasing companies take a hit, but Russia loses all global commercial credibility (well except with those economic powerhouses Eritrea, Belarus and Syria). What sane publicly-listed company would risk exposure to such a volatile client state? Even China would blanch at such a move unless under the most extreme pressure (i.e. if it was militarily or economically...
It'll make Putin 'feel' good for a while. But short/medium/long term this is a bad tactic for Russia. The leasing companies take a hit, but Russia loses all global commercial credibility (well except with those economic powerhouses Eritrea, Belarus and Syria). What sane publicly-listed company would risk exposure to such a volatile client state? Even China would blanch at such a move unless under the most extreme pressure (i.e. if it was militarily or economically attacked first). Investors hate risk. Russia is extremely high risk now. You draw your own conclusions.
@John
I’m buying Chinese stocks . Do the opposite of what everyone else is doing. Besides it’s all risk capital. Let’s reshuffle the cards 15-20 yrs from now and see where the world economy is at.
Imagine if the orange traitor Trump had been in power. Putin would have invaded the whole Europe, with impunity. He withdraw troops from Germany and undermined the NATO. He was doing Putin's bidding the whole time, and Putin thought that the NATO was weak, and he invaded. Now the orange traitor is plotting to turn the US into a totalitarianism.
@no trump traitors
Actually the world would be at peace instead of on the verge of WW3 if President Trump was still around. Zalinskyy is only 44 yrs old. When he visited the White House 3 years ago President Trump told him that he and President Putin should try and talk to each other and work things out. Cry baby zalinskyy with his hands out like a puppy dog with the pipe dream of...
@no trump traitors
Actually the world would be at peace instead of on the verge of WW3 if President Trump was still around. Zalinskyy is only 44 yrs old. When he visited the White House 3 years ago President Trump told him that he and President Putin should try and talk to each other and work things out. Cry baby zalinskyy with his hands out like a puppy dog with the pipe dream of ever joining the EU . Why would they ever take on the burden of a poor country ? Well he didn’t listen. What really scares me is that Kamala Harris is one breath away from being the President.
Trump made peace deals left and right in the Middle East and even pacified the Korean Peninsula.
NATO has been useless since WW2 and still useless. Those random Central European nations all owe the US money . President Trump had every right to try and end NATO.
D3kingg, This is Russian Bot. He is parroting Kremlin's Nazi talking points. Go work for Putin you traitor.
@Jon
A fox reporter was killed today in Kyiv. Where does CNN cover the war ? Rockefeller center ?
Trump should have pressured Putin to negotiate with Ukraine not the other way around. It was within his power.
Also , what about the retired old Jewish couple who worked in factories their entire lives and live in middle of nowhere Siberia? Their savings should only be worth half now and they should starve to...
@Jon
A fox reporter was killed today in Kyiv. Where does CNN cover the war ? Rockefeller center ?
Trump should have pressured Putin to negotiate with Ukraine not the other way around. It was within his power.
Also , what about the retired old Jewish couple who worked in factories their entire lives and live in middle of nowhere Siberia? Their savings should only be worth half now and they should starve to death ? They have nothing to do with Putin.
Don’t worry we are only weeks into a war that will escalate and last for years. Zero chance US does not get pulled into the war.
Typical mouth breathing Republican talking points. Keep slurping Tucker C.
@D3kingg, Go back to your Russian basement or whatever is left of it, and hide. Your economy is ruined, and Trump will never be back to bail out your criminal regime.
Lol I am no Trump fan but y'all Trump haters are more crazy than the Trump lovers. It's been 2 years since the election. Move on.
Well it is true. But so is stealing 650B from Russia as well. Tit for tat...
$650 billion is just a down payment on what it will cost to rebuild Ukraine after he destroys it. The world owes Putin nothing.
@Minos
The World (with the exception of about five or so dodgy countries with even more dodgier governments) did not 'steal' 650B from Russia. It was an 'economic special operation'. Oh, and the amount is not 650B. It was 'only' about half that...the balance was in Russia. I hope Ukraine gets most of it.
Frozen is very different from irrevocably seized.
I'm going to guess that you watch Fox news?
Sanctions are temporary freeze on assets, nationalization is forced change of ownership. So it is not tit for tat. Tit for tat would be if be if the West nationalize the currently sanctioned 650B from Russia in response to nationalization of foreign aircrafts, and foreign businesses in Russia. This is would so bad for Russia since no business would go back or invest for decades to come. Plus, in a tit for tat, the west...
Sanctions are temporary freeze on assets, nationalization is forced change of ownership. So it is not tit for tat. Tit for tat would be if be if the West nationalize the currently sanctioned 650B from Russia in response to nationalization of foreign aircrafts, and foreign businesses in Russia. This is would so bad for Russia since no business would go back or invest for decades to come. Plus, in a tit for tat, the west could use the sanctioned Russian assets to refund losses for businesses that has their assets nationalized in Russia.
It was the U.S. and Europe that did that by introducing illegal sanctions. The U.S. and Europe have seized assets of both the Russian government and of private citizens who are not part of the Russian government. I don’t blame Russia for doing the same thing by seizing these planes to pay for the harm done by the sanctions. Ukraine is controlled by a globalist comedian who is a puppet for western globalists. Speech is...
It was the U.S. and Europe that did that by introducing illegal sanctions. The U.S. and Europe have seized assets of both the Russian government and of private citizens who are not part of the Russian government. I don’t blame Russia for doing the same thing by seizing these planes to pay for the harm done by the sanctions. Ukraine is controlled by a globalist comedian who is a puppet for western globalists. Speech is a crime in Europe. Bakers are bankrupted for not baking a cake in the U.S. The Canadian PM assumed dictatorial powers and seized bank accounts of people who donated $25 to those protesting government tyranny. Russia might not be the good guy but the U.S. and European governments are the bad guys.
Imagine defending someone who bombs hospitals and has people poisoned with whataboutism.
found the putin troll
"western globalists" lmao
Yeah and I am sure if given the choice, you would choose to live in Russia and not the US or Canada.
Russian troll farm
If Russia (and you) aren’t into globalization, there’s always the option to go back to the isolated fully authoritarian times. Have at it! Actually, it seems that’s what’s happening already.
How's the weather in St Petersburg, "Amy?"
This is a joke, right? I mean, I can understand the "sins" of the west. But parroting Putin propaganda?
How does Pooty the Killer think this is going to work out, long-term?
If they fly these planes to ANY Western country, they'll be impounded immediately. If they keep them domestically (which is a longshot), most will rot from lack of use. Also, the global supply chain for both Airbus and Boeing planes has been shut off for Russia. Where's he gonna get spare parts? It'll be the Ayatollah's Iran all over again.
Even the Ayatollah opposes him, must be tough for little Pooty to look in the mirror when even anti-US religious zealots won't get in your corner.
What, how dare vlad seize assets of other nations. Doesnt he know that's our thing?
Did we really think that we could impose sanctions, confiscate money and assets, without any repercussion?
I hate that he invaded Ukraine and I regret our own hypocrisy is also shining through. This has happened before and will happen again because we cant get our collective heads from our collective asses.
Were you stamping your feet on the ground while writing this tantrum? Or did you wait until you were finished?
Ah yes, slinging insults is a very effective communication tool. You convinced me by showing me why and where I was wrong and for that I will be eternally grateful!
I dont think he was slinging insults. He was just asking if it was a tantrum?
Imagine defending a war criminal with whataboutism
@Endre
You mean when Wernher von Braun was granted US citizenship?
Or when he took us to the moon? (and all the ICBM nukes as by products)
Or when his 'POW labors' built V2 rockets (allegedly kill more labor than targets)?
LOL, so what about war criminals?
So when will you be leaving the Western world and moving to Russia?
Putin/Russia is doing the something with the yachts owned by his inter circle there was an post today about S A being " D Listed"
Not realizing that he's already in a deep hole, Putin continues digging, all but ensuring that he won't be able to get out once he gets his ultimately Pyrrhic victory...
Russia has decoupled itself from the west for decades at least. China is trying to figure out how to invade Taiwan and not face the same fate.
All because a couple people can't tolerate others thinking and acting as they want.
Aviation, as always, is a microcosm of the world. The world at its worst is separated and aviation will play that role just as faithfully as it plays its role of bringing the best of the world together.
Puzzling move.
It accomplishes nothing in practice.
And almost no one will even know about it.
With Airbus and Boeing unable to provide parts I wonder if China will procure parts on Russia’s behalf.
How long before aircraft need to be cannibalised for spares to keep an ever dwindling fleet flying?
No big problem here! Foreign countries have already frozen hundreds of billions of dollars' worth of Russia's foreign current reserves as part of the sanctions against Russia. Just let Putin and his government know that we'll be happy to sell them to him (for a considerable profit) by deducting the value of these foreign aircraft from the amount of money frozen. Thus, whenever the money becomes available again Russia can have back what is remaining...
No big problem here! Foreign countries have already frozen hundreds of billions of dollars' worth of Russia's foreign current reserves as part of the sanctions against Russia. Just let Putin and his government know that we'll be happy to sell them to him (for a considerable profit) by deducting the value of these foreign aircraft from the amount of money frozen. Thus, whenever the money becomes available again Russia can have back what is remaining minus these deductions. (That can go for any western nations' business assets that they may try to nationalize--we can just gladly sell it to them too--all from their reserves!) Pleasure doing business with you, Vlad.
Exactly, about half of their nearly $650 billion in forex/gold is held internationally. Repay the companies whose assets were ¨nationalized¨ and use the rest to rebuild Ukraine.
Maybe rebuild Ukraine first?
Ukraine is keeping careful track of the value of things Russia has destroyed. They're expecting to rebuild using all that Russian money, and I say bravo. Ukraine should take it all, they're going to need it.
Russia will be the poorest country in the world after this plays out. Any Russian citizen with half a brain is heading for the exits, if they have not already left yet. Living in Russia is going to be just like living in North Korea.
My heart agrees with you.
My head remembers the result of the Treaty of Versailles inflicting heavy punitive damages.
So they'll just operate domestic flights for the foreseeable future. Maybe to Belarus as well.
Good thing Aeroflot has such a young fleet. Those planes are going to have to last a long time...
No surprise here. A mafia government, headed by the thug-in-chief. Hope to see more and more Russians recognizing that they have no future while this goon in remains in power.
https://www.bbc.com/news/world-europe-60744605
Ukraine will be the graveyard of the Russian army, and the beginning of the end of Putin's shameful reign of terror.
Slava Ukraini!
Putin has always been a THUG. I agree, we should just take Russia's foreign reserves and gold stored outside of Russia and just use it to reimburse Ukraine. We should be using Russia's money to compensate Ukraine for all the damage and destruction.
I don't feel sorry for any of the oil companies that will lose billions of dollars. Maybe they will learn a lesson not to get in bed with murderous THUGS.
...Putin has always been a THUG. I agree, we should just take Russia's foreign reserves and gold stored outside of Russia and just use it to reimburse Ukraine. We should be using Russia's money to compensate Ukraine for all the damage and destruction.
I don't feel sorry for any of the oil companies that will lose billions of dollars. Maybe they will learn a lesson not to get in bed with murderous THUGS.
After these actions, NO ONE should ever feel comfortable investing in any country that has a murderous dictator in charge of their country. Putin made a serious mistake. It's one thing to grow up in Russia without Western influences. But it's another to have the youth grow up basically living like the West. Give this several months or a year and you will see a very different reaction by the typical Russian.
I don’t think so. Sanctions on Russian billionaires won’t necessarily made them hate Putin. Yes their money were seized because they are Russian, but they also know they got those money because they are Russian. Clever people never speak loud, but Ukraine is sacrificed.
No, BRAVE people speak out. Russian apologists, and the useful idiot boot-lickers working for Putin say just keep quiet and count your winnings.
It's good versus evil, pick a side. We all can see which side you're on, Ivan, fascist scum.