Russian official deepens $10b puzzle over leased aircraft

Bloomberg

Off-the-cuff remarks made by a Russian air-safety official, quickly disavowed by the nation’s industry watchdog, have added to the uncertainty over the fate of some $10 billion in foreign-owned aircraft being held in the country.
Valery Kudinov, who heads airworthiness maintenance at Russia’s Federal Air Transport Agency, outlined what appeared to be a plan taking shape for the country’s aviation sector to continue flying after the country was sanctioned over its invasion of Ukraine.
News outlets including Tass and Interfax reported the comments, which suggest that Russia’s airlines will keep a portion of the planes to use and return others. The Air Transport Agency said Kudinov’s statements, made at a trade conference in Moscow, “do not correspond to reality.” The agency said he isn’t authorized to speak officially on its behalf.
Even with the denial, the remarks aren’t easily dismissed, given Kudinov’s relatively high rank and details that dovetail with a separate report on a new law addressing foreign-owned planes now in limbo.
“Part of the fleet will be given back,” Kudinov told, according to Tass. He said airlines will decide themselves which jets to return, the outlet reported.
Some planes are being re-registered in the country, according to a separate Tass report citing the official, who said spare parts that can’t be acquired from Airbus and Boeing will be sought out in countries like India and Turkey.
Kudinov isn’t responsible for civil aircraft registration and doesn’t have reliable information, the Air Transport Agency said in a statement. His comments on relationships between Russian airlines and lessors don’t reflect reality, it said.
Kommersant reported separately on a draft rule that roughly corresponds with Kudinov’s statements. It would allow the government to seize some foreign-owned planes and require state approval for airlines to return any aircraft or engines to foreign lessors, the outlet said, citing a draft document. If the return is rejected, Russian airlines will be allowed to continue paying owners for jetliner rentals in rubles, it said.
Such an approach would allow state-owned Aeroflot PJSC and other carriers such as domestic leader S7 Airlines to keep flying Airbus and Boeing aircraft.