Russia asks Vietnam to lease passenger jets with crew and maintenance

Russia has asked Vietnam to lease passenger jets complete with crews and maintenance as nearly a fifth of its largest airlines’ planes sit grounded. Transport Minister Andrei Nikitin stated that Moscow proposed that Vietnamese carriers transfer aircraft to Russian airlines under wet lease arrangements covering jets, crew, maintenance, and insurance. Hanoi is currently studying the proposal.

Western Sanctions Risk Deter Aircraft Transfers to Russia

Vietnam’s main carrier exclusively operates Airbus and Boeing aircraft. Any transfer to Russia involves Western-built planes, creating the same secondary sanctions risk that led Ethiopia to decline a similar proposal. Companies could face United States penalties for facilitating the operation of sanctioned aircraft types on behalf of a Russian carrier. Previous approaches to other countries in Asia, Africa, and the Middle East have produced no results.

The Deterioration of the Seized Fleet

Following the full-scale invasion of Ukraine in February 2022 and the subsequent imposition of sanctions, Moscow enacted legislation permitting airlines to domestically re-register upwards of 400 foreign-leased Western aircraft instead of sending them back to their rightful owners. Lessors have filed insurance claims totaling around $8 billion, equivalent to approximately €7.1 billion, to recover their losses. Before the invasion, roughly 850 of Russia’s 900 commercial aircraft were Boeing or Airbus planes, with about 85% leased from foreign companies. With Western spare parts and technical services sanctioned, airlines have cannibalized the seized fleet for components.

Under international airworthiness standards, every component must have a certified and traceable maintenance history. Components harvested from planes cut off from Western-certified maintenance networks are barred from lawful use on aircraft flown internationally. Russia’s aviation regulator, Rosaviatsia, has issued its own certificates for such parts, which are not recognized by European Union or US aviation authorities.

Russian Airlines Face Aircraft Shortages and Fuel Rationing

Out of 673 aircraft operated by Russia’s 11 largest airlines, 130 planes, or nearly one-fifth, are not in service, according to Russian industry data. The normal downtime rate is around 10%. Airlines outside the Aeroflot group face worse conditions, with 93 of their 322 planes idle, representing close to a third of their fleet. Fuel supply compounds these operational challenges. Restrictions on refuelling have been introduced at at least 26 major airports, according to the outlet Verstka. Airports in St Petersburg, Kaliningrad, Yekaterinburg, Kazan, Ufa, Irkutsk, and Vladivostok ration fuel to the volume needed for a single flight. Restrictions are most severe in southern Russia, where Sochi, Volgograd, and Astrakhan have applied limits to all carriers following Ukrainian drone strikes on oil refineries that reduced fuel production.

Russia Considers Passenger Levies to Fund Domestic Jets

Russian media reports indicate that the transport ministry, the industry ministry, and the state-run defense conglomerate Rostec are deliberating over a new passenger fee intended to finance the acquisition and operation of locally built aircraft. The charge is estimated at up to 500 roubles, roughly €5.22, per domestic ticket, and up to 1,000 roubles, roughly €10.44, for international flights. Because Russia’s locally built MC-21 and Tu-214 jets incur much higher operating costs than the Boeing and Airbus models they are meant to supplant, airlines need government or passenger financial support to make them economically feasible. Analysts warn that higher fares could reduce passenger numbers and cut airline revenues.