Ukraine invasion: foreign aircraft lessors to Russia's airlines confront sanctions dilemma

Western sanctions against Russia in opposition to the invasion of Ukraine are having a significant impact on aviation. Russian airlines are facing important and growing restrictions on their ability to operate, not only in international markets but also domestically.

All three leading GDS companies – Sabre, Amadeus and Travelport – are suspending Aeroflot from their distribution systems. Moreover, Russia's two leading airlines – Aeroflot and S7 – are suspending international flights in light of the possible impounding of leased aircraft by Western lessors, who are required to terminate lease contracts.

Foreign lessors – led by AerCap – account for more than two fifths of all Russian operated aircraft. These lessors may face significant logistical challenges to repatriate their aircraft, with the risk that Russian airlines cease payments. Maintenance of Western aircraft will be an increasing challenge for Russian airlines as OEMs suspend the supply of parts and services.

According to the CAPA Fleet Database, Russian manufacturers account for 35% of the Russian fleet.