At least 30 Russian airlines may go bankrupt as early as 2025. What is important to understand is that they provide more than a quarter (26%) of passenger transportation within the aggressor country.
Points of attention
- The rapid deterioration of the financial situation and the revocation of the operators' certificates threaten the existence of Russian air carriers.
- Only large airlines, such as Aeroflot, buy back their planes and have a chance of being saved from bankruptcy.
- Russian aircraft construction technologies have again come under a barrage of criticism.
The Russian aviation business faced large-scale problems
According to the data of Russian propagandists, the rapid deterioration of the financial situation and the revocation of the operators' certificates threaten the bankruptcy of air carriers.
The key challenges that airlines still cannot cope with are accumulated debts for leasing foreign aircraft.
As you know, when the aggressor country of the Russian Federation launched a full-scale invasion of Ukraine in February 2022, new powerful sanctions were introduced against Russia.
Against this background, airlines stopped recalculating leasing payments. The Russian government has allowed them to write off their debts next year, but these amounts will be subject to a 25% income tax. Such a financial burden may force them to close.
Who has a chance to save himself
According to Russian propagandists, only large airlines were able to buy leased planes with the funds of the National Welfare Fund.
First of all, we are talking about Aeroflot, Ural Airlines and S7 Airlines.
What is important to understand is that in the first quarter of this year alone, the number of purchased aircraft reached 165 out of 400.
Dissatisfaction of market participants is understandable, since written-off payables belong to "non-realized income", and "saved" money is recognized as profit, and it is taxed, the message says.
Against this background, one cannot fail to mention that the Russian Su-57 fighter jet recently became the object of criticism and ridicule during an air show in China due to poor assembly quality and technological deficiencies.
The very first participation of the Su-57 at the international air show Airshow China marked the final destruction of the myth that this aircraft at least somehow belongs to the fifth generation. And it also proved that all Russian aircraft construction technologies remained in the 20th century.
