Russian aviation on brink as Bermuda revokes 745 plane licenses, half of country’s fleet
In a major blow for Russian aviation Bermuda is preparing to revoke the licenses of 745 planes, a move which could ground half the country’s entire fleet.
In a statement Bermuda’s civil aviation authority said that it could no longer regulate Russian planes following the imposition of international sanctions on the country’s aviation sector. The suspension of accreditation for Russian planes in Bermuda will impact the majority of aircraft flying for Russian airlines which are registered in the territory for tax purposes.
“International sanctions on the aviation sector have had a significant impact on the ability to sustain safety oversight on Russian operated aircraft on the Bermuda Aircraft Registry,” Bermuda’s civil aviation authority said in a statement.
“The airworthiness system has been restricted to the point that the Bermuda Civil Aviation Authority (BCAA) is unable to confidently approve these aircraft as being airworthy,” that statement added.
The US and UK are among countries which have imposed bans on Russian planes entering national airspace since the invasion of Ukraine began, isolating Russia’s aviation industry.
The decision to revoke licenses for planes registered in Bermuda could accelerate the pace with which leasing companies and insurance agencies across the world are cutting ties with Russian companies.
Foreign leasing agents have rented over 500 aircraft to Russian operators according to consultant IBA. However, foreign leasing firms have succeeding in repossessing only a fraction of the total.
AerCap, a Dublin-based leasing firm, has rented 142 plans to Russian airlines and has contracts in the country worth an estimated $2.5bn. Rival company SMBC Aviation Cancel, which supplies 35 aircraft to Russian companies, has terminated its leasing agreements with firms in the country.