Russian Bizav on Verge of Collapse as Sanctions Bite

 - April 7, 2022, 11:06 AM

The Russian business aviation industry is faced with its deepest crisis yet as sanctions imposed on Russia over the Ukraine war have already led to the almost complete collapse of the sector and bankruptcies of major operators. According to industry analysts, the segment has declined by almost 90 percent since early March, with most remaining activity being domestic-only flights due to bans on Russia-owned/operated aircraft in much of the world.

Russians are increasingly finding it difficult, if not impossible, to charter a business jet, as European brokers and operators are cautious to cooperate with their Russian peers or passengers. These restrictions affect all Russian citizens, not just sanctioned oligarchs.

Industry analysts expect the Russian business aviation market to be mainly within the boundaries of the country, especially on routes from Moscow/St. Petersburg to the Black sea coast. They anticipate limited international business aircraft flights on routes from Russia to Turkey, UAE, Serbia, and a handful of other Russia-friendly countries.

In the meantime, Russian business jet owners not included on Western sanction lists are considering re-registering their aircraft in Asia or a few countries in Europe and the Middle East that have not yet joined the EU and the U.S. sanctions against Russia.