The drawdown of the omicron coronavirus variant was supposed to usher in a return to profitability for airlines in 2022, but the recent surge in global jet fuel prices following the Russian invasion of Ukraine has dashed those hopes for the time being.
Singapore-based lessor BOC Aviation is uncertain of the fate of its 18 aircraft in Russia following the global clampdown on Russian commercial and business aviation-related activities.
By Joe Anselmo, Jens Flottau, Daniel Williams, Ron Epstein
Bank of America’s Ron Epstein joins our experts to assess the industry’s reliance on Russian metals and whether lessors could lose hundreds of aircraft.
Russia has not been able to establish air superiority in Ukraine despite a greater number of aircraft and a broad array of air-defense systems, and a senior U.S. Air Force leader said this struggle shows Russian forces are not operating in accordance with their own doctrine.
The number of Western aerospace companies cutting off support for Russian and Belarusian customers continues to increase, with conglomerate Raytheon, training specialist CAE and Honeywell joining a list that includes major airframe and engine manufacturers.
Alaska Airlines lowered its capacity outlook for the first half of 2022, a warning that rising jet fuel prices may complicate the airline industry’s recovery from the COVID-19 pandemic.
As the world emerges slowly from the grips of a global pandemic, the challenges facing the aviation sector have shifted dramatically and quickly following Russia’s invasion of Ukraine
Russian surface-to-air missile systems now have almost all of Ukraine’s airspace covered, though Russia still has not established full air superiority over the country, a senior U.S. defense official said March 8.
Bombardier has suspended all activities with Russian clients, including all forms of technical assistance as the war in Ukraine continues, according to the Montreal-based OEM.
Boeing is no longer purchasing titanium from Russia, a move that will speed up the company’s push to diversify its supply of the raw material and could affect its partnership with major supplier VSMPO-AVISMA.
The closure of Russian airspace stemming from that country’s invasion of Ukraine is forcing international operators to divert from traditional routes between the U.S. to India and the Asia-Pacific region, adding hours to their flight time, says a corporate flight department chief pilot.
Russian carrier Aeroflot is suspending all international flights starting March 8, while Eastern European ULCC Wizz Air has confirmed that four of its aircraft remain stranded in Ukraine.
Federal air transport agency Rosaviatsiya has recommended that local carriers with aircraft leased from foreign lessors and registered abroad suspend all international passenger and cargo services.
Russia’s invasion of Ukraine can significantly alter mergers and acquisitions (M&A) in Western aerospace and defense (A&D), several seasoned experts said recently at separate events, including Aviation Week’s Raw Materials and Commercial Aviation Supplier conferences.
Lessors with Western-built aircraft in the hands of Russian operators face few good options on how to manage their exposed assets—from challenging repossession logistics to uncertainty over whether operators can make payments or secure aftermarket support.