At a stroke, 740 planes this weekend lost their badge of airworthiness. The Bermuda Civil Aviation Authority, no longer able to oversee safety on Russian-operated aircraft in the face of international sanctions, froze certification.
Passengers were apparently unfazed; more than 300 planes were tracked flying in the 36 hours or so following the suspension. Aircraft lessors, which have until the end of the month to unwind leases on Russian aircraft, will feel less cavalier. Foreign lessors lease out about 500 Russian aircraft, virtually all of which were registered in Bermuda. Industry leader AerCap leads the way with 146, according to industry consultancy CAPA. AerCap says Russian airlines account for 5 per cent of its fleet by net book value.
Last month’s EU sanctions made their position tenuous by shutting off airspace to Russian aircraft. Russia is thrashing out draft legislation that would mean making any future payments in roubles and, potentially, the effective expropriation of jets.