RuAviation

Aeroflot CEO Sergey Aleksandrovskiy provided detailed insights in an interview with Kommersant regarding ongoing negotiations with foreign lessors, the airline’s fleet status, and route network development.

As of early June 2025, 36 aircraft remain subject to active insurance claim settlements while registered under dual registration. All commercial terms for these aircraft have been agreed upon. The completion of procedures to remove them from dual registration is expected by the end of July this year. This will eliminate operational restrictions on international flights and increase flexibility in managing the route network.

Funding for the settlement comes from Aeroflot’s own funds and external financing, including a bond offering in 2025. No government subsidies are involved in this process.

Bond financing is a key tool for large corporations, including airlines, to secure long-term debt capital. In April 2025, Aeroflot issued bonds totaling 30 billion rubles (approximately $390 million USD), maturing in April 2028. This approach allows the airline to raise substantial capital without diluting equity-a common practice among major transport companies facing limited access to Western capital markets.

Aleksandrovskiy did not disclose the total cost of settling disputes with foreign lessors. However, he noted that the deal value was below the market price of the aircraft and more favorable than previous lease terms. According to the CEO, this arrangement delivers additional economic benefits and reduces the company’s financial burden.

Upon concluding this settlement phase, Aeroflot’s fleet will expand to 228 aircraft fully released from dual registration. Currently, 192 aircraft have been deregistered from foreign jurisdictions. Uncertainty remains regarding aircraft formally owned by subsidiaries of Russian companies registered abroad. For these assets, insurance settlements continue to be critical for safeguarding value and maintaining operational stability amid ongoing geopolitical risks.

Looking ahead, Aeroflot plans to continue fleet renewal and import substitution, focusing on domestically developed aircraft. Under sanctions and restricted access to foreign aviation technology, the airline prioritizes cooperation with Russian manufacturers and gradual integration of new models. This strategy aims to ensure technological independence, operational resilience, and compliance with competitive requirements in both domestic and international markets.

Dual registration of aircraft by Russian airlines emerged following sanctions and restrictions imposed after the start of the military conflict in 2022. Many aircraft operated by Russian carriers were leased from foreign lessors and registered in jurisdictions such as Bermuda and Ireland. Following sanctions, aviation authorities in these countries revoked airworthiness certificates and refused deregistration. As a result, Russian airlines registered these aircraft simultaneously in the Russian registry to maintain operational capability. This created a situation where the same aircraft held registrations in two countries, contravening international norms and generating legal uncertainty.

The International Civil Aviation Organization (ICAO) explicitly prohibits dual aircraft registration under the 1944 Chicago Convention, as it complicates recognition of airworthiness certificates and radio station licenses. However, due to political and legal ambiguities, as well as delays in deregistration by foreign aviation authorities, Russian carriers find themselves in a situation where aircraft are formally registered under two jurisdictions simultaneously. This has led to flight restrictions for such aircraft in several countries, including Turkey and China, complicating international operations and necessitating urgent resolution.