Last Updated:October 30, 2024, 13:36 IST
Western sanctions on Russia have halted the delivery of planes to Moscow, making it difficult to meet its air travel demand. Indian airlines have shown reservations over Russia’s proposal and informed the government that it would be unviable for them to operate in Russia
In order to overcome the potential loss of foreign planes, Russia has launched a programme to make aircraft domestically to substitute its imports. (Getty Images)
Turbulence due to the Ukraine war and sanctions from the US and Europe have hit Russia’s aviation industry, with Moscow facing shortage of planes to meet its air travel demand. Reports suggest that Russia has asked “friendly” countries, including India, to allow their airlines to operate on Russia’s domestic routes.
The sanctions have cut off Russia’s access to US and European aircraft manufacturers and component supplies. Thus, Moscow has requested India, China as well as some Central Asian countries to allow their airlines to operate on Russian skies.
Russia had discussed the ‘cabotage’ proposal with China, India and some other countries a month ago, according to a report by The Economic Times. The matter was again raised when Prime Minister Narendra Modi visited Russia for the BRICS Summit in Kazan last week.
What Are The Indian Airlines Saying?
‘Cabotage’ is the right for an airline to carry domestic passengers within the territory of a foreign country. Only Australia and New Zealand currently allow cabotage facilities to each other.
The ET report suggest that Indian airlines have shown reservations over the proposal and informed the government that it would be unviable for them to operate in Russia.
The airline companies have told the government about facing a shortage of planes within India, which is affecting their expansion plans.
“Most of the fleet of Indian carriers are leased and lessors will not give permission for their planes to go to Russia. Along with that we risk losing insurance covers,” a senior airline executive told The Economic Times. “There is a tremendous aircraft shortage and we are not being able to cater to our planned expansion. In such a situation, it looks unlikely that such a project will be undertaken.”
The Ministry of Civil Aviation and the Russian Embassy in New Delhi have not yet responded on the matter.
What About Other Countries?
Russia’s transport minister Roman Starovoit said last week Russia was in talks with so-called “friendly” countries, including Kazakhstan, about foreign airlines operating domestic flights, Russian news agencies reported.
Russia has also approached Uzbekistan, which is considering the proposal, an Uzbek government source told Reuters.
“To date, there has been no official request from the Russian side on the issue,” Kazakhstan’s transport ministry said. Tajik and Krygyz authorities also said they had not received any official requests.
As per Reuters, Kazakhstan’s transport ministry said it was focused on fulfilling the surge in domestic demand for air travel.
Some say Central Asian airlines are not likely to take the risk and indulge Russia. Speaking to Reuters, Artem Zhavoronkov, a partner at Russian law firm Nordic Star, said, “This is a serious risk and hardly any large companies from neighbouring countries will be prepared to accept it.”
How Sanctions Have Impacted Russia’s Air Travel?
Russian airlines saw passenger numbers drop 14.7% to 94.7 million in 2022 as the Western sanctions hit and much of Europe closed its airspace to them.
After a 11.3% rebound in 2023, passenger numbers are on track to jump again this year, according to data from Rosaviatsia, Russia’s civil aviation watchdog.
Moscow plans to supply Russian airlines with up to 1,000 domestically-made aircraft by 2030, but production launches are being constantly postponed.
Sergei Chemezov, head of state conglomerate Rostec, on Wednesday told parliament that mass production of the MS-21 aircraft and the Superjet New would start in 2025 and 2026, respectively.
Before the Ukraine war in February 2022, Boeing and Airbus planes accounted for a major share of the fleet of Russian airlines.
However, the sanctions have halted the supply of planes. Tata Group-owned Air India got early delivery of six Airbus A350s which were originally intended for Russian carrier Aeroflot, as per The Economic Times.
Also, the Western companies have stopped the supply of components and regular software upgrades, which have led to Russian planes facing long grounding.
According to data from aviation consultancy CAPA, the domestic seats offered by Russian carriers currently are at or just above the 2019 levels. The Moscow Times reported that before the Ukraine war, Russian airlines had a fleet of 850 planes. This figure dropped to 736 by the start of 2023. It forecasts that due to Western sanctions, the fleet could be halved by 2026.
In order to overcome the potential loss of foreign planes, Moscow has launched a programme to make aircraft domestically to substitute its imports.
“The Russian government’s forecast of passenger traffic for the country’s airlines in 2027 is a sign of a muted future for a once dynamic market. Looking ahead to 2027, it forecasts that Russian airlines will carry 98.8 million passengers — barely changed from 2024’s figure,” CAPA said.