Russia Advises Airlines Against International Operations of GTLK-Owned Aircraft

Russia’s civil aviation regulator, Rosaviatsiya, has issued a recommendation to airlines, urging them to refrain from using aircraft leased from State Transport Leasing (GTLK) on their international routes. The advice is based on the risk of potential seizure of the aircraft due to ongoing bankruptcy proceedings against GTLK’s Irish subsidiaries.

The cautionary recommendation is not directly linked to international sanctions imposed on Russia but rather pertains to the bankruptcy proceedings, where the aircraft could be subject to seizure by creditors. The regulator’s advice is not binding on airlines, leaving them with the discretion to make their own decisions regarding the use of GTLK-owned aircraft on international routes.

GTLK’s European subsidiaries, GTLK Europe DAC and GTLK Europe Capital DAC, are currently undergoing liquidation. A court ruling in Ireland directed that the assets of these subsidiaries be held in a trust for non-Russian creditors and bondholders. The process is further complicated by the freeze on GTLK’s assets in the European Union.

According to data from the ch-aviation fleets ownership module, GTLK has consolidated its assets in Russia following the country’s invasion of Ukraine in February 2022. The lessor currently owns 114 aircraft, primarily placed with Russian carriers such as Yamal Airlines and Aeroflot. The limited number of aircraft leased to foreign customers are currently inactive due to sanctions, including an A220-300 leased to Air Manas, three B777-300(ER)s leased to Bluebird Nordic, an A319-100 leased to Royal Jordanian, and a B747-8F leased to Silk Way West Airlines.