Russian leasing firm Aviacapital Service (AKS) is suing Airbus for $5.1 million in advance payments for future aircraft deliveries. Airbus has already paid back almost $200 million in advance payments to AKS customer Aeroflot, but AKS has said it will not drop the lawsuit.
The lawsuit is related to four undelivered A350s that were ordered by Aeroflot in 2007. The sanctions imposed on Russia after the invasion of Ukraine have made it difficult for Aeroflot to maintain the Western-made aircraft, and the carrier has even resorted to sending its planes to Iran for maintenance. As part of a wider plan to buy out the aircraft from lessors, Aeroflot is planning to reduce the number of dual-registered foreign aircraft in its fleet. The carrier reportedly has over 160 aircraft with dual registrations, the majority of which are under the Bermuda Civil Aviation Authority (BCAA).
If Aeroflot can reduce the number of dual-registered planes in its fleet, it would open up more international flight opportunities for the carrier. According to reports, airlines in Russia have re-registered over 360 aircraft since last year. The practice of re-registering aircraft in Russia is in clear violation of international aviation standards, but it has allowed carriers to continue operating them.
The lawsuit between AKS and Airbus is still ongoing, and it is unclear how it will be resolved. However, the case highlights the challenges that Russian airlines are facing as a result of the sanctions imposed by the West.