Russia to revise subsidies for aircraft leasing programs

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The Russian Ministry of Industry and Trade has proposed revising the terms of subsidies for aircraft leasing, noting that the current scheme yields little profit for the aviation sector. Minister Anton Alikhanov outlined the idea, according to Interfax. The move appears to be part of a broader effort to strengthen domestic aircraft production, leasing viability, and employment in a challenging economic climate shaped by sanctions and currency fluctuations. Officials stress that the objective is to make subsidies more effective and better aligned with the sector’s real costs and long term prospects.

Alikhanov explained that the ministry would not abandon existing programs and would keep them in the next budget cycle, while the specifics of supporting lease payments for future aircraft purchases remain under discussion. The government aims to preserve continuity for current operators and suppliers while exploring new mechanisms that could make future leases more sustainable and predictable in a volatile market environment. The clarity on future support will unfold as ongoing budget planning proceeds.

He added that rental-rate subsidies should be reviewed to better reflect market realities and budget constraints. The idea, he emphasized, is to ensure that subsidy structures promote profitability without creating distortions or excessive fiscal exposure. Market dynamics such as currency risk, import costs, and international sanctions must be weighed as policies are adjusted to keep the sector competitive and resilient.

He explained that profitable centers cannot be built on the basis of banks, airlines, and suppliers alone. The aviation industry continues to face losses, necessitating a steady stream of resources to bridge price gaps and support critical activities like maintenance, training, and parts supply. A combination of state support, risk-sharing arrangements, and targeted incentives may be required to stabilize operations and sustain jobs in a volatile environment.

Regarding existing lease contracts, Alikhanov said renegotiating terms would be challenging but achievable with careful coordination among lenders, lessees, and suppliers. Any changes would likely involve adjustments to rates, payment timelines, and possibly the structure of obligations to ensure that the overall viability of lease portfolios is not jeopardized during a difficult period for the industry.

He acknowledged the sensitivities surrounding the issue. Vitaly Savelyev, the Deputy Prime Minister for Transport, and Roman Starovoyt, the head of the Ministry of Transport, may voice objections, yet the ministry is prepared to defend its position and present a coherent case grounded in economic realities and strategic needs. The dialogue among senior officials reflects the high stakes involved in steering a sector pivotal to connectivity and national trade.

In August, Miroslav Boychuk, president of the Russian Flight Crew Union, warned that Russia could face a shortage of civil aviation pilots within two to three years as professionals leave the country in search of better pay and opportunities. The warning underscores deeper strains in the aviation workforce and raises questions about how policy choices, including subsidies and wage support, can help retain qualified personnel, sustain flight safety training, and maintain service levels across regions.

Aviation experts have discussed how sanctions have reshaped Russian civil aviation, touching on fleet renewal, maintenance regimes, and international service networks. Disruptions in supplier chains, limited access to certain airframes and parts, and the need to diversify sourcing have forced operators to adapt, question traditional models, and seek domestic alternatives where possible. The evolving policy landscape adds urgency to decisions on subsidies, financing, and workforce planning, as stakeholders weigh short-term relief against long-term strategic goals.

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