Russian aviation industry faces bankruptcies and plane shortages

Russia's aviation industry is facing a crisis as it struggles with a severe shortage of planes and the risk of several airlines going bankrupt. Sanctions imposed by Western countries have cut Russia off from essential aircraft and spare parts, leading to a significant reduction in flights. Former Ukrainian bank chief Kyrylo Shevchenko highlighted that Russian airlines are dramatically cutting routes due to the lack of available planes. Russia had promised to build 1,000 new planes by 2030 but has only completed five so far. Sergei Chemezov, head of the state-owned defense company Rostec, warned that many existing Western-made passenger planes will soon reach the end of their lifespan. He estimates that up to 30% of these planes could be grounded in the next five years due to the impact of sanctions. Reports indicate that more than 30 Russian airlines are projected to go bankrupt this year. Many are struggling with mounting debts that they cannot repay because of the sanctions. As a result, Russia's largest private airline has decided to cancel plans for a £65 million turbine engine factory in St. Petersburg. The broader Russian economy is also faltering, with high inflation fueling increases in food prices. In response, the Russian Central Bank raised interest rates to 21% to combat inflation, which is partly driven by extensive military spending. Additionally, state-owned gas giant Gazprom reported a significant loss of £9.9 billion in 2024, further illustrating the economic challenges facing the country.