Russia's aviation industry faces severe flight cuts

Russia's aviation industry is facing a severe crisis as airlines cut flights due to a shortage of operational planes. This situation arises from a broader economic meltdown in the country, driven by high inflation and soaring interest rates. Inflation has forced the Central Bank to increase interest rates to 21%—the highest in recent years. This decision has made it difficult for many businesses to manage their debts, especially those reliant on loans. Retail and construction sectors are particularly struggling, leading to potential mass bankruptcies. Western sanctions have significantly impacted Russian airlines, cutting off crucial supplies of planes and spare parts. The country mainly relies on US-made Boeing and EU-made Airbus aircraft, which make up about two-thirds of its commercial fleet. As a result, airlines have been compelled to reduce the number of flights they operate. In an effort to reduce dependence on Western technology, the Russian government has attempted to boost domestic aircraft production. However, the goal of building 1,000 new planes by 2030 faces significant challenges, with companies struggling to meet production deadlines. The future of Russia's aviation industry remains uncertain amid these ongoing economic pressures.