Economic Sanctions on Russia Put Business Aviation in a Tough Spot

Monday, February 28, 2022 at 05:52 PM ET

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As Canada announced sanctions against Russia on Thursday, Bombardier said it would cancel aircraft deals with Russia, as necessary. [File Photo: Shutterstock]

Key Takeaways:

New economic sanctions against Russia are putting the business aviation community in a difficult position, requiring companies to cease sales and leasing activities with Russian customers and entities.
Aviation companies like Bombardier are canceling aircraft deals, and AerCap, the world's largest leasing company, is halting agreements for over 150 planes with Russian airlines to comply with the sanctions.
Despite potential revenue losses, the current strong demand and backlog in business jet travel may allow manufacturers to re-assign affected aircraft; additionally, sanctions could lead to a boom in aftermarket sales as Russian owners are forced to sell their jets.
This situation mirrors past instances, such as the 2014 sanctions, which also led to canceled deals and grounded private jets for Russian clients due to restrictions on servicing and parts.

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The economic sanctions imposed last week on Russia by the U.S. and its allies can put some members of the business aviation community in a tough spot.

In its statement announcing the sanctions, the White House said they include “sweeping financial sanctions and stringent export controls that will have a profound impact on Russia’s economy, financial system, and access to cutting-edge technology.”