**Russian Airlines on Brink of Collapse**
Around 30 Russian airlines could go bankrupt in 2025, according to a report by Russia’s Izvestia newspaper. This is because most Russian airlines have been hit with Western sanctions since the full-scale invasion began.
Many airlines stopped paying their lease fees for foreign aircraft in 2022. Now, they fear that their financial condition will worsen and their operating certificates will be revoked due to unpaid debts. The government allowed companies to write off these debts in 2025, but this came with a 25% income tax.
**High Lease Fees Make It Hard for Airlines**
Most Russian airlines registered their fleets in European countries like Bermuda or Ireland. This means they have to pay high monthly fees for aircraft, up to $80-150,000 per month for a used Airbus A320.
Only major airlines like Aeroflot and S7 were able to buy back some of their leased planes using government funds. However, this caused dissatisfaction among other airlines because the written-off debts are counted as “non-operating income”, while the saved money is taxed as profit.
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