Airlines from Egypt and the Philippines have proposed to take over the problematic Airbus A320neo aircraft, leased by Russian carrier S7 Airlines, which are currently grounded in Russia due to the inability to maintain their American-made Pratt & Whitney (P&W) engines under Western sanctions. Montenegro-based MelonAero, acting as an intermediary, officially sent these proposals to the Russian Ministry of Transport and Prime Minister Mikhail Mishustin. The foreign airlines—AlMasria (Egypt) and SEAIR Int (Philippines)—have offered to operate these aircraft on routes between their own countries’ resorts and Russian cities, with requests for permission to export the aircraft from Russia.
Currently, S7 Airlines has 39 Airbus A320/321neo aircraft, but due to sanctions and parts shortages, only 11 remain operational. The rest have been decommissioned or put on reserve. The grounding largely stems from difficulties in servicing the American P&W engines under sanctions that restrict parts imports and maintenance abroad.
Airlines Currently Operating Egypt, Russia, and Philippines-Russia Routes
Egyptian airlines such as EgyptAir and Air Cairo operate flights connecting Egypt to Russia, flying routes between Cairo and Moscow airports, including Sheremetyevo (SVO), Domodedovo (DME), Vnukovo (VKO), and Pulkovo (LED) airports. Turkish Airlines also operates numerous flights between Egypt and Russia through Istanbul. Airlines well-serve these routes daily or multiple times per week, offering both direct and connecting service options.
No Philippine carrier currently operates direct scheduled flights to Russia, but airlines like SEAIR Int from the Philippines are interested in restarting passenger service on routes such as Manila to Russian cities Vladivostok, Krasnoyarsk, Irkutsk, and Novosibirsk using Airbus A321neo aircraft. Flights to Moscow are available through codeshare or partnerships with major international airlines such as Etihad Airways and others that connect via the Middle East or Europe.
Thus, Egyptian and Philippine airlines are strategically proposing to deploy these Airbus A320neo family aircraft not only on international routes connecting their own countries with Russia but also within their regional networks focused on tourism and resort destinations.
Legal and Operational Challenges Around Aircraft Ownership and TransferThe legality of transferring aircraft leased by S7 Airlines to foreign carriers is complex. Despite the sanctions regime that prohibits the servicing and transference of American and European aircraft and parts to Russia, some legal exceptions allow for aircraft ownership transfer and lease payments under agreements signed before the Ukraine conflict escalated in 2022. However, official Russian authorization to export these aircraft is required, which involves multiple security and government agencies, including the Federal Security Service (FSB), the Ministry of Industry and Trade, and the Ministry of Economic Development.Previous export requests have faced refusals based on national security concerns. Only four foreign aircraft have been allowed to be exported from Russia since 2022, including Boeing 737 MAX 8 aircraft and Boeing 747 freighters returned to lessors. This strict regulatory environment means that any transfer involving Airbus A320neo aircraft would require high-level government approval, which remains uncertain. Furthermore, insurance and leasing companies may face difficulties approving deals involving third-country operators due to sanctions and legal restrictions on serving Russian airlines.Impact on Russia’s Domestic Aircraft Industry and Disadvantage of Made-in-Russia PlanesRussian carriers like S7 intend to eventually replace grounded Western-made aircraft with the domestically produced MC-21 airliner, which uses Russian components and technology. The MC-21 serves as a strategic pivot to reduce dependency on Boeing and Airbus jets amid sanctions. However, the MC-21’s current limitation in production capacity and certification means it is not yet a full substitute in volume and range for the extensive fleets Russian airlines operated previously.The grounding of Western aircraft equipped with embargoed engines creates operational and financial challenges. While the MC-21 program fosters aviation sovereignty, the interim period places Russian airlines at a disadvantage due to a shortfall in operating aircraft suited for medium-haul and wide-body routes currently served by Boeing and Airbus jets. Russian-made aircraft often have higher operating costs and lower operational efficiency and luxury standards compared to Western counterparts, which affects airlines’ competitiveness on international routes.Legality of the Purchase
If the deal to transfer the Airbus A320neo aircraft leased by S7 Airlines to foreign carriers like Egypt’s AlMasria and the Philippines’ SEAIR Int proceeds, compensation to S7 and Russia would likely come through a combination of insurance settlements and lease termination agreements. Because the aircraft are leased and owned by foreign companies, S7 would have to follow legal and insurance steps to give up its lease rights for money, possibly with help from middlemen like MelonAero. These payments might be routed through escrow accounts or third parties to navigate sanctions-related restrictions, and the transfer would require approval from Russian regulatory authorities, including the Ministry of Transport and security agencies.
Direct sales are unlikely; instead, the deals could resemble asset repossessions or exchanges aimed at mitigating the cost of grounded aircraft. The process is complex and fragile due to sanctions, ownership rights, and regulatory scrutiny, along with the potential involvement of government funds to offset losses. Overall, payments to S7 and Russia would be structured through negotiated insurance and lease settlements under government oversight rather than straightforward purchases.
Will Boeing and Airbus Support These Aircraft?
Western manufacturers Boeing and Airbus have largely ceased direct support for aircraft operated in Russia, consistent with sanctions imposed by the EU, US, and allied countries. There is near consensus among Western aerospace companies and industry insiders that indirect or partial support for Russian operators would violate sanctions.
This sanction net ensnares Airbus aircraft equipped with American P&W engines, such as the A320neo family. Although some aircraft versions have engines from other manufacturers, servicing and parts supply chains are severely compromised. American sanctions forbid providing parts or technical support not only directly to Russian airlines but also prohibit indirect facilitation of servicing and lease agreements involving Russian entities.
While Russia retains a small, limited capacity to perform rudimentary repairs domestically or through illicit means, the formal involvement and support from Boeing and Airbus are highly unlikely. Some aviation industry experts suggest foreign carriers willing to take over these aircraft might privately handle technical maintenance and legal arrangements independently from the original manufacturers, accepting risks related to certification validity, warranty, and airworthiness. However, regulatory risks remain high, and aircraft operating outside approved support channels might face insurance and safety certification obstacles.
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