Russia’s government has approved measures allowing wet-lease of aircraft, through an amendment to the country’s aviation regulations which will take effect from 1 September.
The amendment – one of a number of changes to the Air Code signed by president Vladimir Putin on 8 August – features in the section on aircraft chartering.
It refers to arrangements under which civil aircraft are provided by a lessor to a lessee for a fee, over a specified period, along with the service of crew members for transporting passengers, baggage, cargo and mail.
Wet-leasing in Russia has previously been prohibited but this restricts the fleet flexibility of carriers.
The Air Code amendment, published by the government, formalises wet-leasing arrangements along similar lines to those applied internationally.
It states that the lessor and lessee must have valid operator certificates, adding that the aircraft provided under wet-lease is not included in the lessee’s air operator’s certificate.
Lessors, it says, are obliged to ensure maintenance of airworthiness and compliance of the crew with federal aviation requirements, and retain all obligations to members of the cockpit and cabin crews.
“Crew members of a civil aircraft leased under an aircraft lease agreement with crew shall remain employees of the lessor during the lease term,” it states.
“Unless otherwise provided by the aircraft lease agreement with crew, the costs of paying for the services of the crew members, as well as the costs of their maintenance, shall be borne by the lessor.”
The amendment assigns liability for passengers and damage, and rights for compensation and insurance, while also pointing out that broader Russian sub-leasing laws on property do not apply to wet-leased aircraft.
Representatives of Aeroflot and S7 Airlines each expressed support for exploration of wet-leasing during a St Petersburg international legal forum in May last year.
Aeroflot legal department director Anna Khomyakova says the “turbulence and uncertainty” of the sector – with the effects of the pandemic and sanctions – was creating a need for “tools to improve business models”.
“Wet-leasing is one of such tools,” she said, adding that the concept was “widespread” in Europe and the USA, and could “support financial stability due to guaranteed cash-flow”.
She also stated that stability could provide time for airlines to adjust their business models.
S7 Group deputy general director for legal support Maxim Astafiev said the carrier’s shared Aeroflot’s view on wet-leasing, stating that such agreements are “in high demand”, and that it could redistribute and alleviate cost burdens, particularly for smaller airlines.
