Russia hides aviation crisis, runs out of planes and engines — Ukraine's intel
An-12 cargo plane at Novosibirsk Airport (photo: Getty Images)
Russia decided to merge several airlines into a single holding company, a move that could signal deepening problems in the country's civil aviation sector, according to Ukraine's Foreign Intelligence Service (SZRU).
The service reports that the state-owned conglomerate Rostec plans to combine passenger airline Red Wings, cargo carrier SkyGates, medical aviation, and leasing company Aviacapital-Service into a single holding company. The new entity is expected to be managed by Ilyushin Finance Co.
Officially, the reorganization is being presented as an effort to centralize management and create a unified aircraft maintenance system. However, the SZRU believes the real goal is to conceal the financial problems of individual assets by consolidating their financial reporting within a single holding company.
Why airlines faced crisis
The intelligence body notes that Red Wings is no longer able to fully operate its charter program. Of its three Boeing 777 aircraft, only one is currently used for scheduled flights, another serves as a backup, and the third is effectively out of service. The situation is further complicated by management conflicts and the loss of skilled personnel.
The SZRU says cargo airline SkyGates encounters similar challenges. The carrier is struggling with shortages of engines and spare parts, lengthy repair times, and an aging fleet that is becoming increasingly difficult to maintain.
Why reform won't solve problems
The service stressed that creating a new holding company will not resolve any of these issues. According to the SZRU, reorganization will merely allow companies to redistribute financial resources, personnel, and components among themselves, without increasing the number of aircraft, engines, or qualified workers.
"No reorganization plan will restore the supply of Western components to Russia, accelerate the mass production of domestic aircraft, or halt the brain drain of personnel exhausted by years of stopgap measures," the SZRU says.
The agency believes Russia's aviation problems stem from technological isolation, an aging fleet, and a chronic shortage of skilled workers.
Recently, a growing number of analysts have pointed to the worsening state of Russia's economy.
Earlier, the Institute for the Study of War (ISW) reported that the Moscow Exchange had suffered its biggest decline in nearly four years, shares of state-owned VTB Bank had fallen to a record low, and Russian businesses had become increasingly pessimistic about the country's economic outlook.
The ISW links these developments to rising military spending, inflation, labor shortages, and other consequences of Russia's war against Ukraine.
