Minister Updates On Russian Airlines, Register

March 15, 2022

“Lessors continue to terminate aircraft leases and make attempts to retrieve the aircraft. However, there has been mixed success due to the level of cooperation with the States in which the aircraft are located at the time,” Minister of Transport Lawrence Scott said in the House of Assembly in relation to the BCAA suspending the certifications of Russian airlines.

The Minister’s full statement follows below:

Mr. Speaker, the information I have shared today speaks solely to the impact of the sanctions on Bermuda and not the foreign policy behind the sanctions.

Mr. Speaker, further to my update to this honourable House on 4 March 2022, I now advise that the situation regarding the sanctions remains fluid. To date the Bermuda Shipping and Maritime Authority has not been impacted. However, I cannot say the same for the Bermuda Civil Aviation Authority’s [BCAA] Aircraft Registry.

Mr. Speaker, lessors, continue to terminate aircraft leases and make attempts to retrieve the aircraft. However, there has been mixed success due to the level of cooperation with the States in which the aircraft are located at the time.

Mr. Speaker, from midnight on 8 March 2022 Moscow time, the Russian Government recommended that Russian airlines that have aircraft registered in foreign countries, under a leasing agreement with a foreign organization, temporarily suspend the transport of passengers and cargo from the territory of foreign countries to the territory of Russia.

Mr. Speaker, on 12 March 2022 the BCAA published an International Sanctions Press Release advising that international sanctions on the aviation sector have had a significant impact on the ability to sustain safety oversight on 700 plus Russian operated aircraft on the Bermuda Aircraft Registry. The airworthiness system has been restricted to the point that the Authority was unable to confidently approve the aircraft as being airworthy. Therefore, as of 23:59 UTC on 12 March 2022 the BCAA provisionally suspended all Certificates of Airworthiness of those aircraft operating under the Article 83bis Agreement between Bermuda and the Russian Federation. This meant that any aircraft airborne at 23:59 UTC on 12 March 2022, the provisional suspension took effect immediately upon landing. BCAA will provide updates on their website, www.bcaa.bm as new information is available.

Mr. Speaker, the European Union’s sanctions allow the provision of insurance or reinsurance to leasing companies for aircraft and engines until 28 March 2022. This is subject to operating or finance lease arrangements signed before 26 February 2022, including when such aircraft or engine is used in Russia or leased to a Russian person. The window of opportunity for lessors and owners to retrieve their aircraft is rapidly closing.

Mr. Speaker, both Authorities are closely monitoring the situation. Thank you, Mr. Speaker.

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