TradewindL1011 From United States of America, joined Dec 2003, 179 posts, RR: 0 Posted (8 years 7 months 1 week 6 days 12 hours ago) and read 6754 times:
Since the breakup of the USSR more and more western aircraft have entered Russia, but none have been registered there, even if owned by the respective airline. Instead all such aircraft seem to be registered in Bermuda (VP-B..). Why are they all registered in Bermuda and not Russia? I seem to remember that Bermuda has liberal tax laws perhaps this has something to do with it?
TradewindL1011 From United States of America, joined Dec 2003, 179 posts, RR: 0
Reply 5, posted (8 years 7 months 1 week 6 days 9 hours ago) and read 6633 times:
With the several examples cited, I should change the topic name to "Very few western aircraft". To those that answered the question rather than an attempt to prove me wrong I appreciate the responses. This also leads me to ask why some airlines do manage to register them but the vast majority do not.
A342 From Germany, joined Jul 2005, 4768 posts, RR: 3
Reply 7, posted (8 years 7 months 1 week 6 days 9 hours ago) and read 6626 times:
Quoting TradewindL1011 (Reply 5): This also leads me to ask why some airlines do manage to register them but the vast majority do not.
Quoting Dazeflight (Reply 2): Because Russia charges ridicoulously hight import taxes for western aircraft.
Maybe those few aircraft weren't expensive to buy and therefore were Russian registered. IIRC, no intra-Russian routes may be operated with jets on foreign registers (except GUS registers ?). Or does this only apply to business jets ???
Workhorse From France, joined Jul 2005, 219 posts, RR: 0
Reply 10, posted (8 years 7 months 1 week 6 days 8 hours ago) and read 6569 times:
I might be wrong but as far as I've heard, the issue is not that much with taxes (you have to pay them anyway, even if your aircraft is registered abroad, unless you have some special "tax exemption" like SU or UN), but with maintenance procedures. Russia does not have establshed procedures of maintenance for Western aircraft, so once you have registered a Boeing or an Airbus in Russia it becomes very difficult to sell it outside of Russia. And that is something leasing companies don't like at all!
Registering your aircraft in Bermuda or Ireland is hassle-free, cheap and most pax don't care if there is a "RA-", a "VP-" or an "EI-" written on the plane they fly.