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Irish Registered Transaero Aircraft?  
User currently offlinezhutton From United Kingdom, joined Apr 2008, 44 posts, RR: 0
Posted (4 years 6 months 2 days 19 hours ago) and read 3368 times:

Hi All,

Ive just noticed that quite a few Transaero aircraft are registered in Ireland as "EI-***"
I would have assumed they'd be Russian registered being as Transaero is a Russian airline?

Why is this?
Does it work out better financially?

http://www.airliners.net/photo/Trans...lines/Boeing-777-222-ER/1656070/L/
http://www.airliners.net/photo/Trans...Airlines/Boeing-737-5Y0/1653752/L/
http://www.airliners.net/photo/Trans...lines/Boeing-767-3P6-ER/1655111/L/

Regards,
Zakk


A Landing you can walk away from is a good one ! - www.longmynd.com
12 replies: All unread, jump to last
 
User currently offlineedichc From , joined Dec 1969, posts, RR:
Reply 1, posted (4 years 6 months 2 days 19 hours ago) and read 3363 times:

Usually due to the fact that they are leased.

User currently offlineCPH-R From Denmark, joined May 2001, 5988 posts, RR: 3
Reply 2, posted (4 years 6 months 2 days 19 hours ago) and read 3346 times:

Quoting zhutton (Thread starter):
Why is this?

Tax reasons.

Quoting zhutton (Thread starter):
Does it work out better financially?

You bet.

IIRC Russia is running a bit of protectionism for the Russian aircraft industry (or at least they used to), so there's an extremely steep import tax for foreign built aircraft. So in order to get around that, Russian airlines have been registering their planes abroad. Aeroflot have registred their Airbiis and Boeings in Bermuda (VP-Bxx and VQ-Bxx), while other Russian airlines tends to use Ireland (EI-xxx).


User currently offlineshamrock604 From Ireland, joined Sep 2007, 4166 posts, RR: 13
Reply 3, posted (4 years 6 months 2 days 17 hours ago) and read 3236 times:

Quoting CPH-R (Reply 2):
Tax reasons.

Also the fact that Dublin is a major centre for Aircraft leasing, with many of the big names in that industry based here. Our favourable tax regime for the industry helps of course..... 



Flown EI,FR,RE,EIR,VE,SI,TLA,BA,BE,BD,VX,MON,AF,YS,WX,KL,SK,LH,OK,OS,LX,IB,LTU,HLX,4U,SU,CO,DL,UA,AC,PR,MH,SQ,QF, EY, EK
User currently offlinejfk787nyc From United States of America, joined Apr 2007, 812 posts, RR: 2
Reply 4, posted (4 years 6 months 2 days 17 hours ago) and read 3236 times:

It is a very stupid law in Russia. But, this is the way things are done

The most National Airline of Russia (Aeroflot) has all there planes registered in Bermuda.

It does not make much sense! But this is the way things are.


User currently offlineClipper136 From United States of America, joined Mar 2006, 318 posts, RR: 1
Reply 5, posted (4 years 6 months 2 days 14 hours ago) and read 3126 times:

Quoting edichc (Reply 1):
Usually due to the fact that they are leased.
Quoting shamrock604 (Reply 4):
Also the fact that Dublin is a major centre for Aircraft leasing, with many of the big names in that industry based here. Our favourable tax regime for the industry helps of course.....

  

Lease companies can easily move aircraft between operators in different countries without having to re-register and re-fit the aircraft based on regulations for each country.

Or.

Because the aircraft purchase is being financed by the Ex-Im or another international bank.

Countries like Ireland and Bermuda and Cayman have favorable seizure and repossession regulations for when payments are not being made. So part of the financing agreement is structured to dictate where the aircraft will be registered.


User currently offlineViscount724 From Switzerland, joined Oct 2006, 25125 posts, RR: 22
Reply 6, posted (4 years 6 months 2 days 7 hours ago) and read 2996 times:

Russia has very high import duties on foreign-built aircraft that are registered in Russia.

User currently offline757MDE From Colombia, joined Sep 2004, 1753 posts, RR: 6
Reply 7, posted (4 years 6 months 2 days 6 hours ago) and read 2929 times:

Most of Avianca's MD-83s are/were leased to some Irish lessor and they kept their Irish registration as well.


I gladly accept donations to pay for flight hours! This thing draws man...
User currently offline474218 From United States of America, joined Oct 2005, 6340 posts, RR: 9
Reply 8, posted (4 years 6 months 2 days 5 hours ago) and read 2914 times:

They are leased aircraft and the leasing company has insisted that they remain registered in the their country for any number of reasons, not least being getting the aircraft back if it has to be repossed .

Years ago BW had four TriStars, three own and one leased. They flew the leased airframe for 20 plus years with an N number, while the other three were registered 9Y.


User currently offlineGemuser From Australia, joined Nov 2003, 5629 posts, RR: 6
Reply 9, posted (4 years 6 months 2 days 4 hours ago) and read 2886 times:

It should be noted that this only works IF the national aviation authority accepts foregin registered aircraft for operation by airlines it supervises. I am suprised that Russia accepts it given the high import duties they impose.

Don't try it in Australia, except for short term one offs and emergencies.

Gemuser



DC23468910;B72172273373G73873H74374475275376377L77W;A319 320321332333343;BAe146;C402;DHC6;F27;L188;MD80MD85
User currently offlineGreenjet From Ireland, joined Aug 2001, 954 posts, RR: 1
Reply 10, posted (4 years 6 months 1 day 10 hours ago) and read 2808 times:

Quoting CPH-R (Reply 2):
IIRC Russia is running a bit of protectionism for the Russian aircraft industry (or at least they used to), so there's an extremely steep import tax for foreign built aircraft. So in order to get around that, Russian airlines have been registering their planes abroad.

Unfortunately for the airlines import tax is still applicable if the aircraft is registered outside of Russia. The taxes were brought in to protect the country's domestic aircraft industry but it's not exactly fair as airlines have few viable alternatives to importing aircraft.


User currently offline474218 From United States of America, joined Oct 2005, 6340 posts, RR: 9
Reply 11, posted (4 years 6 months 1 day 9 hours ago) and read 2769 times:

Quoting Greenjet (Reply 10):
Unfortunately for the airlines import tax is still applicable if the aircraft is registered outside of Russia. The taxes were brought in to protect the country's domestic aircraft industry but it's not exactly fair as airlines have few viable alternatives to importing aircraft.

Not quite true: http://www.kpmg.ie/industries/fs/leasing/article1.htm

Aircraft above 300 and less than 50 passengers are exempt from the import tax because there air no Russian aircraft that are comparable.


User currently offlineGreenjet From Ireland, joined Aug 2001, 954 posts, RR: 1
Reply 12, posted (4 years 6 months 1 day 7 hours ago) and read 2739 times:

Quoting 474218 (Reply 11):
Not quite true: http://www.kpmg.ie/industries/fs/lea...1.htm

Thanks for that. My post might not have been clear but I was pointing out that just because a Russian airline registers an aircraft in Ireland or Bermuda it doesn't make them exempt from import tax. Yes, this tax does not apply to aircraft with less than 50 seats or greater than 300 seats but that's just a small proportion of the Russian market. The monthly import tax payment that Russian airlines have to pay on a leased B737 classic is often larger than the monthly rental payment.


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