Oligarchic Air Fleets: Private Jets, Politics, and Power

Originally Syndicated on August 19, 2023 @ 11:50 am

Private Jets Unite: A Formidable Fleet

When the Oligarchic air fleet of Russian billionaires is combined into a single company, it becomes a major player in the aviation industry, ranking second only to Aeroflot with a fleet boasting more than 250 aircraft. Astonishingly, Russians collectively own up to 500 business jets, many of which are registered abroad.

The landscape of Russian billionaire-owned private jets took a dramatic turn with the implementation of sanctions by the US Treasury on April 6, 2018. These sanctions not only disrupted the lives of billionaires but also triggered a wave of sales in the private jet market.

Oleg Deripaska, a prominent Russian billionaire, felt the impact of sanctions keenly. He was compelled to part ways with three Gulfstream G550 aircraft as Credit Suisse and Raiffeisen Bank terminated leasing contracts with his companies. These jets hit the market with a price tag of $30 million each. Similarly, Araz Agalarov, owner of Crocus Group, found himself in a predicament when he had to swiftly repay a $20 million loan to the American bank Stonebriar Commercial Finance, which was secured by his Gulfstream G550.

More Billionaires, More Oligarchic air fleet

The ripple effect of sanctions extended to other Russian businessmen as well. Suleiman Kerimov, with his Boeing BBJ2 and Bombardier Global Express XRS, and Boris Rotenberg, with his Bombardier Global, were among those who had to consider selling their aircraft. The fear of facing a situation akin to Gennady Timchenko’s ordeal loomed large for these billionaires.

Gennady Timchenko, the owner of Volga Group, found himself in a dire predicament when Gulfstream ceased honouring contractual obligations and supplying spare parts for his Gulfstream G650. As a result, Timchenko’s plane ended up under the ownership of a subsidiary of the Russian Direct Investment Fund, Cypriot Amerivo Holdings.

The Broader Impact on Russian-Owned Aircraft

The repercussions of sanctions extended beyond individual aircraft. Several other aircraft owned by Russian individuals faced similar fates, including the denial of after-sales support and guarantees. Furthermore, European and American operators began refusing transportation services to individuals on the sanctions list, and the sale of new equipment to these individuals became increasingly challenging.

Who owns what boards? In Forbes rating of the “50 most expensive Oligarchic air fleets,

	Estimated owner	Country of registration	Brand	Year of issue	Valuation, $ mln
1.	Alisher Usmanov	Maine	Airbus A340	2008	150
2.	Roman Abramovich	Aruba	Boeing 767	2003	120
3.	Roman Abramovich  (Alexander Abramov, approx.K.ru)	Germany	Airbus A319	2014	85
4.	Andrey Skoch and family	Aruba	Airbus A319	2013	71
5.	Andrey Kozitsyn	Austria	Airbus A320	2008	67
6.	Viktor Rashnikov	Bermuda	Gulfstream G650ER	2017	62.5
7.	Sergei Galitsky	Maine	Gulfstream G650	2017	60
8.	Dmitry Rybolovlev	Maine	Airbus A319	2012	60
9.	Igor Makarov	Aruba	Boeing 737 BBJ	2010	58.8
10.	Andrey Melnichenko	Maine	Boeing 737 BBJ	2009	58
11.	Alexander Abramov, Alexander Frolov	Germany	Airbus A319	2010	57
12.	Vladimir Evtushenkov	Aruba	Boeing 737 BBJ	2007	57
13.	Viktor Vekselberg	Aruba	Airbus A319	2009	56
14.	Mikhail Prokhorov	Maine	Airbus A319	2009	56
15.	Samvel Karapetyan	Malta	Gulfstream G650	2015	53
16	Iskander Makhmudov	Austria	Gulfstream G650	2015	53
17	Vagit Alekperov	Caymans	Boeing 737 BBJ	2006	50
18	God Nisanov	Maine	Gulfstream G650	2014	48.6
19	Filaret Galchev	Malta	Bombardier Global 6000	2016	45
20	Vadim Moshkovich	Maine	Bombardier Global 6000	2011	45
21	Zarakh Iliev	Maine	Airbus A318 Elite	2011	42.5
22	Oleg Tinkov	Maine	Dassault Falcon 7X	2016	42.5
23	Roman Abramovich	Luxembourg	Gulfstream G650	2014	42
24	Leonid Mikhelson	USA	Gulfstream G650	2013	42
25	Vladimir Potanin	Austria	Gulfstream G650	2013	40
26	Vasily Anisimov	Luxembourg	Bombardier Global 6000	2014	36.6
27	Farhad Ahmedov	Maine	Bombardier Global 6000	2014	36.6
28	Viktor Vekselberg	Maine	Bombardier Global 6000	2013	36.2
29	Andrey Guryev	Austria	Airbus A319	2007	36
30	Vladimir Potanin	Austria	Gulfstream G550	2013	33
31	Vladimir Bogdanov	Russia	Gulfstream G550	2012	31
32	Oleg Deripaska	Maine	Gulfstream G550 (UGIC)	2012	31
33	Oleg Deripaska	Maine	Bombardier Global 5000	2012	31
34	Andrey Molchanov	Malta	Gulfstream G550	2015	30
35	Araz Agalarov	Caymans	Bombardier Global 6000	2010	27
36	Sergey Adoniev, Albert Avdolyan	USA	Bombardier Global 6000	2012	27
37	Alexey Mordashov	Maine	Dassault Falcon 7X	2012	27
38	Alisher Usmanov	Luxembourg	Bombardier Global 5000	2012	27
39	Alexey Repik	Maine	Bombardier Global 5000	2014	25.2
40	Anatoly Sedykh	Malta	Bombardier Global 5000	2014	25.2
41	Alexander Svetakov	Austria	Gulfstream G550	2013	24.5
42	Alexander Ponomarenko	Maine	Gulfstream G550	201 1	24
43	Viktor Kharitonin	Maine	Bombardier Global Express XRS	2009	23.6
44	Musa Bazhaev	Caymans	Bombardier Global Express XRS	2010	23.2
45	Mikhail Gutseriev	Aruba	Bombardier Global Express XRS	2010	23.2
46	Alexander Abramov, Alexander Frolov	Germany	Bombardier Global Express XRS	2009	22.4
47	Alexander Japaridze	Luxembourg	Dassault Falcon 7X	2009	20.5
48	Vladimir Lisin	Austria	Bombardier Global 5000	2011	20
49	Igor Kesaev	Bermuda	Bombardier Global 6000	2009	20
50	Igor Altushkin	Maine	Embraer Legacy 650	2016	20

1-AIR BUS 340

Release year: 2008

Estimated owner: Alisher Usmanov

Registered country: Isle of Man

Estimated value: $150,000,000

Usmanov’s Flying Fortress: The Airbus A340 Oligarchic air fleet

King of the Skies

Alisher Usmanov, a prominent figure among Russia’s billionaires, boasts the largest aircraft in the Russian Forbes ranking. His aircraft of choice is the impressive wide-body Airbus A340. This luxurious liner holds a special place in Usmanov‘s heart, bearing the name “Bourkhan” in honour of his father. This heartfelt tribute is proudly displayed on the aircraft’s exterior.

The Registration Revelation

The aircraft’s registration number reveals a personal touch: “I, Alisher Burkhanovich Usmanov.” It’s as if the plane itself carries the essence of its owner. This personal touch adds a unique flair to the aircraft.

Size Matters

In the world of billionaires and their toys, size matters, and Usmanov’s Airbus A340 is no exception. It eclipses the aircraft of Roman Abramovich, another notable Russian billionaire. This flying behemoth came with a price tag in the range of $300-350 million.

Home Base: Moscow

Usmanov’s prized A340 finds its home base in Moscow, a city known for its opulence and grandeur. This strategic location allows for easy access to international destinations, fitting for a billionaire with global interests.

Fueling Luxury at a Cost

While the Airbus A340 is a symbol of opulence, it comes with a trade-off. This wide-body aircraft is notorious for its high fuel consumption, a factor that has contributed to a sharp decline in demand. As environmental concerns grow and airlines seek more fuel-efficient options, Usmanov’s choice of aircraft reflects a bygone era of extravagant travel.

In the realm of private jets, Alisher Usmanov’s Airbus A340 stands as a testament to his affluence and a symbol of prestige. However, as the aviation industry evolves, even the giants of the skies must adapt to changing times.

2- Boeing 767

Release year: 2003

Estimated owner: Roman Abramovich

Registration country: Aruba island

Estimated cost: $120,000,000

The Legendary “Bandit”: Roman Abramovich’s Boeing- Oligarchic Air fleet

The “Bandit” Emerges

Roman Abramovich’s aircraft has earned the distinctive nickname “Bandit” due to its striking feature—a prominent black stripe near the cockpit. This visual identifier has made it an iconic sight in aviation circles.

Going the Distance

This aircraft is no ordinary jet; it’s a modified model designed to deliver an extended flight range. With this enhancement, it can achieve non-stop flights covering up to an astounding 11,000 kilometres. Such impressive capabilities make it the preferred choice for individuals who need to circumnavigate the globe with a sizable entourage.

Room for Many

Inside Boeing, luxury and space reign supreme. With the ability to comfortably accommodate over 60 individuals, it’s not just a private jet; it’s a flying palace. It caters to the needs of Abramovich and his numerous associates, ensuring a lavish and seamless travel experience.

Globetrotting in Style

This remarkable jet, frequented by Roman Abramovich, is a common subject in the photography archives of aviation enthusiasts, or “spotters,” all around the world. Whether it’s gracing the runways of Nice, Salzburg, St. Maarten, or Tel Aviv, the “Bandit” stands as a symbol of opulence and globe-trotting extravagance.

In the realm of private aviation, Roman Abramovich‘s Boeing, affectionately known as the “Bandit,” is a true marvel, embodying both style and functionality. Its distinctive appearance and extensive range ensure that it remains a captivating figure in the world of luxury travel.

3-Airbus A319

Release year: 2014

Estimated owner: Alexander Abramov

Registration country: Germany

Estimated cost: $85,000,000

Elegance and Versatility: The Airbus A319 Oligarchic air fleet

French Craftsmanship

The Airbus A319 is a testament to French design and engineering excellence. It’s a slightly shorter version of the popular A320 airliner, measuring 4 meters less in length. This elegant aircraft boasts a wingspan of 34.1 meters, a maximum takeoff weight of 76,500 kg, and a cruising speed of 820 km/h.

Business Aviation Excellence

The Airbus Corporate Jet (ACJ) version of the A319 is tailored for the world of business aviation. Its luxurious interior can comfortably accommodate 19 VIP passengers, providing a flying experience that rivals the finest executive lounges.

Transforming Space

What sets the ACJ A319 apart is its flexibility. The interiors can be easily reconfigured to accommodate up to 100 passengers, making it an adaptable choice for a variety of missions, from exclusive business trips to larger group travel.

Impressive Range

When configured as a VIP transport, this aircraft has a maximum flight range of 12,000 km, offering the capability to cover vast distances non-stop. In real-world flight conditions, it can comfortably handle journeys of up to 10,400 km, ensuring access to global destinations.

Operated by Vertis Aviation

The Airbus A319, in its corporate jet configuration, is often operated by Vertis Aviation, a company specializing in providing top-notch charter and management services for discerning travellers.

In essence, the Airbus A319 combines French finesse with versatility. It caters to the demands of VIP travel with its opulent interiors while also possessing the adaptability to serve a broader range of passengers, making it a sought-after choice in the world of business aviation.

4- Airbus A319

Release year: 2013

Estimated owner: Andrey Skoch and family

Registration country: Aruba island

Estimated cost: $71,000,000

A Tale of Luxury: The 3A-MGU Aircraft Oligarchic Air Fleet

Echoes of Extravagance

The tail number “3A-MGU” on the MGU plane is more than just a series of characters; it carries the echoes of opulence associated with notable figures like Skoch. This association extends to the magnificent 99-meter yacht “Madame Gu” and “Lady Gulya,” previously attributed to Skoch.

Helicopter Heritage

Continuing the legacy of luxury, the Eurocopter Dauphin helicopter with the same “3A-MGU” registration is closely linked to the opulent world of the “Madame Gu” yacht. This helicopter is not just a means of transportation; it’s a symbol of affluence.

Passenger Comfort

The aircraft itself is designed for pure comfort, able to accommodate up to 19 passengers. Its delivery to its owner took place in early 2014, marking the beginning of a new era of opulent air travel for its fortunate passengers.

Worldly Presence

This aircraft is no stranger to the world stage. It can frequently be spotted in prominent cities such as London, Zurich, and even Tashkent. Its global presence is a testament to the international interests of its owner.

Terminal Luxury

When it touches down, the aircraft often graces the Vnukovo business terminal, a location that the Skoch family is believed to co-own. This terminal is synonymous with luxury, mirroring the style and stature of the aircraft’s owner.

Shared Prestige

It’s worth noting that other prominent figures like Dmitry Rybolovlev, Alexander Abramov, Alexander Frolov, Viktor Vekselberg, Mikhail Prokhorov, and Andrey Guriev may share a similar taste for luxury and prestige by owning similar aircraft.

In the world of the ultra-wealthy, the 3A-MGU aircraft represents more than just a mode of transportation; it’s a symbol of a lifestyle characterized by opulence and global reach, echoing the extravagance of the yachts and luxury terminals that share its name.

5-Airbus A320

Release year: 2008

Estimated owner: Andrey Kozitsyn

Registration country: Austria

Estimated cost: $67,000,000

The Enigmatic Airbus with Golden Accents- Oligarchic Air Fleet

Transcending Ownership

This striking Airbus, adorned with unique golden patterns and a majestic bird on its tail, has an intriguing history. It transitioned from its previous owner, the Saad Group of Saudi Arabia, to the hands of a Russian billionaire. The former owner, Maan al-Sanea, experienced financial turmoil leading to bankruptcy.

Homeward Bound to Yekaterinburg

After changing ownership, the Airbus found a new home at Yekaterinburg Koltsovo Airport in Russia. This relocation marked the beginning of a new chapter in the aircraft’s journey.

A European Sojourn

The Airbus with its distinctive livery frequently graces the skies over European cities. It’s a familiar sight in picturesque destinations like Verona, Vienna, and Paris, adding a touch of luxury to these iconic locations.

Sports and Sponsorship

The ties between Airbus and the world of sports are noteworthy. It often visits cities where the Ekaterinburg hockey club, Avtomobilist, plays its games. This hockey club is sponsored by UMMC, a company co-owned by Andrey Kozitsyn. Notably, the aircraft occasionally transports the hockey team itself, further cementing its role in the realm of sports and luxury travel.

In the realm of aviation, this Airbus stands out not only for its elegant exterior but also for its fascinating journey, transitioning from Saudi Arabia to Russia and connecting with European cities and the world of sports. It embodies a fusion of opulence, business, and leisure, making it a symbol of the elite lifestyle of its owner.

6-Gulfstream G650

Such an aircraft is allegedly owned by: Viktor Rashnikov, Sergey Galitsky, Samvel Karapetyan, Iskander Makhmudov, God Nisanov, Roman Abramovich, Leonid Mikhelson, Vladimir Potanin.

 7-Boeing 737 BBJ

This aircraft is allegedly owned by: Igor Makarov, Andrey Melnichenko, Vladimir Yevtushenkov, and Vagit Alekperov.

8-Bombardier Global 6000

This aircraft is allegedly owned by: Filaret Galchev, Vadim Moshkovich, Vasily Anisimov, Farhad Akhmedov, Viktor Vekselberg, Sergey Adoniev, Albert Avdolyan, Alexei Mordashov, Igor Kesaev.

9- Airbus A318 Elite

This aircraft is allegedly owned by Zarakh Iliev.

10-Dassault Falcon 7X

This aircraft is allegedly owned by: Oleg Tinkov, Alisher Usmanov, and Alexander Dzhaparidze.

11-Gulfstream G550

This aircraft is allegedly owned by: Vladimir Potanin, Vladimir Bogdanov, Oleg Deripaska, Araz Agalarov, Alexander Ponomarenko, and Viktor Kharitonin.

12. Bombardier Global 5000

This aircraft is allegedly owned by: Andrei Molchanov, Alexei Repik, Anatoly Sedykh, Alexander Svetakov, and Vladimir Lisin.

13- Bombardier Global Express XRS

Such an aircraft is allegedly owned by: Musa Bazhaev, Mikhail Gutseriev, Alexander Abramov, and Alexander Frolov.

What is an Oligarchic air fleet?

Oligarchs in the Air

An “oligarchic air fleet” signifies a collection of aircraft either owned or chartered by oligarchs. These individuals are typically wealthy and hold substantial political influence. While specific details about such fleets in 2019 are scarce, oligarchs often use private jets and charter flights to conduct their business, maintaining their opulent lifestyles.

The Russian Aviation Landscape

In Russia, the aviation landscape is dominated by Aeroflot, the national flag carrier. With a sizable fleet comprising 359 aircraft, Aeroflot primarily operates Airbus, Boeing, and domestic models like the Sukhoi. However, the dynamics of Russian aviation have evolved, with recent restrictions impacting the industry.

US Restrictions and Oligarchic Air Fleet

In 2022, the US Department of Commerce imposed restrictions on flights involving aircraft manufactured in the US, affecting Aeroflot and other Russian airlines. This move was part of broader sanctions in response to geopolitical tensions.

The Oligarchic Impact

Notably, in March 2022, the US Bureau of Industry and Security (BIS) identified approximately 100 Russian aircraft, including jets linked to oligarchs, to effectively ground them. This action was a response to Russia’s invasion of Ukraine, highlighting the role of these aircraft in geopolitical dynamics.

Business Ventures and Oligarchic air fleet

In 2019, reports surfaced about a Russian oligarch’s plans to establish a business charter airline based on the Sukhoi Superjet (SSJ). However, there is limited information available regarding whether this venture materialized.

In the complex world of oligarchs and aviation, private jets and chartered flights serve as vital tools for both business and personal endeavours. These aircraft can often find themselves entangled in geopolitical conflicts, reflecting the broader influence and significance of oligarchs in today’s world.

What is the role of oligarchic air fleets in the global economy?

The Multifaceted Impact of Oligarchic Air Fleets on the Global Economy

The role of oligarchic air fleets in the global economy is indeed a subject of ongoing debate, encompassing both positive and negative aspects:

Positive Impacts

Business Facilitation: Oligarchs often use their air fleets to conduct business efficiently, potentially contributing to economic growth and employment opportunities. Quick and flexible transportation can facilitate deals, investments, and negotiations.

Efficiency: Private jets can offer a swifter means of travel, enabling oligarchs to conduct business more promptly and effectively. Time saved in transit can translate into increased productivity.

Negative Impacts:

Environmental Costs: The use of private jets, particularly for personal travel, can result in significant carbon emissions and environmental damage. This contributes to broader concerns about climate change and sustainability.

Tax Evasion: Private jets may sometimes avoid paying taxes and fees that apply to regular airline flights. This can create an unfair subsidy, shifting the financial burden from oligarchic air fleets to regular economy-class travellers and potentially depriving governments of revenue.

Economic and Carbon Inequality: The disparity in access to private jet travel, driven by economic inequality, exacerbates carbon inequality. Oligarchs’ extensive use of private jets contributes to a stark contrast in emissions between the affluent and the rest of society.

In summary, the role of oligarchic air fleets in the global economy is indeed complex and multifaceted. While they can facilitate economic activities and efficiency, they also bring environmental and economic challenges. Balancing the convenience and utility of private jets with the need for sustainability and fair taxation is a matter of ongoing concern and debate in the modern world.

What are some criticisms of oligarchic air fleets?

Critiques of Oligarchic Air Fleets: Examining Key Concerns

Oligarchic air fleets, while symbolizing luxury and convenience, have faced several significant criticisms that raise concerns across various aspects:

Environmental Impact:

Carbon Emissions: Private jets used by oligarchs contribute to carbon emissions and environmental damage, a significant concern given the growing awareness of climate change and the need for sustainable practices.

Inefficiency: Private jet travel is generally less efficient than commercial airlines, often leading to a higher carbon footprint per passenger. This inefficiency exacerbates environmental concerns.

Tax Avoidance:

Avoiding Taxes and Fees: Private jets may bypass taxes and fees imposed on regular airline flights, essentially shifting the financial burden from the affluent oligarchic air fleets to regular economy-class travellers. This can contribute to economic and carbon inequality, fostering resentment and inequity.
Ownership Structures:

Complex Ownership: Oligarchs often own their private jets through intricate offshore company structures, making it challenging to establish clear ownership. This lack of transparency and accountability can raise questions about financial practices and potential abuses.

Financial Burden: The ownership and operation of an oligarchic air fleet come with substantial costs, especially if aircraft are mortgaged to international banks. This financial burden can extend to the oligarchs and their business enterprises, potentially impacting their financial stability.
In summary, these criticisms highlight the multifaceted challenges associated with oligarchic air fleets. Environmental concerns, tax avoidance, opaque ownership structures, and financial burdens all contribute to a complex landscape in which the luxury and convenience of private jet travel coexist with pressing societal and environmental issues.