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.
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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.