Russia's Elon Musk Gets Grounded

○ The aviation mogul’s S7, the nation’s largest private airline, faces uncertainty after lease terms were violated during the Ukraine war

Less than two months ago, S7 Airlines was heralded as a Russian success story. Operating a modern fleet of Airbus SE and Boeing Co. planes, the carrier connected the country to western Europe, Central Asia, and even Thailand. A member of the Oneworld global aviation alliance that also includes British Airways and American Airlines, S7 boasted a solid safety record, paid its bills on time, and had a charismatic leader in Vladislav Filev—an amateur pilot who created the nation’s largest private carrier—to represent its growth ambitions.

But following Russia’s attack on Ukraine on Feb. 24, Filev and the airline he built are left stuck between international sanctions that have prompted leasing firms to reclaim their aircraft and a Russian government determined to keep its aviation industry aloft. The airline, which once boasted service to 35 nations, is cut off from both its overseas destinations and the flow of aircraft maintenance essentials that are key to keeping a modern airline running, from cockpit software upgrades to spare parts.

S7 has continued to operate most of its 105 planes —the vast majority-owned by foreign lessors who have demanded their return. But it has had to cut the number of routes it planned to serve this summer in half, to 125, according to aviation data specialist Routes Online. With the European Union blocking Russian airlines from its airspace and S7 risking repossessions of its planes should they land outside Russian borders, flying has been restricted to domestic destinations.