Russia’s Supreme Court has upheld Vnukovo Customs’ position in a dispute with iFly Airlines over an Airbus A330 that returned from overseas maintenance with a higher seat count than before. The ruling leaves in place customs’ assessment that the cabin reconfiguration amounted to modernization rather than routine servicing, and supports a demand for additional duties and taxes on the aircraft.
The case centres on a leased A330 that iFly imported in 2017 and later sent abroad for work. When the aircraft returned, the number of passenger seats had reportedly increased from 237 to 345, prompting customs to treat the change as an upgrade that could improve the aircraft’s earning capacity. The court’s stance draws a broader line between repairs that preserve airworthiness and work that expands commercial utility.
The decision is likely to be watched closely by airlines and other operators of temporarily imported equipment, especially where heavy maintenance is combined with interior changes or other modifications overseas. It also gives customs authorities a clearer basis for challenging cases in which foreign repair work delivers a measurable economic benefit rather than simply restoring an asset to service.