Foreign aircraft owners risk billions of losses in Russia

Foreign aircraft lessors are facing the increasing possibility of writeoffs that could total in the billions of dollars as Russia considers ways to defy worldwide sanctions and keep carriers such as Aeroflot flying. Russia’s Transportation Ministry is weighing options including buying or even nationalizing hundreds of Airbus and Boeing planes that lessors have demanded be returned under European Union economic sanctions, the Russian news agency RBC reported. Foreign aircraft lessors are facing the increasing possibility of writeoffs that could total in the billions of dollars as Russia considers ways to defy worldwide sanctions and keep carriers such as Aeroflot flying. Russia’s Transportation Ministry is weighing options including buying or even nationalizing hundreds of Airbus and Boeing planes that lessors have demanded be returned under European Union economic sanctions, the Russian news agency RBC reported. In a normal commercial situation, the firms would have the upper hand because contracts give them rights to repossess aircraft when they can’t collect on fees due. “But if Russia tells the airlines just to keep flying the planes, what can they do,” he said. Dublin-based AerCap Holdings has the most planes leased to Russia at 152, with a market value approaching $2.5b, according to IBA. Carlyle Aviation Management’s exposure is at about 8% of its fleet, while AerCap and SMBC Aviation Capital each have about 7% of their planes in the country, according to an updated report from the aviation consultancy. <br/>