Russia looks to seize hundreds of planes before air lessors can repossess

Aircraft lessors face the potential loss of hundreds of aircraft in Russia as the country moves quickly to prevent lessors from repossessing Western-owned planes at Russian airlines amid Western economic sanctions. “The door is closing,” Aircastle Chief Legal Officer Christopher Beers said of lessors’ ability to repossess aircraft at the ISTAT Americas conference on Monday. Since the EU imposed sanctions on Russia on February 25, lessors have succeeded in recovering some aircraft. But Russia has moved quickly to protect its aviation assets, including allowing airlines to re-register foreign-registered planes in Russia, which violates international law if an aircraft is registered in more than one jurisdiction. The Russian government has recommended that carriers do not fly foreign-owned jets outside of the country to avoid the risk of repossession. And, in what is in part a move to protect its assets, Aeroflot and its subsidiaries will suspend flights to destinations outside of Russia on March 8. Russian airlines operated 861 aircraft, of which 695 are Western-built — including 304 Airbus and 332 Boeing models — in February prior to the invasion of Ukraine, according to Cirium’s Fleet Analyzer. Foreign lessors owned 515 aircraft with AerCap, SMBC Aviation Capital, and Air Lease Corp. having the most exposure. “You’ve got 500-plus aircraft at risk and maybe a dozen or two seized,” said Dean Gerber, executive vice president and general counsel of aircraft finance firm Valkyrie BTO Aviation. “The reality is those other aircraft are land-locked in Russia right now with significant unlikelihood that you’re going to get them out.”<br/>