Aircraft companies are set to terminate hundreds of aircraft leases with Russian airlines, following Western sanctions over the invasion of Ukraine that require cancellation of contracts.
AerCapthe world’s largest leasing company, announced it would cease leasing with Russian airlines, while BOC Aviation said most of its Russian leasing contracts would have to be terminated by March 28.
Russia warned the West that it would retaliate against sanctions targeting its aviation industry.
Russian companies have 980 passenger planes in service, of which 777 are leased, according to the analysis firm Cirium. Two-thirds, or 515 jets, with an estimated market value of around $10 billion, are leased to foreign companies in the industry mainly based in Ireland.
AerCapwhich has the largest exposure to Russia and Ukraine with 152 aircraft, according to consultancy IBA, said that by net book value 5% of its fleet was leased in Russia as of December 31.
Its Russian customers include Aeroflot, S7 Airlines, Rossiya, Azur Air and Ural Airlines, according to its website, involving planes worth an estimated $2.5 billion, according to aviation services firm ACC Aviation.
Avolonthe world’s second-largest leasing company, has fewer than 20 planes in Russia and one or two in Ukraine out of a total fleet of more than 550 planes, Chief Executive Domhnal Slattery said this month.
Leaders of the Group of Seven (G7) said on Sunday that Western allies had decided to disconnect “certain Russian banks” from Swift, a secure system for ensuring fast cross-border payments that has become the main mechanism for financing international trade. .
Source: Gestion
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