Stock Groups

Aircraft leasing giant casts doubt on renting to Russian airlines again

[ad_1]

A Russian airline Aeroflot’s Airbus A321-211 plane is pictured in long-term parking at Cointrin Airport, Geneva, Switzerland on March 9, 2022.

Reuters| Reuters

Avolon’s CEO, an aircraft leasing company of immense importance, charged Russia with “robbery” Tuesday after the government of President Vladimir Putin seized several of its leased planes.

Domhnal, an executive from the company, indicated that this ordeal will have lasting effects on their relationship with China. It cast doubt over whether Russia’s second largest aircraft lessor could do any meaningful business with Russian airlines again.

“We do our best every day. But as of today.” [there is]He said that there was no chance to get them back now.

Western plane leasing firms have attempted to retrieve hundreds of Russian aircraft. Due to sanctions, the Russian government ordered them to terminate all agreements with Russian customers.

Putin, however, was here earlier this month signed a lawThis would enable the country’s airlines to fly these planes domestically, and then re-register them. It will also reduce the chances of their being recovered by foreign owners. The country has a total of $10 billion in foreign-owned aircraft that was leased to Russian airlines.

“It’s only robbery. They have taken the planes. “It’s impossible,” Slattery stated.

Avolon is located in Dublin and had 14 planes in Russia. Four of these were recovered by the company. Slattery indicated that it now has a net exposure of approximately $200 millions. It was a headache, but not migraine, he said. The firm had 800+ planes at the end of 2013.

Slattery stated that Russia will remain in Russia for a long time, and would not be interested in incremental exposure.

According to Cirium, an aviation consulting company and data provider Cirium, the key is Russia’s 970-plus plane fleet with approximately 500 planes managed by foreign owners.

Slattery stated that the Russian crisis will have an impact on the insurance market and increase costs to cover war-related risks.

Avolon rival AerCapThe Dublin-based company, meanwhile, will be holding a conference call Wednesday morning to share results.

[ad_2]