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Air Lease to write off jets stranded in Russia, expects $802 million in charges -Breaking


© Reuters. FILE PHOTO – Planes can be seen at Sheremetyevo International Airport as coronavirus continues to spread (COVID-19), outside Moscow, Russia, April 9, 2020 REUTERS/Tatyana Madeyeva

(Reuters) – Air Lease (NYSE) Corp announced Friday that it will write off the remaining value of 27 Russian jets in sanction-hit Russia. This move is likely to result in charges of around $802 million.

International aircraft leasing companies are trying to seize more than 400 Russian airline jets, worth nearly $10 billion. They have rarely responded to any requests for the jets to be surrendered.

Air Lease released a statement saying that “it is unlikely that [the company] will regain possession aircraft that haven’t been returned” and that they remain in Russia.

This write-off includes 21 jets owned by the company and six in Air Lease’s managed aircraft. It will be included in the May 5th earnings report.

Air Lease stated that the write-off will not result in future cash expenses and it is pursuing insurance claims for losses related to the aircraft.