Aircraft leasing firms are set to terminate hundreds of leases with Russian airlines following Western sanctions over the invasion of Ukraine that give the sector a month to act.
Russian airlines have 980 passenger jets in service, of which 777 are leased, according to analytics firm Cirium.Of these, two-thirds, or 515 jets, with an estimated market value of about $10 billion, are rented from foreign firms.
Its Russian clients include Aeroflot, S7 Airlines, Rossiya, Azur Air and Ural Airlines, its website showed, involving aircraft worth an estimated $2.5 billion, according to aviation services firm ACC Aviation. The European Union on Sunday gave leasing companies until March 28 to wind up current rental contracts in Russia, presenting lessors with a major new headache hard on the heels of crises over Boeing 737 MAX safety and the COVID-19 pandemic.REPOSSESSING JETS
Russia is a member of the Cape Town Convention, a specialist but vital treaty underpinning the fast-growing air finance industry by making it easier for lessors to recover jets when airlines cannot pay, in return for cheaper finance for airlines.
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