Western Leases to Russian Airlines at Risk

Looks like Russia has decided to nationalize around 600 leased western airliners from Boeing, Airbus, Bombardier, etc worth around $10B. They cannot be repossessed because Russia has forbidden them to fly outside Russia and Belarus and trying to take possession in Russia is obviously impossible. Most were registered in Ireland, but because of sanctions, Russia is now registering them in-country and extending their airworthiness certificates. With parts, technical updates, and service sanctioned the fear is that cannibalization will eventually reduce leased aircraft value to near zero. Obviously of huge interest to leasing companies and the insurance companies that insured them for loss due to war, nationalization, etc. Litigation over insurance is likely, although no claims had been filed recently.

The Russian airliners were reliable customers for leased aircraft until the great unpleasantness began. Russia's lack of access to SWIFT also means that even if the airlines wanted to make lease payments, it would be difficult to move the money. Will likely be a long, long time before any aircraft leasing company will do business with Russia or Belarus.

See AW&ST for more details.