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Could Leasing Companies be Forced to Write-off 500+ aircraft

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Could Leasing Companies be Forced to Write-off 500+ aircraft

Old 14th Mar 2022, 18:47
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Putin signs law allowing foreign aircraft to be re-registered as Russian

From - https://insuranceday.maritimeintelligence.informa.com/ID1140124/New-Russian-aviation-law-sparks-confiscation-fears

A new law allowing Russian airlines to register inside Russia planes leased from abroad has come into force, raising further fears in the aviation insurance market of massive losses.

As Insurance Day reported last week, there have been fears the Russian government might effectively confiscate up to $13bn-worth of foreign-made planes being leased by Western companies to Russian clients. According to analysts, there are 589 Western-built aircraft that are owned by European companies in Russian airports.

The new law was signed by Russiaís president, Vladimir Putin, and is part of the countryís measures to combat Western sanctions. The law says it aims to ensure the uninterrupted functioning of activities in the field of civil aviation.

According to Reuters the move comes after aviation authorities in Bermuda and Ireland, where virtually all foreign-leased jets operating in Russia are registered, said they were suspending certificates of airworthiness for those planes.

No plane can fly without a certificate of airworthiness issued by the civil aviation authority in the country where it is registered. Re-registering foreign-owned planes in Russia would aim to get around this, Reuters said.


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Old 14th Mar 2022, 19:10
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Originally Posted by WillFlyForCheese View Post

Putin signs law allowing foreign aircraft to be re-registered as Russian

From - https://insuranceday.maritimeintelligence.informa.com/ID1140124/New-Russian-aviation-law-sparks-confiscation-fears

A new law allowing Russian airlines to register inside Russia planes leased from abroad has come into force, raising further fears in the aviation insurance market of massive losses.

As Insurance Day reported last week, there have been fears the Russian government might effectively confiscate up to $13bn-worth of foreign-made planes being leased by Western companies to Russian clients. According to analysts, there are 589 Western-built aircraft that are owned by European companies in Russian airports.

The new law was signed by Russiaís president, Vladimir Putin, and is part of the countryís measures to combat Western sanctions. The law says it aims to ensure the uninterrupted functioning of activities in the field of civil aviation.

According to Reuters the move comes after aviation authorities in Bermuda and Ireland, where virtually all foreign-leased jets operating in Russia are registered, said they were suspending certificates of airworthiness for those planes.

No plane can fly without a certificate of airworthiness issued by the civil aviation authority in the country where it is registered. Re-registering foreign-owned planes in Russia would aim to get around this, Reuters said.
Well thatís the end of International flights for Russian airlines. This will take decades to sort out if ever.
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Old 14th Mar 2022, 21:23
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Originally Posted by Atlantic Explorer View Post
Well thatís the end of International flights for Russian airlines. This will take decades to sort out if ever.
Now Aeroflop or Aeroflip?
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Old 14th Mar 2022, 21:33
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Still interested to see who will taking the hit at the end... Leasors? Insurances?
My money is on the taxpayer but I'm the cynical kind.
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Old 14th Mar 2022, 22:46
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Originally Posted by zambonidriver View Post
Still interested to see who will taking the hit at the end... Leasors? Insurances?
My money is on the taxpayer but I'm the cynical kind.
Yes - all involved will scramble for coverage. Act of War exclusion anyone?

Some are already litigating whether those types of exclusions apply to "Cyber War." The world is, unfortunately, getting more interesting in this regard.

https://www.fitchratings.com/researc...age-01-03-2022
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Old 15th Mar 2022, 09:01
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Originally Posted by Atlantic Explorer View Post
Well thatís the end of International flights for Russian airlines. This will take decades to sort out if ever.
I can envisage Russian airlines flying to vassal states, who are unable to refuse, thus widening the scale of the problem.
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Old 15th Mar 2022, 09:53
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Originally Posted by Journey Man View Post
I can envisage Russian airlines flying to vassal states, who are unable to refuse, thus widening the scale of the problem.
Indeed, but the attitude of China will determine if this is viable If they support Russia, this could drag on for years , but it they refuse, this will not work long term . Even Russia most fervent supporters, the like of Serbia, Cuba and Venezuela will be out of reach.
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Old 15th Mar 2022, 11:08
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China will ban them. They will want to sell the failed Russian state their aircraft in a rescue package. Airframes too cheap to refuse with lots of economic strings attached.
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Old 15th Mar 2022, 11:13
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Am I right in thinking that the biggest share of leased aircraft has come from China?
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Old 15th Mar 2022, 16:19
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Originally Posted by compressor stall View Post
China will ban them. They will want to sell the failed Russian state their aircraft in a rescue package. Airframes too cheap to refuse with lots of economic strings attached.
Can China supply aircraft with 0% US or EU content?
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Old 15th Mar 2022, 16:32
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Originally Posted by pulse1 View Post
Am I right in thinking that the biggest share of leased aircraft has come from China?
As far as we know that is not the case. The biggest leasing companies are irish, although China is certainly trying to catch up.
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Old 15th Mar 2022, 16:55
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Originally Posted by pulse1 View Post
Am I right in thinking that the biggest share of leased aircraft has come from China?
Over 200 of the aircrafts are owned by Dublin based leasing companies including 128 by AerCap alone, according to RTE News at One.
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Old 16th Mar 2022, 07:37
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Originally Posted by compressor stall View Post
China will ban them.
It does not seem to be the case: https://www.cnbc.com/2022/03/15/ukra...ssias-war.html

.
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Old 17th Mar 2022, 05:40
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Originally Posted by Bidule View Post
My opinion expressed above, but I note China also banning supply of spares to Boeing and Airbus.

China play the long game. Look at belt and road. Find third world countries, offer them something they can't afford themselves, then presto, debt bondage for generations.

A post Putin less autocratic regime will be desperate for airframes.... Those remaining will be practically un airworthy, China would love a market.
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Old 9th Dec 2022, 17:38
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A new development maybe?
https://euroweeklynews.com/2022/12/0...-300-aircraft/
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Old 9th Dec 2022, 18:21
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Originally Posted by Nil by mouth View Post
A very poorly written article.

The majority of the planes are said to be leased from foreign companies and had been registered in Bermuda given concerns over the transparency and completeness of the procedures for maintaining airworthiness in Russia.

So instead they were registered in Bermuda and Ireland, well known places for registering planes and ships.

Sanctions required these countries to suspend registrations and airworthy certificates making it impossible to fly. But that appear to have been easily overcome by simply changing the place of registration.
My understanding is that all of those aircraft are still technically on the Bermuda/Irish registers. They are/will be severely restricted as to where they can fly outside Russia as very few countries will recognise as legitimate the RA- registrations that they now wear in contravention of ICAO's ruling that an aircraft may not be simultaneously registered in multiple countries.

A further 150 super jets have returned to Russia and are now able to fly abroad, albeit to a limited range of counties.[sic]
Hmmm.

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Old 22nd Dec 2022, 18:49
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I spotted this article today. Not a runner as long as the current sanctions remain in place, it seems certain. https://www.irishtimes.com/business/...leasing-firms/
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Old 22nd Dec 2022, 19:10
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Interesting, but why would anybody agree to this?, this is not only a flagrant contravention of sanctions but also would allow Russian airlines to buy these aircraft at a fraction of their actual worth., kind of a rewardi for the war.. Crazy.
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Old 22nd Dec 2022, 20:09
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The chances of EU approval are zero.
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Old 23rd Dec 2022, 18:54
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Originally Posted by DaveReidUK View Post
The chances of EU approval are zero.
Exactly - this was mainly Russian consumption so that - when the EU rejects it - Vlad can blame it on the evil west instead of where the blame actually belongs.
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