The hopes of a few Western companies eager to retrieve planes leased to Russian airlines have rapidly diminished, authorities intend to maintain foreign-registered aircraft in the country, and President Vladimir Putin said foreign. We are openly discussing the nationalization of corporate assets.
As of Thursday, as of Thursday, foreign companies had leased 523 aircraft to Russian aircraft carriers, 101 to S7 Airlines and 89 to Aeroflot, according to consulting firm IBA. A chance to get the plane back in a foreign land.
Vitaly Guzhva, a professor of finance at Embry-Riddle Aviation University, said:
Dr. Guzhva and others attending a recent industry conference in San Diego said the leasing company’s predicament was about an event held by the International Transport Aircraft Trading Association. Airplanes are worth $ 12 billion, according to aviation consulting firm Ishka.
According to the IBA, Aircap, the world’s largest leasing company for commercial aircraft, owns 142 leasing machines in Russia, more than any other company. SMBC Aviation Capital, which did not respond to requests for comment, is the second most exposed company with 35 leased aircraft in Russia.
Under European sanctions, lenders such as Ireland-based Aircap and SMBC will need to terminate their contracts with Russian airlines and regain their planes by March 28.
David Walton, chief operating officer of Singapore-based leasing company BOC Aviation, said Thursday that the March 28 deadline was “frankly unrealistic” to take hundreds of planes out of the country. “Schedule”. We used 18 BOC-owned aircraft, or about 4.8 percent of the company’s fleet.
Nick Popovich, whose aircraft is owned by Indiana company Sage Popovich, has been contacted by several major global lenders interested in recovering planes from Russia. Stated. Cause Popovich said he was still investigating what he could do, but he couldn’t immediately find a viable way to recover the plane.
“I don’t accept missions that I don’t know if we can do it. I’m still researching what I can and can’t legally do,” he said.
According to experts, some planes were recovered abroad before the international flight stopped, but most owners do not have the meticulous maintenance records that accompany all aircraft and are often kept by the airline itself. Not useful. In Russia, work on jet aircraft, engines and flight systems is likely to be unrecorded and its value can plummet.
Quentin Brasie, Founder and Chief Executive Officer of ACI Aviation Consulting, said: “Without these records, an aircraft is virtually worthless. It’s literally more important than the asset itself.”
The economic implications of having an airplane in Russia can also be widespread. Such aircraft are funded in a variety of ways, including banks, financing from the leasing company itself, and investors in securitized debt.
According to data and analysis firm Russell Group, aviation war insurance companies in particular have faced the greatest potential losses since the September 11 simultaneous terrorist attacks, and insurers and reinsurers are at stake. It may be. Premiums have risen for years as the aviation insurance industry struggled to counter recent annual losses.
Russia-Ukraine War and World Economy
According to Russell Group founder Suki Bashi, insurers have reduced their coverage due to rising prices during the pandemic. At least, the situation in Russia will probably have a similar impact.
“You pay more, and you get less compensation. If it doesn’t do anything to the premium, it will do it,” he said.
Russia also has a lasting impact. The crisis can push up the cost of doing business in Russia, and some leasing and insurance companies may abandon the Russian market.
Nationalizing planes could bring short-term benefits to Russia in maintaining domestic travel, but it won’t be long before the airlines there crave for spare parts. .. Airlines can cannibalize the planes they have and reduce the value of those planes.
Kenhill, who also owns the aircraft, knows that directly. Two years ago, he said a US leasing company hired Mr Hill to retrieve three Boeing 737s at a small airport outside Moscow. The plane resisted his efforts to get them back, he said, but a few days later, Mr Hill gained access to the hangers-only discovered that the plane had burned down.
“The plane was there, but what wasn’t there? The engine,” he said.
To summarize the conversation at the San Diego conference, David Tokoph, CEO of advisory firm mba Aviation, said: There are many opinions. There aren’t many answers. “