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Jet lessors face more headaches in Russia

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Irish aircraft lessors are facing major challenges in acquiring their jets from Russian aircraft carrier.

It was not released after the airworthiness certificates of hundreds of charter planes operating in the sanctioned country were suspended in Bermuda over the weekend.

About three-quarters of Russia’s commercial fleet used by operators like Aeroflot is leased. It amounts to 750 aircraft from a commercial fleet in Russia totaling more than 1,000.

The jets are leased from lessors including those from Ireland, which is the largest international hub for the aircraft leasing industry globally.

Dublin-based AerCap – the largest aircraft leasing company in the world – has the largest exposure to the Russian market, with around 145 jets based here. Dublin-based SMBC Aviation Capital has around 34, while Avolon, also based in Dublin, has around 14.

Airplanes are worth billions of dollars.

While a small number of aircraft leased in the Russian market are registered in Ireland, most are registered in Bermuda.

“International sanctions on the aviation sector have had a significant impact on the ability to maintain safe supervision of Russian-operated aircraft at the Bermuda Aircraft Registry,” the aviation authority said. no Civil Bermuda noted in a statement over the weekend.

“The airworthiness rating system has been so limited that the Bermuda Civil Aviation Authority cannot confidently approve these aircraft as airworthy.”

The authorities said they had temporarily suspended all airworthiness certificates on planes operating under the agreement between Bermuda and Russia, effective before midnight on Saturday.

Most of the leased aircraft used in Russia are modern jets made by Boeing and Airbus, many of them almost brand new.

Some deliveries of aircraft to Russia even took place a few days before the country’s invasion of Ukraine.

But sanctions introduced by the European Union mean lessors must terminate leases with their Russian counterparts by March 28.

Industry insiders say lessors will struggle to meet that deadline and they face insurmountable challenges in trying to acquire their jets.

Sanctions now also block the sale of replacement aircraft parts to Russia from Boeing and Airbus. That increases the difficulty for Russian carriers in maintaining the jets. Instead, carriers have looked at sourcing parts from India and China.

Last week, the Russian government said it was proposing to allow foreign planes leased by Russian airlines to be registered as the property of the airlines and have them issue a certificate of airworthiness of the Russian airlines. Russia.

That could prompt lessors to scrap the jets. However, they may also have to resort to insurance companies if the plane is deemed lost.

While lessors have attempted to seize some of the planes used by Russian carriers, many believe they will face major challenges in retrieving them, especially most. currently in Russia and Russian carriers will now not go to countries where their jets could be seized.

https://www.independent.ie/business/jet-lessors-face-more-headaches-in-russia-41442727.html Jet lessors face more headaches in Russia

Fry Electronics Team

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