As we noted on March 2, Irish aircraft on lease in Russia are due to be withdrawn by their owners as a result of sanctions against Russia. These lessors own hundreds of aircraft in Russia and are now faced with the daunting task of reclaiming ownership of the aircraft they legally own. But in light of airspace bans and a government that many believe violated international law, how do aircraft owners actually get their planes back?
Only two aircraft seized quickly
The sanctions imposed by the West hit Russia hard. Not only are Russian airlines banned from flying into European, Canadian and American airspace, aircraft manufacturers Airbus, Boeing and Embraer have stopped supplying parts and aircraft to the country. The situation has spread to the digital world as well, with major airline booking system Saber removing the Russian carrier’s flight data from its global distribution system (GDS).
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The sanctions also mean that major aviation lessors such as AerCap and SMBC Aviation have only 30 days (from Feb. 28) to withdraw their aircraft from Russia. Thus, the contracts must be terminated by March 28. As we noted in a previous article, landlords are already hard at work on this issue, and one industry insider told the Irish Times:
“All lessors have task forces set up as part of their own business, and many of them will try to take the planes out of Russia and return them because they will be incarcerated for an unknown amount of time.”
In a very short time to react, the lessors managed to get their hands on a couple of their planes. However, the use of the term “pair” in this context is literal, as only two aircraft have been confirmed to have been seized overseas. According to ch-aviation.com, only two aircraft have been confirmed to have been hijacked overseas:
- A Pobeda 737-800 (in Istanbul): VQ-BTC registration, aircraft owned by the Irish firm Avolon.
- Nordwind 777-300ER (Mexico City): Registered VP-BJP, aircraft owned by US Aircastle.
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Landlords between a rock and a hard place
Landlords find themselves in an incredibly difficult position as billions of dollars worth of planes are stranded in Russia. As the New York Times notes, the repatriation of leased aircraft was usually planned years in advance.
Time is one factor, but political obstacles are much more important:
- Covered by the Putin government, Russian airlines may refuse to cooperate
- The mutual closure of the airspace between Russia and the EU, the US and Canada hinders the flight of aircraft
It is also noted that, in addition to political factors, the affected airlines may have replaced the original engines of the leased aircraft for maintenance reasons, adding another technical layer of complexity to the situation.
“The logistics are huge. We are talking about hundreds of planes that need to be sent,” IBA aviation specialist Phil Seymour told the New York Times. “Where can they go? Will they play ball? Will there be some order from above saying not to cooperate?”
Paul O’Driscoll, a consultant with Ishka, told the Times that Russian airlines will not be required to pay lease payments or perform aircraft maintenance after the contracts are terminated. “The local airline disclaims responsibility… You are really stuck. You must leave the metal there.”
Nationalized by Russia?
Nationalized by Russia?By now, it should be quite clear that there is a very real possibility of the plane getting stuck in Russia with little chance of recovering the plane (at least in the short term). ch-aviation notes that Russian airlines were allegedly told that the state could only protect the flag carrier (Aeroflot). On the other hand, private carriers have been ordered to negotiate directly with landlords, possibly looking for ways to slow down the return of ownership.
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Speaking to FrequentFlyers.ru, a source at Aeroflot hints that the Russian government may not even be able to “buy back” the airline’s leased aircraft, noting that financial sanctions and a freeze on Russian foreign exchange reserves abroad would prevent the government from taking such action. deals. As a result, it was proposed to nationalize the aircraft without any compensation to the owners of the aircraft.
Western sanctions affect Russian commercial aviation, from the average traveler to aircraft manufacturers and lessors. Photo: Getty Images.
All this theoretically would simply “go away” if the conflict in Ukraine could be resolved through diplomacy. However, at the time of the publication of this article, it seems that we are very far from such a development.
Do you think that the affected planes rented in Russia “gone forever”? Or do you think there will be a way to get hold of these planes? Let us know by leaving a comment.
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about the author
Chris Lo (articles published 1997)
The Associate Editor is an experienced photographer and video producer, Chris is a born journalist. Chris’ graduate education with a rich travel history, Chris’ understanding of itineraries, networks and alliances brings a depth of quality to his work that is hard to beat. His strong relationships with Middle Eastern and Canadian airlines make him an asset to the team. Currently based in Vilnius, Lithuania.
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