As we noted earlier this month, Irish-owned aircraft on lease in Russia must be recalled
by their owners as a result of sanctions against the country.
These lessors have hundreds of aircraft in Russia and are now faced with the enormous
task of repossessing the aircraft that they legally own.
But in light of airspace bans and a government that is seen by many to be violating international
law, how will aircraft owners actually get their jets back?
Sanctions imposed by the West have hit Russia hard.
Not only are Russian airlines banned from European, Canadian, and American airspace,
but planemakers Airbus, Boeing, and Embraer have halted the supply of parts and aircraft
to the country.
Sanctions have also meant that major aviation lessors have just 30 days (from February 28th)
to get their aircraft out of Russia to comply with sanctions.
Thus, contracts must be terminated near the end of March.
As we noted in a previous video, lessors are already working hard on this issue, with taskforces
established to figure out a way to repossess the jets.
With very little time to react, we know that a few foreign lessors managed to get ahold
of some of their jets.
Indeed, we know two aircraft were confirmed as seized abroad.
According to ch-aviation.com, A Pobeda 737-800, Registration VQ-BTC, was
seized at Istanbul airport.
The aircraft is owned by Irish firm Avolon.
Additionally, a Nordwind 777-300ER Registered VP-BJP, was seized in México City.
The jet is owned by US firm Aircastle and has since been relocated to storage in Arizona.
In a dramatic series of events, the Air Current noted that on March 2nd, an Aeroflot A321neo
en route to Cairo had its airworthiness certificate revoked mid-air by authorities in Bermuda
after its insurance policy was canceled.
The aircraft’s owner, SMBC Aviation Capital, made an attempt to repossess the plane after
it landed- however, the aircraft managed to narrowly escape, successfully returning to
Moscow.
It’s likely this type of situation that prompted Aeroflot to halt all international
flights- except for service to Belarus.
As the New York Times notes, repatriation of leased planes would typically be planned
years in advance.
Time is one factor, but political obstacles are much more significant:
Shielded by Putin's government, Russian airlines may not cooperate
Further, reciprocal airspace closures between Russia and other nations prevent aircraft
from flying It gets even more complicated, as affected
airlines may have swapped out the original engines of leased aircraft for maintenance
reasons- adding another technical layer of complexity.
"The logistics are immense.
We are talking hundreds of planes that need to be flown out," IBA aviation specialist
Phil Seymour told the New York Times.
"Where in the world can they go?
Will they play ball?
Will there be any edict from above, telling not to cooperate?"
Paul O'Driscoll, a consultant with Ishka, told the Times that Russian airlines would
not be obligated to make lease payments or perform maintenance on aircraft once contracts
are canceled.
"The local airline is absolved of its responsibility...
You're really stuck.
You have to leave the metal there," he says.
Speaking with FrequentFlyers.ru, a source at Aeroflot hints that the Russian government
may not even be able to "buy out" the airline's leased jets.
Indeed, financial sanctions and the freezing of Russian currency reserves abroad prevent
the government from performing such deals.
As a result, it has been suggested that aircraft would be nationalized without any compensation
to aircraft owners.
Do you think the affected leased aircraft in Russia are "gone for good"?
Or do you think there will be a way to repossess these jets?
Let us know by leaving a comment.