Aircraft Lessors are in real trouble , sanctions on Russian operators and airlines are pushing their performing assests under stress and have become difficult to recover them , owing to the conditions prevailing in that region.
While , multiple European Aircraft lessors have already started the process to stop the transactions and terminate the existing agreements with the Russian operators , Dubai based Dubai Aerospace Enterprise (DAE) Ltd is feeling the heat as well.
Reports suggest, approximately 7% of DAE's leased aircraft fleet by net book value was on lease to airlines in Russia , and the sanctions is going to foce them to retrieve the Aircraft from respective lessors.
DAE released a statement saying ,
DAE intends to fully comply with all applicable sanctions including those which currently prohibit the leasing of aircraft to an entity in Russia or for use in Russia.
DAE is ensuring an orderly unwinding of the existing leases with operators in Russia, and the removal of aircraft from Russia within the relevant wind down period permitted in the sanctions.
Air travel market recovery has brought back the demand of aircraft , those became liabilities for lessors and operators during the Pandemic . This demand is prompting lessors to utilize their fleet of aircraft under most profitable way , but sanctions and agreement termination are definite drawbacks for them.
The rapid lifting of COVID-related travel restrictions is translating into higher levels of demand for short- and long-haul passenger aircraft. DAE is actively responding to inbound requests from clients for additional aircraft.
Other major lessors are also affected by this , Ireland based AerCap has 152 aircraft worth about $2.5 billion stuck across Russia and Ukraine , and contracts of the Russian operators need to be terminated before March 28th , due to the EU sanctions.
EU sanctions highlighted the ban as "any plane owned, chartered or otherwise controlled by a Russian legal or natural person."
Huge logistical challeges await for Approx. $12 billion worth of leased jets, those need to be retured to Lessors like "Ireland-based SMBC Aviation Capital" and "Singapore-based BOC Aviation" apart from "AerCap" , due to the sanctions.
Courtesy : DAE
