The world’s largest aviation owner lost 113 Russian planes due to sanctions

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AerCap Holdings, the aircraft leasing giant that is the world’s largest aircraft owner, lost 113 aircraft when Russia hijacked them in response to sanctions sparked by the war in Ukraine. planes and 11 jet engines forced AerCap to collect $ 2.7 billion in pre-tax taxes for the quarter, with the company reporting a net loss of $ 2 billion instead of the $ 500 million profit it would have received without harm. . But company executives said the quarter was actually good and they see better times ahead as global demand for flights continues to recover after the COVID-19 pandemic. “But for Russia’s influence, it’s a strong key quarter for the company,” CEO Angus Kelly said in a comment to analysts. “In all areas of our business … we are seeing increased demand, increased use of our assets and improved financial health of our customers.” Investors agreed, and Dublin-based AerCap shares gained 6% in the afternoon trading after the report. The company was able to find 22 planes and three engines before they were seized by Russian authorities. He has made insurance claims to return the lost plane, although some of these claims are made by Russian insurance companies. This policy is supported by Western reinsurance companies, but AerCap said that “the term and amount of any foreclosure under these policies are uncertain.” The company has a total of 1,624 aircraft, which is much more than any other airline. Jets lost by Russia accounted for less than 5% of the net worth of the Aercap fleet, which grew during the pandemic through the acquisition of rival leasing firm GECAS at General Electric. Aercap should easily overcome the financial losses of aircraft, said Richard Abulafia, head of AeroDynamic Advisory. Even if the war is over and sanctions are lifted, the planes have lost their certificates of operation in the eyes of Western aviation regulators. “Once the documentation comes out, there’s no point in even trying to get them back,” he said. When Russia invaded Ukraine on February 24, Russian airlines operated 861 commercial aircraft, according to Cirium. Slightly more than half of these aircraft with an estimated market value of $ 9.2 billion belonged to non-Russian leasing companies. Sanctions from several countries have demanded that international leasing companies that owned the planes return them by the end of March. An estimated 79 aircraft were hijacked, but Russia has announced it will nationalize hundreds more.

AerCap Holdings, the aircraft leasing giant that is the world’s largest aircraft owner, lost 113 aircraft when Russia hijacked them in response to sanctions sparked by the war in Ukraine.

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The confiscation of aircraft and 11 jet engines by Russian authorities forced AerCap to take $ 2.7 billion in taxes before the quarter, with the company reporting a net loss of $ 2 billion instead of the $ 500 million it would have earned without hit. But company executives said the quarter was actually good and they see better times ahead as global demand for flights continues to recover after the COVID-19 pandemic.

“But for Russia’s influence, it’s a strong base quarter for the company,” CEO Angus Kelly said in a comment to analysts. “In all areas of our business … we are seeing increased demand, increased use of our assets and improved financial health of our customers.”

Investors agreed, and Dublin-based AerCap shares gained 6% in the afternoon trading after the report.

The company was able to find 22 planes and three engines before they were seized by Russian authorities. He has made insurance claims to return the lost plane, although some of these claims are made by Russian insurance companies. This policy is supported by Western reinsurance companies, but AerCap said that “the term and amount of any foreclosure under these policies are uncertain.”

The company owns a total of 1,624 aircraft, much more than any single airline. The planes lost by Russia accounted for less than 5% of the net worth of the Aercap fleet, which grew during the pandemic through the acquisition of rival leasing firm GECAS at General Electric.

Aercap should easily bear the financial losses of aircraft, said Richard Abulafia, managing director of AeroDynamic Advisory. Even if the war is over and sanctions are lifted, in the eyes of Western aviation regulators the planes have lost their performance certificates.

“Once the documentation comes out, there’s no point in even trying to get them back,” he said.

When Russia invaded Ukraine on February 24, Russian airlines operated 861 commercial aircraft, according to Cirium. Slightly more than half of these aircraft with an estimated market value of $ 9.2 billion belonged to non-Russian leasing companies.

Sanctions by several countries have demanded that international aircraft leasing companies own the planes by the end of March. An estimated 79 aircraft were hijacked, but Russia has announced it will nationalize hundreds more.

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