An aircraft lessor has reportedly recalled three Probeda planes.
Marina Lystseva/TASS/Getty Images
- More than half of the active commercial aircraft fleet based in Russia are leased from foreign firms.
- The EU has banned “any plane owned, chartered or otherwise controlled by a Russian legal or natural person.”
- This means leasing companies must terminate existing agreements within 30 days, per the FT.
Aircraft-leasing companies are working out how to recall billions of dollars of planes from Russian airlines as new European Union sanctions kick in, according to the Financial Times.
The development comes on the back of the EU banning “any plane owned, chartered or otherwise controlled by a Russian legal or natural person,” EU Commission President Ursula von der Leyen said in a statement on Sunday.
“They won’t be able to land in, take off or overfly the territory of the EU,” von der Leyen wrote in a tweet.
Leased aircraft are also affected by the sanctions, the Financial Times reported, citing three people briefed on the situation. This means leasing companies cannot enter into new contracts and must terminate existing agreements within 30 days, per the FT.
More than half of the active commercial aircraft fleet based in Russia is leased and managed by companies based outside the Russian Federation, according to a report from the IBA Group, which advises the aviation industry.
Of the non-Russian leasing companies, Ireland-based AerCap is the most exposed to the issue, according to IBA Group. It has 152 aircraft worth about $2.5 billion across Russia and Ukraine. It’s followed by Ireland-based SMBC Aviation Capital and Singapore-based BOC Aviation.
AerCap did not immediately respond to Insider’s request for comment and declined comment to the FT. SMBC Aviation did not immediately respond to Insider’s request for comment but told the FT it was “carefully monitoring developments in Ukraine.”
BOC Aviation said the EU sanctions will affect most of its aircraft in Russia. “Our policy is to fully comply with all laws applicable to our business,” BOC Aviation told Insider. “The practical consequences of the new EU sanctions are complex and at the present time we are unable to provide further information.”
An Irish leasing company is already recalling three Boeing 737 planes leased to Probeda, an Aeroflot subsidiary, reported Russian news agency Interfax, citing an Aeroflot Group source. Aeroflot did not immediately respond to Insider’s request for comment.
Read the original article on Business Insider 
