Prior to the invasion of Ukraine, Russia was a key market for aviation lessors. (Credit: Nikolay N. Antonov/Adobe Stock)
Air Lease Corporation, an aviation lessor, shared last week that it recently received $328.5 million in cash payments from insurance settlements for aircraft that were detained in Russia in early 2022. The planes were blocked from leaving Russia after the country’s invasion of Ukraine.
Reuters reports that prior to the invasion, Russia was a key market for aviation lessors. However, the U.S., U.K. and European Union implemented sanctions in the wake of the invasion that included the closure of those entities’ airspace to Russian-operated aircraft and a prohibition on U.K. and E.U. entities leasing aircraft to Russian entities.
When lessors canceled Russian leases in accordance with the sanctions, Moscow refused to return the aircraft. Since then, lessors have been making claims with their insurers to recover losses.
Air Lease’s initial claim for the detained jets was $791 million, of which the lessor reports it has recovered about $424.3 million.
Air Lease secured a $64.9 million settlement with insurers in December 2023 for four aircraft that were on lease to JSC Siberia Airlines when Russia invaded Ukraine.
The company remains in settlement talks with other insurers.
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