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Air Lease Says 21 Jets Stranded In Russia

By Dave Simpson

Air Lease Corp AL.N said on Tuesday 12 April that it has 21 jets remaining in sanctions-hit Russia, two weeks after a Western deadline for global leasing firms to sever ties with the country's airlines.

Details

All of the company's aircraft leases to Russian airline customers were terminated last month, it said.

In March, Air Lease said that a new Russian law allowing Moscow to "confiscate" planes might help it claim insurance. The new law allows Russian airlines to place airplanes leased from foreign companies on the country's aircraft register.

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The company had also said that it was making "good headway" in cutting exposure to Russia following Moscow's invasion of Ukraine.

It did not immediately respond when asked about steps taken to recover the remaining aircraft stuck in Russia, which represent about 3.4% of the company's fleet by net book value, as of March 31.

Global leasing companies have been scrambling to repossess more than 400 jets worth almost $10 billion from Russian airlines, which have mostly been unresponsive to demands for surrendering the jets.

Last week, Singapore-based BOC Aviation Ltd 2588.HK said that it was in the process of recovering 17 owned aircraft from Russia.

The world's top aircraft lessor, AerCap Holdings NC AER.N, submitted an insurance claim last month for more than 100 jets stuck in Russia following the invasion.

Boeing Says 141 Jet Orders In Limbo Amid War In Ukraine

The above news was followed by news that Boeing Co BA.N on Tuesday 12 April moved orders for 141 of its airplanes into accounting limbo due to the war in Ukraine and international sanctions against Russia, meaning that it no longer expects the jets to be delivered.

Boeing unveiled the adjustment to its order backlog in monthly orders and deliveries data that also showed it had delivered 41 jets to customers in March.

The monthly deliveries tally included 34 of its cash-cow 737 MAX single-aisle jets, two 767 freighters for FedEx Corp FDX.N and a 777 freighter for China Airlines 2610.TW.

The 41 March deliveries - nearly double the 22 it delivered in February and up from 29 a year ago - reflect rebounding travel and pandemic-driven cargo demand. Boeing said year-to-date deliveries stood at 95 aircraft.

However, deliveries of its 787 Dreamliner remain frozen as Boeing performs inspections and repairs on the twin-aisle jetliners sidelined by production problems for more than a year.

In March, Boeing booked orders for 53 planes, while customers canceled orders for 15 jets. Net of canceled orders and swapped models, Boeing had 38 orders, it said.

For the first three months of the year, Boeing's orders rose to 167 from 114, Boeing said. Taking out cases where customers canceled orders or swapped models, its orders stood at 145, up from 107, Chicago-based Boeing reported.

After adjustments for deals deemed unlikely to result in actual delivery, net orders for the quarter year to date dropped to 76 from 179, Boeing said.

Overall, Boeing's official order backlog fell to 4,231 from 4,375.

Boeing said the accounting adjustment included 141 aircraft removed from its backlog due to the war in Ukraine, which has resulted in international sanctions against Russia and ruined Ukraine's airline industry.

Boeing said most of the orders now in question were for Russian and Ukrainian carriers. The orders were mostly for its best-selling 737 MAX family of planes, though more than a dozen of its 777 and 787 widebody models were also involved.

Buyers canceled orders for 15 aircraft in March including one 737 MAX for lessor Aviation Capital Group, 11 737 MAX for an unidentified buyer, and one 787-9 Dreamliner each for Air China and leasing company Avolon or its CIT subsidiary.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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