Three days after the invasion of Ukraine, a Boeing 737 — operated by Russia’s Pobeda but owned by Dublin-based Avolon — was impounded after landing in Istanbul.
The plane’s seizure came as European sanctions on Russia’s aviation sector prompted a global scramble among overseas leasing groups to recover more than 500 aircraft, worth an estimated $10bn, that were stuck in the country.
But it was among the last to be repossessed after the Kremlin moved to block such efforts last week by signing a new law allowing foreign jets to be reregistered in Russia.
“The Russian government is playing a game of what I call ‘Grand Theft Aero’, ” said Paul Jebely, global head of asset finance at law firm Withers.
Russia’s actions could force the world’s largest leasing companies to write off billions of dollars worth of assets, raising the prospect of lengthy battles with insurers over who should foot the bill.
Rating agencies have warned that the lost income from the leases has increased risks to bondholders in deals backed by the aircraft.
Global aircraft leasing has become an integral part of airline fleet management