A huge number of airlines lease a significant part of their fleet from lessors based around the world, with leases worth billions of dollars. As the sanctions upon Russia increase, leasing companies will be feeling the pressures of compliance and must take steps to protect their assets. 

Lessors with aircraft based in Russia are now required to terminate their leases (an aircraft lease will be seen as a “supply” which is now subject to EU sanctions), which raises the question of how they recall (or repossess) their aircraft, and how to weather the storm of the associated financial impact, including the potential issues of missed rental payments where airlines may struggle to send payments via banks now cut off by the SWIFT messaging system. 

Many lessors will have internal repossession teams, but repossession may be difficult in the current climate due to the reduced number of transport options available and the various airspace closures currently in force.

For further information on this situation or any other issues, please contact myself or either of my colleagues Gillie Belsham or Anna Anatolitou in the Aviation team at Ince, or your usual Ince contact who will be happy to assist.