Hundreds of jetliners owned by foreign leasing firms were exposed to devaluation after the Civil Aviation Authority removed all aircraft tied to Russia from its airworthiness registry.
International sanctions on the aviation sector have had a significant impact on the ability to sustain safety oversight on Russian-operated aircraft. The agency said it was impossible to approve these aircraft as airworthy.
The move is likely to accelerate decisions by firms that have rented out jetliners to Russian airlines. Irish lessors have until March 28 to comply with European Union sanctions against Russia. Russia has begun moving planes to its local registry.
According to Bernews, there are about 740 Russian aircraft on the island. In Russia, the aviation authority ofBermuda performs an essential role in assuring planes are insured and maintained to confirm their airworthiness. Without it, the jets can't be marketed to other airlines in the world.
According to Ishka, foreign owners have leased jetliners to Russian operators for an estimated $10.3 billion.
Russian officials are not allowing the planes to be returned to their owners. More than 100 aircraft have already been re-registered there.
According to IBA, foreign lessors had over 500 aircraft rented to Russian operators as of March 10. The world's biggest leasing firm, AerCap, had 142, followed by SMBC Aviation Capital with 35. The Japanese consortium of Sumitomo Corp. and Sumitomo Mitsui Financial Group has a base in Dublin.
In February, AerCap said it would comply with EU sanctions. According to IBA, its contracts in Russia have an estimated value of $2.5 billion. The company said it has terminated all of its lease agreements with Russian airlines.
The company said in an email that it continues to carefully monitor developments in Ukraine and is engaged with all relevant authorities.
S7 Airlines is the biggest customer of foreign leasing firms with 101 aircraft, followed by Aeroflot with 89. Many of the planes are older, with an average age of 12.8 years, but S7 has 31 of the newer A320neos on lease.
The asset-backed securities tied to the jets in Russia leased by Carlyle Aviation Management have been put on watch for a possible rating cut. Insurance claims are expected to lead to litigation.
The authority said that the suspension of Russian airworthiness certificates took effect on Sunday. All aircraft are affected by the agreement between the Russian Federation and Bermuda.
Bernews said that the island, which is a self-governed overseas territory of Britain, will largely follow U.K. sanctions on Russia.
All Rights Reserved © 2024
