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World’s largest aircraft owner lost 113 planes to Russia due to sanctions

AerCap Holdings, the world’s largest aircraft leasing giant, lost 113 planes when Russia seized them in response to sanctions imposed by the war in Ukraine. Related video above: Greek PM in Congress: Russia tests democracyThe seizure of planes and 11 jet engines by Russian authorities prompted AerCap to receive $ 2.7 billion in pre-tax taxes during the quarter, the company said in a statement. a $ 2 billion loss instead of the $ 500 million profit it would have made without the blow. However, company executives said the quarter was really good and they see better times in the future as global demand for flights continues to recover from the COVID-19 pandemic, “CEO Aengus Kelly told analysts. “In all our business sectors … we see an improvement in demand, increased use of our assets and an improvement in the financial health of our customers.” Investors agreed and Dublin-based AerCap shares gained 6% in afternoon trading. The company was able to recover 22 jets and three engines before being seized by the Russian authorities.It has filed insurance claims to seek the recovery of the lost aircraft, although some of these claims are in Russian insurance companies.These contracts are supported by Western reinsurance companies, but AerCap stated that “the time and amount of any recoveries based on These contracts are uncertain. “The company has a total of 1,624 aircraft, far more than any airline owned or operated. The jets lost to Russia accounted for less than 5% of the net worth of Aercap’s fleet, which grew during the pandemic by buying rival leasing company GECAS from General Electric. CEO with AeroDynamic Advisory. “Even if the war were over and sanctions were lifted, the planes would have lost their operating licenses in the eyes of Western aviation regulators.” When Russia invaded Ukraine on February 24, Russian air carriers operated 861 commercial aircraft, according to Just over half of those aircraft, valued at $ 9.2 billion, belonged to non-Russian leasing companies, and many countries imposed sanctions on international aircraft leasing companies It is estimated that 79 aircraft were recovered by the end of March, but Russia said it was nationalizing hundreds more.

AerCap Holdings, the world’s largest jet leasing giant, lost 113 planes when it seized Russia in response to sanctions imposed by the war in Ukraine.

Related video above: Greek Prime Minister in Congress: Russia is testing democracy

The seizure of the planes and 11 jet engines by the Russian authorities caused AerCap to incur a $ 2.7 billion pre-tax charge during the quarter, with the company reporting a net loss of $ 2 billion rather than $ 500 million in profits. dollars that would have struck. However, company executives said the quarter was really good and they see better times in the future as global demand for flights continues to recover from the COVID-19 pandemic.

“But for Russia’s impact, this is a strong underlying quarter for the company,” CEO Aengus Kelly told analysts. “In all our business sectors … we see an improvement in demand, an increased use of our assets and an improvement in the financial health of our customers.”

Investors agreed and Dublin-based AerCap shares gained 6% in afternoon trading after the exposure.

The company managed to recover 22 jets and three engines before being seized by Russian authorities. He has filed insurance claims to seek the recovery of the missing aircraft, although some of these claims are in Russian insurance companies. These contracts are backed by Western reinsurance companies, but AerCap said “the timing and amount of any recoveries under these contracts is uncertain.”

The company has a total of 1,624 aircraft, far more than any airline owns or operates. The jets lost to Russia accounted for less than 5% of the net worth of Aercap fleet, which increased during the pandemic by buying rival leasing company GECAS from General Electric.

Aercap should easily overcome the financial loss of the jets, said Richard Aboulafia, CEO of AeroDynamic Advisory. Even if the war was over and sanctions were lifted, the planes had lost their operating licenses in the eyes of Western aviation regulators.

“Once the documentation is gone, it doesn’t even make sense to try to get it back,” he said.

When Russia invaded Ukraine on February 24, Russian air carriers operated 861 commercial aircraft, according to data from aviation analyst Cirium. Just over half of those planes, valued at $ 9.2 billion, were owned by non-Russian leasing companies.

Sanctions by many countries required international jets that owned the jets to recover them by the end of March. An estimated 79 aircraft have been recovered, but Russia has said it is nationalizing hundreds more.

World’s largest aircraft owner lost 113 planes to Russia due to sanctions Source link World’s largest aircraft owner lost 113 planes to Russia due to sanctions

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