Russia and Vladimir Putin have confiscated about 400 passenger planes chartered by Russian airlines from abroad. Owners expect heavy losses.

Russia – with airlines such as Aeroflot and S7 – has a very modern fleet of aircraft, and these aircraft are largely chartered from abroad.

Sanctions against Russia meant that airlines returned hundreds of planes.

But President Putin signed a law allowing aircraft to be registered and used in Russia.

“I don’t remember seeing anything similar in civil aviation, which is very well regulated and transparent,” says aircraft analyst Hans-Jürgen Elnas at Winair to VG.

– We don’t know what happens to the planes when this is over. It is not entirely clear.

Elnæs estimates that there are between 375 and 425 aircraft confiscated by the Russians.

– They managed to get some planes out of Russia before it was closed.

– And now just forget about these aircraft to the leasing companies?

– In the accounts yes! They are starting to write them off as losses.

Don’t get parts

It mainly concerns machines from Airbus and Boeing.

– These planes are now not insured and will not get spare parts for them as a result of the sanctions. Therefore, there are likely to be many of them on Earth, as Elnæs thinks,

He says creditors are closely watching whether the planes should eventually leave Russia, and whether they can be prevented from returning.

– You can’t hide a plane!

Airlines often lease aircraft for rapid expansion, without the need to raise the capital needed to purchase the aircraft. But the sanctions have forced the leasing companies to terminate their contracts with Russian airlines.

luck They put the value of the planes at about $10 billion, roughly 100 billion kroner at today’s exchange rate, and called what happened a “hijack”. Others, like Politico And telegraphThe word “theft” was used around the Russian gambit.

Leasing companies go to insurance companies to get back what you’re losing now.

Legal Nut

It is time for a real legal battle, the outcome of which is unknown. This could be an unlikely legal cause. It’s time to fight in court, says aviation analyst Elnæs.

– We are very excited about the result, but as far as I know, no company is in danger of giving up as a result of losses in Russia.

Bloomberg He writes that charter companies have managed to book about 30 planes in places like Hong Kong, Istanbul and Mexico City. When countries where the planes are registered — often Bermuda and Ireland — withdrew security certificates, the Kremlin introduced a new law that would allow airlines to also register planes at home and put them in domestic air traffic.

“I don’t think anyone in the insurance market considered Russia to re-register Western planes,” Garrett Hanrahan, global aviation director at insurance broker Marsh, tells Bloomberg.

– Equipment, hull and engines are likely to be in Russia.

according to luck Russian Airlines has a total of 515 foreign-owned aircraft in use. Most are owned by rental companies in Ireland and Bermuda. Ireland’s largest airline.