Russian Planes Face Grounding Risk as Leasing Firms Mull Default
(Bloomberg) -- Russian airlines face the risk of jetliner groundings as sanctions imposed over the Ukraine invasion threaten their ability to fund rented planes and leasing firms look at enforcing default measures.
More than half of the active commercial aircraft based in Russia are leased, mostly from companies based abroad, according to analysis from IBA Group, which advises airlines, planemakers, banks and lessors. That tally includes scores of aircraft at flag-carrier Aeroflot.
Tests are likely to come over the next few days as carriers go to make payments for the jets they hire. With Russian financial institutions sanctioned and the U.S., European Union, U.K. and Japan taking steps to exclude some banks from the SWIFT messaging system used for transactions, airlines may struggle to submit dues for March, IBA President Phil Seymour said Sunday.
“There’s a real risk of default as soon as the coming week,” Seymour said in a phone interview. “Leasing firms are aware that the tap will be tightened even further as sanctions are rolled out and there are decisions to be made.”
https://www.msn.com/en-us/money/companies/russian-planes-face-grounding-risk-as-leasing-firms-mull-default/ar-AAUnxAT
