The ongoing conflict between Ukraine and Russia shows no signs of abating. Many nations have refused to assist Russia in the conflict. Many multinational corporations have ceased operations in Russia. Even after that, Russia is unaffected. Meanwhile, Western companies’ efforts to reclaim planes leased to Russian airlines have been severely hampered. Officials in the country want to keep the foreign-registered plane in the country. President Vladimir Putin has talked about nationalising foreign companies’ assets.
The Russian carrier has leased 523 planes.
According to the consulting firm IBA, as of Thursday, March 10, 523 planes were leased to Russian carriers by companies based outside the country. S7 Airlines has 101 of them on lease, while Aeroflot has 89. International flights have been halted by both airlines. The possibility of regaining control of the plane has now vanished. According to Dr. Vitaly Guzva, a finance professor at Embry-Riddle Aeronautical University, there is now only agreement. It is unlikely that I will be able to board the plane again.
Experts have already made their predictions.
Some people who had previously attended an industry conference with Dr. Gujwa in San Diego had predicted this. This was also mentioned at an International Society of Transport Aircraft Trading event, he said. Experts, he said, are generally of the opinion that the companies will suffer significant losses. The plane is worth more than $ 12 billion, according to aviation consulting firm Ishka (about 92 thousand crore rupees).
Russia has leased 142 planes from Aircap.
AirCap, the world’s largest commercial aircraft leasing company, has leased 142 planes to Russia, according to the IBA. In comparison to any other company, this is the highest. Aircap, on the other hand, has remained silent on the subject. Previously, he disclosed that Russia owns 5% of his fleet’s planes during a financial disclosure. Russia has leased 35 planes from SMBC Aviation Capital.
Russian airlines are heavily reliant on the global plane rental industry. Airlines rely heavily on them to modernise their fleets of Airbus and Boeing planes. The European Union, on the other hand, has given plane leasing companies until March 28 to cancel agreements signed in Russia. However, due to airspace restrictions and difficulties in transferring funds quickly, bringing these planes back has become a major challenge.
Hundreds of planes will be unable to take off until March 28th.
The March 28 deadline, according to David Walton, chief operating officer of Singapore-based leasing company BOC Aviation, is too short to evacuate hundreds of planes from the country. Russian airlines were using 18 BOC planes by the end of February. This represents approximately 4.8 percent of the company’s fleet.
The situation will be critical if the plane becomes stuck in Russia.
According to Quentin Brassi, founder and CEO of ACI Aviation Consulting, if a company finds its planes but does not have records for them, they are rendered useless. The longer a plane is stranded in Russia, the more serious the situation becomes. Because of issues with the plane’s body, engine, and flying system, the plane’s value decreases.
The Russian Ministry of Transport, according to Russia’s state news agency Tass, has prepared a draught bill to assist airlines. Maintenance work can be done by a third party until September 2022 under this agreement. The inspection of airlines will also be cancelled as a result of this. Due to restrictions, aviation experts are concerned that plane manufacturers will not share service bulletins. Which are extremely important from a security standpoint.
This will have an impact on the plane’s insurance.
According to experts, this will have an impact on the plane’s insurance as well. According to the Russell Group, a data and analytics firm, Aviation War Insurance is concerned about this. They are on the verge of suffering their worst loss since the terrorist attacks of September 11, 2001. As the airline industry has suffered losses in recent years, plane insurance is becoming more expensive.
Insurance companies have cut coverage due to price hikes during the pandemic, according to Suki Basi, founder of Russell Group. In the case of Russia, a similar effect can be observed. That is to say, you will pay more for insurance but receive less coverage.
The supply of plane parts came to a halt as well.
Russian airlines have stopped receiving aircraft equipment from Boeing and Airbus, two of the world’s largest aviation manufacturers. As a result, the Russian plane is in danger of coming to a halt. China has also refused to hand over a portion of the planes to Russian carriers. China’s policy toward Russia is expected to change in the next two weeks. According to the Russian News Agency, China has refused to hand over a portion of the aircraft to Russia, so it is considering seeking assistance from Turkey or India.