- A US aircraft-leasing company is set to write off the value of 27 of its jets stuck in Russia.
- The write-off is expected to cost the company $802 million, according to a Reuters report.
- Air-leasing companies have been facing a hard time over new Russian legislation and EU sanctions.
An American aircraft-leasing company said it will write off the value of dozens of its jets stuck in Russia, per Reuters.
According to the outlet, Air Lease Corporation had 27 jets stranded in Russia after Western-imposed sanctions kicked in, following Russia's invasion of Ukraine.
The write-off is expected to cost the company $802 million.
"It is unlikely that the company will regain possession of the aircraft that have not been returned and that remain in Russia," Air Lease said in a statement, per the outlet.
Air Lease Corporation did not immediately respond to Insider's request for comment made outside of normal working hours.
The aviation industry has been hit hard ever since Russia's war with Ukraine began. Air-leasing companies, especially, have borne the brunt of these sanctions, forcing them to cut their contracts with Russian airlines.
On February 27, the European Union the EU banned "any plane owned, chartered or otherwise controlled by a Russian legal or natural person," as part of its sanctions on Russia.
Officials gave lessors 30 days to retrieve their fleets, meaning some $12 billion worth of planes needed to be flown out of Russia and returned to their owners by the deadline, according to consultancy firm Ishka.
Airspace bans in Russia, Europe, and the US, however, have created complications for air-leasing companies in getting to Russia to repossess planes.
Just last month, Russia also signed a new law authorizing the seizure of hundreds of Western-built aircraft operated by Russian airlines. The jets – originally owned by international aircraft lessors – will be added to the country's aircraft register to be deployed on domestic routes, per Reuters.
Air Lease is not the only company to face struggles. The world's biggest aircraft leasing firm, AerCap, has over 100 jets stuck in Russia and has subsequently submitted an insurance claim for approximately $3.5 billion for the loss of assets.
According to Reuters, Air Lease will let go of 21 company-owned jets and six planes in its management fleet. It told the outlet it will pursue insurance claims to recover losses of its jets stuck in Russia.
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