Aircraft lessor writes off $1.1bn loss as planes remain in Russia
Aircraft leasing company SMBC has written off a $1.1bn loss as 34 of its planes remain stranded in Russia following the invasion of Ukraine.
The Dublin-headquartered company, one of the biggest in the world, decided to expense the fleet’s value this financial year, as the war in Ukraine is expected to continue for some time and SMBC said it will not recover its jets soon.
It is believed the firm’s planes are being flown in Russia as well as to allies or territories where they won’t be repossessed, the Times first reported.
Had it not been for the war-induced bill, the company would have made a yearly profit of $336, the outlet said.
SMBC is not the only air lessor to have posted a loss due to the war’s impact.
Titan AerCap posted a $2.7bn net loss in the first three months of 2022, as 113 of its jets and 11 engines remained stuck in Russia, City PM reported.
Following the invasion of Ukraine, more than 400 foreign-leased planes worth $10bn remain in Russia, leading to potential year-long legal battles between lessors and insurers over who would pay the bill.
Insurance powerhouse Lloyd’s of London hired in early May global law firm Clyde & Co to investigate whether lessors’ claims are legally valid.