Sydney — Russia’s size and close integration into the global aviation industry since the end of the Cold War means sanctions related to its invasion of Ukraine are having outsize consequences relative to earlier freezes on Iran and North Korea.
Of these, 515 jets with an estimated market value of $10bn are rented from foreign firms such as AerCap and Air Lease.But getting the planes back could be challenging due to airspace bans, potential SWIFT payment transfer issues and industry concerns the Russian government could nationalise the fleet to maintain domestic capacity.
An insurance industry source said it was unclear if lessors unable to repossess planes would be covered for losses under their own policies, which typically contain clauses cancelling coverage in the event of sanctions.Legal action may be needed to settle the issue, said the source, who was not authorised to speak publicly.
Tass news agency reported the Russian transport ministry had drawn up a draft bill to help airlines until September 2022 that would allow maintenance by third-party firms and suspend all inspections of carriers.