Difficult to do business in Russia again - Avolon CEO

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Dómhnal Slattery, the chief executive of Dublin-based aviation leasing company Avolon, said he believes it will be very difficult for the aircraft leasing sector in general to underwrite new business in Russia for a very long period of time - if ever.

Mr Slattery also said there was"an inevitability of a financial hit" from its business in Russia, as the company struggles to reclaim 10 of its planes from the country.

"We have four of the 14 aircraft outside of Russia, which is good, all of the leases are now terminated in line with sanctions, we have made every effort to get the aircraft back, but at this point that has not happened," the Avolon CEO said on RTÉ's Morning Ireland. "Clearly these sanctions had to be addressed, we had to comply with those sanctions but in many ways I suppose it's an unintended consequence in our sector of these sanctions for European countries," he said.

It has now secured agreements with airlines and aviation companies to lease all of these aircraft, with its orderbook oversubscribed by 50 options. At the same time he expected other technology, like hydrogen-powered planes, to start to come on-stream to help airlines reduce their emissions. As well as buying aircraft from the firm, Avolon is also an investor in Vertical - alongside Microsoft, Rolls-Royce, Honeywell, and American Airlines.

 

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