Avolon confirms ten planes remain in Russia

The aircraft leasing sector will be reluctant to re-enter the Russian market even after the conflict has ended.

Aircraft leasing firm Avolon said it has ten planes grounded in Russia after terminating the leases following the imposition of sanctions.

In an update, the Dublin firm said they had 14 narrowbody aircraft that they owned and two that they managed on lease to Russian customers. The leasing of these aircraft to those Russian has been terminated in line with EU sanction requirements following the invasion of Ukraine.

"As at 31st March, 10 of Avolon’s owned aircraft were located in Russia representing less than 1% of Avolon’s portfolio value net of security deposits and maintenance reserves," the company said.

Other leasing firms, many of which are located in Ireland, also have aircraft in Russia they have been unable to recover following the termination of leases.

In recent weeks, Avolon's Chief Executive Domhnal Slattery said the company had a net exposure of $200m (€183m) on the 10 aircraft. He said the aircraft leasing sector would be slow to go back to Russia even after the conflict has ended.

In its business update for the first quarter of 2022, Avolon said it had executed 54 lease transactions in the quarter comprising new aircraft leases, follow-on leases and lease extensions and had sold three aircraft.