Air Lease to write off jets stranded in Russia, expects $802 million in charges

(Reuters) – Air Lease Corp mentioned on Friday it will write off the worth of the 27 jets it has remaining in sanctions-hit Russia, a transfer that’s anticipated to result in expenses of about $802 million.

World plane leasing firms have been scrambling to repossess greater than 400 jets value nearly $10 billion from Russian airways, which have largely been unresponsive to calls for for surrendering the jets.

“It’s unlikely that the corporate will regain possession of the plane that haven’t been returned and that stay in Russia,” Air Lease mentioned in a press release.

The write-off, which incorporates 21 company-owned jets and 6 plane in Air Lease’s managed fleet, can be mirrored within the first-quarter earnings report slated for Might 5.

Air Lease mentioned it doesn’t count on the write-off to end in materials future money expenditures and that it was pursuing insurance coverage claims to get better losses regarding the plane.

(Reporting by Kannaki Deka in Bengaluru; Enhancing by Aditya Soni)