Western sanctions have stranded hundreds of airliners worth an estimated $12 billion🤣😂

[Nan Yang]

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion
Taylor Rains
Mar 1, 2022, 9:11 AM

Russian carriers Aeroflot and S7 Airlines. Lia Koltyrina/Shutterstock

• Aviation consultancy Ishka estimates $12 billion worth of leased aircraft is stuck in Russia over Western sanctions.
• The sanctions have forced aircraft lessors, like Ireland-based AerCap, to end contracts with Russian carriers.
• Airspace closures and pushback from Russian authorities and airlines could make repossessing the planes a challenge.

Source.

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion

Getting the aircraft out of Russia could be a logistical nightmare if government entities and Russian airlines do not cooperate.

www.businessinsider.com

Quote
Interesting side effects of European sanctions on Russia (as per Phil Seymour - President of the Association of European Leasing Companies.


All over the world airlines don't own their own planes, they lease them.
The European Union has imposed sanctions on Russia and obliged European leasing companies to take back all leased aircraft from Russia by March 28th. That's a total of 520 aircraft.

Phil Seymour, President of the Association of European Leasing Companies:

1. Return of 520 aircraft! How is this to be done? The Russians said if you refuse to lease them to us, get them back yourself! How can we get 520 crews to Russia when the airspace in Russia, Belarus and Ukraine is closed? We can't fly in!

2. Once the handover has taken place in Russian airports, the planes will no longer be Russian. But a non-Russian plane is not allowed to fly in Russian airspace – the Russian airspace is blocked! We won't be able to fly out!

3. However, the leasing companies are the initiators of the termination of these leases. In the original calculation of the cost of fines in such a case, we will all be bankrupted at once. It's easier and cheaper to go bankrupt than to take back the planes.

4. February is over and Russia has to pay the lease payments for the month. Russia is willing to pay but cannot pay because it is excluded from SWIFT. We ourselves have to pay fines because of the terminations, but in view of the lack of incoming payments from Russia we have no money for such payments!

5. Even if we take back these planes, what are we going to do with them? We don't need them, nobody wants them and it's impossible to sell them!

6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world's No. 1 airline, bankrupting both the European leasing company and Airbus."

 

[RealNapster]

6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world's No. 1 airline, bankrupting both the European leasing company and Airbus.

Many believe USA can't fight Russia. Well, USA is fighting two wars. 1 with Russia and Iran and one with its allies.

 

[khansaheeb]

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion
Taylor Rains
Mar 1, 2022, 9:11 AM

Russian carriers Aeroflot and S7 Airlines. Lia Koltyrina/Shutterstock

• Aviation consultancy Ishka estimates $12 billion worth of leased aircraft is stuck in Russia over Western sanctions.
• The sanctions have forced aircraft lessors, like Ireland-based AerCap, to end contracts with Russian carriers.
• Airspace closures and pushback from Russian authorities and airlines could make repossessing the planes a challenge.

Quote
Interesting side effects of European sanctions on Russia (as per Phil Seymour - President of the Association of European Leasing Companies.


All over the world airlines don't own their own planes, they lease them.
The European Union has imposed sanctions on Russia and obliged European leasing companies to take back all leased aircraft from Russia by March 28th. That's a total of 520 aircraft.

Phil Seymour, President of the Association of European Leasing Companies:

1. Return of 520 aircraft! How is this to be done? The Russians said if you refuse to lease them to us, get them back yourself! How can we get 520 crews to Russia when the airspace in Russia, Belarus and Ukraine is closed? We can't fly in!

2. Once the handover has taken place in Russian airports, the planes will no longer be Russian. But a non-Russian plane is not allowed to fly in Russian airspace – the Russian airspace is blocked! We won't be able to fly out!

3. However, the leasing companies are the initiators of the termination of these leases. In the original calculation of the cost of fines in such a case, we will all be bankrupted at once. It's easier and cheaper to go bankrupt than to take back the planes.

4. February is over and Russia has to pay the lease payments for the month. Russia is willing to pay but cannot pay because it is excluded from SWIFT. We ourselves have to pay fines because of the terminations, but in view of the lack of incoming payments from Russia we have no money for such payments!

5. Even if we take back these planes, what are we going to do with them? We don't need them, nobody wants them and it's impossible to sell them!

6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world's No. 1 airline, bankrupting both the European leasing company and Airbus."

Shooting themselves in the foot.

 

[Tshering22]

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion
Taylor Rains
Mar 1, 2022, 9:11 AM

Russian carriers Aeroflot and S7 Airlines. Lia Koltyrina/Shutterstock

• Aviation consultancy Ishka estimates $12 billion worth of leased aircraft is stuck in Russia over Western sanctions.
• The sanctions have forced aircraft lessors, like Ireland-based AerCap, to end contracts with Russian carriers.
• Airspace closures and pushback from Russian authorities and airlines could make repossessing the planes a challenge.

Quote
Interesting side effects of European sanctions on Russia (as per Phil Seymour - President of the Association of European Leasing Companies.


All over the world airlines don't own their own planes, they lease them.
The European Union has imposed sanctions on Russia and obliged European leasing companies to take back all leased aircraft from Russia by March 28th. That's a total of 520 aircraft.

Phil Seymour, President of the Association of European Leasing Companies:

1. Return of 520 aircraft! How is this to be done? The Russians said if you refuse to lease them to us, get them back yourself! How can we get 520 crews to Russia when the airspace in Russia, Belarus and Ukraine is closed? We can't fly in!

2. Once the handover has taken place in Russian airports, the planes will no longer be Russian. But a non-Russian plane is not allowed to fly in Russian airspace – the Russian airspace is blocked! We won't be able to fly out!

3. However, the leasing companies are the initiators of the termination of these leases. In the original calculation of the cost of fines in such a case, we will all be bankrupted at once. It's easier and cheaper to go bankrupt than to take back the planes.

4. February is over and Russia has to pay the lease payments for the month. Russia is willing to pay but cannot pay because it is excluded from SWIFT. We ourselves have to pay fines because of the terminations, but in view of the lack of incoming payments from Russia we have no money for such payments!

5. Even if we take back these planes, what are we going to do with them? We don't need them, nobody wants them and it's impossible to sell them!

6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world's No. 1 airline, bankrupting both the European leasing company and Airbus."

It is not that simple. Those jets without spares and maintenance parts are useless, unless UAC is able to reverse-engineer those parts rapidly and make them locally to fly. Even then, they won't be able to fly to European countries once the sanctions are lifted in the near future. Why? Because European Union and the American FAA do not allow flights on non-authorized parts and components in an aircraft.

Russia's heavy dependency on state corporations is its weakness that has failed to create many private or startups. Look at how many private airlines are there in their aviation industry for a market of 145 million people. It is minuscule. Similarly, there is only one Yandex that can't replace Google completely, VK for Facebook, and virtually no VISA or MASTERCARD replacement to conduct card transactions. $12 billion is nothing for the West as Americans can just print more dollars without any consequence

 

[Madni Bappa]

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion
Taylor Rains
Mar 1, 2022, 9:11 AM

Russian carriers Aeroflot and S7 Airlines. Lia Koltyrina/Shutterstock

• Aviation consultancy Ishka estimates $12 billion worth of leased aircraft is stuck in Russia over Western sanctions.
• The sanctions have forced aircraft lessors, like Ireland-based AerCap, to end contracts with Russian carriers.
• Airspace closures and pushback from Russian authorities and airlines could make repossessing the planes a challenge.

Source.

Western sanctions have stranded hundreds of airliners worth an estimated $12 billion

Getting the aircraft out of Russia could be a logistical nightmare if government entities and Russian airlines do not cooperate.

www.businessinsider.com

Quote
Interesting side effects of European sanctions on Russia (as per Phil Seymour - President of the Association of European Leasing Companies.


All over the world airlines don't own their own planes, they lease them.
The European Union has imposed sanctions on Russia and obliged European leasing companies to take back all leased aircraft from Russia by March 28th. That's a total of 520 aircraft.

Phil Seymour, President of the Association of European Leasing Companies:

1. Return of 520 aircraft! How is this to be done? The Russians said if you refuse to lease them to us, get them back yourself! How can we get 520 crews to Russia when the airspace in Russia, Belarus and Ukraine is closed? We can't fly in!

2. Once the handover has taken place in Russian airports, the planes will no longer be Russian. But a non-Russian plane is not allowed to fly in Russian airspace – the Russian airspace is blocked! We won't be able to fly out!

3. However, the leasing companies are the initiators of the termination of these leases. In the original calculation of the cost of fines in such a case, we will all be bankrupted at once. It's easier and cheaper to go bankrupt than to take back the planes.

4. February is over and Russia has to pay the lease payments for the month. Russia is willing to pay but cannot pay because it is excluded from SWIFT. We ourselves have to pay fines because of the terminations, but in view of the lack of incoming payments from Russia we have no money for such payments!

5. Even if we take back these planes, what are we going to do with them? We don't need them, nobody wants them and it's impossible to sell them!

6. The Boeings of American leasing companies are not affected. If Europe takes the planes away from the Russians, the US will supply Russia with its Boeing planes and become the world's No. 1 airline, bankrupting both the European leasing company and Airbus."

Russia should now claim them as its own. Like they have taken over Russian forex reserves as their own.

 

[Nan Yang]

It is not that simple. Those jets without spares and maintenance parts are useless, unless UAC is able to reverse-engineer those parts rapidly and make them locally to fly. Even then, they won't be able to fly to European countries once the sanctions are lifted in the near future. Why? Because European Union and the American FAA do not allow flights on non-authorized parts and components in an aircraft.

Russia's heavy dependency on state corporations is its weakness that has failed to create many private or startups. Look at how many private airlines are there in their aviation industry for a market of 145 million people. It is minuscule. Similarly, there is only one Yandex that can't replace Google completely, VK for Facebook, and virtually no VISA or MASTERCARD replacement to conduct card transactions. $12 billion is nothing for the West as Americans can just print more dollars without any consequence

Errrr you are hard to understand.

 

[blueazure]

all thanks to a mentally challenged life long dictator who had a hard on while looking at ukraine

this is a senseless conflict , period

 

[Bilal9]

Errrr you are hard to understand.

I understood him perfectly. What specifically don't you get?

all thanks to a mentally challenged life long dictator who had a hard on while looking at ukraine

this is a senseless conflict , period

Think that Russia equipped Cuba with nukes then you will get it. Russia needs a buffer region which is not aligned with NATO or EU.

 

[Nan Yang]

I understood him perfectly. What specifically don't you get?



Think that Russia equipped Cuba with nukes then you will get it. Russia needs a buffer region which is not aligned with NATO or EU.

The part about getting spare parts ? The planes belongs to Europeans. Let them fly them home.

 

[Bilal9]

The part about getting spare parts ? The planes belongs to Europeans. Let them fly them home.

Flying them home (whomever owns them, like GECAS etc.) does not solve the problem with the Russian economy (Air travel sector) and doesn't help Western economies either.

Its the people (Russians) who were flying using the planes, that is the factor. Those people will not be paying for using the planes anymore, which means companies like GECAS can't get any money out of these things. At some point foreign airplanes and airlines will be banned in Russia too (tit-for-tat trade move). This is not good.

So many airplanes stored at Davis Monthan AB for lack of use are a bad idea for Western businesses like GECAS and the US/EU economy. Unless they can be re-painted and used in Chinese market ( which is unlikely).

 

[Tshering22]

Flying them home (whomever owns them, like GECAS etc.) does not solve the problem with the Russian economy (Air travel sector) and doesn't help Western economies either.

Its the people (Russians) who were flying using the planes, that is the factor. Those people will not be paying for using the planes anymore, which means companies like GECAS can't get any money out of these things. At some point foreign airplanes and airlines will be banned in Russia too (tit-for-tat trade move). This is not good.

So many airplanes stored at Davis Monthan AB for lack of use are a bad idea for Western businesses like GECAS and the US/EU economy. Unless they can be re-painted and used in Chinese market ( which is unlikely).

Russia has already banned regular commercial flights in response to the ban of Aeroflot and other Russian carriers, except evacuation flights and special flights. The one thing that would impact Western airlines most would be the trans-atlantic flights from North America/Europe to Asia and back. Russian airspace & Polar routes offer a lot of cost savings in millions & thousands of hours per year.

Sanctions, are most likely a two-way street and don't instill confidence.

Frankly though, GECAS and other lessors will simply get subsidized by the EU Commission and the US Government. These are strategic industries that help the governments control industries across the world; they will never be bankrupt.

E.g., about a decade ago, Hawker Beechcraft filed for bankruptcy in the US. When this was announced, several international companies including Mahindra from India approached them with offers to buy the company out. The US government stepped in and bailed them out.

Aviation and Aerospace are the two industries that keep the West at the pinnacle of power, control and influence.

 

[Bilal9]

E.g., about a decade ago, Hawker Beechcraft filed for bankruptcy in the US. When this was announced, several international companies including Mahindra from India approached them with offers to buy the company out. The US government stepped in and bailed them out.

Aviation and Aerospace are the two industries that keep the West at the pinnacle of power, control and influence.

Yes this is true. Don't forget financial sector as well, in addition to high tech (semiconductors) and aviation.

There are large banks in the US that are "too big to fail".

If these large Wall Street banks fell into foreign hands (i.e. Chinese) that would be the end of US dominance globally.

Russia has already banned regular commercial flights in response to the ban of Aeroflot and other Russian carriers, except evacuation flights and special flights. The one thing that would impact Western airlines most would be the trans-atlantic flights from North America/Europe to Asia and back. Russian airspace & Polar routes offer a lot of cost savings in millions & thousands of hours per year.

This situation is a boon to Pakistan, India and Bangladesh. There is already an aviation highway that passes from the Gulf (Dubai, a huge aviation hub) to Hong Kong then to Japan, that route will see more intense use if Russia overland air-route is banned. All traffic to/from China to EU will now use this route.

If you look at apps like flight aware, you will see how heavily used this corridor is.

So South Asia will see increased overflight surcharges from this traffic.

 

[Tshering22]

Yes this is true. Don't forget financial sector as well, in addition to high tech (semiconductors) and aviation.

There are large banks in the US that are "too big to fail".

If these large Wall Street banks fell into foreign hands (i.e. Chinese) that would be the end of US dominance globally.



This situation is a boon to Pakistan, India and Bangladesh. There is already an aviation highway that passes from the Gulf (Dubai, a huge aviation hub) to Hong Kong then to Japan, that route will see more intense use if Russia overland air-route is banned. All traffic to/from China to EU will now use this route.

If you look at apps like flight aware, you will see how heavily used this corridor is.

So South Asia will see increased overflight surcharges from this traffic.

The Russian airspace is banned for western airlines only. That means Emirates, Etihad, etc. are as free to use Russian airspace to reach the Americas and as ever. Asian carriers are not banned from serving any corner of the globe.

 

[gambit]

And how does this hurt US? Here is 2016 US civil aviation market...

https://www.faa.gov/air_traffic/publications/media/2016-economic-impact-report_FINAL.pdf

During 2014, the total U.S. economy generated $17.4 trillion in value-added economic activity and supported 147.4 million jobs.5 At the same time, civil aviation:​

​

• Accounted for $1.6 trillion in total economic activity,​

• Supported 10.6 million jobs, and​

• Contributed 5.1 percent to U.S. gross domestic product (GDP).​

​

We can EASILY absorb this lost.