32 ms·
Anyone know what impact these two items from the article would have on western companies? allowing Russian airlines to register jets leased from Western firms
by smhenderson 5y ago
Anyone know what impact these two items from the article would have on western companies?
allowing Russian airlines to register jets leased from Western firms as their own property
In response, a government commission on Wednesday approved the first step towards nationalising assets of foreign firms that leave the country.
It seems to me the companies involved probably knew this was possible/probable when they pulled out but I don't know enough about all of this to understand how much value they lose when their capital in a country is simply taken from them outright...
- ocdtrekkie 5y agoI imagine global companies' Russian assets are a minimal overall percentage of their property. And I suppose something companies should assume is a risk when they do business under a dictator. But I also think it's really interesting from a burned bridges standpoint: It's going to be super hard to get companies to come back or resume doing business with Russia ever again.
- pinewurst 5y agoThough what's the value of an unsupported modern jetliner?
- dsr_ 5y agoMore to the point, as soon as that aircraft lands at an airport outside Russia (or, perhaps, China), a nice young person with a briefcase will be explaining to the FBO that the aircraft is the property of Foobar Leasing, and should not be refueled while the repossession process is under way.
- vlovich123 5y agoThey're not flying outside Russia or China. Problem solved.
- hdjjhhvvhga 5y agoThey will start falling apart sooner or later anyway.
- yummybear 5y agoI think it would depend on how safety conscious you are.
- hirundo 5y agoThey can be sold for building material. https://www.pinterest.com/roberthathaway9/airplane-houses/ https://www.pinterest.com/roberthathaway9/airplane-houses/
- hinkley 5y agoWon’t they get grounded the moment they touch down in controlled airspace? They can probably skirt that for a while but eventually the engines need refurbishment, and that likely requires OEM parts. And of course any time you have to divert due to a flight emergency you lose that plane.
- citrin_ru 5y agoIt looks like a pure retaliation - to make western leasing companies to suffer losses. What to do with the planes I think no-one thinks at this stage. They may use them for scrap metal if will not find a better use.
- krisoft 5y agoAn aviation youtube channel speculated about this posibility a few days ago: https://youtu.be/Lz4gCE4ccRM https://youtu.be/Lz4gCE4ccRM In short more than half of all the russian operated airliners are leased from foreign companies. These leases are rummored to have stipulations that in case of a sanction the leased aircraft needs to be returned. It was already speculated that the Russian state won’t be letting that to happen.
- andy_ppp 5y agoThese airlines will only be flying east…
- JamesBarney 5y agoThis is good for Russia in the short term, but is going to be soo bad for Russia in the long term. Even once the sanctions end, business/capital will fear going into Russia for decades. Everyone in Russia is going to be poorer for the rest of their lives because of what's happening in Ukraine.
- ectospheno 5y ago"Dublin-based AerCap, the world’s largest aircraft leasing company, is the most exposed to the crisis, with 152 aircraft in Russia and Ukraine valued at €2.1 billion, representing less than 5 per cent of its fleet value." https://www.irishtimes.com/business/russian-state-airlines-not-helping-irish-lessors-recover-aircraft-1.4820685 https://www.irishtimes.com/business/russian-state-airlines-n...
- jccooper 5y agoSeized foreign assets are often used for recompense in such situations. It can take a while to work through the courts, though.
- deleted 5y ago[deleted]