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Sanctions on Russia have been a headache for a lot of corporations doing enterprise within the area, with the fallout spreading throughout many industries. An excellent instance of that is AerCap (NYSE:AER), the world’s largest plane lessor, which has greater than 100 jets caught within the nation following the invasion of Ukraine. EU sanctions have since compelled the termination of the corporate’s Russian leases that account for five% of its fleet by worth.
Staggering statistic: “Final week we submitted an insurance coverage declare for about $3.5B with respect to our plane and engines remaining in Russia,” AerCap CFO Peter Juhas informed buyers on an earnings name. Not solely would the declare be the most important amongst airplane lessors, it might be one of many largest single claims ever submitted. It additionally possible means years of litigation between the lessor and insurers earlier than any payouts are dished out.
“We plan to pursue all different avenues for the restoration of worth of our property, together with different authorized claims obtainable to us,” Juhas continued. “It’s unsure whether or not these efforts might be profitable. In the end, our financial publicity will even be offset by any recoveries that we get hold of from insurance coverage or different claims.” Shares of AerCap responded instantly, nosediving 8.4% on Wednesday after the outcomes.
By the numbers: AerCap has solely managed to repossess 22 plane and three engines positioned in Russia, out of a complete of 135 planes and 14 engines on lease within the nation. As of December 31, the corporate had a complete of three,701 plane, engines and helicopters on its books, and received even larger final 12 months after its acquisition of rival GE Capital Aviation Providers, in any other case often known as GECAS.
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