Russian airlines have held talks with at least one Western leasing company to buy stranded aircraft, Reuters news agency reported. More than 400 leased aircraft have been stranded in Russia following the invasion of Ukraine and subsequent sanctions. Russia refuses to return them.

There would be a proposal that would reduce the billion-dollar bill for leasing companies and insurers and allow Russian airlines to formally take ownership of aircraft at a potentially steep discount. This proposal still has to receive approval from the EU, which is highly uncertain.

The talks between Russian airlines and the leasing company came to light during an Irish lawsuit in which leasing companies are calling their insurers to account. Many of the leased aircraft are registered in Ireland. By means of a lawsuit, the lease companies want to be assured of payments by the insurers.

A letter from leasing company SMBC to the Irish Supreme Court on Sept. 15 says it has spoken with Aeroflot and its insurer AlfaStrakhovanie. The latter reportedly offered $644.2 million for 17 aircraft leased to Aeroflot, minus $82 million already paid in deposits and reserves. According to SMBC, this is considerably less than the original value of the airplanes.

Also other airlines. such as S7 Airlines and NordStar, and several Russian insurance companies have been reaching out to leasing companies in recent months. But they have not yet concluded any agreements. That is only possible if the EU moves.

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* Origin: AVIATION ECHO HQ (2:292/854)