Air Lease Corporation (ALC) has settled a USD64.9m insurance claim with Russia’s NSK for four A320s leased to Russia’s S7 Airlines during the Ukraine invasion in February 2022.
The US Department of Commerce and Treasury approved this settlement, in line with the sanctions regimes imposed by the US.
ALC pulled out from all leasing activities in Russia post sanctions despite retaining titles to the planes, acknowledging that they were unlikely to regain possession.
ALC notes in the filing that as of November 2023, there were 26 aircraft stuck in Russia, with activities continuing despite termination of leases and demands for return of assets.
Five additional A321-200 planes previously leased to S7 Airlines were not part of the settlement, but ALC has said it’s in ongoing discussions about these aircraft.
ALC also recorded a net write-off of its interests in Russia-placed owned and managed aircraft totalling approximately USD771.5m and it is pursuing legal proceedings against its insurers regarding the losses.
NSK has recently settled several claims from lessors, including AerCap and GA Telesis, concerning written off aircraft placed with Russian carriers before the invasion.
