Air Lease to jot down off jets stranded in Russia, expects $802 million in expenses By Reuters

© Reuters. FILE PHOTO: Planes are seen parked at Sheremetyevo International Airport, because the unfold of the coronavirus illness (COVID-19) continues, exterior Moscow, Russia April 9, 2020 REUTERS/Tatyana Makeyeva

(Reuters) – Air Lease (NYSE:) Corp stated on Friday it will write off the worth of the 27 jets it has remaining in sanctions-hit Russia, a transfer that’s anticipated to result in expenses of about $802 million.

Global plane leasing firms have been scrambling to repossess greater than 400 jets value nearly $10 billion from Russian airways, which have principally been unresponsive to calls for for surrendering the jets.

“It is unlikely that the company will regain possession of the aircraft that have not been returned and that remain in Russia,” Air Lease stated in an announcement.

The write-off, which incorporates 21 company-owned jets and 6 plane in Air Lease’s managed fleet, can be mirrored within the first-quarter earnings report slated for May 5.

Air Lease stated it doesn’t anticipate the write-off to lead to materials future money expenditures and that it was pursuing insurance coverage claims to get well losses regarding the plane.

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