Air Lease to write off jets stranded in Russia, expects $802 million in charges

div classBodysc17zpet90 cdBBJodivpReuters – Air Lease Corp said on Friday it would write off the value of the 27 jets it has remaining in sanctionshit Russia, a move that is expected to lead to charges of about 802 million.

Global aircraft leasing companies have been scrambling to repossess more than 400 jets worth almost 10 billion from Russian airlines, which have mostly been unresponsive to demands for surrendering the jets.pdivdivdiv classBodysc17zpet90 cdBBJodiv

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

The writeoff, which includes 21 companyowned jets and six aircraft in Air Leases managed fleet, will be reflected in the firstquarter earnings report slated for May 5.

Air Lease said it does not expect the writeoff to result in material future cash expenditures and that it was pursuing insurance claims to recover losses relating to the aircraft.

Reporting by Kannaki Deka in Bengaluru Editing by Aditya Sonip

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