Operating lessor AerCap terminated leases on nine aircraft – six Boeing 757s and three 767s – on lease to Russian carriers in December 2014.
"In total, the number of aircraft in Russia has been reduced by 17," said Aengus Kelly, speaking on a fourth-quarter earnings call, adding: "Russian exposure does not represent unusual risk: significant collateral is held, cost basis of aircraft is low, and aircraft can be removed as needed."
The lessor says the nine aircraft were "accessed and removed within 72 hours with minimal loss, and are all now under letters of intent to be leased or sold".
AerCap holds $700 million of maintenance reserves, security deposits, and letters of credit on aircraft leased to Russian carriers, says Kelly.
The lessor's net exposure to Russia totals $2.2 billion, with an appraised value of $2.8 billion, based on the average of half-life current market values from Flightglobal consultancy Ascend, BK Associates and AISI.
During the quarter, AerCap sold a mix of nine widebody and narrowbody aircraft for a net gain of $25.8 million.
The gain from aircraft sales related to one Airbus A340-300, two A340-600s, one Boeing 737 classic, one 747, one 737-700, one 757-200, one 767-300ER and one MD-11, says Kelly.
Additionally, AerCap executed part-out transactions for three A340-600s. It also sold seven aircraft from its managed portfolio, including four 737 Classics and three A320s.
Source: Cirium Dashboard
