Bermuda De-Registers Russian Aircrafts Affecting Foreign Lessors

    The Civil Aviation Authority of Bermuda has deregistered all aircraft linked to Russia from its airworthiness registry, causing hundreds of jetliners that are leased out to become devalued. 

    What’s the story?

    The international sanctions on Russian-operated aircraft have significantly impacted their ability to sustain safety. The authorities cannot certify these aircraft as airworthy as per an unidentified spokesperson. 

    The move will likely make Iris leasing companies accelerate their decision to cancel contracts. They have leased out Airbus SE and Boeing Co jetliners to Russian Airliners, and they have time till March 28 to cancel the lease. Under the sanctions placed by the European Union in response to Ukraine’s invasion of Russia, it has already started shifting its planes’ registry from Bermuda to its local authorities. 

    As per Bloomberg News, around 740 Russian aircraft registered in the Bermuda Island where the Russian Authorities conduct roles to certify planes in Russia are airworthy and insured. The jets lose their value without these assurances and cannot be later marketed to other airlines globally. According to Ishka, an Aviation consultant, an estimated $ 10.3 billion of aircraft are leased out by foreign owners to Russian operators

    Officials in Russia are preparing to hold back at least some of the planes in the country and not return them to the owners. Last week an official said that more than 100 aircraft had been re-registered in Russia.

    As per data from consultant IBA, foreign leasing companies have rented out 523 aircraft to operators in Russia as of March 10. They comprise 142 aircraft leased by AerCap Holdings NV, the largest leasing firm in the world and based out of Dublin. They are followed by Dublin-based SMBC Aviation capital with 35 aircraft, part of a Japanese joint venture between Sumitomo Mitsui Financial Group and Sumitomo Corp.

    As per IBA, the biggest customer of foreign leasing companies is S7 Airlines, lessee to 101 aircraft, followed by the state-owned airline, Aeroflot, with 89 jets. Though many of the aircraft are aging with an average age of 12.8 years, S-7 has on lease 31 new A320neos while Aeroflot has six jetliners. 

    Securities backed by assets like the jets leased out to Russia by firms like Castlelake Aviation Holdings, Carlyle Aviation Management, and others have been put on watch by Rating agency Kroll Bond for a possible downgrade. Litigations over pay-outs may lead to leasing companies filing insurance claims. 

    The Russian airworthiness certifications were provisionally suspended with effect from local time Sunday. All aircraft under an agreement between the Russian Federation and Bermuda will get affected.

    David Burt, Premier of Bermuda, a self-governed British overseas territory, said it would follow the U.K. sanctions on Russia. 


    RELATED ARTICLES

    Pookie Baba

    Is Pookie Baba Real? Internet Reacts in India

    In the short-evolving global of virtual content and meme culture, few personalities have captured the...
    When was Studio Ghibli founded

    When Was Studio Ghibli Founded: Japan’s Iconic Animation Legacy

    Studio Ghibli is a popular Japanese animation studio, known by many for its stunning movies,...
    US-Ukraine talks

    US-Ukraine Talks: Zelensky Seeks Meaningful Outcomes Amid War

    Ukrainian President Volodymyr Zelensky hopes the subsequent talks between Ukraine and the United States will...
    OTT platforms

    OTT Platforms: Reviving Local Languages, Culture, and Heritage in India

    OTT systems have revolutionized content material intake in India, presenting audiences with admission to numerous...
    mental health

    Mental Health Awareness In India: Breaking The Stigma In 2025

    One of the aspects of our overall well-being is mental health, and it should not...
    women safety in India

    Women Safety in India: Key policy changes and ongoing challenges

    For an extended period, Indian society has maintained women's safety as both domestic and international...

    MORE ARTICLES

    doTERRA

    doTERRA Leads Global Aromatherapy Market With 13.2% Share in 2024

    doTERRA leads the global aromatherapy market with a 13.2% share as the $8.4B industry grows...
    wellhealthorganic yurovskiy kirill

    WellHealthOrganic Yurovskiy Kirill: Your AI Health Guide is Here!

    WellHealthOrganic yurovskiy kirill is leading the charge in revolutionizing personalized healthcare. Are you tired of...
    Wheon Gaming

    Wheon Gaming: A New Frontier in Online Entertainment

    In this constantly changing digital era, Wheon Gaming has become a force to be reckoned...
    Wellhealthorganic.com protein

    Everything About Wellhealthorganic.com Protein & Its Benefits

    In today’s health-conscious international, protein has emerged as the cornerstone of fitness, well-being, and ultimate...
    5starsstocks.com Materials

    5starsstocks.com Materials: Expert-curated Stock Data

    In the world of the stock market, which is all about smart investments, knowledge is...