Narrative
Full Description
Project narrative
On February 16, 2017, ICBC Leasing signed an agreement to lease 6 Airbus A321 passenger jets to Russian airliner Aeroflot. The A321 is the first Airbus medium-range aircraft in the airline’s fleet. It is configured with two classes and can accommodate 184 passengers. The exact terms of the lease were unknown. As a consequence of the February 24, 2022 invasion of Ukraine, Western government issued a number of sanctions on the Russian aviation and airline industry. As a result, a number of leasing companies cancelled their lease agreements with Russian airliners. Despite the cancellations, Russia acted to seize the leased aircraft to maintain a fleet of air-worthy aircraft and prevent foreign currency outflows (since leasing contracts are denominated in United States dollars) in violation of the Cape Town Convention, an international treaty that stipulates the return of leased aircraft to their owners when contracts are cancelled. On March 14, 2022, after the beginning of the 2022 Russian invasion of Ukraine, Russia passed a law to allow foreign-registered aircraft owned by non-Russian lessors to be placed on the Russian registry, making it likely that leasing companies would be unable to recover their assets. Three Airbus A321-211 aircraft owned by ICBC Leasing — possibly amongst the six leased under the 2017 agreement to Aeroflot or amongst the five leased under a 2013 agreement to Aeroflot (Record ID#98534) — were re-registered in Russia, making it likely that ICBC Leasing would fail to recover its aircraft.