Transero Collapse up to €2bn loss to Irish Leasing Companies

Russian airline Transaero has collapsed seemingly owing a whopping €2bn to their aircraft leasing company (ies)

ainonline.com/aviation-news … -transaero
bloomberg.com/news/articles/ … ll-tickets
icao.int/secretariat/legal/83bis/5121-E.pdf

There are bits of planes they ordered sitting in Airbus and Boeing factories too.

****A lot ( or is that in fact most) of their birds have Irish registrations ****

see

planespotters.net/productio … us=current

planespotters.net/productio … us=current

ACG and Sberbank Leasing are mentioned, who are they???

EI-UNA belongs to VTB Leasing , like WTF???

planespotters.net/airframe/ … o-Airlines

So who is really on the hook for the €2bn of losses then??? Transaero also owe another €1bn elsewhere for luck.

It may be that the €2bn is a liability over 10 years and at least some of these birds are really new …and are going back to their owners in Dublin presently for re-lease elsewhere.

So the realised loss may merely be in the 100s of €ms not in the Billins an Billins!!!

I know nothing about this business but there are a lot of modern airplanes there which they’ll have no problems leasing out again.
They can’t build 737-800 planes fast enough at the moment for all the demand that is out there.

Iran is open for business and needs a fleet of modern aircraft pronto. :slight_smile:

I suppose our GDP drops €2bn in the quarter as we ‘recognise’ the hit or do we bother???

Could this be Ryanair’s opportunity to pick up the build slots for 747 orders on the cheap and start transatlantic flights.
They said they were waiting for something like this but I don’t think 747 was their preferred plane for long range flights.

Sberbank = Russian monolithic state bank
VTB = the other big Russian state bank

So it would seem the Russian tax payer is still on the hook even though it isn’t now being absorbed by Aeroflot.

The new Ryanair 737s , due after 2019 , would be able to cross the atlantic. However in order to shoehorn in a lot more seats than any other operator they have reduced the legroom and removed a load of toilets and food.

leehamnews.com/2014/09/21/airbus … 7-max-200/

Many leased and financed aircraft are registered in Ireland - for reasons other than tax.

Sberbank, VEB and VTB are all leasing aircraft to Transaero - these guys are russian banks.

The “Irish” lessors include Gecas, Aercap and two smaller and more real Irish lessors. the exposure is small because they are older aircraft.

The other lessors are largely US based included ACG.

Transaero was due to be merged into the Russian state carrier, because Transaero is suffering from the crumbling economy, and FX issues.
However someone in Russia Inc realised that there wasn’t anything decent in Transaero, so decided to default the airline. Aeroflot will pick up the traffic etc, and they don’t need the aircraft. The people will probably move across informally.

Via Irish subsidiaries I believe.

Anyone get their planes back yet???

Lots of Transaero planes with Irish registrations parked up in Domodedovo when I flew in there yesterday. I would have thought a plane wouldn’t be much use to anyone else with an enforceable lien hanging over it. Surely they wouldn’t be able to land in most of the world without risking having the plane impounded?

that’s what I would think.

AFAIK the terms of the lease generally specify which countries they are allowed to fly to - i.e. not to ones where they’d be beyond the legal reach of the lease co. They’re fairly tight on arrears too - you have to be when so highly leveraged

There’s quite a good program on aircraft repossession on one of the weirdo channels on NTL/Sky. Seat of the pants stuff sometimes, but not usually when it comes to larger airports.

There shouldn’t be much impact on maintenance side as TMO has been taken over recently. irishtimes.com/business/mark … -1.2180309

However several Irish businesses used to supply Transaero with equipment and parts, they may be affected short term.