KBRA: Dim prospects for aircraft trapped in Russia

Kroll Bond Rating Agency (KBRA) has commented in a research note that the fate of aircraft trapped in Russia are unclear but dim as the deadline to repossess aircraft hurtled closer. KBRA says that the “recovery prospects for the aircraft are unclear, and the level of potential impairments and their timing are difficult to gauge”. The research note sets out the many difficulties for all operators of the leased aircraft. Those airlines that wish to continue to pay their leases are able to transfer funds to Western banks but those banks are unable to accept payments from Russian entities. For