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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: Alex MG who wrote (53675)3/6/2022 2:19:29 PM
From: John Koligman4 Recommendations

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As others here have posted, hopefully that will come to pass as Blinken said today. On a related note I found these paragraphs germain as to how exposed Russia is to sanctions. Turns out they don't even own most of their passenger fleet, and won't be getting spare parts.... This is from a piece by Tom Friedman in the NY TImes today.

Roughly two-thirds of Russia’s commercial airliners were made by Boeing (334 jets) or Airbus (304), Reuters reported. A significant portion of those are owned by Irish leasing companies. The Dublin-based AerCap, the world’s biggest airplane-leasing company, owns “152 aircraft across Russia and Ukraine valued at almost $2.4 billion,” The Irish Times reported. In addition, the Dublin-based companies SMBC Aviation Capital and Avolon own 48 aircraft between them that are leased to Russian airlines.

E.U. sanctions require those companies to repossess all those planes on lease to Russian airlines by the end of March. And Boeing and Airbus announced that they will no longer service or provide spare parts for any of these planes. On Saturday, Russia’s state airline, Aeroflot, said that it would suspend all international flights because of “additional circumstances that prevent the performance of flights.” Domestic flights are sure to follow.

Russia spans 11 time zones. If this persists, the grip of the Russian central government over the Russian landmass could begin to loosen. In the Russian Far East there are a lot of cities closer to Beijing than Moscow. Just saying …
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