Avolon chief says it would be ‘very difficult’ to do business in Russia again

The chief executive of leading Dublin-based aviation leasing company Avolon has said that it would be very difficult for the aircraft leasing sector to do any business in Russia “for a very long period of time – if ever”.

Speaking on RTÉ radio’s Morning Ireland, Dómhnal Slattery acknowledged the “inevitability of a financial hit” on Avolon’s business in Russia, as the company attempts to reclaim 10 of its planes from the country following sanctions.

“We’ve been relatively lucky in Russia, a very small percentage of our total book was there, nevertheless it was about $400million or 14 aircraft. We have four of the 14 aircraft outside of Russia, which is good, all of the leases are now terminated in line with sanctions, we have made every effort to get the aircraft back, but at this point that has not happened.”

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Mr Slattery said that his company’s “hearts, prayers and morals” were with the people of Ukraine.

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The company would continue to review what could happen next with their risk management team and auditors. The scale of the financial hit would be determined soon, but he was confident that the aircraft were appropriately insured.

“Clearly these sanctions had to be addressed, we had to comply with those sanctions, but in many ways I suppose it’s an unintended consequence in our sector of these sanctions for European countries.”

When asked if he thought it would be possible to do business in Russia again in the future, Mr Slattery said: “I think it’ll be very difficult for the aircraft leasing sector in general, and Avolon specifically, to underwrite new business in Russia for a very long period of time - If ever.”