EasyJet Exits Leases on Russia-Owned Jets in Sanctions Hitch
EasyJet Exits Leases on Russia-Owned Jets in Sanctions Turnabout
(Bloomberg) -- EasyJet Plc terminated rental contracts on six Airbus SE jets owned by a Russian state leasing company in a rare example of sanctions depriving a European carrier of aircraft.
EasyJet canceled the leases on the A319 narrowbodies owned by a unit of state-controlled GTLK shortly after the U.K. and European Union acted to punish Vladimir Putin over the invasion of Ukraine in late February, according to a person familiar with the matter.
The low-cost U.K. carrier acted due to the Russian link even though it wasn’t clear at the time whether rapidly evolving rules would allow it to operate or maintain the aircraft, said the person, who asked not to be named discussing confidential matters.
Aviation has been a flash point in the global faceoff between Moscow and nations led by the U.S., U.K. and European Union since the Feb. 24 invasion. While a range of sanctions targeting the industry were meant to sever Russia’s links with the outside world, European entities have also been caught up in the measures.
EasyJet is one of a handful of non-Russian carriers that rented planes from Russian-owned lessors. The six jets, each more than 11 years old, have been in storage since March 2020, according to aviation analytics firm Cirium, when the coronavirus pandemic caused a sudden drop in demand for air travel.
Hundreds of foreign-owned planes have effectively been confiscated by Russian carriers as part of the economic battle. The U.K. and EU directly sanctioned GTLK, or State Transport Leasing Co., this month.
The lease terminations were confirmed by an EasyJet spokeswoman. GTLK didn’t immediately respond to requests for comment.
Turkey’s SunExpress, which is partially owned by Deutsche Lufthansa AG, also has a GTLK-owned Boeing Co. 737-800 jet in storage, according to Cirium data. SunExpress didn’t respond to a request for comment.
Latvia’s SmartLynx Airlines confirmed it has stopped paying leases on four grounded Airbus A321s. Icelandic air cargo and charter carrier Bluebird Nordic said it had grounded three GTLK-owned Boeing 777 jets and hadn’t made lease or any related payments since February.
Qatar Airways last used two GTLK-owned aircraft on April 19, according to tracking website FlightRadar24. Emirates continues to use a single GTLK-owned Boeing 777. Their governments haven’t invoked sanctions on Russia.
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