Flight equipment subject to operating lease

6 Months Ended

Jun. 30, 2022

Property, Plant and Equipment [Abstract]

Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the six months ended June 30, 2022:


	(in thousands)
Net book value as of December 31, 2021	$	22,899,004
Additions	1,936,337
Depreciation	(470,591)
Transfers to net investments in sales-type leases	(105,991)
Write-off of Russian fleet	(791,017)
Net book value as of June 30, 2022	$	23,467,742

Accumulated depreciation as of June 30, 2022	$	(4,501,559)

Write-off of Russian fleet

In response to the sanctions against certain industry sectors and parties in Russia, in March 2022, the Company terminated all of its leasing activities in Russia, including 24 aircraft in its owned fleet. As of August 4, 2022, 21 aircraft previously included in the Company’s owned fleet remain in Russia. The operators of these aircraft have continued to fly most of the aircraft notwithstanding the termination of leasing activities and the Company’s repeated demands for the return of its assets. While the Company maintains title to the aircraft, the Company has determined that it is unlikely it will regain possession of the aircraft that have not been returned and that remain in Russia. As such, during the three months ended March 31, 2022, the Company recognized a loss from asset write-offs of its interests in owned aircraft that remain in Russia, totaling approximately $791.0 million. The Company did not have any losses from asset write-offs for the three months ended June 30, 2022. The 21 aircraft that remain in Russia were removed from the Company’s owned fleet count as of March 31, 2022. In June 2022, the Company submitted insurance claims to its insurers to recover its losses relating to these aircraft and is vigorously pursuing all available insurance claims. Collection, timing and amounts of any insurance recoveries is uncertain at this time.