Flight Equipment Held for Lease, Net

3 Months Ended

May 31, 2024

Property, Plant and Equipment [Abstract]

Flight Equipment Held for Lease, Net

Note 3. Flight Equipment Held for Lease, Net

The following table summarizes the activities for the Company’s flight equipment held for lease for the three months ended May 31, 2024:

	Amount
Balance at February 29, 2024	$	6,940,502
Additions	231,519
Depreciation	(88,800)
Disposals and transfers to net investment in leases and held for sale	(30,890)
Impairments	(5,211)
Balance at May 31, 2024	$	7,047,120
Accumulated depreciation	$	2,395,509

Update on Russian Aircraft

The Company leased 9 aircraft to Russian airlines that were unrecoverable following Russia’s invasion of Ukraine in February 2022. The Company filed claims against the reinsurers of the Russian airlines’ insurance and the Company’s contingent and possessed insurance policies (“C&P Policies”) seeking indemnity.

During the year ended February 29, 2024, the Company received cash settlement proceeds of $43.2 million in settlement of the Company’s claims under the insurance policies in respect of 4 aircraft formerly on lease to 2 Russian airlines. Insurance settlement discussions remain ongoing with respect to the 5 other aircraft that were not included in the insurance settlement. However, it is uncertain whether any of these discussions will result in any settlement and, if so, in what amount.

The receipt of the insurance settlement proceeds serve to mitigate, in part, the Company’s losses under its aviation insurance policies. The Company reserves all rights under its C&P Policies. The collection, timing and amount of any future recoveries, including those related to insurance litigation, remain uncertain. Accordingly, at this time, the Company can give no assurance as to when or what amounts it may ultimately collect with respect to these matters.