Flight equipment subject to operating lease

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

Flight equipment subject to operating lease

Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the year ended December 31, 2024:

	(in thousands)
Net book value as of December 31, 2023	$	26,231,208
Purchase of aircraft	5,010,146
Depreciation	(1,143,761)
Flight equipment subject to operating leases reclassified to flight equipment held for sale	(1,821,084)
Transfer of flight equipment to investment in sales-type lease	(106,043)
Net book value as of December 31, 2024	$	28,170,466
Accumulated depreciation as of December 31, 2024	(5,998,453)

Update on Russian fleet

As previously disclosed in the Company’s filings with the U.S. Securities and Exchange Commission, in June 2022, the Company and certain of its subsidiaries submitted insurance claims to the insurers on its aviation insurance policies to recover losses relating to aircraft detained in Russia for which the Company recorded a net write-off of its interests in its owned and managed aircraft totaling approximately $771.5 million for the year ended December 31, 2022. In December 2022, the Company filed suit in the Los Angeles County Superior Court of the State of California against its aviation insurance carriers in connection with its previously submitted insurance claims for which a jury trial has been set for April 17, 2025.

In January 2024, the Company and certain of its subsidiaries filed suit in the High Court of Justice, Business & Property Courts of England & Wales, Commercial Court against the Russian airlines’ aviation insurers and reinsurance insurers (collectively, the “Airlines’ Insurers”) seeking recovery under the Russian airlines’ insurance policies for certain aircraft that remain in Russia. The lawsuit against the Airlines’ Insurers remains in the early stages and no trial date has been set.

During the year ended December 31, 2023, we recognized a net benefit of approximately $67.0 million from the settlement of insurance claims under S7’s insurance policies in respect of three A320-200 and one A321-200 aircraft in our owned fleet on lease to S7 at the time of Russia’s invasion of Ukraine in February 2022; however, the Company continues to have significant claims against its aviation insurance carriers and will continue to vigorously pursue all available insurance claims and its related insurance litigation, and all rights and remedies therein. Collection, timing and amounts of any future insurance and related recoveries and the outcome of the Company’s ongoing insurance litigation remain uncertain at this time.

As of February 13, 2025, 16 aircraft previously included in the Company’s owned fleet are still detained in Russia. We have not been able to complete any settlements with Russian airlines or insurers since December 2023 and do not currently see a path forward to completing any such settlements.