Global: Aircraft lessors sue insurers for $8bn over trapped Russian 'planes
Source: Middle East Insurance Review | Jan 2023
Aircraft leasing firms are suing dozens of insurers for around $8bn in a string of lawsuits over the loss of hundreds of aircraft stuck in Russia since president Vladimir Putin’s invasion of Ukraine, according to Reuters.
More than 400 leased planes worth around $10bn are unable to leave Russia after EU sanctions forced the termination of their leases. Lessors argue the aircraft are covered by policies against war or theft, but insurers point out the planes are undamaged and might yet be returned.
Here is a list of claims filed against insurers in London, Dublin and the US:
- A subsidiary of Nordic Aviation Capital on 9 December filed a case in the Irish High Court against Lloyd’s of London and Global Aerospace Underwriting Managers (Europe).
- BOC Aviation (2588.HK) filed action in the Irish High Court against a subsidiary of China’s Ping on 9 December.
This follows legal action by BOC against 16 insurers, according to an Irish High Court filing on 3 November. Singapore-based BOC recognised an $804m asset write-down in August relating to the 17 aircraft it owns that remain in Russia, saying it was unlikely to be able to recover the jets “in the foreseeable future, if ever”.
- Avolon filed a case against China’s PICC Property & Casualty in the Irish High Court on 9 December.
This follows legal action against 15 insurers in the Irish High court, a filing showed on 3 November, after the aircraft lessor recorded a first-quarter impairment of $304m to cover the financial impact of having 10 jets stuck in Russia.
- SMBC Aviation Capital filed a claim against Lloyd’s of London (SOLYD.UL) in the Irish High Court on 28 November. M