UK court rules in favour of Irish aircraft lessors in case over jets 'lost' in Russia

Reuters

London's High Court has ruled in favour of aircraft leasing companies in a multi-billion-dollar legal dispute over jets retained in Russia since the 2022 invasion of Ukraine.

Dublin-based AerCap, which is the world's largest aircraft lessor, and several other firms had sued insurers including AIG, Lloyd's, Chubb and Swiss Re in one of the biggest insurance disputes ever heard in London.

The London lawsuit had focused on almost 150 jets and some engines, previously with a total value of up to €4.1 billion, though settlements – including on the first day of trial in October and subsequently – have whittled the numbers down.

Judge Christopher Butcher said in a summary of his ruling that the aircraft were lost and "that loss occurred on 10 March 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia".

The judge added that insurers were not prevented by EU or US sanctions from indemnifying the claimants for the loss of aircraft which had been leased to Russian airlines.

The aviation insurance sector is facing potentially the biggest loss in its history, with losses topping those after 9/11. More than 500 aircraft worth an estimated $10 billion (€8.7 billion) were stranded in Russia following the invasion of Ukraine in February 2022.

Western lessors managed to recover some of the aircraft, but most remain in Russia and are still being flown by Russian airlines.

Aercap is the biggest player in its industry. At the end of last year it owned, managed or had on order 3,525 planes, engines and helicopters.

The lessor has separately struck some settlements with a number of Russian airlines and their insurers. It recovered a total of $1.3 billion in 2023.