A judgment involving several billion dollars is underway in London where the rental companies are in opposition to the insurance companies…
Following the invasion of Ukraine and Western sanctions, Russia has blocked more than 515 leased planes on its territory according to the research firm Cirium, an estimated value of around $10 billion.
In March 2022, Russia signed a law with various amendments to the Russian air code specifying that “Russian companies could keep their fleet of foreign aircraft and could operate them on domestic routes. Civil aircraft were certified via certification centers and test laboratories whose requirements were determined by the Ministry of Transport. The law is intended to “allow Russian companies to maintain control of their foreign fleet so that the air sector can function normally within the framework of anti-sanctions measures”.
Some planes were recovered but most remained in Russia and are operated on Russian territory.
A 12-week trial between aircraft lessors and insurers in London
Insurers like Aig, Chubb and Lloyd’s will have to justify why they refused to reimburse the owners of these planes stranded in Russia.
These are mainly aircraft rental companies like the company Aercap and are asking for sums of up to 3 billion according to the press.
In total, these sums potentially represent the largest loss in the history of insurance in the airline sector. Insurers will argue that the war in Ukraine could end and affect the terms of contracts. Aercap aims to be compensated for more than 100 planes from insurers. The trial is expected to last 12 weeks.
