Insurance Settlement for Russia-Expropriated Aircraft Nears in Ireland
A near-complete settlement of war risk and all-risk insurance claims related to aircraft expropriated by Russian airlines in 2022 is approaching conclusion in the Irish High Court. Lawyers representing the former aircraft owners disclosed during a March 26 hearing that most of the claims have been resolved. Lessors including Avolon, BOC Aviation, Nordic Aviation Capital, and six SPVs from an unidentified lessor have settled all their claims. CDB Aviation and SMBC Aviation Capital are close to concluding their proceedings, with final claims scheduled for an April 11 hearing. Both lessors have reached an agreement in principle with insurer Chubb.
Justice Eileen Roberts noted the progress in the case, emphasizing the preference for settlements in such situations, particularly when ongoing business relationships are at stake. While the terms of the settlements remain undisclosed, lessors initially sought more than USD 8 billion from a variety of insurers and reinsurers when filing the claims in late 2022.
These claims relate to aircraft that Russian airlines retained after Western sanctions were imposed following the invasion of Ukraine in March 2022. The Russian government forbade airlines from returning leased aircraft to foreign owners, leading to many aircraft being reregistered in Russia. In addition, FTAI Aviation has filed a separate claim against insurers, launched in April 2024, though the details remain private.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com