UK court awards $1 billion to AerCap over aircraft stuck in Russia
UK court awards $1 billion to AerCap over aircraft stuck in Russia (Illustrative photo: flickr.com)
The High Court of Justice in London has allowed Irish company AerCap to recover more than $1.03 billion in damages. AerCap, the world's largest aircraft leasing firm, had its planes stranded in Russia following the full-scale invasion of Ukraine, Reuters reports.
Justice Christopher Butcher ruled that the loss of nearly 150 aircraft and engines occurred on March 10, 2022, when Russian legislation banned their export.
As a result, the losses were deemed to be caused by "an act or order of the Russian government," allowing AerCap to claim compensation under its war risk policy rather than the broader all-risks insurance it had initially hoped to rely on.
In addition to this amount, AerCap had already received over $1.3 billion in 2023 through several settlements with Russian lessees and an insurance company. Following the court ruling, the total compensation now exceeds $2.3 billion.
At the same time, the court confirmed that European and US sanctions do not prohibit insurers from making such payments.
AerCap's claim was part of a broader case involving several leasing companies — including Dubai Aerospace Enterprise, Merx Aviation, Falcon, and Genesis — against major insurance market players such as AIG, Lloyd's, Chubb, and Swiss Re.
The case is considered one of the largest insurance disputes ever heard in the UK legal system.
Background
The case over aircraft stranded in Russia due to the full-scale invasion of Ukraine is considered one of the most high-profile disputes in the global aviation and insurance industries.
After February 24, 2022, Russia refused to return foreign-owned aircraft that had been leased to Russian airlines. Around 400 aircraft were involved, more than 100 of which belonged to AerCap, the world's largest aircraft lessor. The total value of the lost aircraft and engines is estimated in the billions of dollars.
