Aviation Insurers Face High-Stakes Battle Over Stranded Aircraft

Aviation lessors and insurers are locked in a significant legal battle in London over claims for aircraft stranded in Russia following the Ukraine invasion. With stakes involving nearly $10 billion, the lawsuit's outcome may impact similar cases worldwide. Insurers contest the loss claims, citing insufficient evidence of damage or destruction.

In a high-stakes legal battle in London, aviation lessors and insurers are clashing over multi-billion dollar claims linked to aircraft stranded in Russia since the Ukraine invasion. Mark Howard, representing leading aircraft lessor AerCap, argued that insurers must accept the reality that Western-owned jets and engines will not be returned.

This major dispute features AerCap, Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, and Falcon against industry giants like AIG, Lloyd's, Chubb, and Swiss Re. The case is expected to set a precedent for similar lawsuits in Ireland and the U.S. over the fate of around 400 planes left grounded in Russia, valued at nearly $10 billion.

The London trial focuses on claims for approximately 140 jets and several engines, originally valued at $4.7 billion. Partial settlements with Russia have reduced this value to around $3 billion. Insurers argue there is no concrete evidence of the aircraft being destroyed or damaged, and they dispute that policies cover such events.

(With inputs from agencies.)