The claims filed by the lender over the loss of aircraft leased to Russian airlines were supported by rulings on complex cases, which primarily refused to protect the insurance company.
Irish lessor Aercap and several other leasing companies have tried to recover losses under “all risk” and “war risk” insurance after dozens of aircraft (distributed to around 18 operators) were seized by the Russian government.
Aercap, which has pursued more than 116 aircraft and more than 15 engines, says the ruling is entitled to recover about $1 billion from the insurance company by July 2nd.
The case was heard by the London High Court's Commerce Bureau and was a fight between the aircraft, including whether the seizure of the aircraft amounted to “physical losses” based on all risky policies.
“No airlines have considered commercial interests uniformly to retain all aircraft and engines,” the control states believe that several airlines, including S7 airlines, Ural Airlines, Ural Airlines and Utair, all “may have an advantage in returning at least some aircraft.”
But it adds that airlines “most committed” to bringing aircraft back to lenders “are clearly exposed to an increased constraint and pressured them not to do so.”
The issue was effectively resolved on March 10, 2022, after the Russian government implemented a resolution (designated as 311) enacting a ban on exporting goods, including aircraft and engines.
If there was flexibility in the days leading up to this resolution, the issue states that “the room for operation has disappeared.”
“Under most regimes, especially under authoritarian regimes like Russia, we can expect to follow the enactment of (resolution) 311.” “From its enactment, the airline was expected to comply with it, whether it represented what it otherwise wanted to do.”
Aercap claims that the aircraft was lost mainly due to “all risk risk,” with “war risk risk” as a replacement. Other lenders in the case argued the opposite.
The decision holds that entry into the entry into force of Solution 311 is a “close cause” of loss and corresponds to “control” or “detention” under the “war risk” cover for the government's dangers. The loss of the aircraft was not caused nearby by the “total risk” risk.
Insurance companies have been denied many defenses, including claims that exclusions were applied and sanctions prevented payments.
Aercap's war risk coverage was limited to $1.2 billion. Herbert Smith Freehills Kramer, a lender's law firm, says the actual awards totaled $1.035 billion.
The lessor's claims are “much larger” in the case, including leasing companies such as the Dubai Aerospace Company.
Aercap received a $2.7 billion bill for revenues in 2022, which involves abolishing or disrupting aircraft involved in Russian seizures. However, in 2023, we were able to recover $1.3 billion and $195 million last year.
“The claims against Russian Airlines' insurance companies continue to carry out the insurance contracts of Russian Airlines' insurance contracts on many of these assets, and we intend to continue to pursue these claims vigorously,” the lender says.
“However, the collection, timing and amount of further recovery possibilities for these claims is uncertain.”
