The Insurer has tracked 46 disputes filed in London’s High Court with a collective value of $5.45bn against more than 30 separate insurers, reinsurers and MGAs as of 5 June.
The claims similarly argue that aircraft leased into Russia are covered by policies against war or theft, but insurers point out the planes are undamaged and might yet be returned.
The largest claim comes from Dublin-based AerCap, which has sued its insurers in London’s High Court – AerCap Ireland Ltd vs AIG Europe SA and Lloyd’s Insurance Company SA – claiming they violated the terms of their insurance contract by refusing to indemnify it for its aircraft and engines stranded in Russia.
As previously reported, AerCap is suing insurers AIG, Lloyd's Insurance Company, Fidelis Insurance, Swiss Re and Chubb for $3.5bn over the loss of 116 aircraft and 23 engines under its all-risks insurance policy. Alternatively, it is claiming $1.2bn under its war-risks policy, court filings show.
In defence submissions, the insurers have stressed the possibility that aircraft may still be recovered amid the ongoing conflict, should agreements be made between the Russian and Western governments. The insurers on AerCap’s contingent war policy have also denied liability on the basis of international sanctions.
The claim – one of the first to be filed in any common law jurisdiction – is commonly cited as the bellwether of lessor disputes, both as a result of its scale but also because it is one of few cases to have progressed through the courts.
Following a string of hearings in early March, Justice Christopher Butcher found that five lessors' cases should be heard together in what AerCap's lawyers described as a "mega trial", which is expected to begin in October 2024.
Lessors Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance and DAE subsidiary Falcon 2019 are set to join AerCap in the "mega trial". DAE and Falcon are suing 11 insurers, including Lloyd's, AIG, Chubb and Swiss Re, over 21 aircraft and equipment valued at almost $900mn under all-risks policies, or for just under $800mn under war-risks policy limits.
Merx is claiming more than $255mn over the alleged loss of six aircraft, while KDAC is suing for $21.5mn over the loss of one jet, court filings show.
More recently, Carlyle Aviation Management has emerged as one of the more litigious lessors. Carlyle Aviation Management, one of the world’s largest aircraft operating companies, has now submitted 10 claims with a combined value of more than $316mn in London’s High Court over insurance payouts related to seizures by Russian operators.
While London has emerged as the destination of choice for lessor disputes, the global tally of aviation lessor claims now stands at $7.86bn with claims also filed in Dublin and various US states.
BOC claim dominates Irish aviation disputes
By size, the third-largest claim filed is from BOC Aviation, with the case currently working its way through the Irish High Court. BOC previously recognised an $804mn asset write-down relating to 17 aircraft.
An Irish High Court Filing lists Lloyd’s, AIG, Chubb and Swiss Re as among the insurers named in the proceedings.
Ireland is also playing host to the multi-million dollar claim brought by aircraft lessor Avolon. While the particulars of the claim are not currently clear, the case is understood to relate to a first-quarter impairment of $304mn Avolon made earlier this year to cover the financial impact of having 10 jets stuck in Russia.
Ireland-based lessor CDB Aviation also filed a claim in the Irish High Court. The firm – owned by China’s largest policy bank China Development Bank – is seeking damages related to nine aircraft it claims are trapped in Russia.
Elsewhere, Carlyle Aviation Partners filed a $700mn claim in Miami-Dade County, Florida, against more than 30 insurers that failed to pay out over 23 aircraft stuck in Russia.
Carlyle Aviation Partners – the world’s sixth-largest lessor by fleet count – filed the legal action in Florida in early November. According to the court filing, the case involves 16 Boeing and seven Airbus aircraft leased to 12 different airlines.
Also in North America, Connecticut-based aircraft lessor Aircastle has filed a complaint in New York against multiple insurers and Lloyd’s syndicates on its Chubb-led cover, accusing them of failing to provide coverage over $265.9mn in damages related to the Russia-Ukraine war.
The case names multiple insurers on its Aon-placed cover with the aircraft lessor understood to be claiming on both its contingent all-risk and hull war covers.
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