Irish aviation leasing giant AerCap has been awarded almost €875 million by a UK court over the loss of aircraft following Russia’s invasion of Ukraine in 2022.
AerCap has been suing insurers for refusing to pay out under policies following the invasion, which resulted in several Irish businesses losing aircraft leased to Russian airlines.
The group confirmed that, in a judgment on Wednesday, a commercial court in London ruled that its subsidiary, AerCap Ireland Ltd, was entitled to recover $1 billion (€872.6 mullion) from insurers.
“This award is in respect of the aircraft and engines which AerCap and its affiliates leased to Russian airlines and were not recovered from Russia following its invasion of Ukraine in February 2022,” said a statement.
Wednesday’s ruling brings to $2.5 billion the total that AerCap has recovered from insurers under policies covering aircraft leased to Russia.
In 2022, it valued the losses at $2.7 billion, which covered the write-off of assets stranded in Russia and Ukraine, and impairments to those recovered from both countries at the time.
Since then it has recovered $1.3 billion in 2023 and $195 million last year.
In 2022, the company said that it had filed claims for $3.5 billion with its insurers for Russian losses.
AerCap is still pursuing claims for some aircraft and engines lost as a consequence of the conflict in the commercial court in London. The company pledged to continue vigorously pursuing the claims.
“However, the collection, timing and amount of any potential further recoveries of those claims are uncertain,” it cautioned.
The London court said the Irish company was entitled to Wednesday’s award under the “war and perils” section of part of its insurance coverage.
Insurers must pay the sum due by July 2nd this year. A hearing in September will deal with any questions of interests and costs, the company noted.
Dublin-based AerCap buys aircraft and engines from manufacturers, including Boeing and Airbus, and leases them to airlines around the world.
The company ended aircraft and engine leases with Russian airlines in February 2022 to comply with sanctions imposed by the EU as a response to the invasion. It was unable to recover 113 planes and 11 engines at the time, but did take back 22 planes and three engines.
Insurers contested claims filed by AerCap and other lessors, including Irish rivals and fellow industry leaders, SMBC Aviation Capital and Avolon, following the Ukraine war’s outbreak three years ago.
The claims sparked several lawsuits, including in the Irish courts, when insurers refused to pay out on various grounds.
However, lessors have been recovering losses over the last two years through settlements and rulings such as the one handed down in London on Wednesday.
SMBC recently confirmed two settlements totalling $654 million, bringing to $1,41 billion the total that has recovered from insurers. That group originally estimated its losses at $1.61 billion.
