By Maria Ward-Brennan
US-Irish aviation leasing giant Aercap has revealed that it has recovered just under $1.3bn (£1.02bn) in insurance settlements, ahead of its English legal battle set for trial later this year.
Aercap is one of several airline leasing companies that has brought legal action against the majority of the insurance giants in the Lloyd’s market over stranded planes.
Following the Russian invasion into Ukraine, approximately 500 foreign-owned aircraft remained in Russia, with a market value greater than $10bn (£787m).
The leasing companies immediately turned to their insurers as they sought to recover these losses – but they refused to cough up, leading the companies to file legal action.
When reporting its financial results for the fourth quarter and full year of 2023, the company outlined that it recovered $614m (£483m) during Q4 of 2023.
The company stated that it primarily consisted of cash insurance settlement received from four Russian airlines and their Russian insurers in settlement of its insurance claims. It explained that this settlement was in respect of 50 aircraft and five spare engines on lease to these airlines at the time of Russia’s invasion of Ukraine.
Aercap highlighted that it has recovered a total of $1.25bn (£988m) in cash insurance settlement over 2023.
Elsewhere, several insurance companies were at court earlier this month seeking to have the aviation legal dispute moved from an English to a Russian court. The High Court heard arguments over a jurisdiction challenge, no decision has been made yet.
The main trial for this case is scheduled to start on 2 October at the English High Court and run for approximately 12 weeks.
