Fact Box – Aircraft lessors sue insurers for $8 billion over grounded Russian planes

More than 400 leased aircraft worth about $10 billion are unable to leave Russia after EU sanctions forced the termination of their leases.

Lessors claim the planes are covered by war or theft policies, but insurers point out the planes are undamaged and may still be returnable.

Here is a list of claims filed against insurance companies in London, Dublin and the United States, with the most recent filing first.

NORDIC AVIATION CAPITAL VS LLOYD’S, GLOBAL AEROSPACE

A subsidiary of Nordic Aviation Capital filed suit against Lloyd’s of London and Global Aerospace Underwriting Managers (Europe) in the Irish High Court on 9 December.

BOC AVIATION USA 17 INSURANCE PROVIDER

BOC has on 9 December filed a case in the Irish High Court against a subsidiary of China’s Ping.

This follows the BOC’s legal action against 16 insurers, according to an Irish High Court filing on November 3. Singapore-based BOC acknowledged in August an $804 million write-down on the 17 planes still in Russia and said it was unlikely to be able to recover the planes “in the foreseeable future, if ever “.

AVOLON USA 16 INSURANCE

On 9 December, Avalon filed a case against the Chinese PICC Property & Casualty in the Irish High Court.

This follows a lawsuit against 15 insurers in Ireland’s High Court, a hearing revealed on November 3, after the lessor of the plane took a $304 million write-down in the first quarter to cover the financial fallout from 10 planes that were established in Russia.

SMBC AVIATION CAPITAL VS LLOYD’S OF LONDON

SMBC filed a claim against Lloyd’s of London in the Irish High Court on 28 November.

Ireland-based SMBC, owned by a consortium including Japan’s Sumitomo Corp and Sumitomo Mitsui Financial Group, filed a $1.6 billion write-down earlier this year to cover the full financial fallout from 34 planes stuck in Russia.

CDB AVIATION USA 18 INSURER

Irish lessor CDB Aviation, owned by the China Development Bank, filed a claim against 18 insurers in Ireland’s High Court on November 15 in connection with planes stuck in Russia. CDB Aviation acknowledged a 747 million yuan ($105 million) write-down on the assets in August, but said that was not the full value of the jets.

AIRCASTLE USA 30 INSURANCE

Aircastle filed a claim in New York State Supreme Court against more than 30 insurance companies in late October for nine planes and other equipment stranded in Russia. Aircastle said earlier this year it had ordered a $252 million write-down on the jets.

CARLYLE USA 30 INSURANCE

Carlyle Aviation Partners has filed a $700 million claim in Miami-Dade County, Florida, against more than 30 insurance companies that failed to pay for 23 planes stranded in Russia, the company said in late October.

DUBAI AEROSPACE USA 11 INSURANCE PROVIDER

Dubai Aerospace Enterprise filed a lawsuit in London in October against 11 insurers, including Lloyd’s of London, AIG, Chubb and Swiss Re, two months after it wrote off nearly $600 million for 19 planes stuck in Russia.

AVIATOR CAPITAL USA 15 INSURER

Aviator Capital filed a $147 million lawsuit in Florida in August against Chubb, Hive Underwriters, HDI Global and a dozen Lloyd’s of London syndicates for failure to pay claims on four commercial jets and three engines sold to Russian airlines.

AERCAP VS AIG, LLOYD’S OF LONDON

Aercap filed a $3.5 billion lawsuit in June in London against AIG and Lloyd’s over 141 aircraft and 29 aircraft engines owned by Aercap that are leased to Russian airlines.

($1 = 7.1028 Chinese Yuan Renminbi)

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