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FACTBOX-Aircraft lessors sue insurers for $6.5 billion over trapped Russian planes

Aircraft leasing firms are suing dozens of insurers for around $6.5 billion in a string of lawsuits over the loss of hundreds of aircraft stuck in Russia
since Moscow’s invasion of Ukraine.

November 21, 2022
21 November 2022

LONDON, Nov 21 (Reuters) – Aircraft leasing firms are
suing dozens of insurers for around $6.5 billion in a string of
lawsuits over the loss of hundreds of aircraft stuck in Russia
since Moscow’s invasion of Ukraine.

More than 400 leased planes worth around $10 billion are
unable to leave Russia after European Union sanctions forced
the termination of their leases.

Lessors argue the aircraft are covered by policies against
war or theft, but insurers point out the planes are undamaged
and might yet be returned.

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

CDB AVIATION VS 18 INSURERS

Irish-based lessor CDB Aviation, owned by the China
Development Bank, filed a claim in the Irish High Court against
18 insurers on Nov. 15 over jets stuck in Russia. CDB Aviation
recognised an 747 million yuan ($104 million) asset write-down
in August but said this was not the full value of the jets.

BOC AVIATION VS 16 INSURERS

BOC Aviation has begun legal action against 16 insurers,
according to an Irish High Court filing on Nov 3.
Singapore-based BOC recognised an $804 million asset write-down
in August relating to the 17 aircraft it owns that remain in
Russia, saying it was unlikely to be able to recover the jets
“in the foreseeable future, if ever”.

AVOLON VS 15 INSURERS

Avolon is taking legal action against 15 insurers in the
Irish High court, a filing showed on Nov. 3, after the aircraft
lessor recorded a first-quarter impairment of $304 million to
cover the financial impact of having 10 jets stuck in Russia.

AIRCASTLE VS 30 INSURERS

Aircastle filed a claim against more than 30 insurers with
the Supreme Court of the State of New York in late October over
nine aircraft and other equipment stranded in Russia. Aircastle
said earlier this year it had booked $252 million in impairment
losses for the jets.

CARLYLE VS 30 INSURERS

Carlyle Aviation Partners filed a $700 million claim in
Miami-Dade County, Florida, against more than 30 insurers that
failed to pay out over 23 aircraft stuck in Russia, it said in
late October.

DUBAI AEROSPACE VS 11 INSURERS

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

AVIATOR CAPITAL VS 15 INSURERS

Aviator Capital brought a $147 million claim against Chubb,
Hive Underwriters, HDI Global and a dozen Lloyd’s of London
syndicates in a Florida court in August for failing to pay out
on claims for four commercial aircraft and three engines leased
to Russian airlines.

AERCAP VS AIG, LLOYD’S OF LONDON

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

($1 = 7.1653 Chinese yuan renminbi)
(Compiled by Carolyn Cohn, Kirstin Ridley and Jonathan Stempel
Editing by Mark Potter)

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