A case management conference is underway in London by 20 airline leasing companies from Ireland and elsewhere to prevent their €15bn insurance claim being transferred to a Moscow court.
The ongoing court case is focused on the insurance and reinsurance policies of Russian airlines to whom lessors had leased their aircraft prior to Russia’s invasion of Ukraine in 2021.
While disputes should be resolved in Russia under Russian law according to the insurance contracts, the attempt to shift the case to Moscow has been interpreted as a strategic move by insurers to avoid paying.
The amount being claimed has risen from £7.8bn to €15bn in the span of four months as initial action by Dublin-headquartered AerCap, Aircastle, Carlyle Aviation Partners, and Merx Aviation has been joined by Irish companies Avolon and SMBC Aviation, as well as Bank of China Aviation. The claim is complex, as some subsidiaries manage multiple aircraft while others manage only one, resulting in multiple claims.
Insurance companies involved include Lloyd’s of London, Axa, AIG, and Allianz.
A decision regarding jurisdiction is expected to be made by the London court in February, which will determine if the lessors can proceed with their substantive claims.
