London Reveals Who Will Cover Losses for Airplanes Remaining in Russia

The world's largest aircraft owner, Irish airline AerCap, will receive $1 billion in compensation for more than 147 of its planes that remained in Russia after the start of military operations in Ukraine , the Financial Times reported. The UK High COURT ruled that insurers must compensate it for the losses.

The court also ordered insurance companies AIG, Lloyd's of London and Chubb to do so. Although the amount of compensation awarded to AerCap was one of the largest in the history of British courts, the amount was still less than what the company had originally requested. According to the FT, it had referred to an "all risks" policy, but the court determined that the situation was "war risks." Other companies will also receive payments under "war risks" insurance, but the amounts have not yet been determined.

Law firm Herbert Smith Freehills Kramer, which represents AerCap, said the company had secured $1.035 billion in compensation "in addition to the substantial recoveries achieved in previous settlements."

In March 2022, President Vladimir Putin signed a law on the possibility of registering rights to foreign aircraft leased from Russian companies. This measure was explained as a response to "restrictive measures against Russian citizens and legal entities", the document was adopted "in order to protect national interests."

In June 2022, then-Minister of Transport Vitaly Savelyev reported that most Russian airlines had re-registered aircraft from foreign registries to domestic ones. According to him, carriers operate flights to 11 countries that have guaranteed that they will not arrest aircraft.

In the aftermath, companies including AerCap Holdings NV and Dubai Aerospace Enterprise Ltd. sued insurers including AIG and Lloyd's of London for failing to cover the losses.

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