DUBLIN- AerCap (AER), the world’s largest aircraft leasing company, has secured the right to claim over $1 billion in insurance for aircraft stranded in Russia. The jets were stuck after Russia invaded Ukraine, and a UK court has now ruled in AerCap’s favor.
The High Court in London determined that the losses were caused by Russian government actions, enabling AerCap to recover the amount under its war risk insurance policies.
Many of these aircraft had been leased to Russian carriers such as Aeroflot (SU) and were based at airports like Moscow Sheremetyevo (SVO).
Photo: By Anna Zvereva from Tallinn, Estonia – Aeroflot, VP-BGN, Boeing 737-8LJ, CC BY-SA 2.0, https://commons.wikimedia.org/w/index.php?curid=52212500AerCap Wins $1 Billion Insurance
The judgment, delivered by Judge Christopher Butcher, resolves part of a years-long legal dispute between aircraft lessors and insurers over jets trapped in Russia since March 2022.
The core issue was whether lessors could claim insurance after the Russian government enacted a law banning the export of aircraft and aviation equipment, effectively grounding foreign-owned planes in the country.
AerCap led the litigation alongside other lessors, including Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon, and Genesis.
Together, they brought claims against major insurers like AIG, Lloyd’s, Chubb, and Swiss Re.
Although AerCap initially sought close to $2 billion, the court awarded $1.035 billion following the ruling.
This amount is in addition to the $1.3 billion AerCap had already received in six prior settlements between August and December 2023 involving lessees and a Russian insurance company.
Judge Butcher clarified that the aircraft were effectively lost as of March 10, 2022, the date Russian legislation formalized the export ban.
This legal classification enabled the claims to fall under war risk insurance policies, rather than general coverage clauses.
According to CNN Business, the judgment sets a critical precedent in one of the largest aviation insurance disputes ever tried in London.
Photo:- Aeroflot AirlineImpact on the Aviation Leasing
The outcome has broader implications for the global aircraft leasing industry, which had nearly $10 billion worth of jets trapped in Russia at the start of the conflict.
The ruling validates insurers’ obligations under war risk policies even in cases involving hostile government actions.
The court also confirmed that neither US nor European Union sanctions blocked insurers from compensating lessors, removing a key legal uncertainty.
While KDAC resolved its claims during the trial, other lessors, including AerCap and DAE, are expected to continue pursuing unresolved portions of their insurance claims.
This ruling may influence future insurance contracts and risk assessments in politically unstable regions.
It also highlights the need for more robust legal frameworks governing cross-border leasing and asset protection.
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