Aircraft lessors Avolon and BOC Aviation have settled lawsuits in the High Court against insurers over jets stranded in Russia after Western sanctions in 2022, the companies announced on February 7.
According to REUTERS, the trial, which began last June, involved approximately US$2.7 billion in insurance claims.
SMBC Aviation Capital, another major lessor, confirmed it had also reached settlements with Swiss Re and Scor Europe. These are two of the 18 insurers it is suing as part of a broader lawsuit brought by six lessors in the Irish High Court, which continued on Friday, February 7.
Aircraft lessors are seeking compensation from multiple insurers worldwide over losses exceeding US$8.3 billion. More than 400 aircraft were left in Russia after sanctions against Moscow’s invasion of Ukraine forced the cancellation of lease agreements.
Avolon and BOC said they had dropped their Irish lawsuits after reaching commercial settlements with their insurers. Both companies, along with lessor SMBC—declined to disclose settlement terms due to confidentiality agreements.
Representatives for CDB Aviation, Nordic Aviation Capital and Hermes Aircraft, the three other lessors involved in the Irish legal action, did not comment.
BOC, headquartered in Singapore, said it would continue pursuing a separate claim against insurers in London’s High Court, where another trial involving aircraft lessors began last year.
Dublin-based lessor Avolon recorded a US$304 million impairment in 2022 to cover losses from ten of its aircraft stranded in Russia. BOC took a US$804 million write-down the same year for 17 aircraft.
The Irish lawsuit targeted over a dozen insurers, including Lloyd’s of London, Chubb and Fidelis.
Since the legal action began—some cases are also set to be heard in the United States—lessors have secured more than US$2.5 billion in settlements with Russia for over 100 aircraft, transferring ownership to Russian airlines.
With more than 60% of the world’s leased aircraft owned or managed in Ireland, the ongoing Dublin trial is the largest in the country’s history by the number of legal representatives involved.
