DAE secures US$118 million cash insurance settlement for Aeroflot-leased aircraft

Dubai Aerospace Enterprise (DAE) has successfully obtained a cash insurance settlement totalling approximately US$118 million (£93 million) for aircraft previously leased to Public Joint Stock Company “Aeroflot – Russian Airlines” (Aeroflot).

The settlement amount signifies the resolution of DAE’s insurance claims under Aeroflot’s insurance and reinsurance policies, specifically pertaining to seven aircraft and their associated engines.

This insurance settlement and the subsequent receipt of settlement proceeds, facilitated by Limited Liability Company Insurance Company NSK (NSK), a Russian insurance entity, were conducted in strict compliance with all relevant sanctions regimes.

Upon receiving the insurance settlement proceeds from NSK, every DAE affiliated entity involved in the Aeroflot leases has officially released its claims against NSK, Aeroflot and their international reinsurers regarding the aforementioned aircraft and engines.

While discussions regarding insurance settlements are ongoing for DAE’s claims under the insurance policies of several other Russian airlines, the outcome remains uncertain. It is unclear whether these discussions will lead to insurance settlements or the receipt of settlement proceeds, and if so, the exact amount. Notably, the attainment of necessary approvals and funding to finalise any additional insurance settlements is also uncertain.

DAE is committed to actively pursuing litigation in the English courts under its own insurance policies. Furthermore, the company will persist in its efforts to mitigate losses related to its aircraft previously leased to other Russian airlines.