Brings total recoveries to $2.6bn
AerCap is the world’s largest aircraft lessor
Dublin-based aircraft lessor AerCap – the world’s largest – has secured a further €112m from insurance claims linked to the seizure of its assets following Russia’s invasion of Ukraine.
It brings AerCap’s total recoveries related to the conflict to approximately $2.6bn (€2.2bn).
AerCap had 116 jets and 23 engines seized in Russia following its invasion of Ukraine.
AerCap, whose chief executive is Gus Kelly, said that it has received the cash insurance settlement proceeds this week.
They are in full settlement of its claims under the respective policies of AirBridgeCargo Airines and Altran, in respect of eight aircraft owned by AerCap entities and leased to those Russian airlines as of the date of the invasion in February 2022.
“Effective upon receipt of these insurance settlement proceeds from… NSK, a Russian insurance company, we have released our claims against NSK and these Russian airlines’ international reinsurers with respect to these eight aircraft,” AerCap told investors on Friday.
The insurance settlements and receipt of the proceeds have been approved by the US Department of Commerce and the US Department of the Treasury.
“While insurance settlement discussions are ongoing with respect to some of our claims under the insurance policies of other Russian airlines, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount,” noted AerCap. “In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained.”
In June, AerCap secured a $1.03bn award in London after suing insurers related to the seizure of assets in Russia.
The Irish company had initiated legal action in London against a slew of insurance and reinsurance firms including Lloyds, Liberty Mutual, Chubb, Fidelis and Swiss Re.
In 2023, it secured $572m in a full settlement of claims under insurance policies of Russian carriers Ural Airlines and S7 in respect of a total of 47 aircraft and five spare engines. These were owned by AerCap entities and were leased to the airlines at the time of the Russian invasion of Ukraine in 2022.
The action that concluded in the High Court in London in June followed a 12-week trial that included five other aircraft lessors, with AerCap acting as the lead claimant. AerCap was represented by international law firm Herbert Smith Freehills Kramer in the action.
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