Avolon and BOC Aviation have both fully settled lawsuits in the Irish courts against insurers over aircraft detained in Russia following the issuance of Western sanctions in 2022, the lessors said on February 7, 2025.
Following the Russian Invasion of Ukraine in February 2022, over 400 aircraft were stranded in Russia, forcing the termination of their leases. These sanctions forced aircraft leasing companies to cancel their contracts with Russian carriers by March 28, 2022, initially leaving an estimated $10bn worth of assets inaccessible.
Both Avolon and BOC confirmed to Airline Economics that had discontinued legal proceedings in Ireland and reached commercial resolutions with insurers.
“Avolon has reached commercial resolution with its insurers in respect of its aircraft detained in Russia that were subject to proceedings in the High Court of Ireland and has now discontinued all the proceedings,” said a spokesperson for Avolon.
The Irish lessor declined to comment on the financial impact.
A spokesperson from Singapore-based BOC Aviation confirmed proceedings between BOC Aviation and relevant insurers means that the lessor is no longer a party to those proceedings and is no longer pursuing the claims made in that legal forum.
“BOC Aviation does however remain a party to English Court legal proceedings and will continue to pursue claims against relevant insurers. Terms of settlement remain confidential,” added a spokesperson.
Avolon was subject to an impairment charge on aircraft in Russia during 2022, impacting the company’s reported performance. By the middle of the year ten Avolon aircraft were still stuck in Russia, costing the lessor $244 million. Similarly, BOC lost $90 million in lease rental contributions from its Russian portfolio during 2022.
The Irish High Court trial, which commenced last June, concerns around €2.5bn ($2.6bn) of insurance claims.