Insurers including Chubb, Fidelis and Lloyd’s have been granted permission to appeal a London High Court ruling in favour of aircraft lessor AerCap over jets stranded in Russia following the invasion of Ukraine, according to Reuters.
The decision allows insurers to challenge the June ruling at the Court of Appeal, with the hearing expected to last up to five days. The High Court had ruled that AerCap could recover just over $1bn under its “war risks” insurance policies, although this was less than the roughly $2bn it had sought under a broader all-risks clause.
The case forms part of one of the largest insurance disputes heard in London, with the court broadly ruling in favour of leasing companies in their claims against insurers.
According to the Courts and Tribunals Judiciary website, an independent body of judges, magistrates and tribunal members responsible for interpreting and applying the law across England, Wales and specialised UK-wide tribunals, the judgment covers six actions brought by aircraft and engine owners and lessors against their insurers. The claims relate to 147 aircraft, 16 engines and other equipment worth over $4.5bn that were left in Russia following the invasion of Ukraine in 2022.
The Reuters’ article says almost 150 aircraft and some engines, with a total value of up to $4.7bn, were involved although settlements, including some reached on the first day of the trial in October 2024, reduced the scope of the claims.
AerCap, Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon and Genesis led the claims against insurers including AIG, Lloyd’s, Chubb and Swiss Re. KDAC settled all its claims during the trial, while other lessors, including AerCap and DAE, have disclosed periodic settlements, Reuters reported.