In a high-stakes legal showdown worth $10 billion, London’s High Court ruled on Thursday that the dispute between reinsurers and aircraft leasing companies, entangled over more than 200 jets stranded in Russia, should proceed in London, not Moscow.
Aircraft leasing giants such as Ireland’s AerCap and U.S.-based Carlyle Aviation Partners are seeking compensation from insurers following the grounding of their jets in Russia post the Ukraine invasion.
The lessors argued for London jurisdiction, citing concerns over biased hearings or inconsistent judgments in Moscow. While some major reinsurers favored the Russian venue, others, including heavyweights Swiss Re and Chubb, sided with London.
Judge Andrew Henshaw sided with the lessors, stating that a fair trial in Russia was highly unlikely. Carlyle Aviation Partners, one of the claimants, expressed satisfaction with the ruling, vowing to pursue their claims vigorously in London courts.
Since Western sanctions stranded hundreds of aircraft in Russia, a wave of lawsuits has hit insurers. The legal battle hinges on “operator” policies, under which Russian airlines leased jets from international lessors, insured them locally, and reinsured through London.
Settlements have already been reached for over 100 jets, amounting to more than $2.5 billion, with ownership transferred to Russian airlines. Despite these agreements, the legal saga continues, with a “mega trial” scheduled for October in London.
