By Padraic Halpin
DUBLIN (Reuters) -Avolon and BOC Aviation, two of the world’s largest aircraft lessors, have settled lawsuits in the Irish courts against insurers over jets stranded in Russia following Western sanctions in 2022, they said on Friday.
Lessors are suing dozens of insurers around the world over losses of at least $8 billion after more than 400 planes were stranded in Russia following the sanctions over Moscow’s war in Ukraine that forced the termination of their leases.
Avolon and BOC said they had reached commercial resolutions with their insurers in the Irish case and discontinued their proceedings, declining to disclose details of the settlement for commercial reasons.
Singapore-based BOC said it would continue to pursue a separate claim against insurers in London’s High Court, where another ‘mega-trial’ began last year.
Dublin-based Avolon recorded an impairment of $304 million in 2022 to cover the full financial impact of having 10 of its 1,000-plus fleet stuck in Russia. BOC took a write-down of $804 million in the same year relating to 17 aircraft.
The two lessors’ Irish action was against more than a dozen insurers including Lloyd’s of London, Chubb and Fidelis.
The Irish High Court trial, which began last June and is due to continue on Friday, concerns around 2.5 billion euros ($2.6 billion) of insurance claims.
The Irish Times, which first reported Avolon’s settlement, said it understood that other settlements had been reached.
Spokespeople for SMBC Aviation Capital, CDB Aviation, Nordic Aviation Capital and Hermes Aircraft – the four other lessors pursuing claims in Ireland – did not immediately respond to a request for comment.
Since launching the lawsuits, some of which are also due to be heard in the United States, lessors have disclosed settlements with Russia totalling more than $2.5 billion for more than 100 jets, with ownership transferred to Russian airlines.
The trial in Ireland, where more than 60% of the world’s leased aircraft are owned or managed, is the largest ever heard in the country by number of lawyers.
($1 = 0.9622 euros)
(Reporting by Padraic HalpinEditing by Mark Potter)
