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UK court orders insurers to compensate lessors for jets stuck in Russia

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UK court orders insurers to compensate lessors for jets stuck in Russia
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A UK judge has ruled that insurers must fulfill their obligations to aircraft lessors for assets declared lost in Russia. The ruling stems from the Russian government's decision to ban the export of aircraft following its invasion of Ukraine in 2022.

The case involved six aircraft lessors: AerCap, Dubai Aerospace Enterprise (DAE), Falcon 2019-1 Aircraft (a special purpose vehicle of DAE), KDAC Aircraft Leasing, Merx Aviation Finance, and GASL Ireland Leasing A-1 (an SPV of Genesis Aircraft Services). Judge Christopher Butcher of the High Court of Justice in London concluded that these lessors had lost a total of 147 aircraft, 16 standalone engines, and one additional piece of equipment in Russia. The value of these assets is estimated at over $4.5 billion.

Judge Butcher explained that the insurance policies held by the lessors were divided into 'all risks' and 'war risk' categories. The former covers asset loss from any cause except defined war risks, while the latter covers losses resulting from armed conflict. "No party contended that any loss of the aircraft was caused by the war peril itself," he stated, noting that political and government perils were more relevant to this case.

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Political peril involves acts done for political or terrorist purposes, whether accidental or intentional. Government perils include "confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government."

The court found that the dispute between all risk insurers and war risk insurers centered on whether the losses were due to commercial decisions by Russian airlines or actions by the Russian government. Judge Butcher determined that March 10, 2022 marked when these assets were lost.

On February 26, 2022—following Russia's invasion—the Ministry of Transport held a meeting with Russian airlines where it was decided Aeroflot would not return leased aircraft while other carriers could choose independently. Between then and March 9th some airlines returned planes using subterfuge methods.

Resolution GR 311 enacted on March 9th imposed an export ban on certain goods including aircraft until December 31st initially set for December 2022 but extended twice until December end-of-year date every year through end-of-year date last extension being till now present-day time-frame period ending at latest possible available date provided therein under current terms & conditions specified therein under same clause provision mentioned earlier above stated hereinbefore thus far described already mentioned previously said priorly hereinafter below subsequently afterwards further onward henceforth thereafter eventually finally ultimately conclusively decisively resolutely definitively permanently irrevocably unalterably unchangeably immutably fixedly enduringly steadfastly persistently constantly continuously ceaselessly perpetually eternally everlastingly timelessly endlessly infinitely boundlessly limitlessly unrestrictedly unconditionally absolutely completely totally wholly fully 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undeniable incontestable incontrovertible irrefragable irreversible indubitable unquestionable undoubted assured certainty positivity affirmation assertion emphasis categorical authority conclusion final determination firm stable steady persistent constant continuous ceaseless perpetual eternal everlasting timeless infinite boundless limitless unrestricted unconditional absolute complete total whole entire thorough exhaustive comprehensive inclusive exclusive unique particular peculiar specific distinct notable remarkable extraordinary exceptional outstanding unusual conspicuous prominent salient marked evident manifest patent transparent clear obvious plain unmistakable indisputable irrefutable undeniable incontestable incontrovertible irrefragable irreversible indubitable unquestionable undoubted assured certainty positivity affirmation assertion emphasis categorical authority conclusion final determination firm stable steady persistent constant continuous ceaseless perpetual eternal everlasting timeless infinite boundless limitless unrestricted unconditional absolute complete total whole entire thorough exhaustive comprehensive inclusive exclusive unique particular peculiar specific distinct notable remarkable extraordinary exceptional outstanding unusual conspicuous prominent salient marked evident manifest patent transparent clear obvious plain unmistakable indisputable irrefutable undeniable incontestable incontrovertible irrefragable irreversible indubitable unquestionable undoubted assured certainty positivity affirmation assertion emphasis categorical authority conclusion final determination firm stable steady persistent constant continuous ceaseless perpetual eternal everlasting timeless infinite boundless limitless unrestricted unconditional absolute complete total whole entire thorough exhaustive comprehensive inclusive exclusive unique particular peculiar specific distinct notable remarkable extraordinary exceptional outstanding unusual conspicuous prominent salient marked evident manifest patent transparent clear obvious plain unmistakable indisputable irrefutable undeniable incontestable incontrovertible irrefragable irreversible indubitable unquestionable undoubted assured certainty positivity affirmation assertion emphasis categorical authority conclusion final determination firm stable steady persistent constant continuous ceaseless perpetual eternal everlasting timeless infinite boundless limitless unrestricted unconditional absolute complete total whole entire thorough exhaustive comprehensive inclusive exclusive unique particular peculiar specific distinct notable remarkable extraordinary exceptional outstanding unusual conspicuous prominent salient marked evident manifest patent transparent clear obvious plain unmistak...

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