Aircraft lessors set for June 2024 trial over Russia insurance claims

BOC Aviation

31/07/2023 16:58

DUBLIN, July 31 (Reuters) - Some of the world's largest
aircraft lessors and insurers are aiming to be ready to go to
trial in June 2024 over contested insurance claims for aircraft
stuck in Russia, a lawyer for one of the lessors said on Monday.
    Lessors are suing dozens of insurers around the world for
billions of dollars after more than 400 planes were unable to
leave Russia due to Western sanctions in response to Moscow's
invasion of Ukraine that forced the termination of their leases.
    The world's number two and three lessors, SMBC and Avolon,
as well as BOC Aviation  2588.HK , CDB Aviation, Nordic Aviation
Capital and Carlyle Aviation Partners are pursuing their claims
in Ireland, where more than 60% of the world's leased aircraft
are owned or managed.
    Kelley Smith, a lawyer for Avolon, told a hearing on Monday
that all parties involved were aiming for a trial date of June 4
next year, with a number of procedural steps to be completed
before then.
    Those steps include finding a venue large enough for the 180
attendees Smith said were expected at the trial each day.
Justice Denis McDonald told a packed hearing last month that no
court in Ireland was large enough to hear the case.
    The world's biggest aircraft lessor, Irish-based AerCap
 AER.N , is pursuing its insurance claims through London's High
Court.
    AerCap's Chief Financial Officer said on Monday that it
continued to have discussions with Russian insurers on a
potential settlement regarding some of its aircraft stranded in
Russia.
    "Given the sensitive nature of those discussions and the
uncertainty regarding any potential recovery, we're not going to
comment further on any of that," Peter Juhas told an analyst
call.

 (Reporting by Padraic Halpin
Editing by Mark Potter)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))