Avolon settles lawsuit against insurers over stranded Russian jets (updated)

BOC Aviation

07/02/2025 07:58

(Adds details throughout)
       DUBLIN, Feb 7 (Reuters) - Avolon has settled a lawsuit
against a number of insurers over jets that were prevented from
leaving Russia when Western sanctions forced the termination of
their leases in 2022, the world's second-largest aircraft lessor
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.
    "Avolon has reached commercial resolution with its insurers
in respect of its aircraft detained in Russia that were subject
to proceedings in the High Court of Ireland and has now
discontinued all the proceedings," an Avolon spokesperson said.
    "We cannot comment on any financial impact as we are in a
closed period in advance of publishing our full-year 2024
results on February 13."
    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. It took its action against 16
insurers including Lloyd's of London, Chubb  CB.BN  and Fidelis.
    The Irish Times, which first reported the settlement, said
it understood that other settlements had been reached, but that
the scope of these could not yet be confirmed.
    The world's third largest lessor SMBC Aviation, BOC Aviation
 2588.HK , CDB Aviation, Nordic Aviation Capital and Hermes
Aircraft were also pursuing claims in Ireland, where more than
60% of the world's leased aircraft are owned or managed.
    The ongoing trial in Dublin began last June and is the
largest ever heard in Ireland by number of lawyers.
    The world's biggest aircraft lessor, Irish-based AerCap
 AER.N , is pursuing its claims through London's High Court in
another 'mega-trial' expected to run through February. Other
lessors have taken cases to the United States.

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