BOC Aviation takes insurers to court over claim for jets in Russia

BOC Aviation

14/11/2022 14:12

DUBLIN, Nov 14 (Reuters) - BOC Aviation  2588.HK  has
begun legal action in pursuit of claims against 16 insurers over
aircraft the lessor owns that are stuck in Russia, an Irish High
Court filing shows.
    The insurers named in the proceedings, which the filing
shows were issued on Nov.3, include Lloyd's of London
 SOLYD.UL , AIG  AIG.N , Chubb  CB.BN  and Swiss Re  SRENH.S . 
    Lloyd's, AIG, Chubb and Swiss Re did not immediately respond
to requests for comment on BOC's legal move, which did not
include details on the size of the lessor's claim.
    Leasing firms have begun pursuing claims over huge losses
since losing control of more than 400 leased planes worth almost
$10 billion after Western countries sanctioned Russia over its
invasion of Ukraine and Moscow blocked the jets from leaving.
    Singapore-based BOC recognised an $804 million asset
write-down in August relating to the 17 aircraft it owns that
remain in Russia, saying it was unlikely to be able to recover
the jets "in the foreseeable future, if ever." 
    BOC said in August that it had filed insurance claims to
recover the losses and would vigorously pursue them. 
    Its Chief Executive Robert Martin told analysts in August
that the proceedings "will keep lawyers busy for many years" and
may require a complete rethinking of aviation insurance.
    Dublin-based AerCap  AER.N , the world's biggest aircraft
lessor, in June filed a $3.5 billion lawsuit at London's High
Court over its insurance claim for more than 100 seized planes,
the largest claim by any lessor related to the conflict.
    Other major lessors including Avolon and Dubai Aerospace
Enterprise (DAE) have also begun proceedings. 
 (Reporting by Padraic Halpin in Dublin, additional reporting by
Carolyn Cohn in London, editing by Alexander Smith)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))