Capital Economy, Business and Finance
Insurance groups including Lloyd’s and AIG are at London’s High Court this week to argue that they shouldn’t foot the bill for hundreds of planes stranded in Russia. Owners of the aircraft, including the world’s largest aviation leasing company, AerCap, are seeking £3 billion in payouts for Boeing and Airbus jets, some of which have been commandeered by Russian airlines. Barristers representing the insurers are expected to argue it’s too early to declare a total loss, given that many aircraft remain intact and could be returned if the war in Ukraine ends. AerCap has separately struck settlements with Russian insurers and recouped $1.3 billion. More than 500 aircraft worth an estimated $10 billion have been stuck in Russia since the country invaded Ukraine. Aviation insurance sector losses due to the war are expected to exceed those after 9/11.
