Dispute over aircraft: Swiss Re and other insurers in billion-dollar lawsuit
Swiss Re and over 20 other insurance companies are facing a major legal dispute before a court in London. The case concerns the costs of hundreds of aircraft that have been stuck in Russia since the start of the Ukraine war. The owners of the aircraft in question are demanding more than three billion US dollars in damages for machines that are no longer available. The consequences of this legal dispute could have a lasting impact on the aviation and insurance industries. The problems for international leasing companies began immediately after Russia invaded Ukraine in March 2022. According to aviation consultancy IBA, there were 523 foreign aircraft in Russia at the time, financed by Western leasing companies. The Russian authorities responded to the sanctions by transferring the aircraft to the national register and blocking the owners' access to these aircraft. This primarily affects the airlines S7 Airlines and Aeroflot, which together have hundreds of Western aircraft in their fleet. The legal implications are complex: The leasing companies argue that they have suffered an insured loss for the non-recoverable aircraft. In particular, the Irish leasing giant AerCap has already claimed a total loss of 3,5 billion US dollars for 135 aircraft leased to Russia. Given the enormous value at stake here, it is not surprising that the lawsuit is attracting a great deal of attention in the industry. The dispute in court The trial, which has been opened in the High Court in London, deals with key questions regarding compensation for the confiscated aircraft.