Russian Confiscation of Aircraft under legal dispute
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Russian Confiscation of Aircraft under legal dispute
AVIATION CONTENT !!!
Carlyle Aviation Partners is the latest leasing group suing dozens of insurance firms, claiming a total of about $700 million after aircraft were seized by the Russians. It has filed in Miami that more than 30 insurers have failed to pay up on policies covering 23 Airbus and Boeing jets stranded in Russia.
Earlier this year AerCap, the world’s biggest aircraft leasing business, filed a claim thought to be worth about $3.5 billion aiming to recoup the value of about 100 aircraft, and last month Dubai Aerospace Enterprise sued insurers two months after it wrote off almost $600 million for 19 aircraft stuck in the country. Leased aircraft worth at least $10 billion are thought to be seized in Russia.
As this is a Special Military Operation rather than a war I wonder if war risks are covered by the affected insurance policies?
Of course this is small beer compared to the reparations that will rightly be sought by Ukraine. If this mess is ever sorted out I would think that lessors and insurance companies may be reluctant to finance Russian aviation.
Carlyle Aviation Partners is the latest leasing group suing dozens of insurance firms, claiming a total of about $700 million after aircraft were seized by the Russians. It has filed in Miami that more than 30 insurers have failed to pay up on policies covering 23 Airbus and Boeing jets stranded in Russia.
Earlier this year AerCap, the world’s biggest aircraft leasing business, filed a claim thought to be worth about $3.5 billion aiming to recoup the value of about 100 aircraft, and last month Dubai Aerospace Enterprise sued insurers two months after it wrote off almost $600 million for 19 aircraft stuck in the country. Leased aircraft worth at least $10 billion are thought to be seized in Russia.
As this is a Special Military Operation rather than a war I wonder if war risks are covered by the affected insurance policies?
Of course this is small beer compared to the reparations that will rightly be sought by Ukraine. If this mess is ever sorted out I would think that lessors and insurance companies may be reluctant to finance Russian aviation.
Depends - I once saw a policy that referred to "the Restraints of Princes" - which I you couldn't claim against - rather covers the situation here I'd have thought
Dubai Aerospace Enterprise sued insurers two months after it wrote off almost $600 million for 19 aircraft
It all depends on policy wording. But usually war or acts of war, or government seizure are excluded from insurance policies issued in the normal course of affairs.
Shipping can be insured in high risk areas at significantly higher premiums.
Shipping can be insured in high risk areas at significantly higher premiums.
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Which cost is then passed on to the final consumer
I think this is an industry game changer for the airline leasing companies. A year ago the idea that 550 airliners would be stolen by government fiat was inconceivable, but not now. I imagine certain African, Asian, and South American countries with problematic governments are going to have a harder nd more expensive time leasing aircraft for their home airlines.
