The leased planes stranded in Russia over the Ukraine war are becoming a case for the courts. Avolon, the world’s second largest aircraft rental company, has filed a lawsuit against London’s European insurance market subsidiary Lloyd’s in Ireland’s highest court. According to Portal, this is evident in court documents available today.
There are about 10 Avolons held in Russia because EU sanctions are forcing all leasing companies to end their contracts with Russian airlines. However, they did not return the aircraft – a total of around 400 worth eleven billion dollars (around eleven billion euros) – to the owners.
Leasing companies are now demanding damages from their insurers – but they don’t want to pay, citing the war. Hannover Re’s chief financial officer, Clemens Jungsthöfel, told Portal that legal position has not changed.
Avolon wrote off $304 million on ten aircraft in the first quarter. A spokesperson declined to comment on the scope of the lawsuit against Lloyd’s: “We have always said that we will pursue our claims consistently. Filing the suit is now the next step in this process.”