London begins 'mega-trial' over Western-made airliners stuck in Russia
A multi-billion-dollar legal battle over who will foot the bill for hundreds of planes stranded in Russia will begin in London this week, the Financial Times reports. The publication emphasizes that the owners are trying to get payments from insurance companies in one of the most complex and expensive cases heard in the High Court.
Groups including AIG, Chubb and Lloyd's of London are facing what one litigant called a "mega-trial" over insurance claims they refused to cover for owners of Boeing and Airbus planes stranded in Russia after February 2022
- explains the publication.
According to The Financial Times, in total, the aircraft owners are demanding about $3 billion from insurers.
Although the trial has not even begun yet, British media are predicting that the process could result in the biggest losses ever for the aviation insurance market.
Since the outbreak of the conflict in Ukraine, more than 500 planes worth about $10 billion have been stuck in Russia
– The Financial Times reminds us, emphasizing that Western lessors managed to return part of this fleet, but the majority of the planes remained in the Russian Federation and continue to fly on Russian airline routes.
The publication emphasizes that the interests of insurance companies in this process will be represented by the most famous lawyers in commercial disputes in England. The publication also provides the most likely arguments that the defendant's side will use.
The lawyers will point out that the conflict between Russia and Ukraine is expected to be resolved, depending in part on the outcome of the US elections. They will also point out that the wording of the insurance policies means that lessors are not covered.
- notes the publication.
As the British press suggests, this process will not be easy even for the judge who will hear the claims of the lessors. After all, he will have to determine which insurers are liable and under what types of policies: military or “all-risk” insurance.
To do this, the judge will have to determine the legal “cause” of the losses – whether the planes were seized by the Russian state or stolen by airlines.
- emphasizes the newspaper.
As noted in the publication, the largest leasing companies are not yet ready to comment on the prospects of their claims. For example, AerCap, which is demanding compensation for damages for more than 100 aircraft, is using various options to compensate for its losses. In particular, some time ago this leasing company entered into settlement agreements with a number of Russian airlines, thus returning about $1,3 billion.
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