Today, one of the most anticipated court cases in recent years kicked off in London. It will see some of the world’s largest companies—insurers and aircraft lessors—battle it out over what could amount to a $10bn (£7.8bn) payout.
The case revolves around the legal state of the planes trapped in Russia following the country’s invasion of Ukraine in 2022 . After the UK and EU levied sanctions against Russia, aircraft lessors were prompted to terminate their leasing policies, with the expectation planes trapped within the country would be returned. But over two and a half years later, most planes are being flown by Russian airlines with no realistic prospect of their return.
Lessors have turned to their insurance policies to recover their losses. However, insurers and reinsurers have denied liability. A swarm of litigation related to the cases hit the English Commercial Court last year.
As a result, the court set out a case management plan that would see a test case and a group of up to five claims to be heard together. The trial for the claimants is led by US-Irish aviation leasing giant Aercap , followed by Dubai Aerospace Enterprise (DAE), US-Irish firm Merx Aviation, Ireland-based KDAC Aircraft Trading, and Falcon 2019-1 Aircraft, an entity managed by DAE. The cases are against some of the world’s largest insurers, including AIG, AXA, Allianz, Liberty and Lloyds.
Opening the trial, leading barrister Mark Howard KC told Mr Justice Butcher that Aercap has a straight.