Resolution in Irish Lawsuits Involving Aircraft Insurers
SMBC Aviation Capital has successfully resolved legal actions in Ireland against several insurers concerning jets left in Russia due to sanctions implemented in 2022. A spokesperson for the company confirmed that proceedings have been discontinued against certain insurers, notably including Fidelis.
According to The Irish Times, SMBC has reached an agreement with Fidelis and is nearing a settlement with Chubb. Furthermore, CDB Aviation has reportedly settled with Fidelis and Ping An, although a CDB Aviation spokesperson chose not to comment on these developments.
Settlement Developments in War Risk Cases
The publication also indicated that all disputes involving ‘war risk’ insurance defendants have been resolved. The legal proceedings distinguished between ‘all risk’ and ‘war risk’ policies, treating them as separate issues.
Previously, SMBC achieved settlements with Swiss Re and Scor Europe, two of the 18 insurers involved in a collective lawsuit initiated by six lessors at the Irish High Court last June.
Global Legal Context and Financial Impact
Aircraft lessors are engaged in legal battles worldwide, seeking compensation for losses exceeding $8 billion, after over 400 aircraft were left in Russia due to sanctions related to the conflict in Ukraine. These sanctions resulted in the termination of lease agreements.
Among the world’s largest aircraft lessors, Avolon and BOC Aviation, along with smaller competitor Nordic Aviation Capital, have fully resolved their cases in the Dublin jurisdiction last month.
The trial in the Irish High Court, involving insurance claims totaling approximately €2.5 billion ($2.6 billion), is noted as the country’s largest by legal representation. The significance is underscored by the fact that Ireland is home to over 60% of the world’s leased aircraft.
Since the initiation of legal proceedings, lessors have also disclosed settlements with Russian entities amounting to more than $2.5 billion, which included the transfer of ownership for over 100 jets to Russian airlines.
