May 21, 2022

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Largest aircraft lessor demands billions from insurance companies for stranded planes in Russia |  Economie

Largest aircraft lessor demands billions from insurance companies for stranded planes in Russia | Economie

The world’s largest aircraft leasing company, AerCap, has filed claims with insurance companies for a total of 3.5 billion US dollars (more than 3.1 billion euros) for aircraft engines and aircraft it can no longer access due to sanctions against Russia. This is the report of Chief Financial Officer Peter Juhas for the Irish company today.

AerCap has leased 135 aircraft and 14 engines to Russian airlines. It has managed to recover 22 aircraft and 3 engines in recent weeks. The company will reduce the value of its aircraft in the first quarter figures of this year. It is not yet known how big it will be.

As a result of the war and the closure of Russian airspace, hundreds of aircraft from foreign charter companies were suspended in Russia. The IBA aviation consultant talks about 523 aircraft on March 10. The largest customer was S7 Airlines with 101 aircraft, followed by Aeroflot with 89 aircraft.

The Russian government banned planes from leaving the country. Without access to parts and lack of maintenance, there is a high probability that the aircraft will lose its value. The claims submitted raise the question of who will have to pay for these losses.

Claims related to the conflict could eventually total $10 billion, the highest in aviation insurance history, previously estimated by credit rating agency Fitch Ratings. This amount is disputed by Lloyd’s of London. The world’s largest insurance market estimates that the liability of insurers will be limited to about 10 to 15 percent of that amount.

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