TL;DR
- London’s High Court ruled AerCap, the world’s largest aircraft lessor, can recover over $1 billion for jets stranded in Russia since the Ukraine invasion.
- The ruling marks a significant legal victory in a multi-billion-dollar insurance dispute involving nearly 150 aircraft and engines valued up to $4.7 billion.
- The court classified the loss as caused by an “act or order of the Russian government,” enabling claims under war risk insurance.
- Settlements prior to the ruling already yielded $1.3 billion, with insurers including AIG, Lloyd’s, Chubb, and Swiss Re involved.
AerCap Secures Over $1 Billion in Insurance for Aircraft Trapped in Russia
The High Court of Justice in London delivered a landmark ruling favoring AerCap, the world’s largest aircraft lessor, in a high-stakes legal battle over insurance claims for jets stuck in Russia following the 2022 invasion of Ukraine. On June 11, 2025, the court decided AerCap can recover $1.035 billion from insurers, a substantial sum though less than the $2 billion originally sought.
This legal dispute has been one of the largest and most complex insurance cases heard in London’s financial hub, involving approximately 150 aircraft and several engines that were leased to Russian airlines and immobilized due to sanctions and export bans.
Background: Aircraft Trapped Amid Geopolitical Sanctions
Following Russia’s military action in Ukraine, several governments imposed stringent sanctions, including bans on the export and return of leased aircraft. On March 10, 2022, Russian legislation prohibited the export of aircraft and related equipment, effectively grounding many leased jets.
Judge Christopher Butcher noted in his ruling that the “loss occurred” on this date when Russian legislation rendered the aircraft unusable for their lessors. This legislation, an act of a foreign government, qualified the event as a “war risk” under insurance policies, which tend to cover such geopolitical risks separately from standard all-risk clauses.
Legal Dispute Over Insurance Coverage
AerCap and other leasing companies such as Dubai Aerospace Enterprise (DAE), Merx Aviation, and Falcon Aviation led claims against major insurers including American International Group (AIG), Lloyd’s of London, Chubb, and Swiss Re. The claims focused on the insurers’ obligations to cover losses caused by war risk policies.
The court clarified that insurers were not barred by European Union or US sanctions from indemnifying the lessors. This means that despite ongoing international sanctions, insurance contracts remain enforceable for such war-related risks.
Financial Impact and Settlements
Prior to the final ruling, AerCap secured more than $1.3 billion through six settlements between August and December 2023, involving lessees and a Russian insurer. The High Court ruling adds to these recoveries, bringing the total compensation significantly closer to the original value of lost assets.
Judge Butcher’s decision was welcomed by AerCap’s legal advisors at Herbert Smith Freehills, who described the judgment as securing over $1 billion in additional recoveries, further solidifying AerCap’s position.
Other leasing firms like KDAC Aviation Finance settled their claims during the trial, while AerCap, DAE, and others continue to disclose periodic settlements as litigation proceeds.
Broader Implications for the Aircraft Leasing Industry
This ruling sets a significant precedent for the aircraft leasing industry, which faces unprecedented challenges due to geopolitical conflicts. Lessors typically rely on insurance coverage to mitigate risks associated with asset loss, but the complex interplay of sanctions and war risk clauses has created legal uncertainty.
The case emphasizes the need for clear contractual language around war risk coverage and highlights the importance of thorough risk assessment in leasing agreements. It also underscores the vital role of international arbitration and litigation in resolving such disputes.
Aircraft Insurance Dispute Summary
| Metric | Value | Source |
| Number of Aircraft Involved | ~150 | Reuters Report |
| Estimated Total Aircraft Value | $4.7 billion | Reuters Report |
| Amount AerCap Can Recover | $1.035 billion | High Court Ruling |
| Settlements Received by AerCap | $1.3 billion | Herbert Smith Freehills Statement |
| Major Insurers Involved | AIG, Lloyd’s, Chubb, Swiss Re | Reuters Report |
| Date of Russian Legislation Banning Aircraft Export | March 10, 2022 | Russian Government |
Conclusion: Legal Win Brings Relief Amid Industry Uncertainty
The High Court’s ruling marks a decisive moment for AerCap and the broader aircraft leasing sector, providing legal clarity and financial relief after years of uncertainty due to geopolitical tensions. By confirming insurers’ obligations under war risk clauses, the judgment helps stabilize the insurance landscape in a volatile market.
As conflicts and sanctions continue to affect asset mobility, lessors and insurers alike will watch closely how this case influences future contract drafting and risk management strategies.
