AerCap Holdings

AerCap is the world's largest avialization company for 2022.

History

2024: AerCap seeks more than $2 billion from insurers for 116 aircraft remaining in Russia

In October 2024, insurance companies are trying to delay the payment of billions of dollars in claims for hundreds of aircraft remaining in Russia after the outbreak of the conflict in Ukraine, lawyers for the world's leading aircraft leasing companies say at the beginning of a lawsuit in London.

Lessors such as AerCap Holdings NV are suing insurers including units AIG and Lloyd's after Russia refused to return planes leased from local airlines following sanctions from Western countries. After the contracts were terminated, Russia transferred nearly 800 foreign-owned aircraft to its own aviation registry.

While AerCap's original $3.4 billion lawsuit was reduced to more than $2 billion after the settlement, claims by other lessors in the case also run into hundreds of millions of dollars, according to documents provided to the court. Insurers deny the claims and challenge the case, citing exceptions and reservations in their policies.

The insurance market is "delaying the payday until a market-wide resolution is reached," AerCap's lawyers said in documents submitted to the court ahead of the hearing.

Insurance companies have previously argued that the planes are not lost, as Russian airlines continue to use them, and the policies have special exceptions that negate insurance coverage in such cases. Lawyers for the insurers have yet to present their arguments in court.

Of the 141 aircraft and 29 autonomous AerCap aircraft engines, 116 aircraft and 15 engines remain in Russia and are used by 15 airlines, including the country's largest Aeroflot.

"The reality that has been evident for a considerable time is that the planes and engines are lost," AerCap attorney Mark Howard told the court.

Representatives for Aercap, LLoyd's and AIG declined to comment. The trial is expected to last until December, and a ruling could take months after that.

"These are complex, tough lawsuits where the stakes are high and the long-term impacts can be seismic," said Garbhan Shanks, a partner at law firm Fladgate. In 2022, the rating agency Fitch Ratings estimated the total insured residual value of Russian-owned aircraft at $13 billion. Many claims have since been settled.

2022: Lawsuit against the Dutch subsidiary Volga-Dnepr over the confiscation of leased aircraft

On May 20, 2022, AerCap filed a lawsuit with the London Court against the Dutch subsidiary of the Russian carrier Volga-Dnepr in connection with the confiscation of leased aircraft. It is reported by The Independent newspaper.

Before the start of a special operation in Ukraine, 135 aircraft and 14 aircraft engines owned by AerCap were leased to Russian airlines. Their total cost is approximately $3 billion.

2021: $30 billion purchase of aviation division from General Electric (GE)

In mid-March 2021, it became known that General Electric Corporation (GE) sold the aviation division of GE Capital Aviation Service (Gecas) to its Irish rival AerCap Holdings for $30 billion. Read more here.