Aircraft Lessors Seek Eight Billion from Insurers Over Jets Stuck in Russia

Multiple aircraft lessors moved to court in Ireland on December 9, filing lawsuits that seek about eight billion dollars from insurers for losses tied to Western aircraft stranded in Russia since 2022. The actions, lodged in the Irish High Court, pursue insurance recoveries after cover was refused or contested for jets that lessors have been unable to recover following sanctions and export controls imposed in 2022.

The filings include a claim by BOC Aviation against a subsidiary of China Ping An, and a separate action by Avolon against PICC Property and Casualty. Earlier legal steps by lessors in this dispute targeted Lloyds of London, and the latest bundle of suits continues a coordinated strategy to press insurers for policy proceeds tied to loss of use, physical loss, or damage claims arising from the immobilizations.

Lessors took substantial hits to their accounts after the Russian immobilizations began, booking impairments described in filings as running into the hundreds of millions of dollars. Those write downs cut into equity and prompted reassessments of asset values and portfolio risk by major leasing groups. The current court actions aim to convert accounting impairments and contested claims into recoverable insurance receipts, but the outcome remains uncertain and likely to be litigated across multiple jurisdictions.

The Irish High Court is a frequent venue for such cases because many international lessors are incorporated in Ireland for tax and regulatory reasons, which gives Irish courts jurisdiction over contractual and insurance disputes involving those entities. Legal specialists caution that recoveries will depend heavily on policy wording, exclusions tied to sanctions, and the interplay between international insurance contracts and state export control rules.

Market participants say the pace of filings and the aggregate size of claims add fresh stress to an aircraft finance market already adjusting to post pandemic demand shifts and supply chain disruptions. If insurers are forced to meet a significant portion of the eight billion dollar claims, the losses could feed through to higher premiums, tighter underwriting, and more onerous collateral requirements for future leases. Lessors facing protracted litigation may see constrained access to capital as rating agencies reassess credit metrics tied to asset recoverability and claims liquidity.

For insurers, the suits highlight the challenge of interpreting coverage in rare but high value geopolitical events, and the potential for large reserve hits if courts determine policies respond. The cases also raise questions for policymakers about the interaction of sanctions policy with commercial insurance and the protections available to international investors.

The litigation is likely to be protracted, with outcomes hinging on detailed contract interpretation and the resolution of factual questions about loss and recoverability. Regardless of the legal results, the suits crystallize a long term trend: geopolitical risk is now a significant and quantifiable factor in global aircraft finance, and the resolution will shape contract design, pricing, and risk allocation in the leasing market for years to come.