AerCap settles with Aeroflot, cuts claim on own policies to $2.75bn
Aircraft lessor AerCap received $645 million in cash from the insurer of Russian airline Aeroflot, cutting its total outstanding claim on aircraft and engines lost after the Russian invasion of Ukraine to $2.75 billion, AerCap said in a market filing.
The payment from Insurance Company NSK, a Russian insurer, puts paid to claims against NSK, Aeroflot, Aeroflot unit Rossiya and their international reinsurers with respect to the held assets, AerCap said.
AerCap’s separate $3.4 billion claim against the “All Risks” insurers under its own contingent and possessed insurance policy relating to the 17 aircraft and five spare engines was approximately $908 million, knocking its claim down to approximately $2.75 billion.
The deal has been cleared by the US Department of Commerce and the US Department of the Treasury for compliance with applicable sanctions regimes, AerCap said.
Settlement talks remain ongoing with other Russian airlines, AerCap noted, but it is “uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount.”
AerCap tops the list of litigants seeking damages after Russian airlines held on to aircraft and engines following the imposition of sanctions that forced insurance policy cancellation.
AerCap has said it is targeting its full swath of its own insurers, the Russian airlines, their insurers and everyone's reinsurers.
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