SMBC Aviation Capital has dropped litigation in an Irish court against some insurers over aircraft stranded in Russia. The company said it reached confidential commercial settlements with those insurers.
During a public hearing in Dublin on March 26, SMBC confirmed it had reached a commercial agreement in principle with the remaining insurers.
Final orders to discontinue those proceedings are expected. Terms remain confidential.
Air Lease Corp. previously announced a partial $328.5 mn settlement with insurers related to similar aircraft losses. The claims involve a contingent and possessed insurance policy seeking to recover losses from aircraft detained in Russia. Most of the litigation remains ongoing, ALC stated.
ALC received the amount as a cash insurance settlement and will record it as an insurance recovery in Q1 2025, according to a U.S. SEC filing.
ALC and its subsidiaries continue litigation in California against most insurers under a contingent and possessed insurance policy covering aircraft held in Russia.
Including the Q1 settlement, ALC has recovered $424.3 mn to date, following an initial $791 mn write-off of aircraft detained in Russia during Q1 2022. Upon receipt of proceeds, ALC and its subsidiaries released insurance claims against the settling insurers under the C&P policy (see Deadliest Aircraft Crashes and Worst Aviation Accident Statistics).
The plaintiffs also dropped insurance claims against the settling insurers under related reinsurance policies.
Earlier, ALC secured a $64.9 mn settlement related to Russia’s JSC Siberia Airline following Russia’s invasion of Ukraine.
The company had filed suit against its aviation insurance carriers in Los Angeles County Superior Court.
The aviation industry faced a complex landscape in 2024, shaped by ongoing uncertainty, competitive pressures, and significant incidents, with ‘new normal’ loss conditions persisting for much of the year and marked by a tragic crash in South Korea as well as ongoing uncertainty surrounding the fate of aircraft stranded in Russia, Howden Re has noted in a recent report.
In October 2023, SMBC reported a $710 mn settlement with a Russian insurer covering insurance and reinsurance claims tied to Aeroflot. The payment was made as a cash settlement for aircraft leased to the Russian airline.
According to Beinsure, Dubai Aerospace Enterprise announced $201 mn in settlements over three months related to Russian-leased aircraft. The company confirmed cash proceeds from selected insurance companies, resolving claims related to these aircraft.
DAE announced it has secured a cumulative $319 mn in cash proceeds, including a 2023 settlement involving seven aircraft.
Dubai Aerospace Enterprise (DAE) is a globally recognized aviation services corporation with two divisions: DAE Capital and DAE Engineering. Headquartered in Dubai, DAE serves over 170 airline customers in over 65 countries from its seven office locations in Dubai, Dublin, Amman, Singapore, Miami, New York, and Seattle.
The company stated it will continue litigation in English courts under its insurance policies and remains focused on mitigating losses associated with aircraft formerly leased to Russian airlines.
