Lloyd’s is gearing up for a ‘legal fight’ with the owners of hundreds of aircraft seized by Russia!
Lloyd’s is reported to have hired law firm Clyde & Co to advise on whether it can “deny” claims against planes worth up to $10bn.
Russia is transferring around 500 foreign-owned commercial aircraft to the Russian register to put them out of reach of the leasing companies that own them.
The unilateral move is illegal according to experts,
It amounts to the Russian state “stealing” aircraft owned by leasing companies based in tax-friendly jurisdictions such as Ireland and the Bahamas.
AerCap, the world’s biggest aircraft leasing company, has hired law firm Clifford Chance to advise on difficult negotiations on claims totaling $3.5bn, according to the sources.
*Lloyd’s tweet on war in Ukraine
Ukraine war pushes war loss and damages incidents to highest levels since 1991 https://t.co/rM6wzZavoW
— Lloyd's List (@LloydsList) May 13, 2022
Lloyd’s market sources say that negotiations are likely to take years to conclude, firmly believing that policies taken out by Russian airlines should cover losses.
- AerCap plans to claim against the insurance policies held by airline operators such as Aeroflot.
If they fail to pay out, then the firm will seek to recoup its losses against its own insurance cover, a move that Lloyd’s sources say is yet to be tested in the courts.
“We intend to vigorously pursue all of our claims under these policies with respect to our assets leased to Russian Airlines, as well as all other legal remedies that may be available to us.