AerCap, an Irish aircraft leasing company, is set to receive over $1 billion in compensation for its aircraft that remain in Russia following a ruling by the High Court of England and Wales. The ruling mandates that insurers, including AIG, Lloyd’s of London, and Chubb, must pay the substantial sum.

The legal battle began in 2024 in London’s Commercial High Court, with AerCap seeking compensation for almost 150 aircraft. These aircraft were re-registered by Russian airlines after Western sanctions were imposed in 2022. This re-registration effectively transferred the rights to the aircraft to Russian entities.

The court’s decision categorizes the situation as relating to “war risks.” The compensation awarded to AerCap marks one of the largest payouts of its kind in British court history.

Other aircraft leasing firms, such as Merx Aviation and Dubai Aerospace Enterprise, are also expected to receive insurance payments with similar wording in their policies. However, the specific amounts of these payments have not yet been disclosed.

In 2023, the Russian Federal Agency for Air Transport (Rosaviatsia) reported that 658 foreign-made aircraft operated by domestic airlines had been transferred to the Russian registry since March 2022. This decision to re-register the aircraft was a direct response to the sanctions policies implemented by foreign countries.