Avolon takes legal action against insurers over damage caused by aircraft trapped in Russia

Jet lessor Avolon has filed a lawsuit in Dublin against its insurers over losses caused by 10 of its jets being trapped in Russia following the invasion of Ukraine and subsequent EU sanctions.

In May of this year, Avolon wrote down the value of its fleet by $304 million to cover the full financial impact of 10 jets flying after European Union sanctions following the invasion of Ukraine still stuck in Russia. Avolon’s then CEO, Dómhnal Slattery, said at the time the company would continue to make every effort to recover the assets.

Avolon later said it had valid insurance coverage for the Russian plane and intended to make claims against the policies.

A file lodged in the High Court in Dublin shows that a case has now been brought against Lloyds Insurance by an Irish-based Avolon company. The lawsuit is also believed to be directed against a number of insurers.

A spokesman for Avolon said: “We have always maintained that we will vigorously pursue our claim and filing a lawsuit now is the next stage in that process.”

Avolon is just one of the Irish aircraft lessors combined with the aftermath of 400 leased aircraft worth almost £10bn.

In August, an Irish unit of US aviation and jet leasing company GA Telesis launched legal proceedings in London against Russia’s Aeroflot and a subsidiary over a jet seized in the country following its invasion of Ukraine earlier this year , the Irish Independent learned .

Other lessors have also taken legal action in London over jets seized in Russia.

In April, AerCap’s Celestial Aviation Services unit in London filed a $46 million lawsuit against UniCredit because the Italian bank had guaranteed aircraft lease payments on behalf of Russia’s largest lender, Sberbank.

In May, two Irish units of aircraft rental company Aircastle filed a nearly $25 million claim against UniCredit to enforce letters of credit related to aircraft seized in Russia. Aircastle Chief Legal Officer Chris Beers warned the aviation sector not to worry that Russia’s actions could have a significant knock-on effect in terms of insurance coverage.

https://www.independent.ie/business/avolon-launches-legal-action-against-insurers-over-losses-on-planes-trapped-in-russia-42116562.html Avolon takes legal action against insurers over damage caused by aircraft trapped in Russia

Fry Electronics Team

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