Dublin-based AerCap, the world’s largest aircraft leasing company, is suing Russian cargo airline Volga-Dnepr for up to $340 million after failing to use eight planes following the invasion of Ukraine and subsequent sanctions imposed on Russia returned from the Irish Independent Show.
The allegation by AerCap affiliates in London also sheds more light on behind-the-scenes maneuvers by aircraft rental companies in their previously doomed efforts to seize control of jets that have effectively been seized by the Russian state.
The lawsuit filed by AerCap entities shows Sergey Korolev, an executive at Volga-Dnepr, proposed in April that the jets be flown to Kazakhstan to be returned to the lessor. AerCap units then said they would prefer the jets to be flown to Israel, but that Kazakhstan would be acceptable.
That Irish Independent recently announced that the Ireland-based AerCap subsidiaries had brought the case against the Dutch unit of Volga-Dnepr in relation to the aircraft. However, AerCap declined to comment on the action at this time.
But a claim filed and received by AerCap affiliates Irish Independent confirmed the action relates to eight aircraft, including six Boeing 737 freighters leased to Volga-Dnepr’s Altran unit and two Boeing 747 freighters leased to AirBridge subsidiary.
The lawsuit is being pursued by four Irish entities of AerCap, including Celestial Aviation Trading Ireland Ltd.
The AerCap entities have told the High Court in London that the present value of future rent due under the leases for the two 747s totals $32 million.
The aggregate present value of future leases for the six 737 leases is estimated to be just over $83 million, for a total of $115 million between the eight leases leases.
AerCap entities have also stated in their lawsuit against Volga-Dnepr that there was a “losing event” in relation to the Eight Aircraft under the terms of the lease agreements. AerCap entities have valued the jets at a total of $224.8 million and claim they are entitled to compensation for the loss of the plane.
AerCap’s entities wrote to Altran and AirBridge, among others, on March 16, as the Irish firms informed the airlines that all their rights to own and operate the aircraft had expired and that they were required to file flight plans for the return of the jets .
Altran and AirBridge responded that they made “all reasonable efforts” to return the plane, but could not because they needed permission from Russian authorities to fly the plane outside of Russia — something the leasing companies refuted.
Also in March, Altran and AirBridge claimed they could not return the jets without US Commerce Department approval. They requested AerCap entities to assist in obtaining this permit. Just a week later, the AerCap companies, although denying it, secured that US permit anyway.
The planes were never delivered to the AerCap units, and they claim that the Russian airlines continued to use at least some of the jets, contrary to the lessor’s instructions.
