DUBLIN: Some of the world’s largest aircraft lessors faced off against their insurers in a Dublin courtroom on Tuesday at the start of a months-long battle over around 2.5 billion euros ($2.7 billion) of insurance claims related to jets stranded in Russia.
Lessors are suing dozens of insurers around the world over losses of at least $8 billion after more than 400 planes were prevented from leaving Russia when Western sanctions over Moscow’s war in Ukraine forced the termination of their leases.
The world’s second and third largest lessors, SMBC and Avolon, as well as BOC Aviation, CDB Aviation, Nordic Aviation Capital and Carlyle Aviation Partners, are pursuing their claims in Ireland, where more than 60 percent of the world’s leased aircraft are owned or managed.
Lloyd’s of London, Chubb and Fidelis are among the insurers contesting the claims.
Insurers are balking at payouts, with some alleging that there has not been a physical loss of the planes yet or that the planes are still in the course of being repossessed. Others have argued that lessors voluntarily ended leasing agreements or that Western sanctions prevent insurers from providing cover.
The variety of arguments made by lawyers — including whether the issue only relates to narrower “war risk” policies or also to broader “all risk” insurance — are “bewildering and confusing,” Senior Counsel Paul Gallagher told the court in an opening statement on behalf of four lessors.
“Insurers cannot agree on the meaning of their own policies,” said Gallagher, the first to speak in an opening by lessors that is to run until June 19. The case is expected to last around seven months.
The case is the largest ever heard in Ireland by number of lawyers and is being held in a makeshift court as no courtroom in the country is large enough to accommodate the 180 legal professionals expected to attend each day, a courts service spokesperson said.
On Tuesday, around 50 lawyers were allowed into a courtroom in an open-plan office, with a similar number watching via a video link in an adjoining former canteen.
The world’s biggest aircraft lessor, Irish-based AerCap, is pursuing its insurance claims through London’s High Court, with what its lawyers have described as a “mega trial” due to start in October. Other lessors have taken cases to the United States.
Since launching their lawsuits, lessors have secured settlements with Russia totalling more than $2.5 billion for more than 100 jets, with ownership transferred to Russian airlines.
Multibillion-euro court battle over stranded Russian jets begins in Dublin
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Multibillion-euro court battle over stranded Russian jets begins in Dublin
- 400 planes were prevented from leaving Russia when Western sanctions over Moscow’s war in Ukraine forced the termination of their leases
- The case is expected to last around seven months
Philippines says China fired flares toward its patrol plane in the disputed South China Sea
- “The Bureau of Fisheries and Aquatic Resources aircraft recorded video footage of three flares fired from the reef toward the aircraft during its lawful overflight,” said the Philippine coast guard
- The Philippine patrol plane spotted a Chinese hospital ship, two Chinese coast guard ships and 29 suspected militia ships anchored in the waters off Subi
MANILA: Chinese forces fired three flares from an island toward a Philippine plane undertaking a routine patrol Saturday in the disputed South China Sea, but the incident did not cause any problem and the aircraft proceeded with its surveillance mission, the Philippine coast guard said.
It was not immediately clear how far the flares that Filipino officials said were fired from the Chinese-occupied Subi Reef were from the Cessna Grand Caravan aircraft of the Philippine fisheries bureau.
Chinese officials did not immediately comment on the incident, Beijing has claimed virtually the entire South China Sea, a key global trade route, and has vowed to staunchly defend its sovereignty. Chinese forces has fired flares from its occupied islands and from its aircraft as a warning for foreign planes to move away from what it calls its airspace in the disputed waters.
“The Bureau of Fisheries and Aquatic Resources aircraft recorded video footage of three flares fired from the reef toward the aircraft during its lawful overflight,” said the Philippine coast guard, which carried out Saturday’s surveillance flight with the fisheries agency.
“These flights aim to monitor the marine environment, assess the status of fisheries resources and ensure the safety and welfare of Filipino fishermen in the West Philippine Sea,” the coast guard said, using the Philippine name for the stretch of the South China Sea that Manila claims.
The Philippine patrol plane spotted a Chinese hospital ship, two Chinese coast guard ships and 29 suspected militia ships anchored in the waters off Subi, the Philippine coast guard said.
Subi is one of seven disputed and mostly submerged reefs which China turned more than a decade ago into what are now island bases in the Spratlys, the most hotly disputed region of the South China Sea. The artificial islands are protected by a missile system and three of them have military-grade runways, according to US and Philippine security officials.
Aside from Subi, the Philippine patrol plane flew near six other disputed islands, reefs and atolls, including Sabina, an uninhabited disputed shoal, where it monitored a Chinese navy ship. “This vessel repeatedly issued radio challenges against the Bureau of Fisheries and Aquatic Resources aircraft while it was flying well within Philippine sovereign rights,” the Philippine coast guard said.
“All safe and mission accomplished,” Jay Tarriela of the Philippine coast guard said of Saturday’s surveillance flight.
The United States has no territorial claims in the sea passage but has patrolled the waters for decades and repeatedly warned it’s obligated to defend the Philippines, its oldest treaty ally in Asia, if Filipino forces come under an armed attack, including in the South China Sea.
Vietnam, Malaysia, Brunei and Taiwan have also been involved in the long-seething disputes in the resource-rich waters.
