Author Topic: Russia seized their planes. Now South Florida firms sue insurers over alleged loss  (Read 271 times)

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Offline Elderberry

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American Military News by David Lyons - Sun Sentinel  November 12, 2022

The war in Ukraine is creating financial stress for two aircraft leasing companies in South Florida whose planes are being held hostage in Russia.

The firms are seeking an estimated $850 million combined from more than 30 insurance carriers over their alleged refusal to pay claims resulting from the Russian government’s seizure of jetliners and engines at the start of the invasion of Ukraine, according to separate complaints filed in Miami-Dade Circuit Court.

The planes, according to the lawsuits, have been impossible to recover as a result of economic sanctions against the Russian Government by the U.S., United Kingdom and members of the European Union. The sanctions triggered the terminations of aircraft leases with multiple Russian airlines, according to the lawsuits.

Russia, in turn, refused to allow the planes to be returned to their rightful owners. And to this day, jetliners including relatively new Boeings and Airbuses continue to fly in the service of several Russian airlines.

“There are on the order of 500 western-leased aircraft under sanction, and considering how long this process has continued, I suspect many have been and will be cannibalized to provide spare and repair parts for aircraft still being operated,” said industry consultant Robert Mann of RW Mann Associates of Port Washington, N.Y. He is not involved in any of the litigation.

The estimated value of the seized aircraft in Russia is around $10 billion, according to industry reports.

The lawsuits, brought by Carlyle Aviation Partners of Miami and Aviator Capital Management of Aventura, collectively involve nearly 30 jetliners they leased to Russian airlines before Vladimir Putin’s troops stormed into Ukraine on February 24.

Carlyle, one of the world’s biggest leasing operators, is seeking $700 million from multiple U.S. and European insurers and reinsurers including the American firms AIG and Axis. Neither company responded to emailed requests for comment.

More: https://americanmilitarynews.com/2022/11/russia-seized-their-planes-now-south-florida-firms-sue-insurers-over-alleged-loss/