All Risks insurers successfully defend Russian aircraft leasing claims
The English High Court has held that Western leased aircraft detained in Russia following the invasion of Ukraine were lost due to a restraint or detention by the Russian Government.
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The "All Risks" insurers, led by Global Aerospace and represented by Wikborg Rein, successfully defended claims brought by three Western lessors (DAE, Falcon and Genesis) in an 11-week trial, one of the most complex and high-value insurance cases to be heard in the English courts in recent years. The proceedings ran between October 2024 and February 2025 and were heard alongside three further claims brought by AerCap, Merx Aviation and KDAC.
The Wikborg Rein team, led by Gillie Belsham, included Ben Ogden, Shawn Kirby, Chris Crane, Dan Boden, Tim Wright and Sindre Myklebust.
The lessors brought claims under policies which they had taken out in the London and international markets, alleging that their aircraft had been lost in the immediate aftermath of the invasion of Ukraine. These claims were brought alternatively under the lessors' "all risks" and "war risks" covers.
The key issues before the court were whether: (i) the policies provided the coverage alleged; (ii) a recoverable loss had been suffered; and (iii) if such a loss had been suffered, which cover – all risks or war risks – was to respond.
The Judge held that the policies were intended to cover the loss alleged, that such loss had in fact occurred and, agreeing with All Risks insurers' main contention, that the War Risks cover responded. The Judge considered that the sole proximate cause of the loss was the passing of legislation by the Russian government, which prohibited the export of the aircraft from 10 March 2022. Accordingly, the lessors' claims against All Risks insurers have been dismissed in their entirety in the judgment handed down on 11 June 2025.
This decision represents a major success for All Risks insurers and for Wikborg Rein’s market-leading aviation and insurance practice, which has a proven track record in delivering results in complex, high-profile disputes.