Western insurers on Tuesday suffered a setback in London as the High Court rejected their attempt to appeal a ruling that grants aircraft lessors more than $1 billion from war-risk insurance policies, compensating for jets stranded in Russia since the invasion of Ukraine.
Judge Christopher Butcher ruled that he would deny permission to appeal on all grounds, while noting he will determine how legal costs are allocated at a later date.
In June, Judge Butcher held that aircraft lessors including AerCap—seeking billions over the loss of nearly 150 planes and several engines—are entitled to recover under their war-risk policies. However, he rejected AerCap’s bid for a larger payout under its uncapped all-risk coverage.
The ruling marks a key milestone in one of London’s biggest lawsuits, serving as a bellwether for similar battles in the United States and beyond, while intensifying a high-stakes clash between all-risk and war-risk insurers over who ultimately foots the bill.
Court filings reveal that legal fees for Ireland-based AerCap—the world’s largest aircraft lessor and the lead claimant in the London case—have already soared to about £81 million ($111 million), according to the company’s lawyers.
Aircraft lessors including AerCap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance, Falcon, and Genesis spearheaded the claims against a lineup of major insurers such as AIG, Lloyd’s, Chubb, Swiss Re, and HDI Global Specialty.
The lawsuit initially targeted nearly 150 aircraft and several engines worth up to $4.7 billion, but a series of settlements—including some reached on the trial’s opening day last October—significantly narrowed the scope of the case.
According to court filings, KDAC resolved all of its claims during the trial, while AerCap reached agreements with Swiss Re and HDI. Dubai Aerospace Enterprise settled with all war-risk insurers, and Merx settled with all except Fidelis, Judge Butcher noted.
