Dublin-based AerCap, the world’s largest aircraft leasing company, is suing Russian cargo carrier Volga-Dnepr for up to $340m (€317m) after they failed to return eight aircraft following the invasion of Ukraine and subsequent sanctions imposed on Russia, documents seen by the Irish Independent show.
he claim by AerCap subsidiaries in London also sheds more light on the behind-the-scenes manoeuvres by aircraft lessors in their so-far doomed efforts to take control of jets that have effectively been seized by the Russian state.
The claim filed by the AerCap units show that Sergey Korolev, an executive with Volga-Dnepr, proposed in April that the jets be flown to Kazakhstan in order to be returned to the lessor. The AerCap units subsequently indicated that they would prefer the jets to be flown to Israel, but that Kazakhstan would be acceptable.
The Irish Independent recently revealed that Ireland-based AerCap subsidiaries had taken the case against the Dutch unit of Volga-Dnepr in relation to the aircraft. However, AerCap declined to comment at the time on the action.
But a claim lodged by AerCap subsidiaries and obtained by the Irish Independent confirms the action relates to eight aircraft, including six Boeing 737 cargo jets leased to Volga-Dnepr’s Altran unit and two Boeing 747 cargo jets leased to its AirBridge subsidiary.
The legal action is being pursued by four Irish units of AerCap, including Celestial Aviation Trading Ireland Ltd.
The AerCap units have told the High Court in London that the present value of future rent due under the leases for the two 747s is a total of $32m.
The total present value of future rent for the six 737 leases is assessed at just over $83m, for a total of $115m between the eight leases.
The AerCap units have also stated in their claim against Volga-Dnepr that there has been an “event of loss” in relation to the eight aircraft under the terms of the lease agreements. The AerCap units have valued the jets at a total of $224.8m and claim they are entitled to be indemnified against the loss of the aircraft.
The AerCap units wrote to Altran and AirBridge on dates including March 16, when the Irish firms informed the carriers that all of their rights to possess and operate the aircraft had ceased and that they were obliged to file flight plans for the return of the jets.
Altran and AirBridge replied that they were making “all reasonable efforts” to return the aircraft, but were unable to do so because they required permission from Russian authorities to fly the aircraft outside Russia – something the leasing firms refuted.
Also in March, Altran and AirBridge claimed they could not return the jets without authorisation from the US Department of Commerce. They urged the AerCap units to assist in securing that permission. Just a week later, the AerCap firms, despite denying it was required, secured that US authorisation regardless.
The aircraft were never delivered to the AerCap units and they claim that the Russian carriers have continued to use at least some of the jets, contrary to lessor instructions.
Denial of responsibility! insideheadline is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.