Dubai: Aircraft lessor Dubai Aerospace Enterprise (DAE) Ltd announced Tuesday it has received a cash insurance settlement totalling approximately $118 million for its aircraft previously on lease to Aeroflot Russian Airlines.
The amount represents a settlement of DAE’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to seven aircraft and associated engines, the plane lessor said in a statement.
The insurance settlement is tied to the $1 billion in claims submitted by the aircraft lessor after the conflict between Russia and Ukraine broke out in 2022. In response to Western sanctions, DAE, along with other lessors, ended contracts with Russian carriers. According to aviation advisory group Ascend by Cirium, foreign lessors lost control of about 435 planes in Russia during this period.
Additionally, DAE recorded a $538 million write-off for its aircraft that were stranded in Russia.
“The insurance settlement and receipt of the settlement proceeds from Russian insurance company NSK were carried out in full compliance with all applicable sanctions regimes,” explained the statement.
Effective upon receipt of these insurance settlement proceeds from NSK, each DAE affiliated entity involved in the leases to Aeroflot has released its claims against NSK, Aeroflot, and their international reinsurers with respect to these aircraft and engines.
Meanwhile, insurance settlement discussions are ongoing with respect to DAE’s claims under the insurance policies of several other Russian airlines.
“However, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount. In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained,” said the statement.
DAE has also said it would continue to actively pursue its litigation in the English courts under its own insurance policies. “DAE will also continue its efforts to seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines,” it added.