Air Lease Corporation has settled a USD64.9 million insurance claim for three A320-200s and one A321-200 leased to S7 Airlines (S7, Novosibirsk) when Russia invaded Ukraine in February 2022. The lessor disclosed receipt of the funds in a December 22, 2023, Securities Exchange Commission (SEC) filing. The insurer was Russia's NSK.
"The insurance settlements and receipt of the settlement proceeds described above were approved by the US Department of Commerce and the US Department of the Treasury and are consistent with other applicable sanctions regimes," the filing reads.
In response to sanctions imposed following the invasion, in March 2022, ALC terminated all of its leasing activities in Russia. However, despite retaining title to the planes, ALC later acknowledged that it was unlikely to regain possession. Nonetheless, in October 2022, it repossessed one managed B737-8.
As of November 6, 2023, ALC says 20 aircraft previously included in its owned fleet and six managed aircraft remain detained in Russia. The operators have continued to fly most of the aircraft, notwithstanding the termination of leasing activities and the ALC’s recurring demands for the return of its assets.
The latest SEC filing notes five further A321-200s previously leased to S7 Airlines were not included in the settlement. ALC says it is in ongoing settlement discussions regarding aircraft previously leased to Russian airlines. ALC says as of December 31, 2022, it has recorded a net write-off of its interests in its Russia-placed owned and managed aircraft totalling approximately USD771.5 million and legal proceedings against its insurers concerning the losses are underway in the Los Angeles County Superior Court of the State of California.
"The Company continues to have significant claims against its aviation insurance carriers and will continue to vigorously pursue all available insurance claims and its related insurance litigation, and all rights and remedies therein," the SEC filing notes.
NSK has recently settled several claims from lessors, including AerCap and GA Telesis, concerning written off aircraft placed with Russian carriers before the invasion.
