CDB Aviation, the aircraft leasing arm of China Development Group, has received a settlement of CNY1.42 billion yuan (USD194 million) from Russian state-owned insurer NSK.
This payout was in relation to a claim against Aeroflot Group, the largest Russian airline, for four aircraft stranded in Russia. The complications arose due to the War in Ukraine, leading to cancelled leasing arrangements and Western sanctions impacting Russian airlines.
CDB Aviation announced in a stock market filing that it will continue its legal action in Irish courts under its own insurance policies with other insurers. The company is also seeking insurance payouts for aircraft previously leased to other Russian airlines.
CDB Aviation’s pursuit of litigation and insurance payouts highlights the complexities and challenges faced by aircraft lessors operating in the current geopolitical climate. As political tensions and economic sanctions between countries persist, aircraft lessors must navigate various legal and financial hurdles to resolve disputes and protect their interests.
Earlier this month, Sumitomo Corporation’s subsidiary, SMBC Aviation Capital, received an insurance settlement of around US$710m for 16 aircraft leased to Aeroflot Russian Airlines that have been stuck in Russia since the War in Ukraine.
