Dublin-based AerCap files record-breaking insurance claim

Dublin-based AerCap files record-breaking insurance claim

The Irish aircraft leasing company has lodged a $3.5bn claim for over 100 passenger planes grounded in Russia due to the Ukrainian conflict

IRISH aircraft leasing company AerCap, based in Dublin, has submitted a $3.5 billion insurance claim for more than 100 passenger aircraft grounded in Russia following the Russian invasion of Ukraine, reports news agency Reuters.

It is one of the largest single insurance claims ever made.

The aircraft — including helicopters and aircraft engines — have been stuck due to EU sanctions brought in on foot of Russia’s aggression in Ukraine.

The Irish company Aercap Holdings N.V. is the largest aviation leasing company in the world following the acquisition of International Lease Finance Corporation (ILFC) in 2014, and GECAS from General Electric in 2021.

According to Aercap, the company has has a total of 1,740 aircraft, over 900 engines and over 300 helicopters on its books. In Europe their customers include Aer Lingus, British Airways, easyJet, Lufthansa amongst many others.

The company, whose CEO is Aengus Kelly, a graduate of UCD, Aercap traces its history back to one of the first aircraft leasing companies, Guinness Peat Aviation, founded in 1975 by Tipperary man Tony Ryan who died in 2007 aged 71. He founded Ryanair, and subsequently appointed Michael O’Leary as an accountant for the airline.

Meanwhile Ryan built up Guinness Peat Aviation which segued into Aercap, which today is quoted on the New York Sock Exchange.

The company gradually built up its business interests to become the foremost aircraft leasing companies in the world. A large number of airlines do not own outright their own aircraft — leasing from companies such as Aercap is seen as a much better way of doing business because of continuing updating of aircraft technology.

Reuters is reporting that Aercap has just over 100 aircraft on lease to Russia.

The claim by Aercap is likely to be contested by insurance companies involved, leading to lengthy litigation.