Russian Airline's Stranded Airbus Subject of Newest Addition to Stack of Lawsuits

Zephyrus Aviation Capital has sued Lloyd's of London's insurance syndicate to cover the loss of its 'stranded' Airbus leased to Yamal Airlines.

The messy and protracted-to-be legal battle is just one of a growing number as lessors look to recoup billions of dollars in losses incurred in the political aftermath of Russian disentanglement. Western sanctions and Russian counters led to Russian-operated airlines being signed into the domestic register, effectively thumbing their nose at the original owners and claiming them for their own. The situation is a nightmare for lessors like Zephyrus, who leased one of its 24 aircraft to Yamal.

The suit alleges that Fidelis Underwriting Limited and a specialist Lloyd's syndicate had refused to issue a reimbursement for the lost aircraft. They allege that Yamal Airlines insured the jet locally, and that they reinsured their policy under terms that included an "all-risks" policy as well as "war and allied risks".

Therefore, they allege, the actions of the Russian state fall under an insured peril. 

The situation for Russian companies is just as messy, given the ever-widening chasm of financial interchangeability between the East and West. With sanctions of their own, Yamal told Zephyrus that returning the aircraft would violate Russian law. Of note is the airline's comment that returning the Airbus to airworthiness would likely exceed the plane's value, admitting in so many words that the aircraft is not in use with the airline.

As of last November, Lessors had more than 6.5 billion dollars in lawsuits over similar cases. 

FMI: https://www.lloyds.com/conducting-business/regulatory-tools/risk-location-guidance/class-of-business/aviation