Landmark English Court Award on Aviation Insurance Losses

In a judgment delivered by Mr. Justice Butcher on 11 June 2025, the English Commercial Court upheld claims brought by multiple aircraft lessors concerning losses of aircraft leased to Russian airlines and stranded following the Russian invasion of Ukraine. The total insured value across all claimants exceeded $4.5 billion, and the case involved over 147 aircraft and 16 engines.

In its ruling, the Court found that:

• The losses were covered under the contingent cover provisions of war risk policies; • The aircraft were deemed permanently lost as of 10 March 2022, due to Russian governmental actions, which effectively banned the export and return of foreign-leased aircraft; • The proximate cause of loss was attributable to governmental restraint and detention, satisfying the criteria under the war risks (“WR”) section of the lessor insurance policies.

This judgment establishes a key precedent under English law and is likely to shape aviation insurance recoveries globally, given that most such policies are governed by English or New York law. It also reinforces the effectiveness of coordinated multi-disciplinary dispute resolution, as exemplified by our advisory model.

Aksio Partners Cyprus Limited remains committed to assisting clients involved in high-value cross-border disputes, providing integrated advisory services that align legal, financial, and strategic dimensions of complex litigation and arbitration.