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Dubai Aerospace Enterprise (DAE) Ltd has announced it has received a cash insurance settlement totalling $118 million for its aircraft previously on lease to Aeroflot Russian Airlines.
The insurance settlement is linked to the $1 billion in claims filed by the aircraft lessor, following Russia’s conflict with Ukraine that erupted in 2022. DAE, along with other lessors, terminated contracts with Russian carriers in light of Western sanctions. At the time, Moscow barred around 400 foreign-owned jets from leaving the country.
The DAE also booked a $538 million write-off for its aircraft stranded in Russia.
The $118 million settlement represents a part of DAE’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to seven aircraft and associated engines, a statement on Tuesday read.
Effective upon receipt of these insurance settlement from Russian insurance company NSK, each DAE affiliated entity involved in the leases to Aeroflot will release its claims against NSK, Aeroflot, and their international reinsurers with respect to these aircraft and engines.
Meanwhile, insurance settlement discussions are ongoing with respect to DAE’s claims under the insurance policies of several other Russian airlines.
DAE has stated it will continue to actively pursue its litigation in the English courts under its own insurance policies. DAE will also continue its efforts to seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines.
(Writing by Bindu Rai, editing by Brinda Darasha)
