AirBridgeCargo, a Volga subsidiary, operates three Boeing 747-8s owned by BOC Aviation.
Volga-Dnepr Logistics was ordered to pay $406.2 million to aircraft lessor BOC Aviation by US District Judge Lewis Liman in Manhattan. Following Russia’s invasion of Ukraine last year, the Russian cargo airline was found accountable after being declared in default on leases for three Boeing 747-8 freighters operated by one of its companies, AirBridgeCargo.
A millionaire’s check
According to Reuters, a US judge ordered AirBridgeCargo Airlines and its parent company Volga-Dnepr Logistics responsible after BOC Aviation was unable to repossess its three widebody planes. AirBridgeCargo went into default after failing to maintain the required reinsurance coverage, according to BOC Aviation. Since the Kremlin’s invasion of Ukraine last year, lessors have had hundreds of aircraft trapped in Russia.
According to Judge Lewis Liman, BOC Aviation demonstrated that the Russian government “effected a seizure” of the planes and engines by preventing them from being flown or operated outside of Russia. He also dismissed AirBridgeCargo’s argument that neither side could have predicted a default. The jets could not be grounded outside of Russia since the country had ordered them to be flown back.
AirBridgeCargo operates 16 Boeing widebody aircraft, according to ch-aviation data. It possesses three 747-400ERFs, twelve B747-8Fs, and one 777-200F. According to ch-aviation, one of BOC Aviation’s 747s stuck with AirBridgeCargo is registered VQ-BFU. This plane has been in service for nearly eight years. It arrived in November of 2015. AerCap, the world’s largest leasing corporation, is suing AIG and Lloyd’s Insurance corporation for $3.5 billion in damages for the loss of 116 aircraft and 23 engines. According to Reuters, it is also claiming $1.2 billion under its war-risks insurance.
Over 400 aircraft are stranded in Russia.
More than 400 aircraft valued about $10 billion were said to be stranded in Russia this week. Leasing businesses are suing insurance for stranded jets. However, insurers are attempting to avoid paying.
They claim that the planes have not yet been physically lost, that the jets and engines are no longer under lease, and that Western sanctions prevent them from providing cover. On Monday, AerCap’s lawyer, Mark Howard, stated that it was impossible for them to recoup some losses from insurers.
Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, and Falcon are among the other lessors suing insurers. DAE and Falcon, for example, lost around 21 aircraft and equipment worth $900 million. Merx Aviation is suing for almost $255 million for the loss of six planes and engines, while KDAC is suing for $21.5 million for the loss of one plane.
AirBridgeCargo will soon resume operations.
AirBridgeCargo, as previously reported, plans to resume operations soon. Following Russia’s invasion of Ukraine in March 2022, the firm suspended all flights. Nonetheless, AirBridgeCargo will not use its previous fleet. The airline will instead fly an Ilyushin Il-96 with the registration RA-96103. Prior to the invasion, AirBridgeCargo controlled more than 40% of Russia’s air cargo business.
