Jurisdiction(s):
United Kingdom

English Commercial Court: Fidelis denies ‘physical loss’ under all‑risks/war cover, says Ural Airlines kept leased jets for commercial reasons in WWTAI aircraft insurance claim

Published on: 14 August 2024

Published by a Law360 reporter

Legal News

Article summary

Fidelis defence at the High Court

In its defence before the High Court, Fidelis argues that JSC Ural Airlines’ refusal to return aircraft to the operator, WWTAI AirOpCo II DAC, does not fall within an insured risk under the insurance contracts. If the aircraft were lost (a proposition Fidelis contests), the cause, it says, was JSC’s choice to retain them “for its own commercial purposes” and its “conduct pursuant to that decision”. The defence was filed on 25 July 2024 and has since been made public. WWTAI AirOpCo brought proceedings against multiple insurers in 2023, seeking a payout for planes left on the ground after Moscow’s invasion of Ukraine. The company states that the three commercial aircraft it leased to JSC at the time of Russia’s attack have been re-registered in the country and that it has not received reimbursement from its reinsurers for the value of the stranded aircraft. Fidelis added that the Irish company could have applied for an export permit...

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