Latest news with #DubaiAerospaceEnterprise
Yahoo
11-06-2025
- Business
- Yahoo
Aircraft leasing firms win multibillion-dollar lawsuit over planes ‘lost' in Russia
Aircraft leasing companies have won a multibillion-dollar lawsuit against insurers in relation to planes stranded in Russia after the invasion of Ukraine in February 2022. The high court in London ruled in favour of six leasing firms including Ireland's AerCap and Dubai Aerospace Enterprise (DAE) that had brought a $4.7bn (£3.4bn) lawsuit in one of the biggest insurance disputes ever heard in the UK. In a 230-page judgment on Wednesday, Mr Justice Butcher ruled that the planes had been 'lost' in March 2022 and the aircraft leasing companies could therefore recover losses from their 'war risks insurers' AIG, Lloyd's, Chubb and Swiss Re, as the cause of the loss was 'an act or order of the Russian government'. It is a substantial blow for insurers, which have also faced a separate £2.5bn claim in Dublin. The two cases have been called 'mega trials' and involved hundreds of barristers and solicitors. Butcher said the central question to the case was whether the cause of any loss of the aircraft was 'a commercial decision of the Russian airlines leasing the aircraft, in which case the all risks insurers would be liable to the claimants, or an act or order of the Russian government, in which case the war risk insurers would also be liable'. Western sanctions forced aircraft leasing companies to cancel their contracts with Russian carriers by 28 March 2022, initially leaving the industry with losses estimated to be $10bn. Butcher concluded that 'the aircraft have been lost' because Russiahad already seized them before the sanctions deadline, as their 'loss occurred on 10 March 2022' when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia. Initially, Russia faced demands to return the 'stolen' planes but Moscow refused, prompting the claims in Dublin and London. Many of the planes were re-registered by Russia without their owners' consent and sold on to Russian airlines. Butcher said insurers were not prevented by EU or US sanctions from indemnifying the claimants for the loss of aircraft that had been leased to Russian airlines. The London trial, which ended in February, related to 147 aircraft and 16 standalone engines that the companies could not retrieve after war broke out. AerCap, the world's largest aircraft lessor, brought a claim in respect of 116 aircraft and 15 engines, according to the court papers, while DAE was seeking to recover losses from the stranding of 22 aircraft. Court papers show DAE managed to recover three but the rest were 'lost' in Russia on 10 March 2022. The four other companies claiming over the remaining aircraft were Dubai's Falcon and Genesis, Merx Aviation and KDAC Aviation Finance, which all have Dublin offices. Butcher described the case as 'an unusually demanding piece of litigation' and said he hoped both sides could agree an order based on his conclusions. AerCap's law firm Herbert Smith Freehills Kramer said the judgment secured $1.035bn for the leasing firm, 'in addition to substantial recoveries achieved in prior settlements'. Ireland's high court was told last month that all the cases in the Dublin court case had either been settled or were in the course of being settled.
The Guardian
11-06-2025
- Business
- The Guardian
Aircraft leasing firms win multibillion dollar lawsuit over planes ‘lost' in Russia
Aircraft leasing companies have won a multibillion-dollar lawsuit against insurers in relation to planes stranded in Russia after the invasion of Ukraine in February 2022. The high court in London ruled in favour of six leasing firms including Ireland's AerCap and Dubai Aerospace Enterprise (DAE) that had brought a $4.7bn (£3.4bn) lawsuit in one of the biggest insurance disputes ever heard in the UK. In a 230-page judgment on Wednesday, Mr Justice Butcher ruled the planes had been 'lost' in March 2022 and the aircraft leasing companies could therefore recover losses from their 'war risks insurers' AIG, Lloyd's, Chubb and Swiss Re as the cause of the loss was 'an act or order of the Russian government'. It is a substantial blow for insurers, which have also faced a separate £2.5bn claim in Dublin, in two cases branded 'mega trials' with hundreds of barristers and solicitors involved. Butcher said the central question to the case was whether the cause of any loss of the aircraft was 'a commercial decision of the Russian airlines leasing the aircraft, in which case the all risks insurers would be liable to the claimants, or an act or order of the Russian government in which case the war risk insurers would also be liable'. Western sanctions forced aircraft leasing companies to cancel their contracts with Russian carriers by 28 March 2022, initially leaving the industry with losses estimated to be $10bn. Butcher concluded that 'the aircraft have been lost' because Russiahad already seized them before the sanctions deadline, as their 'loss occurred on 10 March 2022' when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia. Initially, Russia faced demands to return the 'stolen' planes but Moscow refused, prompting the claims in Dublin and London. Many of the planes were re-registered by Russia without their owners' consent and sold on to Russian airlines. Butcher said insurers were not prevented by EU or US sanctions from indemnifying the claimants for the loss of aircraft that had been leased to Russian airlines. The London trial, which ended in February, related to 147 aircraft and 16 standalone engines that the companies could not retrieve after war broke out. AerCap, the world's largest aircraft lessor, brought a claim in respect of 116 aircraft and 15 engines, according to the court papers, while DAE was seeking to recover losses from the stranding of 22 aircraft. Court papers show DAE managed to recover three but the rest were 'lost in Russia' on 10 March 2022. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The four other companies claiming over the remaining aircraft were Dubai's Falcon and Genesis, Merx Aviation and KDAC Aviation Finance, which all have Dublin offices. Butcher described the case as 'an unusually demanding piece of litigation' and said he hoped both sides could agree an order based on his conclusions. AerCap's law firm Herbert Smith Freehills Kramer said the judgment secured $1.035bn for the leasing firm, 'in addition to substantial recoveries achieved in prior settlements'.
Arabian Business
03-06-2025
- Business
- Arabian Business
Dubai Aerospace Enterprise signs $300mn unsecured term loan
The deal was made with Bank of China (Dubai) Branch, Bank of China Limited, London Branch, and Bank of China (Hong Kong) Limited (BOC). The loan will be allocated for general corporate purposes and will assist the company in achieving future financing requirements. 'This transaction with BOC provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet. We are pleased to deepen our relationship with Bank of China and look forward to continuing our collaboration with the entire Bank of China group in the years ahead,' Firoz Tarapore, Chief Executive Officer of Dubai Aerospace Enterprise, said in a statement. 'Bank of China values its growing relationship with DAE and is pleased to support this strategic financing. The successful execution of this transaction reflects the strength of our global network and our ability to deliver tailored solutions that meet the evolving needs of our clients across the aviation sector. In the future, Bank of China will continue to contribute to deepening China-UAE relations and support the development of UAE enterprises,' Pan Xinyuan, General Manager of Bank of China (Dubai) Branch, added.
Hi Dubai
03-06-2025
- Business
- Hi Dubai
Dubai Aerospace Enterprise Secures $300 Million Loan from Bank of China
Dubai Aerospace Enterprise (DAE) has secured a $300 million unsecured term loan from the Bank of China, strengthening its liquidity position and reinforcing ties with one of the world's largest financial institutions. The 3-year loan agreement was signed with Bank of China's Dubai Branch, London Branch, and Hong Kong Limited. DAE confirmed that the funds will be used for general corporate purposes and to support future financing needs as the aviation giant continues to expand its global operations. 'This transaction with BOC provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet,' said Firoz Tarapore, CEO of DAE. 'We are pleased to deepen our relationship with Bank of China and look forward to continuing our collaboration.' The deal also marks a significant step in strengthening economic ties between China and the UAE. Pan Xinyuan, General Manager of Bank of China (Dubai) Branch, noted the importance of the partnership, highlighting the bank's ability to offer tailored financing solutions in the aviation sector. 'Bank of China values its growing relationship with DAE and is pleased to support this strategic financing,' Pan said. 'We will continue to contribute to deepening China-UAE relations and support the development of UAE enterprises.' DAE, one of the largest aircraft leasing companies in the world, manages a fleet of over 500 aircraft and serves more than 120 airline customers across 60 countries. News Source: Emirates News Agency
Zawya
02-06-2025
- Business
- Zawya
Dubai Aerospace signs $300mln 3-year term loan
Dubai Aerospace Enterprise Ltd. has signed a $300 million three-year unsecured term loan with Bank of China (Dubai) Branch, Bank of China Limited, London Branch and Bank of China (Hong Kong) Limited. The aircraft lessor, which is fully owned by Investment Corporation of Dubai, will use the loan for general corporate purposes and future financing needs of the business. Firoz Tarapore, CEO of DAE, said the transaction with BOC 'provides us with additional liquidity to support our ongoing commitment to meeting the needs of our airline customers while maintaining a modern and efficient fleet'. In March 2024, DAE signed $420 million 5-year unsecured term loan with China Construction Bank (DIFC Branch) and China Construction Bank (Asia) Corporation Limited. As of March 31, 2025, the company had a total debt of $8 billion, of which 80% was unsecured. Net debt-to-equity ratio was 2.43x. (Writing by Brinda Darasha; editing by Seban Scaria)
