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Further to our previous update on the Russian aircraft policy claims, the Court of Appeal has now issued its decisions on the permission to appeal applications brought by a number of War Risks insurers.
Interest appeal
On 27 October 2025, Fidelis and Lloyd's Insurance Company (on behalf of the remaining War Risks insurers) issued separate applications to the Court of Appeal for permission to appeal Mr Justice Butcher's findings on interest made at the consequentials hearing on 15-16 September 2025. The proposed appeals challenged both the date from which interest accrues and the applicable rate.
On 10 March 2026, the Court of Appeal refused permission to appeal on the papers, holding that the proposed appeal had no real prospect of success and that there was no other compelling reason for it to proceed.
Substantive appeal
In relation to the substantive appeal, the Court of Appeal issued an order on 10 March 2026 directing that the Applicants be heard orally on all proposed grounds of appeal (and did not require submissions from the Respondents). A one-day hearing took place on 31 March 2026.
By way of reminder, the grounds of appeal are as follows:
- Construction of the contingent cover – Whether (a) the scope of cover under the contingent section of AerCap's lessor policy is limited to the scope of cover of the insurances the lessees were required to procure under their leases with AerCap, and (if so) (b) whether those insurances were not intended to respond where a loss is suffered by AerCap alone, but not the lessee (as occurred here).
- Alternative construction of the contingent cover – Whether the trigger for contingent cover under AerCap's lessor policy requires AerCap to establish, on the balance of probabilities, that it could not obtain an indemnity under the Operator Policies.
- Total loss – Whether Mr Justice Butcher would have found that there was no loss of the assets if (a) he applied what War Risks insurers say is the correct test for loss (being one where there is no more than a 'mere chance' of recoveries, as opposed to the usual balance of probabilities test); (b) loss had been assessed as at the commencement of proceedings on 9 June 2022, rather than 10 March 2022; (c) he had taken into account the prospect of disposing of the assets at market value by way of settlement such that the deprivation was not complete; or (d) he had taken into account the commercial life of the assets.
- Financial recoveries – Whether AerCap is required to give credit for amounts allowed to insurers under the Russian Insurance Settlements (see paragraphs 1046–1047 of the substantive judgment).
The Court of Appeal has granted permission to appeal on all grounds. As such they will all be heard by the Court of Appeal. The Court has ordered a five-day hearing. The date of this hearing has yet to be confirmed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
