Insurance claims totaling $282 million have been secured by DAE, bolstering the company's overall recovery to an impressive $601 million.
Dubai Aerospace Enterprise (DAE) has announced significant progress in its ongoing legal dispute with insurance companies over aircraft leased to Russian airline carriers, following Russia's 2022 invasion of Ukraine. This dispute, centred around aircraft that became effectively stranded in Russia due to Russian legislation banning the export of aircraft and aircraft equipment, has resulted in a series of settlements that have collectively brought DAE's total recovery to US$601 million.
The latest round of settlements, amounting to approximately US$282 million in cash proceeds, marks another step in DAE's broader recovery strategy. These settlements are not related to any specific airline carrier in the Russian Federation and are the result of negotiations between DAE and the insurance and reinsurance companies involved.
The court ruling, which took place in London's High Court in June 2025, has been instrumental in enabling DAE to recover losses under war risks insurance policies. The ruling determined that the loss of aircraft occurred on March 10, 2022, when the Russian government enacted an export ban, causing the aircraft lessors to claim under their war risks insurance rather than broader all-risks clauses.
The court found no legal barriers from EU or US sanctions preventing insurers from indemnifying the claimants, including DAE, for those losses. This ruling provides clarity for lessors on recovery rights for assets seized or stranded due to war-related government actions.
The ongoing litigation is not indicative of any financial distress on the part of DAE. The company remains committed to mitigating losses related to aircraft formerly leased in Russia and will continue pursuing ongoing litigation in the English courts under its existing insurance policies.
This latest round of settlements brings DAE's total recovery to US$601 million, a significant achievement in the company's efforts to navigate the aftermath of disrupted leases tied to the geopolitical fallout in the region. The settlements were not the result of any legal action initiated by DAE, and the ongoing litigation is separate from the earlier settlements disclosed by DAE in 2023 and 2024.
In conclusion, DAE's ongoing litigation and recovery strategy concerning aircraft leased to Russian airline carriers is progressing well, with the company securing substantial settlements from insurance companies. The court ruling has provided crucial clarity for lessors on recovery rights for assets seized or stranded due to war-related government actions, and DAE continues to pursue ongoing litigation in the English courts.
The court ruling in the High Court of London, which occurred in June 2025, has provided crucial clarity for DAE on recovery rights for assets seized or stranded due to war-related government actions, thereby aiding businesses in the industry and finance sector. The latest round of settlements, amounting to approximately US$282 million in cash proceeds, not only marks another step in DAE's broader recovery strategy but also emphasizes the significance of insurance policies in mitigating losses for businesses in times of geopolitical instability.
