Dubai, U.A.E., 19 December 2023 – Dubai Aerospace Enterprise (DAE) Ltd (“DAE”) today announced that it has received cash insurance settlement proceeds totaling approximately US$118 million in respect of aircraft previously on lease to Public Joint Stock Company “Aeroflot – Russian Airlines” (“Aeroflot”).
The amount represents a settlement of DAE’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to seven (7) aircraft and associated engines.
The insurance settlement and receipt of the settlement proceeds from Limited Liability Company “Insurance Company NSK” (“NSK”), a Russian insurance company, were carried out in full compliance with all applicable sanctions regimes.
Effective upon receipt of these insurance settlement proceeds from NSK, each DAE affiliated entity involved in the leases to Aeroflot has released its claims against NSK, Aeroflot, and their international reinsurers with respect to these aircraft and engines.
Insurance settlement discussions are ongoing with respect to DAE’s claims under the insurance policies of several other Russian airlines. However, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount. In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained.
DAE will continue to actively pursue its litigation in the English courts under its own insurance policies. DAE will also continue its efforts to seek to mitigate its losses in respect of its aircraft that were previously leased to other Russian airlines.