NEW YORK, April 12 (Reuters) – A U.S. choose on Tuesday ordered Russia's largest cargo airline to pay plane lessor BOC Aviation Ltd (601988.SS) $406.2 million after being declared in default on leases for 3 Boeing 747-8 freighters following Russia's invasion of Ukraine.
U.S. District Decide Lewis Liman in Manhattan discovered the defendant AirBridgeCargo Airways LLC and its guardian Volga-Dnepr Logistics BV liable, after the invasion and ensuing sanctions left the plaintiff BOC Aviation unable to reclaim the plane.
Legal professionals for the defendants didn't instantly reply to requests for remark. BOC declined remark.
Plane lessors have sued a number of insurers and lessees in primarily European courts for billions of {dollars} over a whole bunch of plane caught in Russia since Russia's February 2022 invasion of Ukraine.
BOC Aviation mentioned AirBridgeCargo went into default after being unable to take care of required reinsurance protection.
This adopted restrictions imposed by the European Union in opposition to Russian carriers on plane utilized in Russia, and Russian sanctions on overseas property, together with internationally leased plane.
BOC Aviation mentioned it was in a position to get better one leased airplane and two of its 4 engines, whereas the 2 different planes and two different engines remained in Russia.
The lessor's majority shareholder is Financial institution of China Ltd (601988.SS).
In a 57-page resolution, Liman mentioned BOC Aviation had confirmed that the Russian authorities had “effected a seizure” of the planes and engines by retaining them from getting used exterior Russia, “save maybe to areas in Ukraine or for the needs of the battle.”
The choose mentioned that undermined BOC Aviation's means to hold out its proper to reclaim possession.
He additionally rejected AirBridgeCargo's defenses that neither aspect may have foreseen a default, and it was not possible to floor the planes exterior Russia as a result of the nation had ordered them flown again.
Related arguments have been set out in different instances, however the lack of standardised phrases and a practice of contractual secrecy within the jet trade has made it tough for lessors to pool their claims into one class motion, trade sources say,
Liman dominated after a one-day non-jury trial held on April 3.
The case is BOC Aviation Ltd v AirBridgeCargo Airways LLC et al, U.S. District Court docket, Southern District of New York, No. 22-02070.
Reporting by Jonathan Stempel in New York; enhancing by Jamie Freed and Jason Neely
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