EasyJet is facing a $72 million lawsuit from SOGAZ, Russia's largest insurer, over pre-payments made for Airbus aircraft that were never delivered due to international sanctions imposed after Russia's invasion of Ukraine. SOGAZ, which is also sanctioned, filed the claim in a Moscow court. EasyJet had placed an order with Airbus for 107 new aircraft over three years, with a projected cost of approximately £4.5 billion, but a number of these deliveries were subsequently deferred.
The lawsuit highlights the ongoing financial complexities and legal disputes arising from the grounding of aircraft and the disruption of contracts due to geopolitical events. The airline had previously grounded its entire fleet and sought a £600 million loan from the UK government during the COVID-19 pandemic to manage its cash flow and obligations, especially concerning its significant aircraft purchase commitments.
This legal action follows a trend of financial repercussions in the aviation sector due to the Russia-Ukraine conflict. For instance, AerCap, the world's largest aircraft lessor, recently settled an insurance claim for $645 million over 17 jets leased to the Russian airline Aeroflot that remained stranded in Russia. EasyJet itself has been in the news for other financial discussions, including a rejected £4.9 billion takeover offer from Castlelake and warnings of widening losses due to soaring jet fuel costs. These events underscore the volatile financial landscape for airlines.
