Padraic and Conor Humphries, Tim Hepher

DUBLIN, (Reuters) – Lessors holding hundreds of Russian jets are preparing to pursue insurance claims vigorously while keeping in touch with customers. Moscow has blocked jets from departing.

Over 400 planes that were leased to Russia have been lost. This is in addition to the fact that Western countries sanctioned Russia. A string of lessors has written down millions of dollars over recent weeks.

The lessors spoke at a Dublin industry conference and said they could have to wait many years before finding out the amount they can secure due to unpredictable fights with their insurers.

They are also subject to much more expensive insurance.

Aircastle chief, who has filed $252million in impairment charges, stated that “Practically speaking, no one’s anticipating to get their airplanes back anytime soon”

Airline Economics’ CEO Michael Inglese stated that “that doesn’t mean the teams aren’t working and chasing, but preparing ourselves for what we expect will be contested talks with our insurance carriers.”

Steven Udvar Hazy, the founder of Air Lease Corp (NYSE:) said that it is pursuing vigorous insurance claims after recording an impairment amounting to $802.4 Million.

AerCap is the largest aircraft lesor in the world, and has filed a $3.5B insurance claim to cover more than 100 planes.

Aengus, the chief executive of Kelly Insurance, admitted that the company was “on the wrong side” and had the most Russian exposure in the sector. He said however, that “the insurance companies would have to settle” once he got over the high premiums.

He stated that although costs will rise, he would not listen to the claims of insurance companies because they are likely to be challenged at some point.

Karl Griffin (head of Ireland’s Genesis) said that it was among the first to renew insurance following Western sanctions which halted Russian leases. He added it was not a pleasant sight.

There is no way to know how the coming battle between lessors, insurers, will unfold. S&P Global (NYSE:) has forecast a huge range of aviation insurance losses of $6-15 billion.

“No one knows exactly where it will land,” said Niels Jensen, co-head of aviation finance at Vinson & Elkins law firm, who said it will come down to the specific policy wording.

The most contentious issue, according to lawyers is how many “occurrences” (or trigger events) are involved in Russia’s default. This judgment may have a dramatic impact on settlements’ value.

Multiple law firms are lining up in London to fight over this one, small term.

Dubai-based lender DAE Capital said its write-off of $538million was “manageable” and that it anticipated to collect on insurance. Firoz Tarapore, chief executive of DAE Capital said that it would take time.

‘WE DIDN’T STEAL’

Some lessors stated that they maintained contact with Russian private airlines even as they write down assets and pursue claims. These Russian airlines have relied on Western lessors in recent years and are good at paying their bills.

They all stated that they adhered to the sanctions.

“We all pursue the same strategy: making insurance claims and talking to airlines, private carriers…but there’s not much they can do,” stated Dan Coulcher (Chief Commercial Officer at Willis Lease Finance), who on Monday placed a $20.4million impairment on two Russian engines.

Before the invasion, the Russian airline leasing the planes was a profitable market. According to lessors, the airlines want to keep the doors open for future business but Moscow is putting pressure on them to end ties. Russian President Vladimir Putin said that lesors from unfriendly countries have violated contractual obligations.

We have many people who tell us that we aren’t crooks. We didn’t steal your airplanes. John Plueger chief executive of the company, stated that we hope you are paid for your aircrafts. Air Lease Corp .

Some airline executives have resisted cellphone use, while others prefer to carry ‘burner phones’ or meet away from their base.

“Obviously, their concern is that we don’t have the right people listening to them,” Plueger said. Plueger explained that the fear “increased” as the crisis progressed. He said that dialogue continues, but it is now “much more cautious”.

Russia only accounts for about 4% of all global traffic. However, experts are concerned that the claims fight could affect our willingness to take on risk.

Marc Iarchy (partner at World Star Aviation) said, “I think we could see the same thing happening to a larger country starting with an ‘C” in Asia.”

It would be an even greater shock for the system. He said it was possible.