AerCap says Russian airlines proposed stranded jet settlements

DUBLIN, March 2 (Reuters) - Aircraft lessor AerCap said on Thursday it had been approached by Russian airlines and their insurance companies about possible settlements for planes stranded after the Ukraine invasion but that it was unclear if any deal could be reached.

Western sanctions in place against Russia mean such a proposal would likely need approval from the European Union and the United States and neither has indicated it intends to allow such transactions.

Before the invasion, Russia was a major market for aircraft lessors, which bought jets from Boeing and Airbus and leased them to Russian airlines wanting to avoid the up-front cost and inflexibility of buying planes themselves.

But after Western sanctions forced lessors to cancel these contracts, Moscow refused to allow the planes to leave, stranding almost $10 billion worth of aircraft in Russia and triggering claims by lessors against their own insurers.

"We have been approached by some Russian airlines and their insurers about potential insurance settlements involving some of our aircraft lost in Russia," Chief Executive Aengus Kelly told analysts in a conference call.

"However, it is too early to know whether anything will come out of it. And we have nothing further to say on it at this stage," he said.

AerCap is pursuing insurance claims against its own insurer and against the Russian airlines' insurers and re-insurers.

World No. 2 lessor SMBC said in a Sept. 15 letter released to the Irish High Court that it had spoken to Aeroflot and its insurer about a payment in return for the transfer of ownership of the aircraft to the Russian insurer or its nominee.

SMBC declined to comment on the letter. (Writing by Conor Humphries; Editing by Alexander Smith)