The Aviation (Enforcement and Recovery) team has been advising clients on issues arising from the current crisis. Three main themes emerge from the current challenges in the airline sector:
1.) Airline insolvency risk. A number of leasing companies have claims for unpaid rent and maintenance rent. These claims can be pursued by:
- applying security deposits and enforcing other security; and/or
- issuing proceedings in the High Court – which will effectively come to halt if the airline then goes into a formal insolvency process; and/or
- Instigating insolvency proceedings against the airline; and/or
- Exercising proprietary rights such as arresting and taking possession of the aircraft, with the assistance of a court order or injunction in the relevant location.