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Aviation Update: Common themes in times of crisis

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.

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