The recent case in the High Court of Peregrine Aviation Bravo v Laudamotion [2023] EWHC 48 (Comm) sheds some light on the impact the pandemic had on relationships between lessors and airlines.… Continue Reading
As a result of the COVID pandemic, with the resulting payment defaults amongst several airlines , the past few years have seen a surge in interest in distressed debt opportunities within the aviation sector. One particular area which has seen a lot of attention has been Japanese tax leasing – namely the Japanese operating lease … Continue Reading
Original decision: Wells Fargo Trust Company, National Association (trustee) v VB Leaseco Pty Ltd (administrators appointed) [2020] FCA 1269 Appeal: VB Leaseco Pty Ltd (Administrators Appointed) v Wells Fargo Trust Company, National Association (trustee) [2020] FCAFC 168 The Federal Court of Australia has provided important guidance on the meaning of the phrase “give possession of … Continue Reading
Background Leasing has been a staple of the aviation industry for more than 40 years, and has become increasingly attractive to the shipping industry over the last five years, particularly given the scarcity of traditional bank finance. Until 2017, Chinese money was the dominant force – particularly in aviation finance. However, the Chinese government has … Continue Reading
Summary In last week’s case of Triple 7 MSN 27251 Ltd v. Azman Air Services Ltd,[1] Azman Air Services argued that two aircraft lease agreements were void under the English law doctrine of common mistake. The High Court considered this question and found that common mistake is only sufficient to void a lease agreement (or … Continue Reading
The sale and leaseback (“SLB”) model has been a key source of funding and portfolio management for lessors and airlines alike for some time now. There are two principal SLB transaction structures employed for new aircraft, as illustrated below. The first is the “back to back” sale, whereby an airline pays for and takes delivery … Continue Reading
As we open our Advent Calendars each December, thoughts inevitably turn to Christmas, the New Year, and to what the next year will bring. But this year we are also looking 12 months ahead to New Year 2019. Why? Because January 2019 will see International Accounting Standard (IAS) 17 replaced by International Financial Reporting Standard … Continue Reading
What to do if you are an aircraft leasing company struggling to lease your aircraft? For one lessor, Dublin-based Amedeo, the answer is to create its own “virtual airline”. Amedeo has apparently been struggling to attract new lessees for its fleet of Airbus A380s – it currently has 12 under management and a further 20 … Continue Reading
The airline leasing sector has already had an incredibly busy year with major moves towards consolidation in the form of the purchase of lessor AWAS by DAE in April. Leasing plays a significant role in the aviation sector as a whole – with leased aircraft estimated to account for 40-45% of new aircraft purchases. Consolidation … Continue Reading
