Smart Legal Contracts: adding a living dimension to aviation finance documentation

In our last post, we looked at how blockchain could be deployed by the aviation sector. We mentioned that when combined with a smart contract, routine events under aviation financing documentation could be automated. Today, we explore this potential more deeply to see how smart legal contracts (SLCs) can transform legal contracts into powerful 21st … Read more

The Global Aircraft Trading System (GATS): some practical and documentary considerations

The Global Aircraft Trading System (GATS) is a fully electronic system designed to facilitate certain aircraft trading and financing transactions. This system seeks to streamline these often time consuming processes while at the same time increasing transparency and confidence in trading through the use of standardised processes and by recording GATS transactions on a secure … Read more

ENGLISH HIGH COURT STAYS COURT PROCEEDINGS IN FAVOUR OF ARBITRATION AND INTERPRETS CONFLICTING DISPUTE RESOLUTION PROVISIONS

In Helice Leasing S.A.S v PT Garuda Indonesia (Persero) TBK [2021] EWHC 99 (Comm), the English High Court interpreted seemingly conflicting dispute resolution provisions in an aircraft operating lease (the “Lease”). The Lease included an arbitration clause providing for “any dispute” to be resolved by the London Court of International Arbitration (“LCIA”) and gave the lessor an … Read more

Blockchain: novel opportunities for improving efficiency in aviation

Blockchain is seen by many as the most significant technological breakthrough since the advent of the internet. While digital currencies based on blockchain technology have monopolised many of the headlines, blockchain has far wider-reaching potential and new applications are capable of disrupting practices across many sectors, including aviation. Read more

Will COVID Frustrate an Aircraft Lease?

The widespread disruption caused by the COVID-19 pandemic has led to renewed interest in potential bases for avoiding contractual obligations. However, arguing in English law that an aircraft lease has been frustrated by the consequences of pandemic, may be unlikely to succeed. Read more

Welcome!

Welcome to “Aviation Finance notes”, Herbert Smith Freehills’ aviation finance know-how and market intelligence blog. We are delighted to be launching this blog where you will find regular updates on the latest developments in international aviation finance. Here, we will be posting a series of short articles, videos and podcasts engaging with current issues, trends … Read more

Lessors: Contingency planning in times of COVID-19

The unprecedented disruption to international travel caused by COVID-19 has created unique challenges for the aviation industry. In this note we consider how lessors can manage their exposure going forward and deal with the challenges arising from the pandemic. Consider clawback and local insolvency Lessors should anticipate the risk that local liquidators or insolvency officeholders … Read more