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

EU-UK Trade and Cooperation Agreement – implications for Aviation

The new trade and cooperation agreement between the EU and UK (the “Agreement”) contains a chapter governing the EU/UK aviation relationship, reflecting the EU’s intention to comprehensively address that relationship within the scope of the envisaged partnership between the EU and UK. A brief overview of the key provisions follows below. The Agreement also establishes … 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

The case for technology solutions in aviation finance transactions: will they take flight?

Structuring and documenting aviation finance and leasing transactions typically generates a high volume of paperwork, intense email traffic and the accompanying hours of time spent by clients and advisors producing and reviewing documentation and conditions precedent. Given the nature of work often involves large scale transactions, asset finance practices would appear to be the ideal … 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

Lenders: 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 lenders can manage their exposure going forward and deal with the challenges arising from the pandemic. Consider local insolvency regime Lenders should anticipate the hurdles an airline’s local insolvency regime may pose … Read more