UK: Corporate Insolvency and Governance Act 2020: Impact on Airline Insolvency

The reforms introduced by the Corporate Insolvency and Governance Act 2020 (the “Act“) are likely to impact all companies across all sectors. In this briefing we analyse the potential impact of the Act on UK airline insolvency. In particular, we note that whilst the new moratorium introduced by the Act may appear to change the usual position that UK airlines will immediately cease to fly in an insolvency proceeding, there are still numerous challenges associated with the moratorium which may make it less suitable to facilitate airline restructurings.

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