Aircraft operating leases—subleasing and events of default
Produced in partnership with Norton Rose Fulbright
Aircraft operating leases—subleasing and events of default

The following Banking & Finance guidance note Produced in partnership with Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Aircraft operating leases—subleasing and events of default
  • Subleasing
  • Wet leasing
  • Events of default
  • Common events of default and grace periods

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This may have an impact on the information in this Practice Note about wet leasing. For more information, see Practice Note: Brexit—impact on finance transactions—Lending—key issues for aviation finance.

This Practice Note explains the key provisions in operating leases about subleasing and events of default. See also Practice Notes:

  1. Aircraft operating leases—basic concepts

  2. Aircraft operating leases—delivery condition, quiet enjoyment, rent and deposits and operational indemnities

  3. Redelivery conditions in aircraft operating leases, and

  4. Aircraft lease maintenance obligations

Subleasing

A lessee will often request from the lessor the ability to sublease the aircraft as part of the lease negotiations.