Guide to airline insolvency—international considerations and implications for office-holders
Produced in partnership with Mark Craggs of Norton Rose Fulbright
Guide to airline insolvency—international considerations and implications for office-holders

The following Restructuring & Insolvency practice note produced in partnership with Mark Craggs of Norton Rose Fulbright provides comprehensive and up to date legal information covering:

  • Guide to airline insolvency—international considerations and implications for office-holders
  • Cross-border issues
  • Implications for insolvency office-holders

This Practice Note forms part of a set of Practice Notes on airline insolvency, for further information, see Practice Notes:

  1. Guide to airline insolvency—introduction

  2. Guide to airline insolvency—insolvency proceedings, receivership and schemes of arrangement

Cross-border issues

In the event of an airline entering into insolvency proceedings, it may be necessary for the responsible insolvency office-holder or a lessor or financier to take action to recover property in a large number of jurisdictions, depending on the size and geographical reach of the airline’s business.

In the case of insolvency office-holders, it will be necessary to consider the applicability of the Cape Town Convention (see Practice Note: Guide to airline insolvency—insolvency proceedings, receivership and schemes of arrangement).

In the case of aircraft and other assets located in jurisdictions which have implemented the UNCITRAL Model Law on Cross-Border Insolvency, it may be possible for the office-holder concerned to seek recognition and assistance in those jurisdictions (as to which, see generally: UNCITRAL Model Law and Cross-Border Insolvency Regulations 2006 (CBIR)—overview). Outside of those jurisdictions, there may be other bases on which recognition and assistance is capable of being obtained (for example, under the common law in many Commonwealth jurisdictions). Depending on the nature and scope of the relief obtained, financiers’ and lessors’ rights to take action following recognition might be curtailed to a greater or lesser extent.

In the case of insolvency proceedings

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