Guide to airline insolvency—introduction
Produced in partnership with Mark Craggs of Norton Rose Fulbright
Guide to airline insolvency—introduction

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

  • Guide to airline insolvency—introduction
  • Introduction to the airline industry
  • Financing structures
  • Regulation
  • Early-stage considerations
  • Pre-insolvency enforcement

Introduction to the airline industry

The purpose of this Practice Note is to provide an overview of some of the key features of airline insolvencies in England and Wales and to highlight certain legal and practical considerations which can inform strategies and outcomes when an airline enters into insolvency proceedings.

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—insolvency proceedings and use of receivership

  2. Guide to airline insolvency—international considerations and implications for office-holders

  3. Guide to airline insolvency—Monarch Airlines case study

There are certain aspects of the airline industry which differentiate airline insolvencies from insolvencies of companies in many other business sectors. In particular:

  1. the financing arrangements for the manufacture and purchase of aircraft, and the associated ownership and leasing arrangements, can be extremely complex and often vary considerably from case-to-case

  2. the airline industry is heavily regulated and the regulations to which airlines are subject can impose limitations on the manner in which they operate and the ease with which enforcement action can be taken, and

  3. the valuable assets involved in operating an airline’s business (and the subjects of a key part of a financier’s security package) are, by nature, moveable and their movement in the ordinary course—and the ability to move them with ease between different