Mortgagee Repossession of Aircraft in the UAE
Type
E-journal
Date
6 Apr 2016
Jurisdiction
United Arab Emirates
Taxonomy
Aviation (Transport Law)
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
The rapid expansion of the aviation industry in the UAE brings with it the growth of cross border aircraft finance and queries by foreign banks as to the validity of mortgages over aircraft, their enforcement and the repossession of the aircraft.
In particular, we are frequently asked to advise upon the validity of English-law mortgages within the UAE, particularly following the decision by the English Courts in Blue Sky One Limited & Ors v Mohan Air & Anor (‘Blue Sky') in 2010.
English-Law Mortgages in the UAE
Following the decision in Blue Sky, there has been an influx of queries particularly in relation to the validity of English-law mortgages that may have been created whilst an aircraft is located within the UAE or its airspace (the lex situs of the aircraft).