Aircraft Repossession Under Cape Town Convention in the UAE
Type
E-journal
Date
7 Nov 2016
Jurisdiction
United Arab Emirates
Taxonomy
Aviation (Transport Law)
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Repossession of aircraft in the United Arab Emirates is a rare event. Gulf Carriers invariably are ‘clean-sheet business plan' model airlines with modern fleets, supported by sound aircraft financing, leasing, and ownership structures, and the necessity for a creditor to repossess an aircraft is extremely rare. Nevertheless, in circumstances where an airline operator fails in its obligations to pay rent under an aircraft finance lease or continues to default in its obligations to an aircraft lessor or owner of the aircraft, the question arises as to whether there is recourse and remedy in the UAE jurisdiction. It is fair to say that the UAE courts have been reluctant in the past to grant re possssory relief to lessors, but a recent case dealt with by Al Tamimi has demonstrated that UAE courts will grant such relief in certain circumstances.
Aircraft Leasing -Premier Finance Structure