While the aviation industry continues to expand quickly in the PRC market, it is still possible that things can go wrong and an individual lessee may default under a lease when it faces tough times due to various reasons. For all lessors, whether they are financial lessors or operating lessors, it is essential to have a good knowledge of their enforcement rights in the worst scenario and the actions that they can do to recover their aircraft when all other remedies have failed.
This article intends to provide an overview of the major legal and practical issues involved if a lessor seeks to repossess an aircraft leased to a Chinese operator/airline (the “PRC Lessee”). Considering the complexity of the repossession of aircraft, it should be noted that this article does not intend to give a detailed analysis of all issues that may come up during any aircraft repossession.
