Aircraft Operating Leasing: A Legal and Practical Analysis in the Context of Public and Private International Air Law (3rd Edition)

Aircraft Operating Leasing is the first comprehensive and practical guidance on description of lease law as applied to aircraft. Although aircraft leasing is comparatively young as a commercial activity – less than fifty years old in practical terms – already well over half of the world’s commercial aircraft fleet is leased. Bringing together the laws affecting both air travel and leasing can, however, be challenging. As a beneficial supplement that is set out as a real example of a form of aircraft operating lease for a used aircraft, this book aims to provide an original contribution to legal science by examining a typical lease transaction from the start of the deal through to execution of the documentation, discussing not only the specific issues that arise and their resolution, but the reasons underlying them.

In this third edition, considering the patterns that emerge in cases of divergence and the implications such divergence may have in particular for the fields of public and private international air law, the author flags the principal legal issues to be considered in developing a standard form of aircraft operating lease from different jurisdictions and current literature in the field:

• the obligations and rights of each party;
• failure to meet delivery conditions before delivery;
• standby letters of credit and guarantees;
• regulatory constraints concerning aircraft registration or foreign remittances;
• manufacturer’s warranties;
• possession and replacement of parts and engines;
• sub-leasing;
• damage to the aircraft and other loss to lessor;
• liability for damage to third parties;
• safety issues and lessor’s liability for acts of the airline;
• the events that will entitle the lessor to terminate the contract and recover its asset;
• issues pertaining to enforcement of remedies; and
• governing law.

The format broadly follows that of a typical aircraft operating lease. The author flags the principal legal issues to be considered in developing a standard form aircraft operating lease and makes recommendations in that regard. His approach balances the desired commercial outcome with the legal, or more theoretical, mandate to apply the law to disputes that may arise.

This book is the first to assume this task in a significantly focused way, thus providing invaluable expert guidance to practitioners handling aircraft lease agreements and legal academics and students. As a detailed examination of each part of the lease with particular reference to the impact on each term of relevant case law, statutes, regulations and international treaties, this work greatly enhances understanding of the legal and practical aspects of the aircraft operating lease.