The Cape Town Convention aircraft protocol’s substantive insolvency regime: a case study of Alternative A

Abstract

Following a brief history of insolvency law, including a summary of a provision (Section 1110) of the US Bankruptcy Code that inspired Alternative A of Article XI of the Aircraft Protocol to the Cape Town Convention, the authors outline the content, development, and intended impact of Alternative A. Section 1110 and Alternative A are then compared, as an aid to interpretation of the latter. Finally, the authors provide a case study applying Alternative A, designed to set out the intended application, interpretation, and effect of Alternative A. That case study – and such intended outcomes – underscores that the economic value of Alternative A is linked to the commercial predictability it provides, which is the main reason why courts have no discretion to modify its terms.