The De-registration of Aircraft as a Default Remedy in Aircraft Leasing and Financing Transactions

Abstract

In case of distressed aircraft leasing or asset backed loan transactions it is of utmost importance to obtain physical control over the aircraft as early as possible. The de-registration of the aircraft from the register where the aircraft is registered for the purposes of the operation by the (defaulting) operator is one important feature in the process of securing control. Leasing and financing transactions provide for certain de-registration tools to enhance the owner’s or creditor’s legal position. This article will compare traditional legal concepts which support the de-registration of aircraft with the modern approach contemplated by the Cape Town Convention1 and focuses on certain details and pitfalls to be considered when analysing the various de-registration systems of the Convention in certain Member States to the Convention.