Legal aspects of aircraft leasing relations

This thesis examines problematic issues and legal aspects of aircraft operating leasing, arising due to the absence of unified international regulation, diverse and limited legislation on aircraft operating leasing legal relationships in the European Union and the Republic of Lithuania, as well as established commercial practice in the aviation industry additionally formed by the soft law documents. It is discovered that these factors, together with the high value of a commercial aircraft, impacts on the essence of the aircraft leasing as an international commercial transaction, explains the inevitable imbalance in the parties’ rights and obligations and different legal effects in case of non-performance. In accordance with the Cape Town Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment, this thesis describes the main legal instruments and measures available to protect the interests of creditors (owner or lessor) on an international level along with limits to such instruments and measures arising due to the discretion of the contracting states. On the basis of specific aircraft leasing agreements and judgments of England and New York State courts, this work analyses contractual clauses of events of default along with events and (or) conditions that typically constitute events of default. In addition, common disputes arising under the aircraft leasing contracts and consequences of a breach of a contract are described, together with reasons behind contract parties typically choosing either English or New York State law and jurisdiction