Legal and practical considerations concerning cross border repossessions of leased aircraft

Aircraft repossessions are typically contemplated when airlines face severe financial strain and can no longer meet lease or loan obligations. Even though air passenger traffic has rebounded to a healthy level since COVID-19, several airlines have become insolvent (consider, e.g., recently, Silver Airways, Bonza, Air Belgium, Blue Air) which in many ways is a product of mounting operational pressures, rising costs, and supply chain challenges. These factors and others regularly prompt lessors to consider repossessing their aircraft as a means of protecting their assets and investments. This article discusses several legal and practical considerations that lessors should take into account before commencing the repossession process. It also explains how aircraft can be “arrested” when in foreign jurisdictions, and the steps to be taken after repossession.