{"id":122458,"date":"2025-12-10T13:36:38","date_gmt":"2025-12-10T13:36:38","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=122458"},"modified":"2025-12-12T09:02:23","modified_gmt":"2025-12-12T09:02:23","slug":"france-aviation-finance-leasing","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/france-aviation-finance-leasing\/","title":{"rendered":"France: Aviation Finance &amp; Leasing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-122458","comparative_guide","type-comparative_guide","status-publish","hentry","guides-aviation-finance-leasing","jurisdictions-france"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Clyde &amp; Co<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Clyde-Co.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Clyde &amp; Co<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Clyde-Co.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Aviation Finance &amp; Leasing laws and regulations applicable in France<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What international aviation conventions has your jurisdiction signed and\/or ratified?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li>France has signed and ratified the following conventions:<br \/>\nThe Chicago Convention on International Civil Aviation (1944);<\/li>\n<li>The Geneva Convention on International Recognition of Rights in Aircraft (1948);<\/li>\n<li>The New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958).<\/li>\n<\/ul>\n<p>France has signed but not ratified the Cape Town Convention on International Interests in Mobile Equipment and the Protocol on Matters Specific to Aircraft Equipment.<br \/>\nFrance is not a party to the Rome Convention for the Unification of Certain Rules Relating to the Precautionary Arrest of Aircraft (1933).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If your jurisdiction has signed and ratified the Cape Town Convention: a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention? b. Does the Cape Town Convention take priority over conflicting national law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Which qualifying declarations (opt-in and opt-out) has your jurisdiction made under the Cape Town Convention:<\/h4>\n<p>France has signed but not ratified the Cape Town Convention.<\/p>\n<h4>b. Does the Cape Town Convention take priority over conflicting national law?<\/h4>\n<p>n\/a<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Will a court uphold the choice of a foreign governing law in respect of the following contracts and if so, please also state any conditions or formality requirements to this recognition a. Lease and b. Security document (for example, mortgage)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Lease<\/h4>\n<p>French courts uphold the parties\u2019 choice of foreign governing law subject to certain restrictions. The choice must be clearly expressed in the contract and not fraudulent. However, French overriding mandatory provisions and international public policy will always apply, and the chosen law cannot contravene these rules. There are no specific formalities beyond stating the choice in writing, but a French translation is required for court proceedings. The party relying on specific provisions of a foreign law will also have to provide evidence of the content and the interpretation of such provisions (e.g.: by providing an affidavit issued by a legal expert from the relevant jurisdiction).<\/p>\n<h4>b. Security document (for example, mortgage)<\/h4>\n<p>In principle, a court will uphold the choice of law clause selecting a foreign law to govern security documents, provided that the conditions mentioned above (see \u00a7 (B)(3)(a)) are satisfied. That being said, the foreign law as <em>lex contractus<\/em> will only apply to determine the validity of the contract creating the security and the <em>jus ad rem<\/em>, i.e. the personal effects (\u201c<em>droits personnels<\/em>\u201d) of the beneficiary of the security, whereas the l<em>ex rei sitae<\/em> or law where the object is located will determine the jus in re, i.e. the real rights (\u201c<em>droits r\u00e9els\u201d<\/em>) over a specific object or property. However, the <em>lex rei sitae<\/em> will not apply when the Geneva Convention (1948) is applicable; it provides that a contracting State undertakes to recognize mortgages and similar rights that have been constituted in accordance with the law of the contracting Sate in which the aircraft is registered and are recorded in a public record of that contracting State.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please confirm whether it is (i) customary and (ii) necessary to also take a local law mortgage and if so, why?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In respect of aircraft registered in France, taking a French mortgage (\u201c<em>hypoth\u00e8que<\/em>\u201d) governed by French law is customary and necessary in order for the mortgagee to benefit from the statutory rights provided by Article L. 6122-1 et seq. of the Transportation Code, including a preferred rank over other creditors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign judgments recognized and enforceable by courts of your jurisdiction and if so, please also state any conditions or formality requirements to this recognition (for example, do you require a local court order confirming such recognition)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In France, foreign judgments can be recognized and enforced under two main frameworks (other particular treaties and conventions exist).<\/p>\n<p>Judgments rendered by courts of EU Member States are generally recognized and enforceable without any special procedure, provided they meet the conditions set out in EU Brussels I Recast Regulation. Recognition or enforcement may be refused in limited circumstances, such as when the judgment is manifestly contrary to public policy, when the defendant was not duly served and the judgment was given in default, or in case of conflict with an existing judgment between the same parties. The jurisdiction of the court of origin cannot be reviewed.<\/p>\n<p>Judgments from non-EU countries require an exequatur proceeding before French courts. In this procedure, judges verify that the foreign court had jurisdiction, that the judgment complies with international public policy and that it is free from fraud. Once these conditions are met, the judgment becomes enforceable in France.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is your aircraft registry an owner-register (registering ownership interests) or an operator-register (registering interests as operator)? Please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a Certificate of Registration)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In France, the aircraft registry (\u201c<em>Registre d\u2019immatriculation<\/em>\u201d) is an owner-registry. The registry is publicly available.<\/p>\n<p>In order for the owner to register a new aircraft, an aircraft previously registered in another State or an aircraft purchased, he has to fill out and file a standard form with the DGAC, along with the following documents (amongst others):<\/p>\n<ul>\n<li>Airworthiness documents issued by the French authorities;<\/li>\n<li>Deregistration certificate if the aircraft was registered in another State;<\/li>\n<li>Non-registration certificate issued by the State of provenance if the aircraft has never been registered;<\/li>\n<li>Tax and custom certificates for foreign aircraft;<\/li>\n<li>An original document demonstrating ownership of the aircraft (e.g.: original sale contract, paid invoice, bill of sale issued by the aviation authorities of the State of provenance).<\/li>\n<\/ul>\n<p>The DGAC issues a registration certificate, which provides the name of the owner of the aircraft, the home aerodrome of the aircraft, any mortgage over the aircraft and any recorded lease agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a security document register in your jurisdiction where a mortgagee\u2019s interests will be recorded? If so, please also state any conditions, procedural steps or formality requirements for such registration and explain how this is evidenced (for example, the issuance of a certificate or official stamp on the security document)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In respect of an aircraft registered in France, the mortgagee(s) may register a contractual mortgage (\u201c<em>hypoth\u00e8que<\/em>\u201d) with the aircraft registry (see Articles L. 6122-1 et seq. of the Transportation Code). The mortgage document must be drafted in French. The mortgagee(s) must be domiciled in Athis-Mons, where the office of the aircraft registry is located; the domicile may be the one of a subsidiary or agency, or of a bailiff (\u201c<em>commissaire de justice<\/em>\u201d) instructed by the mortgagee(s) for that specific purpose.<\/p>\n<p>The registration request includes the following documents:<\/p>\n<ul>\n<li>A standard form provided by the DGAC filled out and signed by the mortgagee(s);<\/li>\n<li>The PoA of the signatory(ies);<\/li>\n<li>A sample of the signature of the signatory(ies) (e.g.: copy of ID);<\/li>\n<li>An extract of the company registry (\u201c<em>extrait K-bis<\/em>\u201d) dated within the last three months for each morgtagee;<\/li>\n<li>The original registration certificate of the aircraft, or if the owner is not in a position to provide the original, a written undertaking by the owner that he will return the original as soon as possible upon receipt of the new certificate.<\/li>\n<\/ul>\n<p>The above applies to the registration of any amendment or renewal (after ten years) of a mortgage.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the effect of registration of: a. Ownership interest (for example, proof of title to third parties of ownership) b. Lease (for example, perfects the status of the Lessor under the Lease) c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><h4>a. Ownership interest (for example, proof of title to third parties of ownership)<\/h4>\n<p>The registration of an aircraft constitutes proof of ownership. The transfer of ownership in case of sale is effective against third parties only upon its registration.<\/p>\n<h4>b. Lease (for example, perfects the status of the Lessor under the Lease)<\/h4>\n<p>A lease may be registered with the aircraft registry, though it is not mandatory. The registration allows the owner\/lessor to protect his interests against third parties: he may be held liable only if the third party demonstrates the fault of the owner. Without any registration, the owner\/lessor and the operator\/lessee are jointly and severally liable to third parties.<\/p>\n<h4>c. Security document (for example, secures priority over later registered security). If there are any interests that could rank prior to the security document please state these<\/h4>\n<p>A mortgage is enforceable against third parties from its registration with the aircraft registry. If there are several mortgages, the respective rank of the mortgagees is determined according to the registration date of each mortgage. Mortgages registered on the same date have the same rank irrespective of the actual time of the registration. Liens that arose before the registration of the mortgage may rank prior to that mortgage.<br \/>\nThe following interests rank prior to a mortgage in the following order:<\/p>\n<ol>\n<li>Judicial costs incurred to sell the aircraft and distribute the price, in the common interest of the creditors;<\/li>\n<li>Costs incurred to salvage the aircraft;<\/li>\n<li>Indispensable expenses to preserve the aircraft.<\/li>\n<\/ol>\n<p>Except in the case of a judicial sale, an aircraft may not be deregistered without the prior release of the mortgage.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What types of lease are recognized in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Though a lease may be drafted in a foreign language, a French translation will have to be produced in case of legal proceedings seeking the enforcement of certain provisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What formalities are required to perfect Lessor\u2019s rights under a lease in your jurisdiction (for example, translation, notarization, apostille, legalization etc.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No specific formality is required to perfect Lessor\u2019s rights under a lease.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the ownership rights relating to engines recognized as separate and distinct from the ownership of the rest of the aircraft in your jurisdiction? Please highlight any separate registration, filing or additional formalities that are required to be completed to perfect Lessor\u2019s interest in the engines<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, when the aircraft (or airframe) and the engines are owned by different persons, their respective property rights will be deemed separate and distinct. However, each situation should be assessed on a case-by-case basis as certain provisions of property law may affect the rights of the engines\u2019 owners and their enforcement. In practice, it is possible to affix an identification plaque on the engine, which may be used as evidence of ownership of the engine.<\/p>\n<p>There is no registry for engines equivalent to the aircraft registry. However, in order for Lessor to enforce his rights (including property rights in an engine) against Lessee\u2019s creditors \u2013 including in the context of bankruptcy \u2013, the lease should be registered with the registry of security interests in movable property (\u201c<em>registre des s\u00fbret\u00e9s mobili\u00e8res et autres op\u00e9rations connexes<\/em>\u201d). Registration is valid for 5 years and then needs to be renewed. It is also advisable for Lessor of an engine to obtain a French law pledge (\u201c<em>gage de bien meuble corporel<\/em>\u201d), which may also be registered with the aforementioned registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What form does security over aircraft generally take in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Security over an aircraft takes the form of a mortgage (\u201c<em>hypoth\u00e8que<\/em>\u201d).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any particular terms or characteristics that such a security document must take (for instance, a cap on the secured liabilities)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The security document must be in writing in the form of a notarial deed (\u201c<em>acte authentique<\/em>\u201d) or a private deed (\u201c<em>acte sous seing priv\u00e9<\/em>\u201d) and specify:<\/p>\n<ul>\n<li>Each item covered by the mortgage;<\/li>\n<li>\u00a0Identity of creditor and debtor;<\/li>\n<li>Date and nature of the title;<\/li>\n<li>Amount of the secured claim;<\/li>\n<li>Interest and repayment terms;<\/li>\n<li>Aircraft details (type, serial number, registration marks);<\/li>\n<li>Election of domicile for notifications.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any perfection requirements for such security document? If so, please state any conditions, procedural steps, formality requirements or documentation (for example, corporates, list of directors etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The mortgage must be registered with the aircraft registry held by the DGAC in order to be enforceable against third parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Summarize any captive insurance regime in your jurisdiction as applicable to aviation.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Introduced by the Finance Law 2023, the regime allows captive reinsurance companies domiciled in France to reinsure risks of their parent group. It applies to non-financial groups and covers specific risks such as property damage, liability, cyber, and transport. Captives must be authorized by the competent authority (\u201c<em>Autorit\u00e9 de contr\u00f4le prudentiel et de r\u00e9solution<\/em>&#8220;) and comply with the requirements of the French Insurance Code.<br \/>\nCaptives can create a \u201c<em>provision pour r\u00e9silience\u201d<\/em>, a tax-deductible reserve to absorb losses and claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are cut-through clauses under the insurance and reinsurance documentation legally effective in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Cut-through clauses allowing the original insured to claim directly against the reinsurer instead of the insurer are allowed in France.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum requirements for the amount of third-party liability cover that must be in place in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In respect of aircraft operation, minimum requirements are determined by EU Regulation (EC) No 785\/2004. The required coverage for third-party liability cover is determined by the maximum take off mass (\u2018MTOM\u2019) and ranges between 0.75 and 700 million SDRs (approximately 1 to 931 million USD, or 0.9 to 875 million EUR). For liability in respect of passengers, the minimum insurance cover is 250,000 SDRs per passenger (approximately 332,500 USD, or 312,500 EUR). Subject to specific exemptions, those requirements apply to all air carriers and aircraft operators flying within, into, out of, or over EU territory.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a mortgagee (or equivalent security interest holder) or lessor following an event of default under a mortgage (or equivalent security document) or lease, respectively, take possession of the aircraft without judicial intervention in your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If the operator of the aircraft challenges the repossession of the aircraft, the mortgagee or the lessor will not be able to repossess the aircraft without judicial intervention, since self-help remedies are not available in France.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How can a mortgagee (or equivalent security interest holder), lessor under a lease or designee\/beneficiary of an IDERA deregister the aircraft? Please also state any conditions, procedural steps, formality requirements or documentation (for example, original, legalized, translated Lease\/Mortgage\/IDERA etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Only the owner of an aircraft may request its deregistration; the consent of the operator is not necessary to do so. The owner will have to fill out and file a standard form with the DGAC, while providing certain documents, including the following:<\/p>\n<ul>\n<li>Original certificate of registration;<\/li>\n<li>The sale agreement if the owner of the aircraft is not the one registered;<\/li>\n<li>The release of the mortgage(s);<\/li>\n<li>If relevant, a PoA granted by the owner to file the deregistration request on his behalf.<\/li>\n<\/ul>\n<p>France is not a party to the Cape Town Convention or its Protocol, so the IDERA (Irrevocable Deregistration and Export Request Authorisation) mechanism is not available.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can the government or the lessee lawfully prevent the repossession or deregistration and if so, in what circumstances<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, in certain circumstances. The lessee can delay repossession by challenging the lessor\u2019s rights and claims under the lease agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If judicial intervention is required, please describe the process? Please also state any procedural steps, length of time to complete and advise as to documentation required<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The lessor may seek an <em>ex parte<\/em> court order (\u201c<em>mesure conservatoire<\/em>\u201d) if it can show a prima facie case that the lease has expired or been validly terminated due to default. The order allows the owner to arrest the aircraft. An action on the merits (\u201c<em>action en restitution<\/em>\u201d) must follow in order to obtain a judgement authorizing repossession of the aircraft. It may take several months up to a year. Then, only the owner can request deregistration from the DGAC. The lessee\u2019s consent is not required, but all recorded mortgages and liens must be released.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is legal title transferred under the laws of your jurisdiction? Please also state any conditions, procedural steps, formality requirements or documentation (for example, corporates etc.) required to effect this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Title in an aircraft is transferred and enforceable against third parties when the sale agreement was executed in writing and it has been recorded with the aircraft registry.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the sale of an aircraft following enforcement (for example, the requirement to obtain a court order or conduct a public auction or other action in order to sell the aircraft upon enforcement)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>If a creditor has obtained an enforceable instrument (\u201c<em>titre ex\u00e9cutoire\u201d<\/em>), such as a court decision, and wishes to sell the aircraft of the debtor in order to recover his claim, he must follow a public sale procedure supervised by the judge. The creditor must first serve a formal payment request (\u201c<em>commandement de payer<\/em>\u201d) on the aircraft owner. If the owner fails to pay within 24 hours of receiving this notice, the creditor may request the attachment of the aircraft for the purpose of the sale. The starting price and sale conditions are determined by the judge. The public auction is held before the judge three weeks after the sale notice has been published in the official journals. The sale proceeds are distributed among the creditors according to a specific process and in compliance with their respective rank. The public sale cannot take place if the sale price is insufficient to satisfy all claims with a higher rank than that of the creditor initiating the sale procedure.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would lease rentals be subject to tax (for example, withholding or income tax)? Please also state if there are any conditions for such tax to be imposed and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Lease rentals may be subject to income tax depending on the fiscal situation of the lessor and existing bilateral tax treaties. Subject to certain conditions, rentals are not subject to withholding tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would a sale of an aircraft in your jurisdiction incur sales tax? Please also provide details of amount or calculation and any steps usually taken to mitigate this<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Subject to specific rules applicable to certain French Overseas Departments (\u201c<em>DOM<\/em>\u201d), the sale of an aircraft is subject to VAT (20%). A VAT exemption exists for operations involving the delivery, transformation, repair, maintenance, chartering, and leasing of aircraft used by air navigation companies whose services to or from foreign countries or overseas territories and departments, excluding metropolitan France, account for at least 80% of the services they operate. Certain declarations must be made to the tax authorities, except for French companies that are identified on a list provided by the tax authorities and foreign companies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of aircraft in your jurisdiction and would such importation or exportation incur any liability as to customs or taxes? Please also state if any consents or approvals are required and the procedural steps taken to obtain these, and any procedural steps or formality requirements to mitigate any taxes<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no restrictions on the import or export of aircraft that would trigger any customs, subject to confirmation for each operation at a given time. However, import and export must comply with EU sanctions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any foreign exchange restrictions on transfers of funds<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Subject to certain exceptions, transfers of funds are free in France. This principle applies to funds transferred to France from foreign States, as well as funds transferred to foreign States from France. However, transfers of funds must comply with provisions relating to tax and anti-money laundering.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How successful have foreign creditors and lessors been in enforcing their security and lessor rights over and successfully repossessing aircraft in a timely manner?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Foreign lessors and creditors can enforce their rights in France, but should expect a formal, court-supervised process in which the lessee or debtor may challenge repossession. Appropriate protective measures (in particular local registration, contractual provisions related to termination and choice of law\/jurisdiction, and contingency for litigation) are essential.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What government led reforms affecting creditor and lessor rights are currently underway in the aviation sector in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>France is not implementing major reforms specifically aimed at strengthening creditor or lessor rights in aviation finance. Current reforms focus on environmental and operational regulation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please describe any interesting legal development in your jurisdiction (for instance, decided court cases or arbitral awards) which affect creditor and lessor rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The French Supreme Court (\u201c<em>Cour de cassation<\/em>\u201d) upheld the validity of an asymmetric jurisdiction clause (Lastre case, 17 September 2025, No 22-12.965), which allowed one party to file a claim before any other competent Italian or foreign court, while limiting the other party to one specific court in Italy. The Supreme Court\u2019s decision followed the European Court of Justice\u2019s preliminary ruling according to which an asymmetric jurisdiction clause is valid, provided that: (i) it designates courts of one or several States which are either Members of the European Union or parties to the Lugano Convention; (ii) it identifies objective factors which are sufficiently precise to enable the court seised to ascertain whether it has jurisdiction; (iii) it is not contrary to special or exclusive jurisdiction provisions of Brussels I Recast Regulation or the Lugano Convention (Case C\u2011537\/23, 27 February 2025). In this case, the Supreme Court considered that the jurisdiction clause must be interpreted as referring to competent courts designated by the jurisdiction rules of Brussels I Recast Regulation or the Lugano Convention.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please discuss any relevant governmental regulations implemented in your country to help alleviate the financial and other difficulties faced by airlines in your jurisdiction caused by CoVid 19 and whether that will impact rights of lessors (who lease aircraft to the airlines) and lenders (who finance such aircraft which are mortgaged in favour of the lenders)? Are such governmental regulations expected to be in place until the difficulties faced by airlines caused by the CoVid 19 subside or are they more long term?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In 2020, the French State and the Dutch State granted some aid measures to Air France and KLM, which consisted of state-guaranteed loans and subordinated loans to help the airlines cope with severe liquidity shortages caused by the CoVID-19 pandemic. Those measures were notified by France and the Netherlands to the Commission, which approved them. The EU General Court then annulled the Commission\u2019s decision. The Commission has appealed both judgments issued by the General Court. While the appeal proceedings are still pending, Air France and KLM repaid the aid measures respectively in June 2022 and April 2023. In the meantime, the Commission reassessed the measures under the Temporary Framework for State Aid and confirmed, on 10 July 2024, they remain compatible with EU rules, as they were necessary, proportionate, and included safeguards to limit distortions of competition.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3986<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/122458","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=122458"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}