Aviation Bulletin, May 2012

Introduction

While it may be self-evident, in these difficult economic times participants in the aviation sector, from airlines to owners, leasing companies to financiers and airport operators are all faced with continuing challenges of contract performance, and implementation. There have been a number of recent judicial decisions relevant to the aviation sector on contract interpretation and this paper briefly looks at a number of such cases and their impact and importance to this sector.

Transaction Performance and Implementation

Contract negotiations at any time are challenging. There is pressure on all commercial participants and their representative counsel to cut the best deal but not risk or jeopardise the commercial relationship and bargain, and at the same time have due regard to the competing agendas and timetables for completion and delivery of the participants. In this context it is not unusual for pressure to be brought to bear on counterparties to