Airlines: Options Under Airline Contractual Arrangements

Force Majeure, Impossibility and Frustration under New York and English Law

Force Majeure. As with many other industries around the world, supply arrangements in the aviation industry have suffered major disruption as a result of the COVID-19 pandemic. A key issue to look out for is whether an airline's supply contracts (and any other contracts that have been severely affected) have a "force majeure" clause that has been or might be triggered.

A force majeure clause excuses performance when unforeseen circumstances outside a party's control prevent (or, under English law contracts, hinder or delay) the party's performance of a contract. It will always be most important to interpret the wording of the particular clause in the context of the force majeure event and the contract generally.