Does an operating lessee have to pay rent for a defective aircraft?
Introduction
In ACG Acquisition XX LLC v Olympic Airlines S.A. [2010] EWHC 923 (Comm.), the English High Court was asked to rule on the circumstances in which the defective condition of an aircraft delivered to an airline under an operating lease might entitle the airline to refuse to pay rent for it. It raises important issues both on substantive law (on the issue of what is meant by a “total failure of consideration”) and on the way in which operating leases are drafted.Disclaimer
This publication is written as a general guide only. It is not intended to contain definitive legal advice which should be sought as appropriate in relation to a particular matter.
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