The High Court recently upheld a tribunal award relating to reinsurance contracts covering losses arising out of the terrorist attack on the World Trade Centre of September 11 2001. The judge held that the unity of cause in the attacks was both hijacking and terrorism, and that a finding as to whether the attacks fell under the terrorism or hijacking perils was irrelevant as to the question of whether one event or two had occurred.
Financiers and operating lessors should ensure that the delivery condition of an aircraft (including the airworthiness requirement) is an objective condition precedent in favour of the lessee. In this way, no positive obligation need be imposed on the lessor to ensure the delivery of an aircraft in any particular condition.
Recent European airline bankruptcies have highlighted the need for care when devising aircraft repossession and recovery strategies. Stakeholders should be aware of the detention and sale regime in the United Kingdom, possible approaches to the risk of the Eurocontrol fleet-wide lien, and the protection available for owners and financiers in the context of EU Emissions Trading Scheme legislation.