On 31 July 2024, Mr Justice Picken gave judgment following a two-week trial in June concerning an aircraft finance and leasing dispute between FW Aviation (FWA) and VietJet. The dispute concerned four Airbus A320 aircraft that were originally leased to VietJet under a Japanese Operating Lease with Call Option (JOLCO) structure.
In October 2021, with VietJet having fallen into arrears on rental payments due under the leasing arrangements, termination notices were issued to VietJet in respect of the leasing of the aircraft and the FitzWalter group sought to step into the shoes of the original lessors and financing parties. VietJet refused to recognise the validity of the termination notices and assignments and, in turn, retained possession of the aircraft and continued to operate them during 2022.
Mr Justice Picken upheld FWA’s claim that the leasing of the aircraft had been validly terminated and that the relevant rights under the leasing arrangements had been validly assigned to the FitzWalter group. The judge also dismissed VietJet’s claim for relief from forfeiture, while indicating that relief might be available in principle for leases of this type.
Akhil Shah KC, Richard Lissack KC, Robin Lööf, Niamh Cleary and Orestis Sherman (instructed by Paul Baker of Quinn Emanuel Urquhart & Sullivan LLP) acted for FWA and Alexander Milner KC and Giles Robertson (instructed by Andy Stevenson of Elborne Mitchell LLP) acted for VietJet (together with Lord Wolfson KC of One Essex Court). Jacob Turner is also on the legal team for FW Aviation and Laurentia de Bruyn was also involved. A further two-week trial has been listed for January 2025, principally in order to determine issues of quantum.
The judgment can be found here.
