Jetrader - September/October 2012 - 40

LEGAL

A Case of Olympic Proportions

Court’s conclusion leaves room for confusion
By Don Mitchell, Partner, Smith, Gambrell & Russell, LLP

Much has and will continue to be written about the April decision in ACG Acquisition XX LLC vs. Olympic Airlines, which will impact aircraft ﬁnance transactions for the foreseeable future. The judgment is one of ﬁrst impression under English law concerning delivery conditions and their effect following an industry standard aircraft lease delivery. The U.S. is generally recognized as the birthplace of aircraft leasing being the home to International Air Leases and ILFC. Because of this, together with the fact that the majority of early aircraft

ﬁnance lawyers were located in New York, New York law became the preferred choice to govern aircraft leases. Favorable tax law changes around the year 2000 strengthened Ireland’s position in aircraft leasing. With onward growth in Asia and elsewhere outside the U.S., English law became a favored alternative to New York. During the transition, New York law documents were often converted for English law transactions by simply amending the choice of law provision and having the documents conﬁrmed by an English lawyer. But how would documents

drafted using New York law and legal concepts actually play in London? After all, the boilerplate “AS-IS, WHERE-IS” disclaimer so familiar to transacting parties worldwide is lifted straight from the Uniform Commercial Code, a U.S. body of law. The ACG case illustrates a loss in translation. The case involves the lease of a used 737 to the now defunct Olympic Airways. The aircraft was returned to ACG off lease from AirAsia for onward lease to Olympic. A contemporaneous return and delivery were conducted with Olympic inspecting

40 The ofﬁcial publication of the International Society of Transport Aircraft Trading

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Jetrader - September/October 2012

Table of Contents for the Digital Edition of Jetrader - September/October 2012

A Message from the President
Calendar/News
Boeing Fine Tunes 20-Year Current Market Outlook
Showers, Sunshine and (Some) Surprises
ISTAT Introduces Farnborough Airshow Chalet
Airline Finance from an Operating Lessor’s Perspective
Q&A: Leonard Kazmerski
State of the Regions: Europe
A Case of Olympic Proportions
Aircraft Appraisals
ISTAT Foundation
International Appraisers’ Program
Advertiser.com/Advertiser Index
Jetrader - September/October 2012 - cover1
Jetrader - September/October 2012 - cover2
Jetrader - September/October 2012 - 3
Jetrader - September/October 2012 - 4
Jetrader - September/October 2012 - A Message from the President
Jetrader - September/October 2012 - 6
Jetrader - September/October 2012 - 7
Jetrader - September/October 2012 - Calendar/News
Jetrader - September/October 2012 - 9
Jetrader - September/October 2012 - Boeing Fine Tunes 20-Year Current Market Outlook
Jetrader - September/October 2012 - 11
Jetrader - September/October 2012 - 12
Jetrader - September/October 2012 - 13
Jetrader - September/October 2012 - 14
Jetrader - September/October 2012 - 15
Jetrader - September/October 2012 - Showers, Sunshine and (Some) Surprises
Jetrader - September/October 2012 - 17
Jetrader - September/October 2012 - 18
Jetrader - September/October 2012 - 19
Jetrader - September/October 2012 - 20
Jetrader - September/October 2012 - 21
Jetrader - September/October 2012 - 22
Jetrader - September/October 2012 - 23
Jetrader - September/October 2012 - ISTAT Introduces Farnborough Airshow Chalet
Jetrader - September/October 2012 - 25
Jetrader - September/October 2012 - 26
Jetrader - September/October 2012 - 27
Jetrader - September/October 2012 - Airline Finance from an Operating Lessor’s Perspective
Jetrader - September/October 2012 - 29
Jetrader - September/October 2012 - 30
Jetrader - September/October 2012 - 31
Jetrader - September/October 2012 - 32
Jetrader - September/October 2012 - Q&A: Leonard Kazmerski
Jetrader - September/October 2012 - 34
Jetrader - September/October 2012 - 35
Jetrader - September/October 2012 - 36
Jetrader - September/October 2012 - State of the Regions: Europe
Jetrader - September/October 2012 - 38
Jetrader - September/October 2012 - 39
Jetrader - September/October 2012 - A Case of Olympic Proportions
Jetrader - September/October 2012 - 41
Jetrader - September/October 2012 - 42
Jetrader - September/October 2012 - 43
Jetrader - September/October 2012 - 44
Jetrader - September/October 2012 - Aircraft Appraisals
Jetrader - September/October 2012 - 46
Jetrader - September/October 2012 - 47
Jetrader - September/October 2012 - ISTAT Foundation
Jetrader - September/October 2012 - 49
Jetrader - September/October 2012 - 50
Jetrader - September/October 2012 - International Appraisers’ Program
Jetrader - September/October 2012 - 52
Jetrader - September/October 2012 - 53
Jetrader - September/October 2012 - Advertiser.com/Advertiser Index
Jetrader - September/October 2012 - cover3
Jetrader - September/October 2012 - cover4
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