A UK court has ruled in favor of allowing the repossession of aircraft leased to Vietnamese airline, VietJet, by an Irish lessor amidst a dispute over non-payment of leases. The court has instructed VietJet to not interfere with the export of the repossessed jets.
The legal battle began when the Irish company sought to repossess its aircraft due to unpaid leases. VietJet contested the repossession, citing financial struggles caused by the global pandemic.
However, the UK court dismissed VietJet's arguments, maintaining that the lessor had the legal right to reclaim their aircraft and that VietJet was in breach of its lease agreements.
As a result, the court has granted permission for the lessor to export the aircraft out of the UK. VietJet has been ordered not to obstruct or interfere with the repossession process to ensure a smooth transfer of the jets back to the lessor.
This ruling sets a precedent in the aviation industry regarding the enforcement of leasing agreements and repossession rights, particularly in cases of non-payment. It highlights the importance of upholding contractual obligations and the legal rights of lessors in such disputes.
VietJet's response to the court's decision remains to be seen as the airline navigates the financial challenges brought on by the ongoing pandemic and the implications of this ruling on its operations.
