CELESTIAL AVIATION TRADING 71 LTD V PARAMOUNT AIRWAYS PRIVATE LTD

[2009] EWHC 3142 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 4 December 2009

Carriage (air) - Lease of aircraft - Termination of lease due to event of default - Claim for rent and for delivery up of aircraft - Summary judgment

This was an application for summary judgment on sums due under the leases of three aircraft, for the delivery up of those aircraft and for damages to be assessed. The claimant had leased the aircraft to the defendant, an airline. The parties had concluded an Aircraft Specific Lease Agreement (ASLA) incorporating the terms of an Aircraft Lease Common Terms Agreement (CTA) between GE Commercial Aviation Service Ltd and the defendant airline. The defendant was to pay rent and supplemental rent based on the preceding month's use of the aircraft. Failure to pay supplemental rent was a defined Event of Default allowing the claimant to accept repudiation, terminate the lease and take possession of the aircraft. The claimant's case was that supplemental rent had not been paid. Teare J gave summary judgment in respect of the claim for supplemental rent, but not in respect of the claim for delivery up of the aircraft or damages; there was a real prospect that the court would grant relief against forfeiture. Instead he gave directions for a speedy trial in relation to those claims.