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ACG v Olympic Airlines
01 June 2012
The outcome of Aviation Capital Group’s claim against Olympic Airlines is a relief to both lessors and financiers.
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Aviation Capital Group
Olympic Airlines
ACG v Olympic Airlines
legal
UK law
On April 30 air financiers breathed a sigh of relief after a court upheld Aviation Capital Group’s (ACG) claim for unpaid rent from Olympic Airlines. The case is the first time that the airworthiness of an aircraft has been considered by an English court. Legal insiders claimed the case could potentially have changed lease agreements under English law.
In the end the legal ramifications have been minimal, but the case, say legal insiders, will change how airlines approach delivery checks.
The facts
The case concerns the delivery of a 737-800 on a five-year lease by ACG to Olympic Airlines in August 2008. The aircraft was grounded after two weeks in service when broken cables that controlled the spoilers on one wing were found.
Olympic had noted the cables as being defective during the course of early predelivery inspections carried out in April 2008. However, it did not list this...
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