Saudi Arabian Airlines Corporation v International Airfinance Corporation & Ors [2024] EWHC 242 (Comm) (05 February 2024)

Saudi Arabian Airlines Corporation v International Airfinance Corporation & Ors [2024] EWHC 242 (Comm) (05 February 2024)

There are serious triable issues as to whether the claimant is entitled to rely on clause 9(e)(vi) as a defence to the alleged breaches, and whether the relevant covenants are non-material, requiring a 45-day notice period. These issues are not suitable for final determination at the interim stage and should be resolved at trial. Accordingly, the interim relief sought in paragraphs 2.5 and 2.6 of the draft order is granted.

Citation
[2024] EWHC 242 (Comm)
Parties
Claimant/applicant: Saudi Arabian Airlines Corporation; Defendants/respondents: International Airfinance Corporation and 50 Various Lessors (companies registered in the Cayman Islands)
Jurisdiction
England and Wales
Judgment Date
05 February 2024
Procedural Posture
Interim Injunction Application / Hearing of Application for Interim Injunctive Relief
Outcome
Interim injunction granted in respect of paragraphs 2.5 and 2.6 of the draft order; further consideration of fortification to be held in private session.
Legal Topics
Interim Injunctions, Aircraft Leasing, Default Notices, Construction of Contractual Terms, Fortification of Cross Undertaking in Damages
Commercial Law Contract Law Aviation Law Interim Injunctions Aircraft Leasing Default Notices Construction of Contractual Terms Fortification of Cross Undertaking in Damages

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Saudi Arabian Airlines Corporation

Claimant/applicant

International Airfinance Corporation and 50 Various Lessors (companies registered in the Cayman Islands)

Defendants/respondents

Procedural Posture

Interim Injunction Application / Hearing of Application for Interim Injunctive Relief

Legal Issues

  1. 1 Whether the claimant has shown a sufficiently serious triable issue regarding the validity of default notices issued under the aircraft leases
  2. 2 Whether the notice period for alleged breaches should be 20 or 45 days under the lease terms
  3. 3 Whether further fortification for the cross undertaking in damages should be ordered

Ratio Decidendi

There are serious triable issues as to whether the claimant is entitled to rely on clause 9(e)(vi) as a defence to the alleged breaches, and whether the relevant covenants are non-material, requiring a 45-day notice period. These issues are not suitable for final determination at the interim stage and should be resolved at trial. Accordingly, the interim relief sought in paragraphs 2.5 and 2.6 of the draft order is granted.

Court Disposition

Interim injunction granted in respect of paragraphs 2.5 and 2.6 of the draft order; further consideration of fortification to be held in private session.

Orders

  • Defendants restrained from relying on the default notices dated 30 November and 1 December 2023 pending trial.
  • Defendants required to give longer notice periods for future default notices as per the draft order.