You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 2, 2024

Applicability of Foreign Law in Thailand Aircraft Lease Agreements

Subscribe to Updates
The Legal Industry Reviews

Aircraft lease agreements are commonly governed by the law of England and Wales, New York, or another common-law jurisdiction. This article examines the challenges of applying these and other foreign laws to an aircraft lease dispute in Thailand.

The applicability of foreign law in Thailand is subject to the Conflict of Laws Act B.E. 2481 (1938). Section 8 of the Conflict of Laws Act states, “Whenever the law of a foreign country which is to govern is not proved to the satisfaction of the court, the internal law of Thailand shall apply.” According to this section, the burden of proof is on the party that claims the foreign law. The claiming party must prove to the court the existence of the foreign law and how the law applies.

However, in aircraft lease disputes, especially those that involve seizing or repossessing aircraft, generally only Thai law will apply. Seizing or repossessing an aircraft involves Thai government authorities such as the Civil Aviation Authority of Thailand (CAAT) and the Airports of Thailand (AOT), among others, and these authorities will only comply with Thai law.

Moreover, foreign court judgments are not enforceable in Thailand. This means that any action to seize or repossess an aircraft in Thailand must be initiated in Thailand and using Thai law. Foreign court judgments, however, can be used as evidence and may be helpful in convincing the CAAT or court that the lessor is entitled to repossess an aircraft, and in proving damages.

The Thai laws relevant in a hostile repossession or seizure action include the Air Navigation Act, the Civil and Commercial Code (CCC), and the Civil Proceedings Code (CPC). The CCC provides guidelines on contract termination and the rights of parties in lease agreements. Specifically, it outlines the conditions under which a lessor can terminate a lease agreement due to lessee default, including nonpayment or breach of lease terms. Parties can agree differently from the CCC on the grounds for termination or expiration of a lease agreement, which would lead to the seizure and repossession of the aircraft, if the agreement does not contradict Thai “public order or good morals.”

The CPC sets out the mechanism to apply for injunctions necessary for aircraft seizure. The Air Navigation Act and implementing regulations state the requirements for aircraft deregistration necessary for repossession.

While foreign law is usually inapplicable to seizing or repossessing an aircraft, it can potentially be beneficial in terms of compensation for damages. Thai courts generally do not award the full compensation claimed for, particularly when it comes to punitive damages. Instead, they typically award actual damages, which may not cover the full extent of losses, unless the claimant can clearly prove the actual damage suffered.

In sum, navigating the legal complexities of aircraft repossession and seizure in Thailand requires a deep understanding of both international and local laws. Understanding the application of Thai law is crucial for parties involved in aviation disputes. By seeking legal expertise and leveraging foreign court judgments as evidence, parties can navigate this intricate legal terrain more clearly and effectively.

 

This article was first published in the April 2024 Thailand edition of The Legal Industry Reviews, an international platform that publishes news and applied law updates from industry-leading law firms in about 30 jurisdictions worldwide. To read the full aviation contribution, or to browse the complete issue, please visit The Legal Industry Reviews website.

Related Professionals

Industries

Aviation

Location

RELATED INSIGHTS​ 

December 4, 2025
Thailand has expanded the circumstances under which state agencies may bypass competitive bidding procedures to address urgent security challenges. On November 28, 2025, Thailand’s Ministry of Finance published the Ministerial Regulation Determining Cases of Procurement by Specific Method (No. 6) B.E. 2568 in the Royal Gazette, introducing a new pathway for procuring supplies and services needed to address cyber and military threats that may affect the stability of government agencies or the nation. For technology vendors, cybersecurity firms, and defense contractors, this regulatory change creates immediate opportunities to engage directly with government buyers facing urgent security challenges. New Fast-Track Category for Security Threats The regulation amends Thailand’s Public Procurement and Supplies Management Act B.E. 2560 (2017) to add a new category of procurement that qualifies for the “specific method”—a noncompetitive, direct selection process. Previously, agencies could use this expedited method only in limited circumstances, such as emergencies, cases with proprietary technology requirements, or national security operations. The new provision explicitly covers procurement of supplies related to preventing or resolving cyber or military threats that could impact the stability of a state agency or the country. This addition recognizes the urgent nature of modern security challenges, where competitive bidding timelines may leave agencies vulnerable during critical threat windows. State agencies dealing with active cyberattacks, preparing defensive measures against anticipated threats, or responding to military security concerns can now move directly to negotiate with qualified vendors rather than conducting lengthy public tender processes. Vendor Considerations Vendors offering cybersecurity solutions now have a regulatory avenue to work directly with government clients when stability concerns are present. These solutions include threat detection systems, anti-ransomware tools, incident response services, firewalls, and security consulting. Similarly, defense contractors providing military equipment or specialized security supplies can pursue direct engagement channels where traditional procurement methods would create
Read More
May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
Read More
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
Read More
April 23, 2025
On April 13, 2025, the government of Vietnam issued Decree No. 89/2025/ND-CP to amend and supplement Decree No. 92/2016/ND-CP dated July 1, 2016, concerning conditional business lines within the civil aviation sector (“Decree 89”). This update was implemented through an expedited procedure with immediate effect and has drawn public attention as it broadens the types of aircraft eligible for import into Vietnam, thereby promising to inject greater diversity into the country’s aviation market. What has changed? Decree 89 expands the recognition of aircraft type certificates—documents ensuring that the design of the aircraft, aircraft engine, or propeller meet airworthiness standards—from two to seven foreign aviation authorities. While Vietnam previously only accepted type certificates from the U.S. Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), the country now further accepts type certificates issued by five additional foreign aviation authorities: National Civil Aviation Agency of Brazil (ANAC) Transport Canada Civil Aviation (TCCA) Federal Agency for Air Transport of the Russian Federation (Rosaviatsiya) U.K. Civil Aviation Authority (UK CAA) Civil Aviation Administration of China (CAAC) Additionally, on April 14, 2025, Vietnam’s Ministry of Construction issued Circular No. 03/2025/TT-BXD (“Circular 03”) with immediate effect, amending and supplementing several articles under Circular No. 01/2011/TT-BGTVT previously issued by the Ministry of Transport (which was merged into the Ministry of Construction on March 1, 2025) in 2011 on the promulgation of the Civil Aviation Safety Regulations for aircraft and aircraft operations. Echoing Decree 89, Circular 03 allows the Civil Aviation Authority of Vietnam (CAAV) to issue or recognize Certificates of Airworthiness to aircraft that hold type certificates issued by the aviation authorities of Brazil, Canada, Russia, the United Kingdom, or China, in addition to those issued by the FAA or EASA. Following the entry into force of Decree 89 and Circular 03, the
Read More