November 4, 2020

Successful Repossession of Two Cessna Caravan 208 B Aircraft

Tilleke & Gibbins aviation team in Bangkok acted for Pacific Air Holdings LLC, a U.S.-based aircraft leasing company, in the successful repossession of two aircraft after a Thai airline company breached the lease agreements for the aircraft.

The client leased two aircraft (Cessna Caravan 208 B) to a Thai airline based in northern Thailand. After the lessee defaulted on the leases, the client instructed Tilleke & Gibbins to assist with the repossession of both aircraft (each of which holds a value of approx. USD 2.6 million). We worked directly with the Civil Aviation Authority of Thailand (CAAT) to deregister the aircraft, which is the first step in repossessing an aircraft in Thailand. At the same time we entered into negotiations with the airline, which eventually agreed to surrender the aircraft voluntarily without further involvement from the authorities.

This was an optimal outcome for the client, who was able to avoid the added expense, time, and effort of further enforcement actions.

 

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