• The Korean Journal of Air & Space Law and Policy
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• v.30 no.2
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• pp.155-176
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• 2015

Leasing is one of the main methods for Chinese airlines to introduce aircraft from overseas manufactures, and this method has been used for more than 30 years by Chinese airlines. Aircraft leasing in essence is a kind of financial transaction, through which lessors provide finance to lessees by means of the delivery of possession of the leased aircraft. At the time when China started to introduce aircraft through leasing some 30 years ago, the Chinese domestic laws were very insufficient to regulate these activities. Therefore, a construction process for the law of aircraft leasing was triggered then, and some fruit has been gained. By far, there are rules to adjust the aircraft activities in the aspects of contract, real right, default and bankruptcy remedies. However, as the improvement of any system must undergo a process of exploration, the law of aircraft leasing in China is still faced up with many challenges. Especially with the emergence and prosperous of domestic leasing industry, new transaction structures and models of aircraft leasing have emerged, which leaves new challenges to current legal system. On the basis of introducing the history and main contents of Chinese legal regime of aircraft leasing, this paper offers an analysis of achievements and challenges on present Chinese laws in the aspects of contract, real right and remedies.

• Journal of the Korean Society for Aviation and Aeronautics
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• v.17 no.2
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• pp.52-61
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• 2009

In Korea, there is great lack in jet lease agreements compared to many other countries. Due to such scarcity in numbers of jet lease agreements, problems have never truly surfaced and legal foundation dealing with such issues have not yet been formulated. However, as the globalization is making the world smaller and smaller, the demand for jets will grow. As the Korean aviation industry is expanding tremendously, although very preliminary at this time, the interest and actual execution on private jet lease agreements will grow. The prediction of increase in the private jet ownership is causing the lease industry to be nervous and may require particular preparatory foundation works. Particularly, legal analysis and detailed review maybe necessary to set a precedent with will serve as the grounded rule in the future. It is notable that Vietnam, a country which is believed have a less developed aviation industry than Korea, had already established a specialized jet leasing company, VALC in 2007. Also, when leasing an airplane from a foreign financial institution, it is possible to obtain a government issued guarantee. Therefore, it is urgent for Korea to prepare the legal foundation for the future demands in aviation leasing, as well as private jet leases which in turn would promote national wealth and further develop the financial industry.