On 31 July 2026, Mr Justice Birt gave judgment in the third trial of proceedings concerning an aircraft finance and leasing dispute brought by FW Aviation (“FWA”) against VietJet, following a three and half week trial in March. The judgment follows two previous judgments given in FWA’s favour in July 2024 in respect of liability (which was summarised here) and in April 2025 in respect of quantum (which was summarised here). The judgment addresses important issues regarding the scope and operation of contractual indemnities in aircraft leases.
The dispute concerned four Airbus A321 aircraft that were originally leased to VietJet under a Japanese Operating Lease with Call Option (“JOLCO”) structure. VietJet defaulted on its rental obligations, leading to the termination of the leasing in October 2021 and failed to redeliver the Aircraft until December 2022. Upon redelivery, the Aircraft were not in the condition required under VietJet’s contractual obligations (the “Return Condition”).
Mr Justice Birt upheld FWA’s claims in respect of two Airbus A321 NEO Aircraft under indemnity provisions in the leases in respect of losses actually incurred by FWA in restoring the NEO Aircraft to airworthiness and exporting them, including the costs incurred by FWA in putting the NEO Aircraft into Return Condition, and for lost rental income for the period in which it was unable to lease the NEO Aircraft following termination of the leasing. The Judge dismissed FWA’s claims for an indemnity in respect of its costs of foreign enforcement proceedings and its claims in respect of two Airbus A321 CEO Aircraft. The Judge also dismissed VietJet’s counterclaim in respect of two engine stands.
Akhil Shah KC, Niamh Cleary and Laurentia de Bruyn (instructed by Paul Baker of Quinn Emanuel Urquhart & Sullivan LLP) acted for FWA.
The judgment can be found here.
