Renegotiation and Restructuring to Address Failure to Fulfill Lease Payment Obligations in an Aircraft Lease Agreements

DOI

10.2991/978-2-38476-218-7_78How to use a DOI?

Keywords

Finance Lease; Aircraft; Dispute Resolution; Renegotiation; Contract Restructuring

Abstract

In Indonesia, the aeronautical industry is one of the important revenue sectors, due to its high economic weight and is considered a strategic industry in international trade. Air transportation has become one of the most popular transportation options among other types of transportation. After going through a pandemic in 2019, with its limitations, airline companies are trying hard to come back from the downturn to maintain the quality of services provided by updating their fleet procurement. Aircraft procurement is also important so that airline companies can still meet the minimum number of aircraft units required to carry out their business operations. Airline companies in Indonesia are more inclined to choose finance leases in aircraft procurement, because in finance leases, airline companies can substantially utilize and risk the capital goods financed within a certain period of time without making prepayments. By carrying out efforts to renegotiate and restructure agreements can help airline companies to rise from the downturn of the effects of Covid-19. Regulations that apply and are implemented in Indonesia should be able to accommodate and pay attention to the development of practices carried out by aviation business actors in Indonesia. This is the focus of the discussion in this paper, the author focuses on efforts to fulfill contractual obligations and dispute resolution related to aircraft leasing. Contract renegotiation and restructuring is one of the efforts to fulfill contractual obligations and alternative dispute resolution that is considered effectively efficient compared to other dispute resolution procedures.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Erlisa Akhlakul Karimah
AU  - Adi Sulisiyono
AU  - Pujiyono Suwadi
PY  - 2024
DA  - 2024/02/22
TI  - Renegotiation and Restructuring to Address Failure to Fulfill Lease Payment Obligations in an Aircraft Lease Agreements
BT  - Proceedings of the International Conference On Law, Economic & Good Governance (IC-LAW 2023)
PB  - Atlantis Press
SP  - 467
EP  - 473
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-218-7_78
DO  - 10.2991/978-2-38476-218-7_78
ID  - Karimah2024
ER  -