In addition to some temporary measures addressing the economic fallout from Covid-19, the Act introduces permanent reforms in three key areas: (1) the introduction of a new statutory moratorium (Moratorium); (2) a ban on the operation of termination clauses in supply contracts triggered by insolvency proceedings (or so called ipso facto clauses); and (3) the introduction of a new pre-insolvency rescue and reorganisation procedure (the Restructuring Plan).

In a three part series of bulletins, we analyse the implications of each of these permanent measures for the aviation industry. This first bulletin, co-authored by partners Jennifer Marshall and Paul Nelson and, associate Harini Viswanathan focusses on the implications of the new Moratorium for airlines, lessors and financiers.