Bankrupt Airline's Leased Aircraft?

[Cat]

Curious question came up for which I could not find an answer:

If Airline A is leasing aircraft from Airline B and Airline B goes bankrupt or inactive, what becomes of those leased airplanes?

A) The aircraft in question is Instantly removed from service (airplane disappears from Airline A's inventory) without notification to Airline A as to why
B) Airline A is given 30 days by FSA to find a replacement aircraft from another vendor
C) Airline A is offered a discounted sale price as part of the bankruptcy proceeding as they are currently operating the aircraft. Should they decline the offer, the aircraft is immediately surrendered back to FSA
D) FSA will continue to honor the existing lease duration and then remove the aircraft from service
E) other

[joefremont]

Hi Sam,

The answer here is 'D'. If an airline is dissolved or goes bankrupt and the leased aircraft is sold as a result, in both cases the aircraft becomes property of FSA Aviation, the 'systems' airline and it continues to honor the terms of the lease. Once the lease ends the aircraft are put up for sale on the traders list.

[Cat]

Thanks!
My goal in 2024 is to upgrade all the tutorial video's to current system features ....