Bankrupt Airline's Leased Aircraft?
Posted: Wed Nov 01, 2023 9:30 pm
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
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