Han Kun Law Offices has recently successfully assisted a foreign lessor (the "Lessor") in repossessing a cross-border leased commercial aircraft by way of a PRC court judgment against a Chinese airline (the "Airline") that defaulted on rental payments due to liquidity difficulties. In the early hours of April 30, 2026, the aircraft departed China, marking the full completion of the aircraft repossession.
This matter marks the first case in which a foreign lessor has repossessed a commercial aircraft under a cross-border lease to a Chinese airline through judicial proceedings in China, representing a milestone achievement.
This matter is groundbreaking in both legal and enforcement terms. Legally, the lease agreement is governed by foreign law, and this is the first case in which a foreign lessor sought and obtained full judicial support for repossession of commercial aircraft in accordance with the lease agreement through PRC court proceedings. It fully demonstrates the PRC courts' respect for and support of the principle of contractual freedom and the application of foreign law in foreign-related commercial trials. On the enforcement front, the matter involved not only a series of complex matters including aircraft nationality deregistration, bonded maintenance, customs supervision and cross-border aircraft repositioning, but also required in-depth insight and overall control over the aircraft's critical technical milestones, combined with the airline's operational status and dynamic changes.
Han Kun provided full-cycle integrated legal services covering aviation finance, dispute resolution, customs supervision and other areas for this matter. The matter was highly specialized and complex. Through deep integration and close collaboration between its aviation team and dispute resolution team, we assisted the client in ultimately achieving the aircraft repossession objective, from early-stage litigation strategy design and case progression to later judgment enforcement and coordination with CAAC, the airline, customs authorities, MROs and other relevant parties.
Led by Wang Shu, Head of Han Kun's Aviation Practice, this matter was jointly handled by dispute resolution partners Liu Dong and Liu Jing, and customs compliance counsel Jiang Ruixin, with team members including Su Yongqing, Cao Qian, Qiu Zhe and Xiong Yi. Zhu Jun and Ding Yi, together with other members of our aviation team, provided support at various stages of the matter.
The successful completion of this matter not only provides a replicable practical path for foreign lessors to repossess leased aircraft in China, but also offers a highly valuable reference precedent for the industry. It further demonstrates the openness and predictability of China's judicial and regulatory systems in supporting cross-border aviation leasing transactions and protecting the legitimate rights and interests of market participants. Leveraging its multidisciplinary collaborative strengths, Han Kun will continue to provide professional, efficient and enforceable solutions for clients in complex disputes and asset disposal projects.
