HFW Q3 2026 Aviation Case Report Covers VietJet Quantum Ruling, Gatwick Slot Challenge and Airport Protest Injunctions
Why It MattersEnglish courts are settling how far lessors can recover on default, how flexible slot rules can be in a crisis, and how firmly major airports can restrain protests.
HFW has published the Q3 2026 edition of its quarterly case report on English court judgments affecting the aviation industry, covering aircraft finance and leasing, airports and infrastructure, slot regulations and general aviation.
In the second quantum judgment in FW Aviation (FWA) v VietJet, concerning four aircraft, the Court held that the lease termination provisions were not an exclusive remedy and that further losses could in principle be claimed under the contractual indemnities. The indemnities were intentionally wide and covered all claimed enforcement costs, rather than being limited to third-party claims. However, the hypothetical cost of putting the aircraft into the redelivery condition was not recoverable; recovery was limited to the actual and reasonable costs incurred by the lessor. In Saudi Arabian Airlines v International Airfinance Corporation and others, default notices were served in respect of 49 leased aircraft. The claimant alleges they formed part of an unlawful campaign of oppression in breach of the covenant of quiet enjoyment; the defendants deny this. Ahead of a trial listed for November 2026, the Court ordered limited additional disclosure but declined to order a revised privilege disclosure list, and allowed the claimant to re-amend its particulars of claim and rely on additional expert evidence to advance a claim for negotiating damages.
In R (Gatwick Airport Ltd) v Secretary of State for Transport (IATA intervening), Gatwick challenged regulations allowing airlines to return up to 30% of their slot allocations (up from 20%) without prejudicing future allocations, introduced in response to disruption from the Middle East conflict. British Airways, TUI and IATA appeared as interveners. The Court found the regulations did not increase the regulatory burden under the Retained EU Law (Revocation and Reform) Act 2023 because the scheme was voluntary. In Barclay v Secretary of State for Transport, the Court of Appeal refused permission to appeal the dismissal of a judicial review of the development consent order for Gatwick's Northern Runway Project, which allows the northern and southern runways to operate as dual runways. The Court found the economic assessment adequately supported by evidence and rejected the emissions challenges, noting the Secretary of State was entitled to find that any shortfall against the UK's net zero trajectory would be mitigated in the long term by Jet Zero Strategy policies.
In July 2026 the court heard the second annual reviews of the 'Persons Unknown' injunctions protecting Heathrow and Gatwick from trespass and nuisance by environmental protesters. Both injunctions were continued and, in each case, the definition of 'Persons Unknown' was extended to capture protesters campaigning on wealth inequality grounds, reflecting a demonstrated fluidity between Just Stop Oil and newer groups such as Take Back Power. In the Heathrow case, the Court accepted that the absence of further breaches since July/August 2024 showed the injunction was an effective deterrent.
