Knowledge Highlights 9 May 2025
Transport Sector (Critical Firms) Act 2024 in force: Implications for creditors in aircraft financing and leasing transactions
On 1 April 2025, the Transport Sector (Critical Firms) Act 2024 (“Act”) came into force. The Act seeks to strengthen the resilience of key firms in the air, sea, and land transport sectors in Singapore and safeguard their provision of essential transport services by amending legislation such as the Civil Aviation Authority of Singapore Act 2009 (“CAAS Act”). The most significant amendments affecting creditors in the context of aircraft financing and leasing are (i) the introduction of the concept of a “designated entity”; and (ii) the changes to the existing insolvency and enforcement procedures where such entities are involved.
Following the commencement of the Act, an initial list of designated operating entities under the CAAS Act was gazetted on 1 April 2025, with their designations coming into effect on 15 April 2025. Hence, provisions in loan agreements and leases with such designated entities may need to be reconsidered in light of the legislative changes made to the CAAS Act, in particular the insolvency and enforcement procedures that will apply to designated entities.
To read more, click here.
