France's aviation regulatory framework is well developed, providing a mature environment for aircraft transactions. The country is notable for its transparent registration processes, with no fees for registering lease agreements or mortgages, and a straightforward deregistration system that requires cooperation from the aircraft owner. French law recognizes aircraft mortgages, including those that extend to engines and other removable parts, and enforces them through judicial sale proceedings, not self-help remedies.
Operators and lessors are advised to register lease agreements with the DGAC, which, while not mandatory, offers legal protections and clarity. Publication of leases with the Greffe strengthens rights against third parties and ensures enforceability in insolvency scenarios. French courts generally do not permit self-help repossession of aircraft; instead, proceedings such as "action en restitution" must be utilized.
Insolvency proceedings in France permit the lessor to terminate leases and repossess aircraft for unpaid rent but do not allow courts to order the sale of aircraft owned by third parties without their consent. Moreover, France has incorporated EU-wide environmental measures, including restrictions on short-haul flights where alternative rail options are available, and the phased implementation of sustainable aviation fuel mandates under the ReFuelEU Aviation regulation.
Overall, these legal and regulatory facets underline the importance of thorough due diligence and strategic registration in French aviation deals, ensuring compliance and enforceability under national law.
