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Aircraft lessors' appeal dismissed; airport authorities may seize leased aircraft for bankrupt airline's unpaid fees.
Skyservice Airlines Inc. went into receivership leaving unpaid airport and air navigation charges.
The airport authorities and NAV Canada obtained orders to seize and detain aircraft leased by Skyservice to recover the amounts owed.
The aircraft lessors appealed, arguing that Skyservice no longer 'owned or operated' the aircraft at the time of the applications due to the receivership, suspension of its air operator certificate, and the lessors' attempts to terminate the leases.
The Court of Appeal dismissed the appeal, applying the Supreme Court of Canada's decision in Canada 3000, holding that Skyservice remained the registered owner and operator in possession of the aircraft at the relevant time, and the statutory detention remedy takes priority over the lessors' property interests.
