BRAZIL Law and Practice Contributed by: Renata Iezzi, Nicole René Gomes e Cunha and Marcela Correa, Basch & Rameh
• Article 54 (2) – self-help remedies (other than IDERAs) are not allowed. The following declarations have been made by Brazil under the Aircraft Protocol: • Article XXX(1) – Brazil will apply the “choice of law” provision in Article VIII; • Article XXX(2) – Brazil will fully apply Article X (interim relief) provisions, with the following time - frames declared: (a) ten calendar days for remedies in Article 13 (1) (a), (b) and (c); and (b) 30 calendar days for remedies in Article 13 (1) (d) and (e); • Article XXX(3) – Brazil adopted Alternative A of Article XI (remedies on insolvency) with a waiting period of 30 calendar days; • Article XXX(1) – Brazil will apply Article XII (insol - vency assistance); • Article XXX(1) – Brazil will apply Article XIII (IDERA); and • Article XIX(1) – the RAB is the AEP in Brazil. 2.10.3 Application of Article XIII of the Protocol on Matters Specific to Aircraft Equipment According to Brazil’s Declarations under the Cape Town Convention, the RAB will recognise and honour a request for deregistration based on an IDERA with - out the need for a court order (see 2.6.1 Restrictions on Lessors’ Abilities ). See 2.3.8 Requirements for Documents Concerning Registration and 2.8.1 Deregistering Aircraft in This Jurisdiction regarding IDERAs’ requirements, and 2.8.4 Duration of Deregistration Process for the tim- ing of the process. The authorised party in an IDERA should ensure it is registered with the RAB at the onset of the lease term or financing term. The RAB does not countersign or stamp its acknowl - edgement of submitted IDERAs but will, on request, issue a certificate confirming registration. Thereafter, the original IDERA need not be retained. 2.10.4 Enforcement of Conventions After the Cape Town Convention came into effect, there were a few repossession cases where the plain -
tiffs pleaded application of the Convention and the courts issued repossession orders within Convention periods. In those early cases, however, the courts rarely cited the Convention as a basis for reposses - sion orders. In November 2018, civil courts in Brazil issued repos - session orders against Oceanair within two days after requests were filed. Thus, these pre-insolvency cases complied with the Convention’s “speedy relief” provi - sions despite the lack of reference to the Conven - tion in the repossession orders. The Oceanair case was the first test in Brazil of the insolvency provisions of the Cape Town Convention; see 2.9.2 Overview of Relevant Types of Voluntary and Involuntary Restructurings, Reorganisations, Insolvencies and Receivership . In February 2020, a civil court from the State of Par - aná expressly cited the Cape Town Convention as the legal basis for a preliminary injunction ordering the repossession of two aircraft in favour of a lessor. In January 2025, civil courts in Brazil issued repos - session orders against Passaredo Transportes Aéreos S.A. (“Passaredo”), a small regional airline, within a few days after requests were filed. In February 2025, Passaredo filed for mediation proceedings with pre - cautionary relief under Brazil’s Bankruptcy Law in preparation for judicial reorganisation, seeking to restructure its debts and obtain a suspension of enforcement actions. Lessors were prevented from filing for repossession or continuing existing lawsuits until March 2025, when an Appeals Court Judge, cit - ing the Cape Town Convention, reversed the decision and assured lessors the right to immediately exercise the contractual and legal measures suitable for pre - serving their rights, including repossession rights. 2.10.5 Other Conventions Brazil is a party to the 1948 Geneva Convention and the 1933 Rome Convention on the Unification of Certain Rules relating to the Precautionary Arrest of Aircraft; however, implementation of the Cape Town Convention expressly states its prevalence over both previous conventions to the extent there is any over - lap.
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