LIENS ON AIRCRAFT WITH SPECIAL REFERENCE ON STATUTORY LIENS

The paper examines three types of liens on aircraft: mortgage (as contractual lien), statutory and judicial lien on aircraft. Special attention is paid to statutory liens and its relationship with mortgage and judicial lien on same aircraft. The author highlights the problem of priority of different type of secured creditors due to the fact of existing competition between their interests. This problem is especially enlarged because of simultaneously applying three different source of law: Cape Town Convention 2001, Serbian Law of Air Transport 2011 and Geneva Convention on the Recognition of Rights in Aircraft 1948. Conclusion is that the creditor with statutory lien on aircraft has the biggest priority in realization of his right over other creditors and even creditors secured with mortgage and judicial lien which have priority between themselves in comply with principle ‘first in time, first in right’. In order to achieve the ideas of this conclusion in practice it is necessary for courts to use teleological interpretation in applying laws. This is especially because of certain inconsistencies between different legal sources in regard of notion, order of priority and effect of different type of liens on aircraft.