British Eagle Revisited – Airlines 'Jumping The Queue' in Insolvency

The High Court has upheld the International Air Transport Association's claims about the effect of its clearing house system in relation to the insolvency of Ansett Australia.This article examines this significant decision in the field of payment systems, multilateral netting and set-off. The case departs from the previous leading case in the area (British Eagle) and clarifies some of the legal uncertainty that prompted the passing of special netting legislation in a number of countries