Singapore Airlines v CSDS Aircraft: Breach of Contract & Damages Assessment

In Singapore International Commercial Court Suit No 4 of 2019 (Assessment of Damages 1 of 2022), Singapore Airlines Limited sued CSDS Aircraft Sales & Leasing Inc for breach of contract after CSDS failed to purchase a Boeing 777-212 aircraft. The court, presided over by Jeremy Lionel Cooke IJ, found CSDS in repudiatory breach and assessed damages based on the difference between the contract price and the market value of the aircraft, plus related expenses. The court ruled in favor of Singapore Airlines, awarding damages and interest.

1. Case Overview

1.1 Court

SINGAPORE INTERNATIONAL COMMERCIAL COURT

1.2 Outcome

Judgment for Plaintiff

1.3 Case Type

Civil

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Assessment of damages after CSDS Aircraft breached a contract to purchase an aircraft from Singapore Airlines. The court determined the market value and awarded damages.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
CSDS Aircraft Sales & Leasing IncDefendantCorporationJudgment Against DefendantLost
Singapore Airlines LimitedPlaintiffCorporationJudgment for PlaintiffWon

3. Judges

Judge NameTitleDelivered Judgment
Jeremy Lionel CookeInternational JudgeYes

4. Counsels

Counsel NameOrganization
Shobna ChandranTan Rajah & Cheah
Yong Manling JasmineTan Rajah & Cheah
Thaddaeus Aaron Tan Yong ZhongTan Rajah & Cheah
Tan Teck San KelvinDrew & Napier LLC
Yip Ting Yuan DarrenDrew & Napier LLC
Choy Wai Kit VictorDrew & Napier LLC

4. Facts

  1. Singapore Airlines agreed to sell a Boeing 777-212 aircraft to CSDS Aircraft Sales & Leasing Inc.
  2. The Aircraft Purchase Agreement was dated 19 September 2018.
  3. The agreed purchase price was US$6,500,000.
  4. CSDS paid a deposit of US$250,000 but failed to pay the remaining balance.
  5. Singapore Airlines terminated the contract on 4 November 2018 due to CSDS's breach.
  6. Singapore Airlines attempted to sell the aircraft but received no viable offers.
  7. The aircraft was eventually parted out in October 2021.

5. Formal Citations

  1. Singapore Airlines Ltd v CSDS Aircraft Sales & Leasing Inc, Suit No 4 of 2019 (Assessment of Damages 1 of 2022), [2022] SGHC(I) 15

6. Timeline

DateEvent
Aircraft Purchase Agreement dated
Defendant in repudiatory breach of contract
Plaintiff accepted breach, contract ended
Plaintiff issued Requests for Proposals
Plaintiff issued further RFP
Civil Aviation Authority of Singapore grounded all Boeing 737 Max aircraft in Singapore
Plaintiff placed public advertisements for the sale of the Aircraft
Plaintiff decided not to proceed with the deployment of the Aircraft to SilkAir
Without prejudice negotiations took place with the defendant
Plaintiff decided to part out the Aircraft
Aircraft was parted out
Hearing date
Hearing date
Judgment reserved

7. Legal Issues

  1. Breach of Contract
    • Outcome: The court found the defendant in repudiatory breach of contract.
    • Category: Substantive
    • Sub-Issues:
      • Repudiatory Breach
      • Failure to Pay
  2. Assessment of Damages
    • Outcome: The court assessed damages based on the difference between the contract price and the market value of the aircraft, plus related expenses.
    • Category: Substantive
    • Sub-Issues:
      • Market Value Determination
      • Reasonable Time for Substitute Sale
      • Mitigation of Damages

8. Remedies Sought

  1. Monetary Damages
  2. Difference in contract price and market price
  3. Parking and maintenance fees
  4. Marketing, brokerage and legal costs

9. Cause of Actions

  • Breach of Contract

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Aviation

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Singapore Airlines Ltd v CSDS Aircraft Sales & Leasing IncSingapore International Commercial CourtYes[2021] 5 SLR 26SingaporeThe judgment establishes the defendant's liability for breach of contract, which is the basis for the subsequent assessment of damages.
CSDS Aircraft Sales & Leasing Inc v Singapore Airlines LtdCourt of AppealYes[2022] 1 SLR 284SingaporeThe judgment confirms the repudiatory breach of contract by the defendant, upholding the initial judgment.
AerCap Partners I Ltd v Avia Asset Management ABHigh Court of JusticeYes[2010] EWHC 2431 (Comm)England and WalesCited for the principle that a seller is entitled to a reasonable time to enter into a substitute sale to determine the market price for assessing damages.
The Golden VictoryHouse of LordsYes[2007] 2 AC 353United KingdomCited in support of the principle that a seller is entitled to a reasonable time to enter into a substitute sale to determine the market price for assessing damages.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
English Sale of Goods Act 1979United Kingdom

15. Key Terms and Keywords

15.1 Key Terms

  • Aircraft Purchase Agreement
  • Repudiatory Breach
  • Assessment of Damages
  • Market Value
  • Reasonable Time
  • Substitute Sale
  • Airframe
  • Parting Out
  • Requests for Proposals
  • Certificate of Airworthiness

15.2 Keywords

  • breach of contract
  • aircraft sale
  • damages assessment
  • market value
  • aviation
  • singapore airlines
  • CSDS Aircraft Sales & Leasing

17. Areas of Law

Area NameRelevance Score
Damages Assessment95
Contract Law90
Breach of Contract85
Sale of Goods80
Aircraft Sales and Leasing75
Commercial Law70
Commercial Litigation60
Performance of Contract50

16. Subjects

  • Contract Law
  • Commercial Law
  • Aviation Law