Pegasus Aviation I, Inc. v. Transbrasil S/A Linhas Aereas

Pegasus Aviation I, Inc. and Pegasus Aviation II, Inc., (collectively “Pegasus”) each own a Boeing 767 airliner which they have leased to defendant-appellee Trans-brasil, a Brazilian airline which flies passengers and cargo internationally. Trans-brasil has defaulted on its lease payments.

Pegasus brought suit in Brazil to repossess its aircraft. It obtained a preliminary order of repossession. The repossession order prohibited removal of the aircraft outside of Brazil.

The Brazilian appellate court issued a stay and ordered release of the aircraft to *214Transbrasil so that Transbrasil could…