Advising KSS on service continuity and purchase of air ambulance helicopter

Brodies acted as counsel for Air Ambulance Charity Kent Surrey Sussex (KSS) on its service continuity and the purchase of an AW169 Helicopter from Gama Aviation (UK) Limited (Gama), and its lease back arrangements with Gama.

The advice that Brodies provided to KSS for the sale, purchase and leasing arrangements of KSS’ AW169 helicopter fleet in December 2023 and January 2024 ensured the continuation of KSS' vital air ambulance helicopter operations in light of the financial difficulties facing its then operator Specialist Aviation Services Limited (SAS). 

We advised KSS in relation to the novation of its operating lease of one of its aircraft that had been on lease to and operated by SAS and the leasing arrangements of two other aircraft that had been leased from and operated by SAS. We also provided advice pertaining to its financing and security arrangements with SAS and the negotiation of its new services agreement with Gama, as the new operator of its fleet. The novations took place as part of Gama's purchase of the business and assets of SAS by way of a pre-packaged administration process for SAS.

Our role then moved to advice and negotiation on the sale and purchase agreement of one of the AW169 aircraft and the amendment to, and negotiation of, the original leasing arrangements.

Our involvement in these transactions highlights the strengths we have in our multidisciplinary team, particularly our capabilities in the aviation sphere. We provided advice on insolvency, security, tax, finance and commercial aspects, all of which were ultimately used in KSS' entry into its new operational arrangements with Gama in January 2024 and the purchase and leasing of the AW169 aircraft in May 2024.

The advice provided in December 2023/January 2024, helped prevent the grounding of KSS' air ambulances. This strengthened our relationship with KSS and provided much of the groundwork for the successful completion of KSS' purchase of the AW169 aircraft in May 2024, which led to the charity saving around £500k per year, for the lifetime of the contract.

The Brodies team for the December 2023/January 2024 transaction included Grant Campbell, Lucy McCann, Hannah Sinclair, Jamie Nellany, Ally Burr and Jane McMonagle. The May 2024 transaction included Bruce Stephen, Hannah Sinclair and Eilidh Calvert.