Indonesian airline ‘flying high’: High Court confirms foreign entity immunity from winding up

Greylag Goose Leasing 1410 Designated Activity Company v P.T. Garuda Indonesia Ltd [2024] HCA 21 per Gageler CJ, Gordon, Edelman, Steward, Gleeson, Jagot, Beech-Jones JJ

Key takeaways

The High Court of Australia has upheld the New South Wales Court of Appeal decision that foreign state immunity extends to a national airline subject to a winding up proceeding. The High Court held that there is nothing in the Foreign State Immunities Act 1985 (Cth) (FSIA) to suggest that the legislation intended to expose a foreign State and its separate entities to bankruptcy, insolvency or winding up proceedings in Australia. The High Court held that:

• separate entities of a foreign State are afforded the same immunity as the foreign…