Introduction to Aircraft Finance
- What makes it so different?
Who are the different players in the market?
- Financial institutions
- Operating lessors
- Scheduled and charter airlines
- Insurance companies
Introduction to Common Financing Tools
- Secured Loan
- Operating and Finance Leases
- Residual Value Guarantees
- Securitisation Products
- Tax Leases
- Export Credits
Overview of the Basic Legal Documentation
- Purchase Agreement
- Loan, Lease, Mortgage
- Assignment of Lease
- Assignment of Insurances
Ownership, Different types of leases and similar instruments
- How do you decide what type of lease you want?
- Operating leases and finance leases
- Hire purchase agreements
- Sale and leasebacks
- Tax Leases
Overview of the Contents of a Lease
- Why the different clauses are there and what they seek to achieve?
Covenants and Conditions Precedent
- Examination of those that are specific to aircraft finance transaction
- Maintenance, Operations and Return Conditions
- Why might a lessee want to sub-lease an aircraft?
- What concerns might a bank have if a lessee requests the right to sub-lease an aircraft
Exercise: How can these be reconciled?
Insurances: The Contractual Provisions
- What is a contract of insurance?
- The rights of a creditor relating to a contract of insurance
Insurances: The Policy
A practical review of the actual contents of an insurance policy, its terms and their impact and consideration of how the policy and the insurance clauses have been affected by world events.
- Mortgages and other types of security
- The impact of the Basel Accords
- A comparison of different jurisdiction and international conventions
- Taking security over the aircraft, its engines and constituent parts
- The Blue Sky case
- Compared to rights of mortgagee
- Compared to rights of a mortgagee
The Cape Town Convention
Export Credit Financing
- What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
- The New Aircraft Sector Understanding
- What is a tax lease?
- JOLCOs What are the concerns of the finance parties and how can they best be addressed?
Residual Value Guarantees
- Capital Market Structures
- Secured and Unsecured Bonds
- Lease Portfolio Securitisations
- ECA Wraps
Pre-Delivery Payment Facilities
- How to structure a PDP facility
What security is available for Lenders to a PDP facility?