According to Forbes, changes in the banking industry in recent times have severely impacted the ability for buyers to finance or lease aircrafts. Besides financing ability, other complexities involved in considering an aircraft acquisition include regulatory, operational and legal issues. Neglecting any of the above aspects can result in considerable expenses and loss. Therefore, it is important for you to have a sound aircraft acquisitions and financing strategy to ensure good investment selections and be well-protected from financial risks.
However, many organizations lack understanding and analysis of the factors influencing decision-making on aircraft acquisitions and financing. They are unaware of the market trends of aviation acquisition business, financial impacts and legal risks. Many highlighted the difficulty in assessing and choosing the right financing methods for aircraft acquisitions and aviation financing planning. They also admitted that they have poor understanding of the content, components and structure of a well-protected leasing agreement.
Without in-depth knowledge, strategic planning and effective financial tools and application techniques to plan, assess and execute your aircraft financing strategy, organizations may face increased financial costs, high asset risks and poor investment and business returns.
Designed for professionals involved in aviation financing, this comprehensive 2-day program is designed to provide you with solid financial and legal knowledge to meet the challenges of current and future aircraft acquisition and financing needs.
Led by Kenneth Gray, a highly sought-after UK aviation financing expert with more than 30 years of aircraft acquisition and finance consulting experiences for aviation leaders, commercial engineers, finance and non-finance professionals, he will provide you with strategic perspectives of the latest trends in the aviation financing market today and how they will influence your decision-making on aircraft acquisitions and financing. You will learn to utilize powerful financial tools and strategic frameworks to understand, assess and review key content, components and structure of a lease and effective lease management skills to maximize your business advantage with minimal risk. You will also acquire knowledge on how to effectively interact with key market players to better facilitate your aircraft acquisition process. In addition, you will find out how to minimize and avoid legal risks associated to aviation financing and utilize effective legal protection rights and clauses to safe-guard your financial plans and business investments.
Packed with real-life case studies and interactive discussion sessions, you will leave this program with in-depth knowledge, valuable insights and powerful tools that allows you to make better decision in aviation financing so as to maximize your business value and be well-protected from financial risks.
Introduction to aircraft finance
• The state of the markets today
• What makes aircraft finance so different?
• Where is liquidity coming from?
• The increase in the operating lease market
Who are the different players in the market and what are their roles?
• Financial institutions
• The capital markets
• Operating lessors
• Scheduled and charter airlines
Introduction to common financing tools
• Secured loans
• Operating and finance leases
• Islamic leases
• Residual value guarantees
• The EETC and other capital market structures
• The JOLCO and other tax leases
• Export credits
• EETC and JOLCOs
Looking at optimised transactions combining different tools
• Export credits and JOLCOs
• Export Credits and Sukuk
• EETC and JOLCOs
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
• Operating leases and finance leases
• Hire purchase agreements
• Sale and leasebacks
• Tax leases
Registration of Aircraft
• The Chicago Convention on International Civil Aviation
• Why does it matter where aircraft are registered?
CASE STUDY: Kingfisher and SpiceJet – Trying to deregister aircraft in India
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 transactions
Third party liens
• Eurocontrol, airports, taxes and salaries
• The EU Emissions Trading System
• Protecting yourself
CASE STUDY: The Eurocontrol lien – how a lessor lost its aircraft
• How are aircraft maintained
• Maintenance reserves: what they are and how they are calculated
• Moving engines from airframe to airframe
• Resolving the concerns of the parties
• Negotiating the schedule
• What remedies are there for noncompliance?
CASE STUDY: Pindell vs Asia: What happens when the there is a delay in the redelivery of an aircraft?
• Why do lenders need security and what are the common concerns?
• Mortgages and other types of security
• The impact of bank regulation
• A comparison of aircraft mortgages in different jurisdictions
The Cape Town Convention
• To what it applies
• Global Implementation
• Guaranteed remedies
• What are its practical consequences
• Where are we now?
CASE STUDY: The enforcement of the Cape Town Convention. We will look at various instances in which the Cape Town Convention has come into play
• What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
• The Aircraft Sector Understanding
• Using capital markets and sukuks
• Securitising an operating lease portfolio
• Pass-through certificates
• Private placements
• ECA Wraps
CASE STUDY: The UKEF backed Sukuk for Emirates: how it was put together
• The global tax lease market today
• What they are and how they work
• Cost and allocation of risk
CASE STUDY: The Yen-denominated EETC/JOLCO for Turkish Airlines: how it was put together
Pre-delivery payment facilities
• How to structure a PDP facility
• What security is available for lenders to a PDP facility?