Aviation Finance

The aviation industry is greatly affected by the continually changing economic climate. The often technical and complex issues, as well as the myriad of liabilities surrounding it, can make financing aircraft a potentially expensive minefield. Despite the risks involved, aviation finance is a potentially lucrative venture. With the correct financing and security structures, in conjunction with effective tax planning, many of these liabilities can be identified and accounted for. This Euromoney Legal Training course, organised in association with course director Kenneth Gray, aims to provide an understanding of the key issues involved in aviation finance in order to identify and minimise the inherent risks and liabilities. The course utilises a variety of lectures and workshops to analyse the key legal, regulatory and documentary issues involved in aviation finance. Who should attend The course will provide invaluable information to all involved in aviation finance, especially: Aviation finance executives Lenders Risk advisors Lawyers in banks Lawyers in the aviation industry Bankers involved in aviation financing About the course Topics covered include: Common financing tools Legal documentation Different types of leases and similar instruments Ownership rights Insurances Analysis of some specific events of default Residual value guarantees Pre-delivery payment financing
Day 1 09.00 Registration and welcome coffee 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 Manufacturers Insurance companies Introduction to common financing tools Secured loans 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 Operating leases and finance leases Hire purchase agreements, conditional sale agreements, installment sale agreements Sale and leasebacks Tax leases Overview of the contents of a lease Why the different clauses are there andwhat they seek to achieve? Covenants and conditions precedent Examination of those that are specific to aircraft finance transactions Maintenance reserves What they are? How are they calculated? Eurocontrol The Emissions Trading Schemes Sub-leasing – 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? Day 2 Insurances: the contractual provisions – Indemnities – 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. Events of default – Where they are relevant in lease documentation – An analysis of some specific events of default – Enforcement action: what to do when it all goes wrong Security – Mortgages and other types of security Aircraft mortgages – A comparison of different jurisdiction and international conventions – Taking security over the aircraft, its engines and constituent parts Other liens – Compared to rights of a mortgagee Ownership rights – Compared to rights of a mortgagee