Course overview
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.
Topics covered include:
-
Common financing tools
-
Legal documentation
-
Different types of leases and similar instruments
-
Insurances
-
Analysis of some specific events of default
-
Residual value guarantees
-
Pre-delivery payment financing
- Cape Town Convention
Who should attend?
The course will provide invaluable information to all involved in aviation finance, especially:
Day 1
Introduction to aircraft finance
Who are the different players in the market?
Introduction to common financing tools
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
Representations and warranties
-
Why they are important
-
Negotiating them
Covenants and conditions precedent
Sub-leasing
Exercise: How can these be reconciled?
Day 2
Insurances: the contractual provisions
Insurances: the policy
Maintenance reserves
-
What they are?
-
How are they calculated?
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
Aircraft mortgages
-
A comparison of different jurisdiction and international conventions
-
Taking security over the aircraft, its engines and constituent parts
Other liens
Ownership rights
Workshop: Worked example on the rights of owners and mortgages on an airline’s default.
Review of workshop: The Cape Town Convention: heading for a simple future?
Day 3
Specific legal issues relating to engines
Withholding taxes
-
What they are
-
Double tax treaties
-
Solving potential problems
-
Dealing with issues arising from a multiplicity of jurisdictions
-
Legal opinions: what really matters
Structuring a tax lease
-
What is a tax lease?
-
What are the parties’ objectives and how can they be achieved?
-
Introduction to a common defeasance structure
-
What are the concerns of the finance parties and how can they best be addressed?
Workshop: Combining the requirements of parties to a transaction: how to structure a deal so that everyone’s concerns are dealt with.
Day 4
Residual value guarantees
Workshop: Matching the requirements of a residual value guarantor with those of a lender.
Review of workshop
Export credits
-
What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
-
How can export credit facilities be combined with other structures – tax leases and mismatch facilities
Pre-delivery payment facilities
Workshop: What issues arise when taking security over a purchase agreement?
Review of workshop
Securitisation
-
What products are available on the market
-
What are the concerns of a lessee?
-
EETCs: what they are and how they are structured
-
How they can be combined with other structures
Workshop: Identifying and solving problems in complicated aircraft finance transactions.
-
Kenneth Gray trained as a barrister before joining Norton Rose, a leading international law firm, in 1986. In 1990 he moved to Paris to found Norton Rose’s office there. He was elected to the partnership in 1993 and returned to London in 1999 before retiring from the partnership in 2001 to work in the voluntary sector and on legal training. His practice at Norton Rose consisted primarily in representing airlines and banks, as well as the export credit agencies of several European countries, in implementing complex cross-border aircraft finance transactions and advising them on work outs when the borrower encountered financial problems.
Kenneth has won numerous awards, including being one of the top 20 Aviation Lawyers in the world by the Best of the Best 2001 guide, one of the Hot 100 Lawyers in the United Kingdom as voted by The Lawyer magazine in 2001 and one of the top 50 Lawyers in0 Europe under the age of 40 in 2000. He has been involved in many groundbreaking transactions over the years, including Jane's Transport Finance “Aircraft Innovator of the Year” in 2000 and the Airfinance Journal’s deal of the year for 1997, 1998, 1999 and 2001.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
24-27 Jun 2013 (London, United Kingdom)
9-12 Dec 2013 (London, United Kingdom)
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.
14-17 Oct 2013 (Frankfurt, Germany)
14-16 Oct 2013 (Frankfurt, Germany)
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.
20-21 Jun 2013 (London, United Kingdom)
Understand the key legal & structural issues in cross-border transactions. This course is designed to be highly practical and features hands-on workshop sessions and case studies.
16-18 Sep 2013 (London, UK)
This course provides a unique opportunity to develop the skills and knowledge necessary to compete successfully in today's competitive leasing market. It aims to provide the participants with a comprehensive and thorough overview of some of the key areas of leasing as a method of finance
17-19 Jun 2013 (London, United Kingdom)
9-11 Dec 2013 (London, United Kingdom)
This Euromoney Legal Training course will highlight the areas of potential risk and teach effective documentation techniques. You will analyse the legal issues in bonds and guarantees, explaining the products and their uses.
11-13 Sep 2013 (London, UK)
This three-day Fundamentals of Leasing euromoney training course focuses on the major legal issues and procedures that exist in the area of leasing. Designed for professionals who are newly involved in leasing as well as those with some experience of the area, the course provides an opportunity to develop the skills and knowledge necessary to compete effectively in today's leasing market. The course aims to provide the participants with a comprehensive overview of leasing as a method of finance, demonstrating the benefits of lease transactions for both the lessor and lessee.
CLICK HERE FOR ADVANCED LEASE FINANCE
23-24 Sep 2013 (London, United Kingdom)
This course focuses on the key legal, commercial and financial aspects of setting up international joint ventures and alliances.
6-8 Oct 2013 (Dubai, United Arab Emirates)
Mergers & Acquisitions has been arranged to offer a comprehensive and practical guide to the international sale and purchase of companies from a strategic, legal, commercial and financial viewpoint.
27-29 Aug 2013 (Accra, Ghana)
Mergers & Acquisitions has been arranged to offer a comprehensive and practical guide to the international sale and purchase of companies from a strategic, legal, commercial and financial viewpoint.
23-25 Sep 2013 (Dublin, Ireland)
Documentation and Negotiation
4-6 Nov 2013 (Dubai, United Arab Emirates)
Documentation and Negotiation
Comments