Course dates
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:
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Common financing tools
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Legal documentation
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Different types of leases and similar instruments
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Insurances
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Analysis of some specific events of default
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Residual value guarantees
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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
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Purchase agreement
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Loan, lease, mortgage
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Assignment of lease
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Assignment of insurances
Aircraft mortgages
A comparison of different jurisdictions and international conventions.
Cape Town Convention
Ownership rights
Workshop: Worked example on the rights of owners and mortgagees on an airline’s default.
Review of workshop
Different types of leases and similar instruments
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Operating leases and finance leases
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Hire purchase agreements, conditional sale agreements, installment sale agreements
Overview of the contents of a lease
Covenants and conditions precedent
Sub-leasing
Workshop: How can these be reconciled?
Day 2
Review of workshop
Insurances: the contractual provisions
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 effected by world events – September 11th and The Gulf War.
Cross-border leasing
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Why they are done
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Common issues, including withholding taxes and the use of orphan trusts
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Dealing with issues arising from a multiplicity of jurisdictions
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Legal opinions: what really matters
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Taking security over the aircraft, its engines and constituent parts
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The Cape Town Convention: heading for a simpler future?
Workshop: Combining the requirements of parties to a transaction: how to structure a deal so that everyone’s concerns are dealt with.
Review of workshop
Structuring a tax lease
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What is a tax lease?
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What are the parties’ objectives and how can they be achieved?
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Introduction to a common defeasance structure
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What are the concerns of a finance party and how can they best be addressed?
Workshop: Worked example of the operation of certain clauses within a tax lease.
Day 3
Review of workshop
Defaults
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Where they are relevant in the lease documentation
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An analysis of source specific events of default
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Enforcement action: what to do when it all goes wrong
Residual value guarantees
Workshop: Matching the requirements of a residual value guarantor with those of a lender.
Review of workshop
Export credits
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What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
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How can export credit facilities be combined with other structures – tax leases and mismatch facilities
Pre-delivery payment financing
Workshop: What issues arise when taking security over a purchase agreement?
Review of workshop
Securitisation
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What products are available on the market?
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What are the concerns of a lessee?
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EETCs: what they are and how they are structured
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How they can be combined with other structures
Frankfurt Hotel, Frankfurt, Germany
This programme takes place on a non-residential basis at a central Frankfurt hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.
Hotels
Le Meridien Hotel
Wiesenhuetten Platz 28-38
Frankfurt, Germany
Quality Rating: 4 star
http://www.frankfurt.lemeridien.com
Sheraton Hotel & Frankfurt Hotel Towers
Rhein-Main Airport
Frankfurt, Germany
Quality Rating: 5 star
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Kenneth Gray
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.
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Course dates