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
– 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
– 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 transactions
Maintenance reserves
– What they are and how are they calculated?
Return Conditions
– Negotiating the schedule
– What remedies are there for noncompliance?
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
– The impact of the Basel Accords
– The Blue Sky decision
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
The Cape Town Convention
– To what it applies
– Global Implementation
– What are its practical consequences
Day 3
Cross-border leases
– Why they are done
– Spcs: different kinds and when they are used
– Insolvency proofing
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
Residual value guarantees
– What are they?
– How they interact with the lease documents
– Structuring a synthetic operating lease
Export credits
– What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
– The New Aircraft Sector Understanding
– Using capital markets and sukkuks
Pre-delivery payment facilities
– How to structure a PDP facility
– What security is available for lenders to a PDP facility?
Day 4 (Optional)
Alternative Sources Of Finance And Half Day Workshop
Alternative sources of finance Capital Markets
– Private Placements
– EETCs
– Securitising an operating lease portfolio
– ECA Wraps
– Sukkuks
Tax Leases
– What they are and how they work
– JOLCOs
– German Operating Leases
– French Tax Leases
– Spanish Operating Leases
Islamic Finance
– The underlying principles of Islamic finance
– Different structures
Workshop: Participants will be asked to put together a structure for an aircraft financing transaction on the basis of term sheets supplied to them.
They will need to:
– Identify and resolve structural problems
– Consider the application of Cape Town
– Resolve tax implications of the structure
– Mitigate risk
– Negotiate key provisions
Dublin Hotel, Dublin, Ireland
This programme takes place on a non-residential basis at a central Dublin 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.
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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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30 May 2012 - 1 Jun 2012 (Paris, France)
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Legal Training has created this practical and interactive training course.
25-28 Sep 2012 (Frankfurt, Germany)
25-27 Sep 2012 (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.
9-12 Jul 2012 (London, United Kingdom)
Many international commercial agreements are subject to English law. Often non-UK lawyers are faced with unfamiliar legal concepts and requirements. To overcome these hurdles and help lawyers become truly international, Euromoney Legal Training has created this practical and interactive training course.
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17-19 Sep 2012 (London, United Kingdom)
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25-27 Jun 2012 (London, United Kingdom)
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19-21 Jun 2012 (London, United Kingdom)
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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.
12-14 Sep 2012 (London, United Kingdom)
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This course is specially designed to provide you with a thorough understanding of and practical skills on using and drafting warranties, indemnities and disclosures.
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Course dates