Course dates
Course overview
Despite being cyclical, the aviation industry is also very capitalintensive. The financing of aircraft
is specialised and international - a study in how the globalised economy intersects. There are structural, documentary, security, insurance and asset-specific issues that have grown up around aircraft finance as the result of the fact that all aspects of the aviation industry are highly regulated and that aircraft are costly mobile assets composed of individual parts subject to varying legal interests and sophisticated insurance practices.
In order to operate effectively in this arena, one must not only possess industry insight, but also a clear understanding of the interests of the respective parties, a fundamental knowledge of the legal documentary
requirements, the critical legal risks and practices, insurance, and asset preservation aspects of aircraft finance that are all essential to getting aircraft finance transactions done.
Summary of course content
- Financing and leasing tools
- Loan and lease structures
- Loan, leasing and security documentation
- SPVs
- The Cape Town Convention
- Business jet financing
- PDP facilities
- Life of a typical deal
- Enforcement and repossessions
Methodology
Utilising a variety of lectures and workshops, Paul, with specialist guest speakers from Clyde & Co, will guide participants through the three-day intensive course ensuring participants leave the workshop with a practical understanding of all aviation finance issues.
Who should attend this training course?
- Airlines executives
- Operating lessors
- Aviation finance executives
- Lenders
- Lawyers and risk advisors in banks
- Lawyers in the aviation industry
- Bankers involved in aviation financing
- MRO of aircraft
Supporting publication
Day 1: 35,000 feet: overview and structuring
Introduction to “aviation finance and leasing”
- What it is and what makes it unique
- Current global industry overview
- History and development of aircraft finance
The main sectors in the aviation finance and leasing markets
- Commercial
- Business
- Cargo
Introduction to the different players in the commercial aviation finance and leasing markets
- Financial institutions
- Operating lessors
- Scheduled and charter airlines
- Original Equipment Manufacturers (OEMs)
- Export credit agencies
- Insurers
The common financing and leasing tools
- Secured loans
- Operating and finance leases
- Hire purchase agreements, conditional sale agreements, instalment sale agreements
- Sale and leasebacks
- Residual value guarantees
- Tax leases
- Export credits
- Securitisation products
Typical loan and lease structures
- Structuring considerations
- Structure diagrams
Basic legal documentation
- Purchase agreement
- Loan
- Lease
- Mortgage
- Guarantee
- Assignment of lease
- Assignment of insurances
- Warranties agreements
- Intercreditor agreement
- Legal opinions
Special purpose vehicles
Aircraft registration; choice and application of law
The art of taking effective security
Day 2: 15,000 feet: specific issues in aircraft leasing and financing
Basic legal documentation
- Term sheet
- Purchase agreement
- Loan
- Lease
- Mortgage
- Guarantee
- Assignment of lease
- Assignment of insurances
- Warranties agreements
- Intercreditor agreement
- Legal opinions
The loan agreement: overview, covenant package and typical events of default
The lease agreement: overview, maintenance reserves and their calculation, sub-leasing
Maintenance reserves and their calculation
Sub-leasing
Export credit finance
- Specific structuring considerations
Pre-Delivery payment facilities
- Introduction
- Specific structuring
- Security concerns
Aviation insurances from a finance and leasing perspective
The Cape Town Convention
- Overview and practical use of the international registry
Day 3: Landings: getting deals done and undone
The practical differences between business and commercial aviation finance
Life of a typical deal
- From request for proposal to term sheet to closing to term
When it all goes wrong
- Guide to defaults, enforcements and repossessions
Workshop 1: Secured loan term sheet preparation and negotiation
Workshop 2: Operating lease term sheet preparation and negotiation
Workshop 3: Structuring a business jet financing
Hilton Hotel Singapore, Singapore, Singapore
This programme takes place on a non-residential basis at Hilton Hotel Singapore. 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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Paul Jebely
Paul joined Clyde & Co in March 2011 and serves as the firm’s Head of Aviation Finance for Asia and Africa.
Paul is experienced in negotiating and executing international aircraft and engine financing, leasing and trading transactions, and in advising in respect of various enforcement and repossession situations. He has advised clients that together represent the full range of industry participants in respect of transactions concerning all class of aircraft. He is especially active in advising financiers engaged in aircraft finance. He regularly speaks at industry conferences and provides in-house training to financier clients.
Paul has been recognised as one of the world’s leading aviation lawyers and was named as a “Rising Star” in aviation finance in the 2009 Euromoney Guide to Aviation Lawyers. Paul has also been noted by the Financial Times and various industry publications for his expertise in business aircraft finance in particular.
Prior to joining Clyde & Co, Paul worked in Toronto, London and Kuwait, and was the Head of Aviation (Asia & Africa) for an international law firm based in Hong Kong. He is qualified to practice law in the US, England and Canada.
In 2011, Clyde & Co was voted the Firm of the Year in aviation practice area by Who’s Who Legal.
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.
Course dates