Course Overview:
Nearly all aircraft operated by airlines in the twenty-first century are acquired under a lease. This course will investigate the nature of a lease, its contents and how it is negotiated from start to finish, beginning with the terms of a letter of intent and finishing with the delivery of the aircraft.
You will learn to identify the issues that really matter during the negotiation process: Identifying and allocating risk; maintaining maximum operational flexibility; keeping within market standards; and complying with legal and regulatory requirements. We will consider the principal provisions of a lease and engage in highly interactive workshops in which we will learn negotiation techniques and strategies to better protect the parties’ position.This is an essential course that you should not miss!
By attending this practical and highly interactive three day training course, you will:
Understand how to complete an aircraft lease - from letter of intent to lease to delivery
Learn how to negotiate the key provisions of an aircraft lease
Understand the financial risks involved in aircraft leases and how they can be allocated
Learn how the provisions of a lease can affect the day-to-day operations of an airline
Understand how the provisions of a lease need to be adapted to reflect the legal and regulatory environment
Learn to balance commercial flexibility for the lessee with the interests of the lessor
Day 1
An Introduction to leasing
– What is a lease?
– Operating leases and finance leases compared
– The essential provisions of a lease
– Registration, maintenance, insurance, return conditions Overview of the contents of the lease
– The structure of a lease
– What the different clauses are intended to achieve
Letters of Intent
– What should a LoI contain?
– What detail does it need it go into?
– Is it legally binding?
– Workshop
Workshop: Definitions used in the lease
– Some of the more important defined terms and their consequences
– In what context are they used and why are they important?
– What may be negotiated?
Representations and Warranties
– What purpose do they serve?
– Should they be repeated?
– Workshop: Negotiating the representations and warranties
Quiet Enjoyment
– Who might be entitled to interfere with the lessee’s quiet enjoyment?
– What protection can the lessee ask for?
Day 2
Delivery and Acceptance Procedures
– Inspection procedures
– What is meant by “as is, where is”
– ACG vs Olympic
The Financial Provisions of the Lease
– The “Hell and High Water” clause
– Deposits
Financial risk under the lease
– Increased Costs
– Market disruption
– Indemnities
– Workshop
Taxes
– The general tax indemnity
– Withholding tax
– VAT and similar taxes
– What exclusions can be accepted?
– Workshop
Undertakings
– EU Emission Trading Schemes
– Eurocontrol and other liens
– Restrictions on the Operation of the
Aircraft
– Dealing with Sanctions
– Subleasing
– Workshop
The Cape Town Convention
– What does it cover?
– How does it impact on the
documentation?
Maintenance Obligations
– To what standards does maintenance need to be performed?
– Complying with airworthiness directives
– Cost sharing
– Payment of Maintenance Reserves
Day 3
Insurance, loss and damage to the aircraft
– What insurances are required for the aircraft?
– How are insurance proceeds paid out?
– What happens if the aircraft is damaged?
– Casualty occurrences in relation to engines
Events of Default
– What is the purpose of the event of default clause
– Some key events of default
– Specific concerns of airlines
– What to do following an event of default
Contractual Redelivery
– What should be in the return conditions?
– What happens if the lessee fails to comply with the Return Conditions
Workshop:
The impact of a lease on the business and operations of an airline
Delegates will be asked to consider how a lease might impact on an airline’s business and operational flexibility, including:
– Wet leasing and dry leasing the aircraft
– Changing where the aircraft is based
– Compliance with EU ETS legislation
– The consequences of damage to the aircraft
– Disposal by the lessee of its assets: does it need the lessor’s consent?
– Changes in the ownership of the lessee
– Changes in the insurance market- what rights does the lessor have?
– Customer care arrangements with maintenance providers
– Establishing whether an event of default has occurred
– Patent and latent defects in the aircraft
– When the lessee redelivers the aircraft
– Dealing with sanctions
Feedback and Close
Also by Kenneth Gray: Aviation Finance - reviewing and understanding the financing options and structures on the market. Contact us for details and dates.
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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. Since then he has continued to work as a consultant at Norton Rose in addition to providing legal training.
His practice at Norton Rose consists primarily in representing airlines and banks, as well as the export credit agencies of several European countries, in implementing complex cross-border finance transactions - and advising them on work outs when the borrower encounters financial problems.
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
5-6 Dec 2013 (London, United Kingdom)
This course is specially designed to provide you with a thorough understanding of and practical skills on using and drafting warranties, indemnities and disclosures.
24-25 Sep 2013 (London, United Kingdom)
Navigating the complexities of the updated Prospectus rules
24-25 Jun 2013 (London, United Kingdom)
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.
26-27 Sep 2013 (London, UK)
Ensuring your business is fully compliant in 2013 and beyond
26-27 Sep 2013 (London, United Kingdom)
An Essential and Practical guide for In-house Lawyers, Company Secretaries and Compliance Officers
4-5 Nov 2013 (London, UK)
An Essential Introduction to the Key Legal and Documentation Issues
Please note that the dates below, 4-5 November, are likely but not yet confirmed. Final dates TBC soon.
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.
27-29 Nov 2013 (Accra, Ghana)
This Euromoney Legal Training course explains how project finance works in detailed and practical terms. This programme aims to expose delegates to the rapidly changing face of project finance across the world and thus ensure a full awareness of the different methods being adopted in various countries and sectors. With interactive workshops being an integral part of this course, delegates will examine real life examples of project finance. Receive up-todate information on current projects, and benefit from the new ideas being implemented globally.
23-25 Sep 2013 (Dublin, Ireland)
Documentation and Negotiation
4-6 Nov 2013 (Dubai, United Arab Emirates)
Documentation and Negotiation
23-24 Sep 2013 (London, UK)