Aircraft Leasing

Course overview Nearly all aircraft operated by airlines in the 21st 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! Summary of course content 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 and minimised 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 Featuring: Highly interactive workshops in which you will learn negotiation techniques and strategies Past attendees of Aircraft Leasing include: BNDES Airbus SAS Nord/LB Aircastle CIT Aerospace AerCap Norwegian Air Shuttle ASA Webber Wentzel Baker & McKenzie LLP Lloyds Banking Group Methodology As with all Euromoney Training courses, this programme makes use of case-studies and exercises to ensure that you leave the course, ready to apply your new knowledge case studies. Who should attend this training course? Legal Counsels, Solicitors and Advisors working both in the commercial sector and in the in-house legal teams Bankers and Operating Lessors, as well as Export Credit, Leasing and Insurance Analysts in the Aviation Finance Business Professionals working in Airlines and Aircraft Leasing Companies interested to develop specialised knowledge
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 (LOI) What should a LOI contain? What detail does it need it go into? Is it legally binding? 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