Aviation Finance Course

This course aims to provide an understanding of the key issues involved in aviation finance in order to identify and minimize the inherent risks and liabilities. The course utilizes a variety of lectures and workshops to analyze the key legal, regulatory and documentary issues involved in aviation finance.

Topics covered include:

• Common financing tools
• Legal documentation
• Different types of leases and similar instruments
• Ownership rights
• Insurances
• Analysis of some specific events of default
• Residual value guarantees
• Pre-delivery payment financing

CONTENT

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

• How do you decide what type of lease you want?
• Operating leases and finance leases
• Hire purchase 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 transaction
• Maintenance, Operations and Return Condition

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

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.