Norton Rose Fulbright

This Practice Note considers the obligations the lessor will ask the lessee to undertake during operation of the aircraft and in particular covers mandatory checks and inspections, manuals and technical records, approved maintenance programmes, airworthiness directives, service bulletins and customer care programmes

This Practice Note covers the purpose of the Cape Town Convention, the types of interest that can be registered under it, the priority of international interests under the Cape Town Convention, remedies, enforcement and deregistration, all in the context of aviation finance transactions.

This Practice Note explains the key characteristics of an aircraft operating lease and the key differences between an operating lease and a finance lease. It considers the key provisions in operating leases, in particular, delivery conditions, the case of ACG v Olympic, rent and deposits, the right to quiet enjoyment of the aircraft and operational indemnity together with subleasing, wet leasing and common events of default and redelivery.

This Practice Note explains the legal and structural specificities which set aviation finance apart from other types of finance such as the value of the asset, internationality, taxes and liability and insurance. It also covers the sources of funding, common transaction structures and leasing.

This Practice Note explains the role of Export Credit Agencies (ECAs) in aviation finance and looks at which ECAs are the most active in aviation finance, the nature and types of support they offer and the benefits of ECA financing. It also explains the key structures and documentation issues, including the security package, to consider in ECA financings for aviation finance and the jurisdictional questionnaires required as part of the due diligence process in an ECA financing.

This Practice Note looks at aircraft finance leases in comparison to secured lending structures and operating leases. It covers the common types of payment required under a finance lease, calculation of interest and early termination payments, the factors which impact on the nature of payments under a finance lease (such as taxes, increased costs, market disruption and indemnities), security over the aircraft (including aircraft mortgages and assignment of the lease), insurances and possession of the aircraft and events of default under a finance lease structure.

This Practice Note covers the main principles of Islamic finance, Islamic finance structures (in particular murabaha and ijara) and the key features of an Islamic lease

This Practice Note covers pre-delivery payments (PDPs), how PDP financing is documented (particularly the terms of the aircraft purchase agreement), the structure of the PDP financing facility, common security issues, governing law concerns under a PDP financing, enforcement, insolvency and clawback, the terms of consent agreements, step-in rights and the consent agreement setting out lender rights.

This Practice Note covers enforcement, insolvency and clawback, the terms of consent agreements, step-in rights in a Pre-Delivery Payment (PDP) financing and the consent agreement setting out lender rights

This Practice Note considers when tax leases are used, the typical tax lease and leveraged lease structures. The Note covers Japanese operating leases, German operating leases and French tax leases as well as the risks involved in tax leasing structures and the consequences of early termination

This Practice Note explains the legislative background to the EU emissions trading system in the context of the aviation industry and considers the parties and flights affected by the scheme. It also covers the principal obligations of a UK aircraft operator under the EU emissions trading system, enforcement action after non-compliance and practical issues for lessors, lessees and financiers.

This Practice Note explains the key issues arising under Council Regulation (EC) 593/2008 (Rome I) in relation to English law choice of law rules and the voluntary assignment of receivables (also known as debts) in the context of receivables financing. It covers: (1) treatment under Rome I of the law governing an assignment of receivables and the law governing any claim for payment against a debtor, (2) issues relating to the law governing the effectiveness and priority of the assignment of receivables against parties other than the assignor, assignee and debtor (paragraph 3 issues), (3) practical issues under Rome I, (4) challenges by a debtor, (5) challenges by an administrator or other liquidator or creditor, and (6) challenges by third parties.

This Practice Note looks at the parties involved and the most important provisions in a purchase agreement for new aircraft, factors affecting the price of the aircraft, engine contracts and pre-delivery payments

This Practice Note considers the reasons why an aircraft must be registered with an aviation authority in order to operate internationally. It looks at the registration process and the consequences of registration. The Note also considers the different types of aircraft register—‘Owner’ and ‘Operator’ registers and explains the different requirements for particular aircraft registers, in particular the Civil Aviation Authority (CAA) and Federal Aviation Authority (FAA). Finally the Note sets out the steps involved in the deregistration process

This Practice Note covers the process for registering a security interest in the UK, priority of mortgages, changes made to a mortgage registration, searching the register, deregistration, the Cape Town Convention and registering the security interests in other jurisdictions

This Practice Note covers the key provisions of a purchase agreement, financing of the transaction, the sale of any aircraft which are on lease, taxes and the importance of the delivery location, as well as the Cape Town Convention

This Practice Note covers what an aircraft mortgage is, which laws should govern the creation of an aircraft mortgage, creating a mortgage under English law, registration of aircraft mortgages in the UK and overseas, priority, claw-back and enforcing English mortgages and the alternative of structuring the transaction as a finance lease.

This Practice Note explains why residual value agreements are used in aviation finance and the key types of residual value agreement such as residual value guarantees, asset value guarantees, put options, residual value insurance policies and first loss deficiency guarantees. It also covers the common features of residual value agreements, the mechanics of making a claim under residual value guarantees and the key negotiation points including the liability of the guarantor, the lease terms and the potential consequences of a failure to sell the aircraft on the open market.

This Practice Note provides an overview of insurance in aviation finance, the main concerns for aviation financiers and lessors and considers key concepts such as averaging, run-off or tail cover insurances and reinsurance. It covers the key features and terms of aviation insurance policies including the lessor’s rights in relation to the policies, certificates of insurance and the role of insurance brokers, the contract parties and the loss payable clause. This Practice Note also covers causes of third party liability such as surface damage, negligence and damage to passengers, baggage or cargo, including the provisions of both the Warsaw Convention and the Montreal Convention.

This Practice Note covers the advantages and key structural issues to consider when using the main types of special purpose vehicle (SPV) in aviation finance and sets out the advantages of using SPV’s in an aviation finance transaction such as protections in the event of bankruptcy, tax benefits and the ring-fencing of revenue streams.