The following Banking & Finance guidance note Produced in partnership with Norton Rose Fulbright provides comprehensive and up to date legal information covering:
When the lessor puts the aircraft on lease it will be concerned to ensure that the aircraft is operated in such a manner as will not unduly affect the market value of the aircraft (and therefore its value as quasi-security) during the term of the lease. As a bare minimum, the lessee will be asked to undertake to the lessor that it will operate the aircraft:
in accordance with all applicable laws (which includes the state in which the aircraft is registered as well as those of jurisdictions where the aircraft is physically located)
in accordance with all permits or licences which are required by the lessee to operate the aircraft
in a way which will not invalidate any warranties granted by a manufacturer in respect of the aircraft
in accordance with the specifications and tolerances and any manuals for the aircraft provided by a manufacturer
in a way which will not invalidate the insurances or leave the aircraft uninsured, and
legally or only for legal purpose
Aircraft are high value assets to maintain and are required to have mandatory checks and inspections completed at regular intervals. Some of these checks (particularly the mandatory strip downs, tests and examinations) can be very costly. Such checks will relate to different component parts of the aircraft which include:
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