There are two principal types of aircraft finance structure: • secured lending under which the lender lends money to the purchaser to buy the aircraft and the lender takes security over the aircraft, and • leasing which offers greater flexibility to financiers in many instances Difficulties with secured lending Secured loan structure Under a traditional secured loan structure, the lender will lend money to the prospective owner of the aircraft in order to finance its acquisition of the aircraft. In return for this money being made available, the lender will usually take first priority security by way of a mortgage over and in respect of the aircraft (see Practice Note: Taking security over aircraft in aviation finance transactions). Once the loan has been repaid in full, together with any other amounts owing under the transaction documents, the lender will release the aircraft from the mortgage with unencumbered title being returned to the borrower. If the borrower does not repay the loan or it defaults in respect of any of its other obligations under the loan agreement,

Operating leases are often used in the airline industry. Aircraft have a long working life and, as such, a highly developed market place for marketing second hand aircraft has developed. The most basic concerns for a lessee in an operating lease are that the aircraft it leases is in an airworthy condition and that it is able to use the aircraft without interference from the lessor. The lessor’s most basic concerns are that it gets paid for allowing the lessee to use the aircraft and does not suffer any losses as a result of the operation of the aircraft by the lessee. This Practice Note explains what an operating lease is, how operating leases differ from other types of leases and the basic concepts involved in the business of operating lessors together with the key provisions in operating leases which relate to delivery condition, quiet enjoyment, rent and deposits and operational indemnities. It also covers the key provisions in operating leases about subleasing and events of default. The business of operating lessors Operating leasing is a

Aviation finance lends itself to tax leasing in many jurisdictions. Tax leases are usually a means of tax deferral. They can be advantageous, from a tax perspective, to equity investors that have taxable profits arising from their normal course of business. Tax leases can be completed in various jurisdictions including Japan, Germany and France. The key risk in tax leasing arises if the transaction is terminated early. This will mean that the equity investors will be unable to defer their tax liability to the extent and for the period they had anticipated. What is a tax lease? Most tax leases are tax deferral structures. They occur when certain entities (equity investors) enter into a transaction with the express intention of incurring an immediate tax loss, which they can set off against their taxable profits arising from their normal course of business. At a certain time in the future, they will expect the transaction to generate profits and, at that point, the overall liability of the equity investors to tax will increase. The equity

This Practice Note sets out certain key cases and associated content that are relevant to aviation finance. The cases are grouped together by topic. Key cases relating to purchasing an aircraft Odyssey Aviation Ltd v GFG 737 Ltd Aircraft sale and purchase agreement—termination—buyer claims for breach of warranty as to title and breach of conditions precedent—seller also attempts to terminate the sale and purchase agreement [2019] EWHC 1927 (Comm) On 28 May 2018, Odyssey Aviation Ltd (Odyssey) and GFG 737 (GFG) entered into an Aircraft Sale and Purchase Agreement (APA). Under the APA, Odyssey agreed to sell and GFG agreed to buy a Boeing Business Jet B737-72U (the Aircraft), for US$30m. The APA was governed by English law. Prior to the conclusion of the APA, on 23 April 2018, GFG paid a refundable holding deposit which was deposited with an escrow agent. The scheduled delivery date under the APA was 19 July 2018. On 20 July 2018, GFG purported to terminate the APA on two grounds: • firstly, that Odyssey had breached its warranty as to title

MLex: The EU’s aviation industry has said that the European Commission must deliver an aviation strategy this year focusing on driving the sector’s decarbonisation, while strengthening its global competitiveness. In its policy recommendations unveiled today, the industry calls for the aviation sector to be prioritised in the upcoming Clean Industrial Deal, and for a scaleup of the availability and uptake of affordable sustainable aviation fuels.

Law360, London: A company that says it is Britain's first artificial intelligence (AI)-based insurance broker has said it has raised almost £1m from investors including Aviva and a venture capital firm in a preliminary funding round.

Law360, London: Aviva plc encountered a 14% rise in the number of fraudulent insurance claims in the UK in 2024, comprising more than 12,700 suspected false claims worth £127m, the insurer said in a report on 8 April 2025.

Law360, London: Insurance company Aviva said on 25 March 2025 that it paid out more than £1.89bn on almost 62,000 individual and group protection claims in 2024.

Law360: Insurance giant Aviva on 26 June 2024 said it spotted 39% more instances of fraud in 2023 than it did in the year previous, despite the value of fraudulent claims being lower than 2022.

Law360, London: Aviva has called on brokers to intervene as its research revealed that small and mid-sized enterprises (SMEs) underestimate the risks posed by cybercriminals, despite being increasingly targeted by them.

Law360, London: On 19 May 2025 Aviva Plc said it has begun using artificial intelligence (AI) tools to map the cyberthreats the companies in its portfolio are most exposed to.

Law360, London: Insurance company, Aviva warned British homeowners on 3 June 2025 to be vigilant about the risk of fire to their homes and gardens as the country looks likely to experience the warmest spring for a century.