Aircraft Leasing Course

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.

By attending this practical and highly interactive training course, you will:

• 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
• 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

Content

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

• What should a LoI contain?
• What detail does it need it go into?
• Is it legally binding?

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?

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
• Euro control and other liens
• Restrictions on the Operation of the aircraft
• Dealing with Sanctions
• Subleasing
• Workshop

Maintenance Obligations

• To what standards does maintenance need to be performed?
• Complying with airworthiness directives
• Cost sharing
• Payment of Maintenance Reserves

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?

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.