For many of our clients, aircraft ownership is not only practical (having one aircraft on which to train for a pilot certificate can increase efficiencies, for example), but it can also be a business advantage. However,...more
Update: This Holland & Knight alert has been updated on Sept. 25, 2022, with additional information. In plain English, anytime an aircraft departs the United States, this is an "export" and will fall in one of two "buckets":...more
Demand for Narrowbody Aircraft Exceeds the Available Supply- Outside of Asia, summer travel has seen a large recovery and this has coincided with a large uptick in demand for narrowbody aircraft by both airlines and...more
It’s hard to overstate the amount of turbulence experienced by the aviation finance market over the last three years. After a banner 2019, when asset-backed securitizations —a key source of capital for many aircraft...more
Key Points - - The use by Malaysia Airlines' subsidiary, MAB Leasing Ltd. (incorporated in Malaysia) ("MABL"), in 2021, of an English Scheme of Arrangement (a "Scheme") to compromise its aircraft lease obligations proved...more
Aircraft leasing companies are the backbone of modern commercial aviation. Lessors now account for an estimated 60 percent of new passenger jet deliveries, up from approximately 45 percent on the eve of the pandemic and just...more
Many aircraft are regularly operated in multiple jurisdictions and aircraft owners have multiple choices as to where they will register their aircraft. Once the pros and cons of each registry are fully considered, owners...more
The United States Federal Aviation Administration (FAA) Aircraft Registry (Registry), commonly referred to as the N-Register, is one of the most frequently chosen aircraft registries. A majority of the aircraft in the world...more
Please note: This Holland & Knight alert has been updated on Sept. 13, 2021, with additional information. In plain English, anytime an aircraft departs the United States, this is an "export" and will fall in one of two...more
The leasing of a commercial aircraft to an airline in a foreign jurisdiction presents risks to the lessor and its secured lender, including whether an aircraft may readily be repossessed if a lease event of default occurs....more
There are two common types of aircraft exports: 1) permanent exports – where the aircraft is physically exported (i.e., flown) from the U.S. as part of a sale, lease or transfer of possession and control to a foreign person,...more
This article is based on Merrick Benn’s keynote presentation to the National Aircraft Finance Association (NAFA) Webinar on Sept. 15, 2020. All organizations are subject to fraud risks—including when they buy or lease...more
The global aviation industry is experiencing a downturn of unprecedented proportions. The impact of the COVID-19 pandemic has forced governments around the world to close their countries’ borders and ban commercial flights...more
Due to the ongoing COVID-19 pandemic, lessees and lessors across many industries are attempting to ease economic tensions by agreeing to certain accommodations in respect of lessees’ obligations. In the aviation industry,...more
It’s time to face up to the fact that financial market participants will soon no longer be able to rely on LIBOR. No one can claim that this comes as a surprise. In 2014, in response to concerns about the reliability and...more
Due to the ongoing COVID-19 pandemic and the resulting economic malaise, lenders and investors are seeing a flood of requests from borrowers and issuers for relief on debt service payments. For private financings where there...more
Can Airlines Seek Relief under EETC Financing? Due to the ongoing COVID-19 pandemic and the resulting economic malaise, lenders and investors are seeing a flood of requests from borrowers and issuers for relief on debt...more
Aircraft leases typically include standard representations and warranties regarding: (i) the power and authority of the lessee to enter into the agreement and the transactions contemplated by the agreement; (ii) the agreement...more
Key Takeaways: - Demand for private air travel may experience an increase as travel restrictions and stay-at-home orders ease in the coming months. - Record lows in the price of jet fuel and an overstock of airplane...more
Covid-19 is an unprecedented health and economic crisis, and it is still unclear how and when the aviation industry will begin to recover. Global government aid to the aviation sector has been inconsistent, with varied levels...more
The 2017 Tax Cuts and Jobs Act of 2017 (TCJA) became effective as of January 1, 2018. Among its many modifications of the Internal Revenue Code is a temporary but highly beneficial change in the eyes of high-net worth...more
With the advent of the COVID-19 pandemic, our industry is forced to confront many challenges, including broad government mandates of indefinite duration restricting the movements of vast amounts of the global population. This...more
Many aircraft purchasers fail to adequately consider how the ownership should be structured. A typical approach is to purchase the aircraft in a newly-formed limited liability company wholly-owned by an individual or an...more
In our previous article Engine Leasing, the Fundamentals – Legal Risks and the Cape Town Convention, BCLP’s global aviation team discussed the legal risks associated with engine leasing and the mitigating impact that the Cape...more
In our previous article Engine Leasing, the Fundamentals – What is the Attraction?, BCLP’s global aviation team discussed the appeal of engine leasing to investors and the economic considerations which influence decisions...more