Key Points -
- Insurance companies are bracing themselves for years of legal disputes over liability for total losses claimed by lessors to aircraft stranded in Russia as a result of sanctions over Russia's invasion of...more
1/3/2023
/ Air Carriers ,
Aircraft ,
Aircraft Financing ,
Airlines ,
Aviation Industry ,
Federal Aviation Administration (FAA) ,
Insurance Claims ,
Insurance Industry ,
Insurance Litigation ,
Lessor ,
Popular ,
Transportation Industry
Key Points -
- Hong Kong Airlines (HKA) has announced that it is seeking to implement a restructuring of its aircraft lease obligations and other liabilities by court action in the UK and Hong Kong.
- The plan...more
Key Points -
- The rights of an aircraft lessor or lender financing the conversion of a passenger aircraft to a freighter aircraft will be specified in agreements between the borrower, financer and conversion facility....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
Key Points -
- In an April 7 press release, the US Department of Commerce's Bureau of Industry and Security (BIS) announced orders suspending the export privileges of three Russian airlines — Aeroflot, Azur Air, and UTair...more
Key Points -
- In a March 30 press release, the US Commerce Department updated its March 18 list of aircraft that have flown into Russia in apparent violation of Export Administration Regulations by adding 73 aircraft and...more
Key Points -
- Replacing the owner trustee of a US-registered aircraft that is on lease requires submitting a new application to register that aircraft.
- Submitting the application to reregister the aircraft restricts...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
6/22/2021
/ Aircraft ,
Aircraft Equipment ,
Aircraft Financing ,
Aircraft Sales ,
Airlines ,
Aviation Industry ,
Cape Town Convention ,
Commercial Bankruptcy ,
Cross-Border Transactions ,
Debt Restructuring ,
Debtors-in-Possession ,
Finance Lease Contract ,
Insolvency ,
Repossess
Key Points -
The risk that prepetition lease payments made by a lessee that is a debtor in a US bankruptcy will be clawed back from an aircraft lessor can be reduced if:
- the lease is a true lease rather than a...more
Introduction This Aviation Advisory considers the desirability of registering a new international interest at the International Registry corresponding to the extension of the term of a lease of an aircraft, airframe or...more
The purchase agreement between an aircraft manufacturer and its customer will call for the customer to pay installments of the purchase price between the time the agreement is entered into and the delivery of the aircraft....more
Often an aircraft financer will structure a secured aircraft loan as a full payout lease in order to facilitate the exercise of remedies in the case of a default by the borrower airline. Specifying that the lease is governed...more
Countries around the world are putting in place a more accurate system of tracking aircraft in the skies called Automatic Dependent Surveillance-Broadcast (ADS-B). This technology will eventually replace radar as the primary...more
In our last Aviation advisory, "Toward a Rational Debt-Equity Framework in Leveraged Aircraft Leases," we discussed issues that an equity investor should consider in negotiating credit documents with the lender in a leveraged...more
In the current market, the sale-leaseback can be an effective tool for airlines to raise cash, transition an aircraft model out of the fleet, or manage residual-value risk. For example, it has been reported that (1) Southwest...more
Key Points -
The US Treasury Department and several US passenger airlines have agreed on basic terms of payroll support to be provided under the CARES Act. This advisory will -
- Summarize the general terms for...more
On Wednesday, March 25, the United States Senate passed by unanimous vote the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The Cares Act marks the third round of economic stimulus in response to the outbreak...more
On Thursday, March 19, Senate Republicans released a proposal for $58 billion in emergency financial relief for US airlines. The relief measures would form part of the Coronavirus Aid, Relief, and Economic Security Act and is...more
The US Treasury Department has proposed a $50 billion secured loan facility to assist the US airline industry during the coronavirus disease 2019 (COVID-19) outbreak. Under the proposal, loan proceeds would be made available...more
The novel coronavirus (COVID-19) pandemic has wreaked havoc on the global aviation industry. Fueled by numerous travel bans and closed borders, international and domestic airlines have seen a drastic plunge in demand for air...more
The beginning of the year brought the arrival of “Implementation Day” under the Joint Comprehensive Plan of Action (JCPOA) and its potential for business opportunities in Iran that had been shut off for decades (See Jan. 22,...more
On Friday, July 29, the US Office of Foreign Assets Control (OFAC) issued General License J under the Iranian Transactions and Sanctions Regulations (ITSR). This general license authorizes non-US airlines to fly US origin...more
On January 27, the US Department of Commerce's Bureau of Industry and Security (BIS) and the Treasury Department's Office of Foreign Assets Control (OFAC), took steps to further ease trade restrictions against Cuba, including...more