Meritas Capability Webinar - Restructuring Insolvent Airlines in the Americas: A Look at LATAM and Developments with AeroMexico and Avianca
Gujarat International Finance Tec-City (GIFT City) was established in 2007 as India’s first operational smart city and an emerging global financial and IT services hub located in Gandhinagar, Gujarat. GIFT City is a personal...more
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
2022 saw a gradual return of Japanese operating leases (JOLs) and Japanese operating leases with call options (JOLCOs) in the aviation sector. These products are essentially used to deploy Japanese equity, bringing back more...more
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
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
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
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
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
Like the rest of the world, air passenger transport in the Russian Federation and other Commonwealth of Independent States (CIS) countries experienced a serious impact at the start of the COVID-19 pandemic. Yet air traffic...more
Recent developments mean a delayed departure for LIBOR. The cessation of most U.S. dollar LIBOR tenors has been delayed until June 30, 2023. Aircraft financiers, borrowers and lessors should take advantage of the...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 use of Export Credit Agency (ECA) financing in the aviation industry has ebbed and flowed over the years, and it is often during turbulent times that it has proved to be most popular. Given the current COVID-19 pandemic...more
A non-recourse leveraged lease presents issues of how much say an equity investor or sponsor — as opposed to the secured lender — should have against a defaulting lessee airline. There is no definitive template. Each...more
If you are an aviation professional in the COVID-19 era, you are likely learning about, or reacquainting yourself with, the restructuring process. Airlines, helicopter operators and their principals and managers who have...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
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
Covid-19 hit the aviation industry at speed with its immediate and almost global impact requiring urgent responses from airlines, lessors, financiers and industry suppliers to apply emergency measures to, in some cases,...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
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
In the previous articles in our series Engine Leasing, the Fundamentals, BCLP’s global aviation team has discussed the attraction of engine leasing and the key economic drivers. It has discussed the legal risks associated...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