Meritas Capability Webinar - Restructuring Insolvent Airlines in the Americas: A Look at LATAM and Developments with AeroMexico and Avianca
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
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
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
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
With the COVID-19 pandemic changing the way we live, shop and work, as of June 1, 2020, the Global Aviation Trading System (“GATS”) aims to bring into the 21st century the way we trade and finance aircraft equipment. GATS is...more
History of Residual Value Guarantees - In the late 1990s and early 2000s, manufacturers like Bombardier and Embraer increasingly began offering residual value guarantees (RVGs) to airlines and investors, typically...more
Letters of credit are often issued in aircraft leasing transactions as an alternative to the provision of a cash security deposit and, less frequently, the obligation to pay maintenance reserves in cash. In an airline...more
Every aircraft owner, leasing company and airline should be looking into GATS and how it can (will) change the way in which they will acquire, own, lease and trade aircraft. GATS is the new Global Aviation Trading System...more
On February 14, 2019, Judge Lane of the Bankruptcy Court for the SDNY issued an opinion in Republic Airways Holdings Inc. addressing whether the liquidated damages provisions in certain aircraft “true leases” under Article 2A...more
Airlines and airline associations have broadly welcomed ICAO’s new carbon offsetting scheme, scheduled to commence on January 1, 2019. However, the scheme’s Standards and Recommended Practices (the SARPs) impose an immediate...more
After many years of congressional stalemates, the long awaited five-year reauthorization for the Federal Aviation Administration (the FAA) became federal law when signed by President Trump on October 5, 2018 (the...more
In This Issue: - Federal Safe Harbor from Liability Expanded for Aircraft Lenders and Lessors - ICAO CORSIA Update: Compliance Complexities Under ICAO’s New Carbon Offsetting Scheme Federal Safe Harbor from Liability...more
In the course of an aircraft lease negotiation, the lessee will typically seek to ensure that the lessor provides an express covenant to the lessee that for so long as no default has occurred and is continuing under the...more
Most business aircraft purchasers, especially high net worth individuals, rely on advice from their various resources when acquiring such expensive assets. Those resources typically include brokers, OEMs, lawyers,...more
Aircraft Lender Not Responsible for Customer’s Structuring Strategy - Most business aircraft purchasers, especially high net worth individuals, rely on advice from their various resources when acquiring such expensive...more