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
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
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
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
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
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 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
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
Selecting the best aircraft management company for an owner’s particular needs is a complex and time-consuming process involving many variables and requires comprehensive due diligence. The primary reason the selection...more
In the early 1990s, airlines primarily relied on two types of aircraft to transport their passengers: (1) small turboprops and (2) single-aisle 100-seat jets. Seeking to exploit a potential gap in the market, Bombardier and...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
Third Edition - Pillsbury Winthrop Shaw Pittman LLP is pleased to publish this Third Edition of the World Aircraft Repossession Index. This Third Edition builds on the success of our Second Edition and covers 31 “new”...more