Aviation Insurance: Leases, Taxation, Finance and Accounting

The Contractual Provisions

• Indemnities
• What is a contract of insurance?
• The rights of a creditor relating to a contract of insurance

Security

• Mortgages and other types of security
• Aircraft Mortgages
• A comparison of different jurisdiction and international conventions
• Taking security over the aircraft, its engines and constituent parts
• Other Liens
• Compared to rights of mortgagee

Ownership rights

• Compared to rights of a mortgagee
• Worked example on the rights of owners & mortgages on an airline’s default

Cross-border leases

• Why they are done
• Spcs: different kinds and when they are used
• Insolvency Proofing

Withholding Taxes

• What they are
• Double Tax Treaties
• Solving potential problems
• Legal strategy
• Dealing with issues arising from a multiplicity of jurisdictions
• Legal opinions: what really matters

Structuring a Tax Lease

• What is a tax lease?
• What are the parties’ objectives and how can they be achieved?
• Introduction to a common defeasance structure
• What are the concerns of the finance parties and how can they best be addressed?

Residual Value Guarantees

• What they are
• How they interact with the lease documents
• Structuring a synthetic operating lease

Export Credits

• What are export credit agencies, what support do they give and what are their requirements in aircraft finance transactions?
• How can export credit facilities be combined with other structures – tax leases

Pre-Delivery Payment Facilities

• How to structure a PDP facility
• What security is available for Lenders to a PDP facility?

Capital Markets

• What products are available on the market
• What are the concerns of an airline?
• EETCs:  what they are and how they are structured
• How they can be combined with other structures
• ECA wraps
• Lease portfolio securitisations

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.