What do you need to know about aircraft leasing?
Have you got a question?
If you are looking at leasing an aircraft or leasing out an aircraft then there are several elements that need to be taken into consideration.
What aircraft leasing due diligence is required?
It is essential that due diligence is conducted regarding the other side of any Leasing agreement. There are several key questions that should drive due diligence:
- Who owns the aircraft?
- Who is the seller and are they creditworthy?
- What is the leasing structure?
- How is the deal financed?
Further to the above checks due diligence then needs completing on the aircraft itself. Inspections are usually outlined in the leasing document. Conducting a suitable inspection is essential, and ensuring that legal terms outline the details of which, could solve any liability questions.
What elements of the leasing agreement need legal advice?
When leasing an aircraft there are several elements that require legal advice. It starts with the approvals required with organisations like the Civil Aviation Authority, Department for Transport and relevant foreign entities. Once approval is sought and accepted; the approvals, directions, exemptions, permissions and licence validations need to be reviewed prior to the aircraft being able to legally operate.
In the leasing agreement itself, we review the representations and warranties and whether the terms are manageable for you or require changes. We outline the risk to the party we represent.
Further, we review what termination clauses that are contained in the aircraft leasing agreement. Are there any clauses that could mean our client is without an aircraft? What are the clauses regarding defaulting on the terms? Also, we look at the Insurance and Indemnities that are required and review the policies to ensure that our client can conform with the terms.
What are the different types of aircraft lease options?
There are three types of aircraft lease agreement:
- Wet lease agreement – is when the leasing company provides the aircraft and crew, whilst also maintaining the craft and insurance.
- Dry lease agreement – is only for the aircraft.
- Damp lease agreement – is a mixture of the two, with the leasing company providing elements that are required by the airline.
When establishing a leasing arrangement, it is important to establish the full commercial need.
Why Oracle Solicitors?
We have years of collective experience in the team dealing with some of the largest airlines in the aviation industry. We provide quality commercial advice at competitive prices.
Get in touch or call us today on 020 3051 5060.
Kumsal is dual qualified as a solicitor in England and Wales and as an attorney-at-law in Turkey. She has been practising since 2013.
-
Aviation House, 125 Kingsway
London WC2B NH
United Kingdom
- (+44) 020-3051-5060
Book a call back
Share this article
Got a question?
Please complete this form to send an enquiry. Your message will be sent to one member of our team.
Related posts
Employer’s Duties Update: Sexual Harassment
On the 26th of October, the new Worker Protection (Amendment of Equality Act 2010) Act 2023 came into force, introducing key changes to
The Drip-Drip Approach Of The New Leasehold Reform
In January 2025, Matthew Pennycook, Minister of State for Housing and Planning, confirmed that from February 2025, leaseholders will be able to exercise
Starting a Sole Proprietorship in Albania: A Guide for Digital Nomads & Foreign Expats
Albania is fast becoming a top destination for digital nomads and foreign expats due to its low cost of living, scenic landscapes, and
Oracle Law Global: A Major Legal Victory in International Trade Dispute by China Business Department
Oracle Law Global’s China Business Department has achieved a significant legal achievement, successfully representing a leading specialty chemicals manufacturer—listed on the Shanghai Stock