Aircraft Financing and Leasing: Legal Advice from an Attorney

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An aircraft is an important acquisition. Some aviation purchasers decide to finance their purchase and others decide to lease an airplane for business purposes. An aircraft lawyer can advise a business about the pros and cons of financing aircrafts and aircraft leasing.

Financing an Aircraft Purchase

An aviation lawyer can help an aviation purchaser, or financer, structure a financing arrangement that meets the client’s needs. There are many possible ways to structure a financing arrangement and each complicated decision can have a profound effect on the outcome of the financing arrangement and the amount of money owed by purchaser or made by the financer. An aviation lawyer can helping with financing aircrafts by:

  • Securing financing agreements with the U.S. Export – Import Bank or a bank of a foreign nation;
  • Creating secured transactions that encourage financers to lend money to aircraft purchasers on favorable terms because of the security interest that they take in the aircraft; and
  • Creating traditional equipment trust certificates or enhanced equipment trust certificates to finance an aircraft.

Leasing an Aircraft

Many businesses benefit from leasing, rather than purchasing aircraft. Aircraft leasing provides benefits for many businesses with aircraft needs. For example, an operational lease allows the business to use the aircraft but without the cost or risk of owning the aircraft. An attorney may advise a client to enter:

  • leaseback transactions;
  • operating leases; and
  • lease in – lease out arrangements.

Services Offered by Aviation Attorneys

In addition to the financing and leasing services offered by aviation attorneys, aviation attorneys also help clients with restructuring work, joint venture agreements, workouts, repossessions and other matters related to aircraft ownership. Aviation attorneys may also represent clients in formal disputes and in litigation.

Getting Help from an Aviation Lawyer

An aviation lawyer who understands all sides of the financing and lease business is an invaluable asset to an aircraft financer, purchaser or leaser. In order to protect your interest in the aircraft, to comply with all applicable laws and regulations, to minimize your potential exposure to litigation and to save as much money as possible, it is important to contact an experienced aviation lawyer.