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 Kaleli Zibert is a dual‑qualified commercial solicitor (England & Wales and Türkiye) and serves as Partner and Head of Operations ...
-
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
AI Systems: Is Your Core Platform the Right Choice?
The Source of Inspiration for Artificial Intelligence Systems: Is Choosing One’s Own Core Platform Service Always the Right Solution? An increasing number of
Civil Litigation In Albania: A Comprehensive Review of the Legal Framework, Court System, Procedure, Enforcement and Dispute Resolution.
Have you got a question? Enquire Now Whether you are enforcing a contract, recovering a debt, resolving a commercial dispute, or assessing litigation
Interview with Kai Scholz: Strengthening China-Germany Economic Cooperation in 2025
The year 2025 marks the 50th anniversary of diplomatic relations between China and the European Union, a milestone that highlights five decades of
Stablecoins in the European Legal Order: Regulation, Systemic Risk and the Transformation of Financial Infrastructure (2025 Update)
Stablecoins have evolved from an experimental crypto-instrument into a potential pillar of Europe’s emerging digital financial architecture. With the EU’s Markets in Crypto-Assets