A significant portion of the firm's aviation practice involves aircraft transactions.   The firm represents airlines, banks, export credit agencies, financial institutions and leasing companies in structuring, negotiating and documenting a wide variety of transactions.  These have included finance and operating leases, numerous other forms of aircraft financings, aircraft sales agreements, and various forms of joint operating agreements.

An additional asset which the firm brings to the table in any aircraft transaction is an extensive background on aviation regulatory matters.  Often, the policies of the U.S. and other governments on particular aviation issues-such as citizenship requirements, route swaps, wet-or dry-leases, slot transferability, noise standards, or aging aircraft-will have a critical bearing on aircraft transactions.  Our familiarity with these regulatory issues strengthens our transactional capabilities:

Finance Leases

The firm represented an airline in negotiating one of the first multi-national asset-based finance lease transactions involving export credit agencies from two countries.  The transaction, which involved the formation of a special purpose French groupement d'interet economique (GIE) to serve as owner-lessor, presented significant cross-border enforcement and taxation issues.

Master Limited Partnerships

The firm advised an equipment leasing company on the formation of the first publicly-traded master limited partnership to register aircraft in a transaction involving the sale and leaseback of five DC-9 aircraft.  The firm also assisted the client in restructuring other ownership arrangements to allow significant (i.e., up to 25 percent) foreign investment in U.S.-registered aircraft.

Operating Leases

The firm has represented various lessors and lessees in negotiating and documenting numerous operating lease transactions, ranging from fairly straightforward short-term leases to more complicated joint venture arrangements.

Export Finance

The firm is one of a select number of legal counselors that has been retained to represent the Export-Import Bank of the United States (Ex-Im Bank), the export credit agency of the United States of America, in aircraft financing transactions.  In 2010, the firm represented Ex-Im Bank in cross-border transactions involving the financing of more than 70 large commercial aircraft.  In recent years, the firm has represented Ex-Im Bank in transactions involving airlines based in Turkey, the Netherlands, Indonesia, Ireland, Norway, Austria, Kenya, Luxembourg, Uzbekistan and Thailand.

Other Financings

The firm has advised a major investment bank in structuring the first "collateralized" financing involving landing slots at certain high density airports.  The firm also has represented a major European bank in negotiating and documenting the financing of a corporate jet in a transaction valued at $11 million.

Sale/Leasebacks

The firm has represented various airlines and financial institutions in sale/leaseback transactions involving fifteen aircraft with an aggregate value in excess of $150 million.

Sales Transactions

The firm has represented various financing parties and U.S. and foreign air carriers in connection with the purchase and sale of aircraft.