Introduction

In the capital-intensive world of aviation, Aircraft Leasing and Finance are not merely transactional activities but strategic imperatives that enable airlines to acquire and modernize their fleets, manage financial liquidity, and adapt to market fluctuations. With the substantial upfront costs of aircraft ownership, leasing provides a flexible and often more financially viable alternative, allowing airlines to access state-of-the-art aircraft without incurring significant debt on their balance sheets. The global aircraft leasing market has grown exponentially, becoming a dominant force in aircraft acquisition, facilitating fleet expansion for established carriers and enabling market entry for new airlines, particularly low-cost carriers. Understanding the intricate financial structures, legal frameworks, and commercial considerations of aircraft leasing is essential for anyone operating within this dynamic sector. This essential training course focuses on equipping aviation professionals with the expertise to master Aircraft Leasing and Finance Essentials.

This intensive training course is meticulously designed to empower airline finance managers, fleet planners, legal teams, aviation lessors, investors, and MRO professionals with the theoretical understanding and practical tools necessary to navigate the complexities of aircraft leasing and finance. Participants will gain a deep understanding of different lease types, explore aircraft valuation methodologies, learn about key contractual clauses, and comprehend the financial implications of various financing structures. The course will delve into topics such as operating leases, finance leases, sale-and-leaseback arrangements, maintenance reserves, legal and regulatory considerations, and risk management in aviation finance. By mastering the principles and methodologies of Aircraft Leasing and Finance Essentials, participants will be prepared to make informed decisions regarding aircraft acquisition, optimize fleet strategies, and contribute to the financial health and operational success of their aviation organizations.

Duration: 5 Days

Target Audience

• Airline Finance Managers and Directors
• Airline Fleet Planning and Acquisition Managers
• Legal Professionals specializing in Aviation Law
• Aviation Lessors and Leasing Company Executives
• Investment Bankers and Financial Analysts in Aviation
• Aviation Asset Managers
• MRO (Maintenance, Repair & Overhaul) Managers (for lease return conditions)
• Airline Business Development Managers
• Aviation Consultants
• Government Aviation Officials involved in finance and regulation

Objectives

• Understand the fundamental concepts and types of aircraft leasing and finance.
• Learn the advantages and disadvantages of leasing versus purchasing aircraft.
• Acquire knowledge of aircraft valuation methodologies and factors influencing asset value.
• Comprehend the key legal and contractual provisions in aircraft lease agreements.
• Explore different financing structures available for aircraft acquisition.
• Understand the role of maintenance reserves and return conditions in aircraft leases.
• Gain insights into risk management strategies specific to aviation finance.
• Develop a framework for making informed decisions on aircraft acquisition and fleet planning.

Course Content

Module 1: Introduction to Aircraft Acquisition and the Role of Leasing

• The high capital cost of aircraft and challenges of outright purchase.
• The growth and dominance of the aircraft leasing market.
• Why airlines lease: financial flexibility, capacity management, fleet modernization.
• Key players in the aircraft leasing ecosystem: airlines, lessors, financiers, OEMs.
• Global trends in aircraft demand and the leasing market.

Module 2: Types of Aircraft Leases

• Operating Lease: characteristics, advantages (off-balance sheet), typical uses.
• Finance Lease (Capital Lease): characteristics, accounting treatment, path to ownership.
• Wet Lease (ACMI): aircraft, crew, maintenance, insurance provided by lessor.
• Dry Lease: aircraft only, lessee provides crew, maintenance, insurance.
• Damp Lease and other hybrid models.

Module 3: Aircraft Valuation and Asset Management

• Principles of aircraft valuation: market value, base value, current vs. future value.
• Factors influencing aircraft value: age, type, maintenance status, market demand.
• Role of appraisers and valuation methodologies.
• Lifecycle asset management: from acquisition to redelivery and remarketing.
• Managing residual value risk for lessors.

Module 4: Key Legal and Contractual Aspects of Lease Agreements

• Essential clauses in an aircraft lease agreement: term, rent, delivery/redelivery.
• Representations, warranties, and covenants.
• Conditions precedent and conditions subsequent.
• Indemnities, insurance requirements, and events of default.
• Governing law and dispute resolution mechanisms.

Module 5: Aircraft Finance Structures

• Traditional bank debt and secured loans for aircraft.
• Export Credit Agency (ECA) financing.
• Capital markets: Enhanced Equipment Trust Certificates (EETCs).
• Sale-and-leaseback transactions: motives and benefits.
• Japanese Operating Lease with Call Option (JOLCO) and other tax-driven structures.

Module 6: Maintenance Reserves and Aircraft Redelivery

• Understanding maintenance reserves: purpose, calculation, and accounting treatment.
• Different types of maintenance reserves (e.g., engine overhaul, airframe, landing gear).
• The importance of redelivery conditions and contractual compliance.
• Managing the redelivery process: inspections, technical records, physical condition.
• Cost implications of non-compliance with redelivery conditions.

Module 7: Risk Management in Aviation Finance

• Types of risks: credit risk, market risk, operational risk, legal risk, political risk.
• Mitigation strategies for lessors and airlines.
• Impact of economic cycles and geopolitical events on aviation finance.
• Understanding cross-border risks and currency fluctuations.
• Insurance requirements and their role in risk transfer.

Module 8: Strategic Fleet Planning and Future Outlook

• Integrating leasing and finance decisions into overall fleet strategy.
• Balancing ownership vs. lease in a diverse fleet.
• The impact of new aircraft technologies on leasing and finance.
• Sustainable aviation finance: green loans, ESG considerations.
• Future trends in aircraft leasing: digital transformation, new entrants, evolving regulatory landscape.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training