Structure finance lease, operating lease and sale-and-leaseback transactions appropriate to an airline's needs.
Finance & Banking
Aircraft Finance and Operating Lease Structures for Airlines and Lessors
Learn aircraft finance structuring for airlines and lessors, covering finance and operating leases, EETC and export credit financing, Cape Town Convention remedies, appraisal and airline credit risk.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Financing an aircraft worth tens of millions of dollars for an airline that may not survive the lease term requires a distinct set of structures, legal protections and valuation judgement that general corporate finance training does not cover. This course builds that expertise directly. Participants compare finance lease, operating lease and sale-and-leaseback structures by how each allocates residual value risk, then work through enhanced equipment trust certificates, export credit agency financing and aircraft asset-backed securitisation as funding routes for lessors and airlines. Legal sessions cover the Cape Town Convention and Aircraft Protocol, registering an international interest, and drafting the irrevocable deregistration and export request authorisation that underpins repossession remedies. Valuation sessions interpret base and market value appraisals and model residual value risk across an aircraft's technology cycle, while credit sessions assess airline route economics and structure security packages appropriate to airline credit quality. The course closes on IFRS 16 lease accounting for airlines and the practical mechanics of repossession, deregistration and remarketing when an airline defaults, leaving participants able to structure and risk-manage a transaction from either side of the table.
Expected Learning Outcomes
Compare EETC, export credit agency financing and aircraft securitisation as funding routes for aircraft acquisition.
Apply Cape Town Convention provisions, including international interest registration and deregistration authorisation.
Draft lease terms covering maintenance reserves, supplemental rent and redelivery return conditions.
Interpret aircraft appraisals and model residual value risk across an aircraft's technology life cycle.
Assess airline credit risk and structure security packages and portfolio diversification for lessors.
Apply IFRS 16 lease accounting and manage the repossession and remarketing process following an airline default.
Who Should Attend
Aircraft finance bankers and lessor investment professionals structuring lease and debt transactions.
Airline treasury and fleet finance teams negotiating lease and financing agreements.
Aviation lawyers drafting lease documentation and Cape Town Convention filings.
Aircraft leasing company credit and portfolio management staff.
Export credit agency and capital markets professionals financing aircraft acquisitions.
Asset managers and appraisers valuing aircraft and engine collateral.
Course Modules
Select any module to see its sessions and points.
01Aircraft Finance Structures and Market Participants
2 sessions · 8 points
Session 1Finance Lease, Operating Lease and Sale-and-Leaseback Structures
- Distinguish finance lease and operating lease structures by their allocation of residual value risk between lessor and airline.
- Structure a sale-and-leaseback transaction that releases capital tied up in an airline's owned aircraft.
- Compare wet lease and dry lease arrangements and the operational responsibilities each places on the airline.
- Assess how lease term length affects pricing and residual value exposure for the lessor.
Session 2EETC, Export Credit Financing and Aircraft ABS
- Explain how an enhanced equipment trust certificate structure tranches aircraft-secured debt for capital markets investors.
- Assess export credit agency financing support available for aircraft manufactured in the agency's home country.
- Structure an aircraft asset-backed securitisation that pools lease receivables from a diversified portfolio.
- Compare funding costs across bank debt, EETC, export credit and securitisation for a given aircraft acquisition.
02Legal Framework and Lease Documentation
2 sessions · 8 points
Session 1Cape Town Convention, Registration and IDERA
- Apply Cape Town Convention and Aircraft Protocol provisions that establish international interests in airframes and engines.
- Register an international interest on the International Registry to protect a lessor's or lender's priority.
- Draft an irrevocable deregistration and export request authorisation and explain its role in repossession.
- Assess how a jurisdiction's Cape Town Convention declarations affect remedies available on an airline default.
Session 2Lease Terms, Maintenance Reserves and Return Conditions
- Draft lease agreement terms covering rent, maintenance reserves and supplemental rent payment mechanics.
- Set redelivery and return condition requirements specifying airframe, engine and component condition at lease end.
- Structure maintenance reserve reconciliation mechanics that true up reserves against actual maintenance events performed.
- Negotiate power-by-the-hour maintenance arrangements and their interaction with lease maintenance reserve terms.
03Valuation, Portfolio and Credit Risk
2 sessions · 8 points
Session 1Aircraft Appraisal and Residual Value Risk
- Interpret aircraft base value and market value appraisals from recognised appraisal organisations.
- Model residual value risk across an aircraft's life cycle, accounting for technology change and market supply.
- Assess how engine choice and airframe variant affect an aircraft's long-term residual value profile.
- Build a residual value provisioning approach for a lessor's portfolio based on appraisal trends.
Session 2Airline Credit Assessment and Lessor Portfolio Diversification
- Assess an airline's credit profile using route economics, load factors and access to sovereign or group support.
- Structure security packages, including deposits and letters of credit, appropriate to airline credit quality.
- Diversify a lessor's portfolio across airline credit quality, aircraft type, region and lease maturity.
- Stress test lessor portfolio cash flow against a scenario of multiple simultaneous airline defaults.
04Accounting, ESG and Distressed Scenarios
2 sessions · 8 points
Session 1IFRS 16 Lease Accounting for Airlines
- Apply IFRS 16 to recognise a right-of-use asset and lease liability for an airline's leased aircraft fleet.
- Distinguish accounting treatment differences remaining between lessor operating and finance lease classification.
- Assess the impact of IFRS 16 adoption on airline balance sheet leverage and covenant compliance.
- Model variable lease payments and reassessment triggers that affect an airline's lease liability over time.
Session 2Fleet Transition, Engine Leasing and Repossession
- Plan a fleet transition strategy balancing new fuel-efficient aircraft orders against existing lease commitments.
- Structure standalone engine leasing arrangements distinct from whole aircraft operating leases.
- Execute a repossession and deregistration process following an airline default under Cape Town Convention remedies.
- Assess remarketing options and downtime cost when returning a repossessed aircraft to lease-ready condition.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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