Aircraft & Asset Finance

Baker & McKenzie is recognized throughout the world as a premier law firm in the field of equipment financings. Members of the Aircraft/Asset Finance Group regularly represent airlines, arrangers, lessors, lessees, lenders, and other participants in a broad range of transactions to finance the acquisition of transportation, manufacturing, high-tech, and industrial equipment.

In particular, Baker & McKenzie has developed a recognized capability in both tax-based and non-tax based lease financings involving high-value equipment, particularly aircraft. The typical aircraft transaction in which we act involves all aspects in connection with the financing of aircraft, often in multiple jurisdictions, and may also involve support by a governmental export credit agency (ECA).

Through experience, Baker & McKenzie has accumulated an extensive body of knowledge in the substantive laws affecting aircraft and other big-ticket equipment leasing and financing transactions in many developed and developing jurisdictions.

Practitioners of the Aircraft/Asset Finance Group are also active members of the Unidroit Space Working Group assisting on the finalization of the Space Assets Protocol to the Cape Town Convention on International Interests in Mobile Equipment.

Representative projects in this area include:

• Representation of Air China in connection with a French tax-optimized leasing of 11 Airbus aircraft arranged by HSBC and DBS, and the finance leasing of 3 Boeing aircraft. This was the largest-ever aircraft financing transaction in China in terms of loan and asset value size. The deal was named 2006 Asian Deal of the Year by Air Finance Journal.
• Representation of DBS Bank Ltd. in connection with the Japanese leasing of four B737NG aircraft to China Southern Airlines Company Limited.
• Representation of Air China in connection with the successful turnover of over 80 aircraft leases to Air China Limited. as part of the restructuring of Air China Group in preparation for the airline’s initial public offering in Hong Kong and London in 2004.
• Representation of Jetstar Asia in connection with its establishment as a low-cost carrier in Singapore, including the structuring and negotiation of operating leases for its fleet and all maintenance arrangements.
• Representation of Thai Airways in connection with the US Eximbank/ECGD/NEXI supported financing for four Boeing 777-200ER aircraft and the European ECA-supported financing of eight A340-500/600 aircraft.
• Representation of a major German Airline in connection with the lease financing of their Airbus 330/340 fleet.
• Representation of a US satellite-based Earth-imagery company in connection with its financing of satellite acquisitions and related launch services.
• Representation of a Middle East national airline and governmental agency in connection with Export-Import Bank guaranteed financing of 35 Boeing and McDonnell Douglas aircraft. This deal was named 1999 Aircraft Debt Deal of the Year by Transport Finance and 1999 Deal of the Year for the Africa/Middle East region by Air Finance Journal. It is the single largest aircraft financing supported by the Export-Import Bank.