Aviation finance

This overview is a guide to the Banking & Finance content within the Aviation finance subtopic, with links to appropriate materials.

Aviation finance is a form of asset finance. What sets it apart from other types of finance is certain specialised legal and structural specificities, eg:

  1. aircraft are considered to maintain their future value relatively well compared to other assets and have a predictable likely market value during the term of any financing

  2. many aircraft models are easily remarketable

  3. operating lessors play a key role in the market because the cost of an aircraft means that many airlines do not have the financial status to allow them to purchase aircraft or even finance them

  4. many aviation finance transactions involve cross-border issues

  5. tax leasing is common in aviation finance due to the high value of the assets involved

  6. political factors play their part in aviation finance, whether by way of government support for the export of aircraft or regulatory issues, and

  7. aircraft are high value assets, prone to damage and capable of causing destruction—insurance is a vital concern for financiers

For

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