| We have in-depth knowledge and extensive experience of all aspects of aircraft leasing and financing, including operating leases, export credit financings, Islamic financing, commercial debt financings and tax based transactions. Our experience includes securitisation of lease receivables, capital markets financing structures, including EETC programmes, lease and loan portfolio transfers and risk transfer programmes. Different organisations use operating lease structures for different purposes, but a number of core benefits tend to prevail: Lower rentals, better cashflow; Cashflow is optimised within an operating lease, due to the residual value position assumed by AEROSPACE. A typical operating lease structure may result in AEROSPACE agreeing to take a significant residual risk position at the end of the lease term. As a result, lease rentals will be calculated on the assumption that only a minimal amount of the original equipment cost has been amortised on our books at the end of the primary lease term, rather than the full 100 per cent. When acquiring large capital assets, the impact can be a significant improvement in the company's liquidity position. Increased operational flexibility; At the end of the primary lease term, the equipment can be returned to our company. While various options may be available to extend the lease or purchase the equipment, the ability to return the equipment without having paid its full cost offers significant benefits for companies aiming to cost-efficiently match service or supply contracts, such as airlines and shipping businesses. Companies may also be attracted to this financing solution if they wish to focus on core competencies, lack equipment disposal expertise or wish to avoid either technical obsolescence, regulatory risk (for example, environmental directives relating to the environmental issues on older aircraft or the increased maintenance burden associated with older equipment. |
|