Aircraft Financing – A Brief Guide To Cayman

Legal and administrative service providers in the Cayman Islands such as Appleby can offer aircraft owners and financiers much more in the way of financing, leasing, securitisation and ownership structures not limited to Cayman registered aircraft.

A common component to these structures is the use of a Cayman Islands special purpose vehicle ("SPV") through which funding and leasing arrangements may allow for certain tax, accounting and regulatory relief.

Subject to the nature of the particular finance package and the commercial drivers in any particular deal, the general goal of any contractual arrangement which is set up using an SPV in these circumstances is to:

• achieve an off-balance sheet structure which does not affect the accounting position of the financier, the airline, the trustee, or the originator;