Aircraft Financing – What You Need To Know About Using A Cayman Orphan SPV Structure

The Cayman Islands is a leading offshore jurisdiction for commercial aircraft financing and leasing transactions. Tax neutrality, combined with a commercially flexible civil aviation authority and depth of expertise makes the Cayman Islands a market leader in the structuring of such transactions. Airlines, operating lessors and lenders have grown familiar with the typical 'off-balance sheet' or 'orphan' structures, affording bankruptcy remoteness of the underlying asset.

The extension of the Cape Town Convention on International Interests in Mobile Equipment and the associated Protocol on matters specific to Aircraft Equipment (the Cape Town Convention) to the Cayman Islands re-enforces the jurisdiction's sophisticated aircraft finance capability.