This article deals with the offshore arrangements put in place in the typical aircraft financing transaction involving the establishment of a special purpose offshore company ("SPC") in the Cayman Islands, although the use of other vehicles, such as exempted limited partnerships will be touched upon. Cayman Island's SPC's have been used in almost all types of aircraft financing transactions, including export credit backed financings, tax leases (in particular German and Japanese leveraged leases), securitisations and enhanced equipment trust certificate transactions.
The continued popularity of the Cayman Islands as the jurisdiction of choice for offshore aircraft financing is highlighted not only by the volume of aircraft financed (over 600 through Maples and Calder in the last year) but the quality and innovation of the transactions as evidenced by the structuring through Cayman entities of transactions awarded the coveted Airfinance "Deal of the Year" and "Leasing Deal of the
