Aviation Finance And Leasing Guide 2020

1. General and Contractual

1.1 What are the typical structures available for financing the purchase of an aircraft?

Financing structures involving Irish entities often employ the use of a special purpose vehicle ("SPV") which is a company established specifically to hold title to the aircraft subject to the financing and leasing of aircraft to the operators. Ireland is a popular jurisdiction for the establishment of SPVs due to the numerous double tax treaties in place between Ireland and other countries, many of which specifically refer to aviation in their text. Ireland is also attractive due to the confidence in the legal and court system (which is broadly based on English common law) and the number of aviation experts and leasing companies based in Ireland.