Aviation Finance - Watson, Farley & Williams
Aviation Finance - Watson, Farley & Williams
Aviation Finance - Watson, Farley & Williams
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<strong>Aviation</strong> <strong>Finance</strong><br />
<strong>Finance</strong> &<br />
investment<br />
Maritime Energy Natural<br />
resources<br />
Transport Real estate ICT<br />
Corporate <strong>Finance</strong> Tax Dispute<br />
resolution<br />
Employment<br />
Regulatory<br />
London New York Paris Hamburg<br />
Munich<br />
Frankfurt<br />
Milan<br />
Rome<br />
Madrid<br />
Athens Singapore Bangkok Hong Kong<br />
wfw.com
i<br />
CONTENTS<br />
Contents<br />
01 Our approach<br />
02 Our aviation practice<br />
04 Selected aviation experience<br />
08 Reputation<br />
10 Team members<br />
12 Our offices
OUR APPROACH<br />
01<br />
Our approach<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> is a leading<br />
international law firm with offices in major<br />
financial centres in Europe, Asia and the USA<br />
We have the skills to manage a wide range<br />
of corporate and finance transactions, and<br />
disputes, and to provide our clients with the<br />
high quality advice they require. We have<br />
teams which are integrated across legal<br />
disciplines and offices so that a consistent<br />
level of service can be provided on all<br />
matters, in each jurisdiction and in<br />
combination across borders.<br />
We continually invest in developing our<br />
expertise and reputation in the sectors we<br />
know best: <strong>Finance</strong> & Investment, Maritime,<br />
Energy, Natural Resources, Transport, Real<br />
Estate and ICT.<br />
We establish candid, open relationships<br />
with our clients and take the time to<br />
understand their businesses. We generally<br />
work in small, partner led teams where our<br />
sector knowledge and experience enable us<br />
to provide effective, commercially focused<br />
advice.<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
02 OUR AVIATION PRACTICE<br />
Our aviation practice<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> has an aviation<br />
finance team that is at the forefront of the<br />
industry. Through our constant sector<br />
involvement we have developed thorough<br />
specialised knowledge, which allows us to<br />
develop innovative and commercially focused<br />
services for our clients.<br />
ʺ...praised for<br />
providing a Rolls‐<br />
Royce service which<br />
you donʹt get from<br />
some of the bigger<br />
players.ʺ<br />
Chambers UK 2013<br />
Our clients<br />
We work with clients throughout the aviation industry,<br />
including: export credit agencies, financial institutions,<br />
arrangers, investors, manufacturers, owners, aircraft and<br />
engine leasing companies, airlines, insurers and tour<br />
operators.<br />
Our aircraft finance practice operates as an integrated<br />
cross‐border practice and provides a comprehensive legal<br />
service to all participants in the aviation sector including<br />
tax advice if required.<br />
Recent examples of our lawyersʹ work have seen us<br />
support clients in the aviation industry with matters in the<br />
following locations, amongst others: Albania, Armenia,<br />
Australia, Austria, Belarus, Brazil, Brunei, Burkina Faso,<br />
Czech Republic, Chile, China, Finland, France, Germany,<br />
Greece, Iceland, India, Indonesia, Ireland, Italy, Jordan,<br />
Kazakhstan, Madagascar, Malaysia, Mali, Mexico,<br />
Netherlands, New Zealand, Norway, Oman, Poland,<br />
Portugal, Russia, Singapore, Spain, Sweden, Switzerland,<br />
Tanzania, UAE, Uganda, Ukraine, USA and Vietnam.<br />
We take the time to understand our clientsʹ businesses and<br />
the industries in which they operate.
OUR AVIATION PRACTICE<br />
03<br />
Our services<br />
The skilled and dedicated lawyers in our aviation team<br />
provide a variety of legal and tax services to the industry,<br />
including:<br />
><br />
><br />
><br />
><br />
><br />
><br />
><br />
><br />
><br />
><br />
><br />
aircraft acquisitions and sales<br />
operating leases<br />
financing operating lease portfolios and single operator<br />
structures<br />
structured finance<br />
tax efficient structures<br />
ECA backed financings<br />
Islamic financings<br />
credit enhancement techniques<br />
offshore finance leases<br />
tax leases<br />
capital markets<br />
A key strength of our aviation team is its depth of industry<br />
experience and its ability to adapt to evolving markets.<br />
As from 3 June 2013<br />
<strong>Watson</strong>, <strong>Farley</strong> &<br />
<strong>Williams</strong> has been<br />
appointed to the ECA<br />
legal panel for Airbus<br />
transactions.<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
04 SELECTED AVIATION EXPERIENCE<br />
Selected aviation experience<br />
<strong>Aviation</strong><br />
<strong>Finance</strong><br />
Experience<br />
Portfolio Financing<br />
><br />
><br />
Advising CA‐CIB on a<br />
US$750m facility for Aercap<br />
for 29 aircraft leased to<br />
various airlines<br />
Advising CA‐CIB, Deutsche<br />
Bank and KfW on a US$450m<br />
facility for 21 aircraft leased to<br />
TUI<br />
Portfolio Financing<br />
><br />
><br />
Advising Alitalia on the<br />
financing and refinancing of<br />
23 Airbus aircraft and nine<br />
CFM engines<br />
Advising the financiers on the<br />
financing of 10 ATR aircraft<br />
for Kingfisher<br />
European ECAs<br />
> Advising on two separate<br />
financings of A320 family<br />
aircraft for RBS Aerospace<br />
> Advising on the financing of<br />
five A320 aircraft for a Central<br />
Asian carrier.<br />
US Exim Bank<br />
><br />
><br />
Advising on the French tax<br />
lease and PEFCO financing of<br />
eight Boeing 737 aircraft for<br />
THY Turkish Airlines<br />
Advising on the lease<br />
financing of five Boeing<br />
aircraft for GOL<br />
PDP Financing<br />
><br />
><br />
Advising DBS on the PDP<br />
financing of 10 A320 aircraft<br />
for Tiger Airways<br />
Advising NordLB on the PDP<br />
financing of 12 A320 aircraft<br />
for Hamburg International<br />
PDP Financing<br />
><br />
><br />
Advising Deutsche Bank and<br />
KfW on the financing of 12<br />
A340 aircraft for Swiss<br />
Airways<br />
Advising Air Astana on the<br />
PDP financing of four B767<br />
aircraft from UTF and one<br />
E190 aircraft from BNDES<br />
Limited Recourse Financing<br />
><br />
><br />
Advising CA‐CIB on the<br />
financing of an A330 aircraft<br />
for Aercap on lease to<br />
Aeroflot<br />
Advising CA‐CIB on the<br />
financing of an A320 aircraft<br />
for Avolon on lease to IndiGo
SELECTED AVIATION EXPERIENCE<br />
05<br />
Securitisations<br />
Securitisations<br />
Structured Financing<br />
> Advising BNP Paribas on the<br />
> Advising Iberia and the issuer<br />
structuring, rating and launch<br />
on ʺIberbondʺ securitisation<br />
of the first ever corporate<br />
> Advising Credit Lyonnais on<br />
bond secured by London<br />
Air Franceʹs securitisation of<br />
Heathrow boarding and takeoff<br />
various aircraft<br />
slots<br />
><br />
><br />
Advising BNP Paribas and a<br />
syndicate of lenders on a<br />
JOLCO financing of one B777<br />
for Air New Zealand<br />
Advising syndicates and<br />
banks on JOLCO financings<br />
of aircraft for Air France<br />
Structured Financing<br />
><br />
><br />
Acting for Singapore Airlines<br />
on GOL financings for three<br />
A380 aircraft including an<br />
innovative ASPV GOL<br />
structure<br />
Acting for SilkAir on the JOL<br />
financing of five A320 aircraft<br />
Structured Financing<br />
><br />
Acting for Deutsche Bank on<br />
the index linked financing of<br />
two B757‐200 aircraft for<br />
Icelandair<br />
Islamic Financing<br />
><br />
Advising BNP Paribas and a<br />
syndicate of Middle Eastern<br />
investors on the Sharia<br />
compliant sale and Ijaara<br />
leaseback of two Embraer<br />
corporate jets for a Middle<br />
Eastern airline<br />
Acquisition, Leasing and<br />
Financing<br />
> Advising Singapore Airlines<br />
on the acquisition, leasing and<br />
financing of 19 A380 aircraft,<br />
A350 aircraft, and A330<br />
aircraft and a further 15 A330s<br />
> Advising Jetbird on the<br />
acquisition and financing of<br />
100 Phenom aircraft<br />
Business Jet Financing<br />
Business Jet Financing<br />
Flight Simulator<br />
><br />
Advising BNP Paribas,<br />
RBS and Bank of America<br />
Merrill Lynch on business jet<br />
financings for individuals and<br />
corporates<br />
><br />
Advising Bank of America<br />
Merrill Lynch on a warehouse<br />
facility for a business jet<br />
portfolio<br />
><br />
Advising the lender on the<br />
Atradius‐backed financing of a<br />
new Sim‐Industries flight<br />
simulator<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
06 SELECTED AVIATION EXPERIENCE<br />
Leasing<br />
Experience<br />
CIT Aerospace<br />
RBS <strong>Aviation</strong> Capital<br />
Amentum Capital<br />
Intrepid <strong>Aviation</strong><br />
><br />
Advising CIT Aerospace on<br />
operating lease and sale and<br />
leaseback transactions with a<br />
number of airlines worldwide,<br />
including carriers based in<br />
UAE, Brunei, UK, Indonesia,<br />
Singapore, Saudi Arabia and<br />
Norway<br />
><br />
Advising on the operating<br />
lease, sale and leaseback<br />
transactions with a number of<br />
airlines in a variety of<br />
jurisdictions, including<br />
Turkey, India, UK, New<br />
Zealand, Ireland and South<br />
Africa<br />
><br />
Advising Amentum Capital<br />
and HSH Nordbank AG on<br />
the leasing and financing of<br />
three A330 aircraft to Vietnam<br />
Airlines and two A320 aircraft<br />
to Volaris<br />
><br />
Advising Intrepid <strong>Aviation</strong> on<br />
the leasing of two A330<br />
aircraft to Air Namibia<br />
GECAS<br />
Macquarie<br />
Yamasa<br />
> Advising GECAS on the subleasing<br />
of multiple aircraft to<br />
operators in multiple<br />
jurisdictions<br />
><br />
Advising Macquarie on<br />
operating lease transactions<br />
with carriers based in Turkey,<br />
Italy and Ukraine<br />
><br />
Advising Yamasa on the<br />
leasing of two A330 aircraft to<br />
NACIL<br />
Air Astana<br />
Singapore Airlines/SilkAir<br />
Royal Jordanian<br />
><br />
><br />
Advising Air Astana on the<br />
leasing of a number of E190<br />
aircraft from various lessors<br />
Advising Air Astana on the<br />
operating lease of one B757<br />
aircraft<br />
><br />
Advising Singapore Airlines<br />
and SilkAir on the leasing of<br />
various aircraft in its fleet<br />
><br />
Advising Royal Jordanian on<br />
the leasing of three A330<br />
aircraft from Amentum Capital<br />
and HSH Nordbank AG
SELECTED AVIATION EXPERIENCE<br />
07<br />
Sale and<br />
Purchase<br />
Experience<br />
Air Astana<br />
><br />
Advising Air Astana on the<br />
purchase of two E190 aircraft<br />
(with further options) from<br />
Embraer<br />
LCI<br />
><br />
Advising LCI on the purchase<br />
of Bombardier C‐Series<br />
aircraft<br />
RBS <strong>Aviation</strong> Capital<br />
><br />
><br />
Advising RBS <strong>Aviation</strong><br />
Capital on the initial purchase<br />
of 20 A320 aircraft and 20<br />
B737 aircraft<br />
Advising RBS <strong>Aviation</strong><br />
Capital on the acquisition of<br />
51 aircraft from GECAS<br />
Manufacturers<br />
><br />
><br />
Advising a manufacturer on<br />
the sale and leaseback of over<br />
50 aircraft operated in more<br />
than 20 jurisdictions<br />
Advising a manufacturer on<br />
their conditional sale and the<br />
refinancing of an aircraft for an<br />
airline in Albania<br />
PMB and Malaysian Airlines<br />
> Advising PMB (parent<br />
company of Malaysian<br />
Airlines) and Malaysian<br />
Airlines on the renegotiation<br />
of their A380 purchase<br />
contract<br />
Insolvency and<br />
Restructuring<br />
Experience<br />
Macquarie<br />
HSH<br />
> Advising Macquarie on a > Acting for HSH and KfW on<br />
number of aircraft<br />
the repossession of two B747<br />
repossessions in Greece,<br />
aircraft in China<br />
Sweden, France, Italy,<br />
> Acting for HSH on the<br />
Belgium, Turkey and Thailand restructuring of financing<br />
arrangements with AWAS<br />
following airline default<br />
Export Credit Agencies<br />
><br />
Advising ECGD and<br />
COFACE on the restructuring<br />
of two ECA‐backed facilities<br />
for RBS Aerospace (now<br />
SMBC <strong>Aviation</strong> Capital) in<br />
connection with the sale by<br />
RBS Plc of its aircraft leasing<br />
platform.<br />
Export Credit Agencies<br />
><br />
><br />
Advising ECAs and lenders<br />
on the restructuring of Air<br />
Canada<br />
Advising COFACE and<br />
ECGD on the (re)leasing and<br />
sale/total loss of five Airbus<br />
A320 aircraft repossessed<br />
from an insolvent airline<br />
CIT Aerospace<br />
><br />
><br />
Advising on the restructuring<br />
of operating leases with<br />
Mandala and National<br />
<strong>Aviation</strong> Services<br />
Advising with respect to the<br />
administration of XL Airways<br />
and Fly Globespan<br />
AWAS<br />
><br />
Advising AWAS on the<br />
restructuring of a number<br />
of operating leases with<br />
certain carriers in India, Russia<br />
and China<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
08 REPUTATION<br />
Reputation<br />
“[WFW] is praised for<br />
its ability to co‐ordinate<br />
and manage heavy<br />
workloads involving<br />
teams in several<br />
jurisdictions in an<br />
efficient and proactive<br />
mannerʺ.<br />
Legal 500 UK 2012<br />
ʺ<strong>Watson</strong>, <strong>Farley</strong> &<br />
<strong>Williams</strong> LLP can now<br />
lay claim to having<br />
one of the more<br />
balanced practices in<br />
the market across all<br />
asset classes.ʺ<br />
Legal 500 UK 2011<br />
“Very commercially<br />
minded and good value<br />
for money.”<br />
Chambers Europe 2012<br />
“...ʹexternal legal<br />
support is the best Iʹve<br />
seenʹ, enthused one<br />
client.”<br />
Chambers Asia 2012<br />
ʺ...commercial and<br />
pragmatic...ʺ<br />
Legal 500 UK, 2011<br />
ʺSuch a depth of<br />
resources, which means<br />
it is well suited to<br />
complex international<br />
work.ʺ<br />
Chambers USA, 2010<br />
Winner: <strong>Aviation</strong> Law<br />
Firm of the Year (UK<br />
and Thailand)<br />
ACQ Law Awards<br />
2011<br />
“In the aviation sector,<br />
the team offers a<br />
comprehensive range<br />
of finance advice to<br />
ECAs, financial<br />
institutions, arrangers,<br />
investors and insurers,<br />
amongst other clients.”<br />
Chambers Europe 2012
REPUTATION<br />
09<br />
“The firm has<br />
broadened its aviation<br />
practice...”<br />
Legal 500 Asia Pacific 2012<br />
Winner: Transport Law<br />
Firm of the Year in the<br />
UK<br />
Corporate INTL<br />
Awards 2011<br />
“...very analytical and<br />
experienced...”<br />
Legal 500 UK 2011<br />
“We love working with<br />
them and would<br />
recommend them.”<br />
Chambers Europe 2012<br />
“The firm has a<br />
personal approach and<br />
in‐depth knowledge of<br />
the owners and<br />
operators in the<br />
market.”<br />
ʺBright and capable<br />
lawyers.ʺ<br />
Chambers USA, 2010<br />
ʺOne of the main teams<br />
in Asia for [asset]<br />
finance work.ʺ<br />
Chambers Asia 2010<br />
Winner: International<br />
Law Firm of the Year<br />
The Lawyer European<br />
Awards 2012<br />
Chambers UK, 2010<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
10 TEAM MEMBERS<br />
Team members<br />
London<br />
Rex Rosales<br />
Partner<br />
London<br />
+44 20 7863 8975<br />
rrosales@wfw.com<br />
Jahnavi Ramachandran<br />
Partner<br />
London<br />
+44 20 7863 8976<br />
jramachandran@wfw.com<br />
Nicola Davies<br />
Partner<br />
London<br />
+44 20 7814 8408<br />
ndavies@wfw.com<br />
Michael Savva<br />
Solicitor<br />
London<br />
+44 20 7863 8994<br />
msavva@wfw.com<br />
Charlotte Bown<br />
Solicitor<br />
London<br />
+44 20 3036 9809<br />
cbown@wfw.com<br />
Lucy Shtenko<br />
Consultant<br />
London<br />
+44 20 7814 8224<br />
lshtenko@wfw.com<br />
Emi Dagogo<br />
Solicitor<br />
London<br />
+44 20 7814 8413<br />
edagogo@wfw.com<br />
Gary Walsh<br />
Solicitor<br />
London<br />
+44 20 7814 8410<br />
gwalsh@wfw.com<br />
Richard Stephens<br />
Tax Partner<br />
London<br />
+44 20 7814 8239<br />
rstephens@wfw.com<br />
Hamburg<br />
Klaus Schmid‐Burgk<br />
Consultant<br />
Hamburg<br />
+49 40 8080 3440<br />
kschmid‐burgk@wfw.com<br />
Clemens Hillmer<br />
Partner<br />
Hamburg<br />
+49 40 8080 3440<br />
chillmer@wfw.com<br />
Verena Scheibe<br />
Partner<br />
Hamburg<br />
+49 40 8080 3440<br />
vscheibe@wfw.com
TEAN MEMBERS<br />
11<br />
Paris<br />
Charles Viggers<br />
Partner<br />
Paris<br />
+33 1 56 88 21 21<br />
cviggers@wfw.com<br />
Eric Villateau<br />
Partner<br />
Paris<br />
+33 1 56 88 44 33<br />
evillateau@wfw.com<br />
Alexia Russell<br />
Solicitor<br />
Paris<br />
+33 1 56 88 44 38<br />
arussell@wfw.com<br />
Romain Girtanner<br />
Tax Partner<br />
Paris<br />
+33 1 56 88 21 49<br />
rgirtanner@wfw.com<br />
New York<br />
John Imhof<br />
Partner<br />
New York<br />
+1 212 922 2200<br />
jimhof@wfw.com<br />
Stephen Millman<br />
Partner<br />
New York<br />
+1 212 922 2205<br />
smillman@wfw.com<br />
Susanne Burstein<br />
Lawyer<br />
New York<br />
+1 212 922 2208<br />
sburstein@wfw.com<br />
Asia<br />
Siva Subramaniam<br />
Partner<br />
Singapore<br />
+65 6532 5335<br />
ssubramaniam@wfw.com<br />
Mehraab Nazir<br />
Partner<br />
Singapore<br />
+65 6551 9130<br />
mnazir@wfw.com<br />
Alan Polivnick<br />
Partner<br />
Bangkok<br />
+66 2 665 7805<br />
apolivnick@wfw.com<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
12 OUR OFFICES<br />
Our offices<br />
UK<br />
USA<br />
France<br />
Germany<br />
Italy<br />
London<br />
New York<br />
Paris<br />
Hamburg<br />
Rome<br />
15 Appold Street<br />
London EC2A 2HB<br />
Tel: +44 20 7814 8000<br />
Fax: +44 20 7814 8141<br />
1133 Avenue of the<br />
Americas<br />
New York, NY 10036<br />
Tel: +1 212 922 2200<br />
Fax: +1 212 922 1512<br />
26, avenue des<br />
Champs‐Elysées<br />
75008 Paris<br />
Tel: +33 1 56 88 21 21<br />
Fax: +33 1 56 88 21 20<br />
Jungfernstieg 51<br />
20354 Hamburg<br />
Tel: +49 40 800 084 0<br />
Fax: +49 40 800 084 410<br />
Piazza Navona, 49<br />
2nd Floor int 2/3<br />
00186 – Rome<br />
Tel: +39 06 68 40 581<br />
Fax: +39 06 68 89 2717<br />
Munich<br />
Milan<br />
Gewürzmühlstraße 11<br />
80538 Munich<br />
Piazza del Carmine 4<br />
20121 – Milan<br />
Tel: +49 89 237086 0<br />
Fax: +49 89 237086 222<br />
Tel: +39 02 721 70 71<br />
Fax: +39 02 721 70 720<br />
Frankfurt<br />
Ulmenstraße 37‐39<br />
60325 Frankfurt am Main<br />
Tel: +49 69 297 291 0<br />
Fax: +49 69 770 75800
OUR OFFICES<br />
13<br />
Spain<br />
Greece<br />
Singapore<br />
Thailand<br />
China<br />
Madrid<br />
Athens<br />
Singapore<br />
Bangkok<br />
Hong Kong<br />
Maria de Molina, 4<br />
28006 Madrid<br />
Tel: +34 91 515 6300<br />
Fax: +34 91 563 1630<br />
6th Floor, Building B,<br />
348 Syngrou Avenue,<br />
Kallithea 176‐74,<br />
Athens<br />
Tel: +30 21 0455 7300<br />
Fax: +30 21 0459 4004<br />
6th Floor, Building B,<br />
348 Syngrou Avenue,<br />
Kallithea 176‐74,<br />
Athens<br />
Tel: +65 6532 5335<br />
Fax: +65 6532 5454<br />
Unit 902, 9th Floor,<br />
GPF Witthayu Tower B<br />
93/1, Wireless Road<br />
Patumwan, Bangkok<br />
10330<br />
Tel: +66 2 665 7800<br />
Fax: +66 2 665 7888<br />
Units 1703‐1707<br />
One Pacific Place<br />
88 Queensway<br />
Hong Kong<br />
Tel: +852 2168 6700<br />
Fax: +852 2918 9777<br />
All references to ‘<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong>’ and ‘the firm’ in this brochure mean <strong>Watson</strong>, <strong>Farley</strong> &<br />
<strong>Williams</strong> LLP and/or its affiliated undertakings. Any reference to a ‘partner’ means a member of<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> LLP, or a member or partner in an affiliated undertaking, or an employee<br />
or consultant with equivalent standing and qualification. The transactions and matters referred to<br />
in this publication represent the experience of our lawyers.<br />
This brochure is produced by <strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong>. It provides a summary of the legal issues,<br />
but is not intended to give specific legal advice. The situation described may not apply to your<br />
circumstances. If you require advice or have question or comments on its subject, please speak to<br />
your usual contact at <strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong>.<br />
This publication constitutes attorney advertising.<br />
100‐000‐2345 LON 03/01/2014<br />
© <strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> 2013<br />
<strong>Watson</strong>, <strong>Farley</strong> & <strong>Williams</strong> <strong>Aviation</strong> <strong>Finance</strong>
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