Asian Sky Quarterly 2019 Q2

INTERVIEW: YAO ZHOU
• Tianjin Free-Trade Zone now encourages outbound leasing (i.e. lessor
being a Tianjin FTZ Special Purpose Vehicle and lessee being an
offshore entity). This would provide more (creative) options for the
market players when designing deal structures.
• For domestic transactions, we understand escrow arrangements are
now possible since the Insured Aircraft Title Service (IATS) is now
able to provide escrow services within China. This comes at the right
time when Chinese clients are looking for escrow agents in China
who can provide similar escrow services to the offshore corporate
jet market.
How do you continue to offer clients support
during this uncertain period?
Periods of political or economic uncertainty often causes uncertainty
with our clients. In addition to closely monitoring the latest
developments of events, such as the US-China Trade War or China’s
economic situation, we design creative deal structures to help ease our
clients. Often in situations like this, we cannot find answers in black and
while law, but we have to rely on our experience and industry knowledge.
I always stress to my team that we must speak the same language as
our clients – that is, we must know the industry and the economic /
business situation as well — and even better — than our clients. Only
this way we can provide the most suitable legal service.
What advice can you offer to those looking
to acquire an aircraft?
To start, a client must know exactly what type of aircraft he or she
wants and what the use is. Many times, clients have not gotten passed
that initial point.
However, my best advice is to seek professional counsel. Acquiring an
asset, such as an aircraft, requires a great deal of time and work. Clients
can be bogged down with paperwork and overwhelmed by the process.
Having a professional on your side helps to mitigate risks and ultimately
cuts down on costs.
At Dentons Beijing, we find that because we specialize in aviation, we’re
able to answer the questions before the questions are even asked.
www.dentons.com Contact: yao.zhou@dentons.cn
16 | ASIAN SKY QUARTERLY — SECOND QUARTER 2019