Asian Sky Quarterly 2021Q1
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COMMENTARY: CLYDE & CO<br />
(ii) often have existing (and long term) professional advisors who<br />
also may not be experienced in aircraft transactions; and<br />
(iii) often under-estimate the personnel resources needed to effectively<br />
execute their first aircraft transaction.<br />
Coping with and re-skilling these challenges can be an uphill<br />
battle, particularly in circumstances where one or more parties<br />
are already desperate to complete the transaction due to other<br />
pandemic pressures. Unless a customer has credible and experienced<br />
advisors actively supporting and managing their transaction,<br />
there is a greater risk a transaction may fail.<br />
Many reputable aircraft brokers, banks/financiers and aircraft<br />
managers/operators are very good at dealing with first time aircraft<br />
customers and have adapted their services to pandemic circumstances<br />
(for example, using real-time and recorded video to<br />
replace inspection visits and to offer new entrants professional<br />
support and educational materials). Likewise, many other professional<br />
advisors such as lawyers, tax and technical advisors are<br />
tailoring their services to handle new transactions in the pandemic<br />
circumstances.<br />
Reflection and Opportunity<br />
For many organisations, the pandemic has provided an opportunity<br />
to reflect on the due diligence which they conducted on borrowers<br />
and guarantors before they entered into transactions and how<br />
they monitor transactions on an ongoing basis. The pandemic<br />
is also causing organisations to review the protection sought<br />
contractually and through contingency planning to either prevent<br />
debts arising in the first place or to make it easier to recover them<br />
when the best opportunities arise. The Aviation Practice at Clyde<br />
& Co regularly conducts audits on contracts, advises on contingency<br />
planning and recoveries. As Winston Churchill is credited<br />
with first saying, “Never let a good crisis go to waste.” Have you?<br />
www.clydeco.com<br />
Stuart Miller and Peter Coles are Partners in the APAC Aviation Practice of law firm Clyde & Co.<br />
Peter Coles<br />
Partner, Hong Kong<br />
E: Peter.Coles@clydeco.com<br />
T: +852 2287 2721<br />
Stuart Miller<br />
Partner, Hong Kong<br />
E: Stuart.Miller@clydeco.com<br />
T: +852 2287 2717<br />
Clyde & Co accepts no responsibility for loss occasioned to any person acting or refraining from acting<br />
as a result of material contained in this summary. No part of this summary may be used, reproduced,<br />
stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying,<br />
reading or otherwise without the prior permission of Clyde & Co.<br />
© Clyde & Co LLP 2021<br />
FIRST QUARTER 2021 — ASIAN SKY QUARTERLY | 19
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