IATA Aircraft Lease Guidance

Table of Contents
List of Figures ............................................................................................................................................................. vii
List of Tables .............................................................................................................................................................. ix
Abbreviations .............................................................................................................................................................. xi
Scope
Introduction
............................................................................................................................................................. xv
............................................................................................................................................................ xvi
Section 1— Background ................................................................................................................................................ 1
1.1 Maintaining Asset Value .............................................................................................................................................................2
1.2 Common Misunderstandings ...................................................................................................................................................2
1.2.1 Back-to-Birth Traceability .................................................................................................................................................. 3
1.2.2 Repairs ......................................................................................................................................................................................... 4
1.2.3 Records Presentation ........................................................................................................................................................... 5
Section 2— Pre-Delivery .............................................................................................................................................. 6
2.1 Letter of Intent ................................................................................................................................................................................. 6
2.2 Representations and Warranties ............................................................................................................................................ 7
2.3 Conditions Precedent .................................................................................................................................................................. 8
2.4 Insurance ........................................................................................................................................................................................... 9
2.4.1 Hull Insurance .......................................................................................................................................................................... 9
2.4.2 Liability Insurance ................................................................................................................................................................. 10
2.5 Payment and Security ................................................................................................................................................................ 10
2.5.1 Security Deposit ......................................................................................................................................................................11
2.5.2 Commitment Fee ....................................................................................................................................................................11
2.5.3 Rent .............................................................................................................................................................................................. 12
2.5.4 Supplemental Rent or Maintenance Reserves (if applicable) ......................................................................... 12
2.5.5 Maintenance Reserve Deposit ........................................................................................................................................ 15
2.5.6 End of Lease Compensation ............................................................................................................................................ 15
2.5.7 Letter of Credit ........................................................................................................................................................................ 16
2.6 Cape Town Convention ............................................................................................................................................................. 16
Section 3— Delivery .................................................................................................................................................... 18
3.1 Delivery Conditions ...................................................................................................................................................................... 18
3.1.1 Technical Aspects for Delivery ....................................................................................................................................... 18
3.1.2 Delivery of New Aircraft ..................................................................................................................................................... 19
3.1.3 Delivery of Used Aircraft ................................................................................................................................................... 20
4 th Edition 2017 i