Aviation Finance & Leasing

Special purpose vehicles (SPVs) are commonly employed in cross-border aviation finance transactions, and can be a particularly useful structuring tool for both owners and financiers. In their most basic form, they offer a way to hold an aircraft within a corporate structure, providing a degree of separation between the owner/operator and the aircraft. In more sophisticated financing and leasing transactions, however, it is common to see an “orphan” or “off-balance sheet” structure used, offering a number of additional benefits. Wherever an SPV structure is required, the stable political climate, flexible corporate regime and established and creditor friendly legal system offered by the Cayman Islands makes it an ideal choice of jurisdiction for establishing the SPV.

The Cayman Islands are recognised as a leading international financial centre, combining a well-established, stable and trusted legal and political framework with a flexible yet robust corporate regime, creditor-friendly laws and a tax neutral environment. These are all important considerations for both owners/operators and financiers when determining where to establish their aircraft-owning SPV.