What is aviation finance?

Aviation finance refers to the structuring of capital used to acquire, lease, and operate aircraft across multiple jurisdictions. It encompasses a range of financing and leasing models—such as operating leases, secured loans, and capital markets instruments—designed to support airlines, lessors, and investors while addressing complex regulatory and cross-border considerations.

Why are SPVs used in aviation finance?

SPVs (Special Purpose Vehicles) isolate assets, reduce risk, and enable structured financing arrangements involving multiple stakeholders.

What does a security agent do in aviation finance?

A security agent acts on behalf of lenders to hold and administer security interests tied to the aircraft or related assets. They coordinate communication and decision-making among stakeholders, manage collateral, and oversee enforcement actions in the event of default, ensuring alignment across multi-lender structures.

Why are escrow services used in aviation finance?

Escrow services are used to securely manage the exchange of funds and documents during aviation transactions, such as aircraft acquisitions, deliveries, and refinancings. By releasing assets only when predefined conditions are met, escrow arrangements reduce counterparty risk and provide greater certainty and transparency in complex, multi-party closings.