Aviation Finance Gets a Smart Update for a Risky World
A Bold Step Forward
Aircraft Finance Lease (AFL) has launched a fresh approach to aircraft leasing and financing. This isn't just a minor adjustment—it's a major overhaul designed to address the geopolitical and legal risks disrupting global aviation.
Clarity and Enforceability
The new strategy focuses on:
- Clearer lease contracts that are enforceable across different regions.
- Tailored financing structures to meet the unique challenges of each market.
Recent events have exposed the flaws in traditional leasing assumptions, making this update crucial.
Lessons from the Russia-Ukraine Conflict
The conflict left many aircraft stuck under sanctions, revealing gaps in insurance and recovery processes. Courts have since emphasized the need for:
- Precise contract language
- Careful consideration of jurisdiction
AFL's updated framework incorporates these lessons by refining:
- Definitions related to war risks
- Loss triggers
- Governing law
It also aligns insurance structures with recent court rulings.
Expanding Horizons
AFL isn't just focusing on established markets. It's also targeting growth in:
- Southeast Asia: Booming low-cost carriers and passenger demand.
- India: Regulatory developments aligned with the Cape Town Convention, increasing confidence among lessors and financiers.
In these regions, AFL emphasizes:
- Flexible financing
- Locally informed legal structuring
- Technical expertise
A Commitment to Risk-Aware Growth
Founded in 2019, AFL operates at the intersection of aircraft engineering, finance, and contract structuring. The company's latest initiative demonstrates a commitment to risk-aware growth, prioritizing durability over rapid expansion.
Building Resilience in Aviation Finance
In a world where legal, technical, and commercial decisions must align, AFL is adapting to build resilience in aviation finance.
