What Are Air Registers?

Aircraft leasing is one of the important areas of leasing. The airline (or lessee) selects a certain type and number of aircraft from the leasing company (or directly from the manufacturer) and signs an agreement with the leasing company (or lessor) on the lease of aircraft. . During the lease period, the legal owner of the aircraft, namely the lessor, transfers the right to use the aircraft to the lessee, who obtains the right to use the aircraft at the cost of paying the rent on time.

Aviation lease

In recent years,
Dry Lease: Any lease through which the lessor (which may be an air operator, a bank, or a charter company) only provides the aircraft to the lessee (air operator), but does not provide flight crew. The dry lease is usually under the operation control of the lessee.
Wet lease: Any lease through which the lessor (air operator) provides the aircraft to the lessee (air operator) and provides at least one flight crew by agreement. Wet leases are usually under the operational control of the lessor.
Lessor: The party that provided the aircraft in a lease.
Aviation lease (5 photos)
Lessee: The party using the aircraft in the lease.
The terms dry lease and wet lease originally originated from the aviation industry, and other leasing businesses were also extended from these two businesses. The biggest difference between dry and wet leasing is that dry leasing only provides financial financing for aircraft; wet leasing not only provides financial financing for aircraft, but also provides necessary fuel, crew, maintenance and other support.

Aviation lease registration

It is a question about the registration of dry lease and import of used aircraft. There are generally two types of registration for dry-leasing aircraft. One is to register in the country where the aircraft owner (lessor) is located, and use the nationality mark and registration mark of the country where the lessor is located; the other is to use the aircraft owner (lessee). Home country registration, using the nationality sign and registration of the tenant's home country.
Aircraft registration in the country of the lessor can be inconvenient. For example, the Beijing Administration of China s former civil aviation (that is, the reformed China International Airlines) leased two B747SP aircraft from the United States and was registered in the United States. Their nationality marks and registration marks are N1301E and N1304E. Regulations. For example, the maintenance agency must be approved by the FAA, aircraft release personnel must hold the FAA's A & P license, and so on. Because of these regulations, we have to spend a lot of money to commission Pan Am to repair and release the aircraft. In addition, they will regularly fly to the United States for inspection by the FAA.
Aircraft registration in the country of the lessee (aircraft operating country) is the best option. The aircraft is registered in the country of operation and is under the jurisdiction of the country's airworthiness department. The relationship is relatively smooth and its airworthiness is easily controlled, which is conducive to ensuring safety. At present, the vast majority of aircraft leased in our country are registered in China, with Chinese nationality and registration marks.
Prior to the transfer of nationality of an imported aircraft, airworthiness inspections are required, and registration is permitted only after meeting the airworthiness requirements of the newly registered country. The Airworthiness Department of the Civil Aviation Administration of China also has specific regulations in this regard.

Aviation Leasing Aircraft Leasing Process

The working procedure of aircraft leasing has the following links:
1. Make an application. Aviation requires aircraft leasing according to transportation needs. First, it is necessary to submit a request for adding aircraft in the form of a feasibility study report to the General Administration of Civil Aviation of China, including the corresponding financing methods. It is formally approved by the Commission and airlines can formally negotiate with foreign investors.
2. Order aircraft and purchase transfers. According to the documents approved by the state, China Aviation Equipment Corporation and airlines will conduct unified external negotiations. And signed an aircraft purchase contract with the aircraft manufacturer. The airline should contact a foreign bank or leasing company at least three months before the aircraft is delivered. After the airline entrusts a bank consortium or a leasing company to arrange the lease, China Aviation Equipment Corporation and the airline will transfer the purchase contract to the lessor, and the lessor will pay the purchase price to the aircraft manufacturer, and then lease the aircraft to the airline .
3. External bidding. Airlines invite tenders externally, but do not issue bid invitation notices, nor sign any form of written certification documents, such as letters of intent and power of attorney. During normal contact with airlines and foreign businessmen through airlines, they consciously disclose information about ordering aircraft to foreign businessmen, such as the type and number of aircraft and engines leased; aircraft specifications, delivery dates, and lease terms.
4. Program evaluation. Airlines based on the financing proposals provided by banks and leasing companies, listed the main terms and compared them one by one, and carried out a comprehensive evaluation of each proposal. Leases with more bids need to be reviewed 1-2 times to gradually reduce the scope of consideration. Then, several better proposals were negotiated with foreign investors until an economic, safe, and reliable solution was selected. The evaluation of the scheme involves the following aspects: lease term, currency and exchange rate risk, investment and loan ratio, period-end purchase value, net present value, lease rate, and loan interest rate of the bidder's credit.
5. Issuance of Power of Attorney: The airline will submit the final selected plan to the CAAC for approval after strict review and scientific evaluation. After approval, the airline will send the plan negotiated with the foreign business to the foreign business in the form of a power of attorney And hire an internationally influential law firm with experience in aircraft leasing to review the lease documents drafted by the lessor, and at the same time inform the lawyer of the contents and requirements of the power of attorney so that the lawyer will be relevant to the lessor and the lease according to the intention of the airline All parties discuss all documents. If new problems are discovered, the lawyer must consult with us before negotiating with the other party.
6. Set a work schedule. After issuing the power of attorney, the airline should determine the following work schedules with participants such as arrangers, banks, and investors: the date of commitment for investment and loans, the date of completion of the first draft of the aircraft lease document, the date of the first consultation document, and the amendment Manuscript distribution date, second consultation document date, and contract signing date.
7. Working procedures of the lessee. The charterer's work procedures mainly include: reviewing the insurance, guarantee and legal opinion form, economic calculation part and liability guarantee part; preparing relevant prerequisite documents for aircraft leasing and going through relevant formalities, such as authorization letter, aircraft nationality registration commitment letter, concession Flight certificate, bank guarantee letter, insurance policy, lawyer's opinion, etc.
8. Signing and delivery of aircraft. After the transaction parties have negotiated and reviewed the documents, they can formally sign the agreement if there are no differences. Within 30 days after signing the contract, foreign debt registration shall be performed with the State Administration of Foreign Exchange, a foreign debt registration certificate shall be obtained, and the guarantee bank shall be required to sign a letter of confirmation for the transfer of a guarantee letter and an insurance company to sign a notice of insurance transfer.

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