Legal Flight Deck

The latest market insights, analysis and commentary from the Reed Smith aviation finance team

A 2017 survey showed that just 3% of airline chief executives are female, against the FTSE 100’s 7% at the same time. As of the middle of 2018, only 12 of the 286 IATA member airlines were led by women – a mere 4%. And with the future of Flybe under question at the time of writing, this number may yet be reduced.…
The Hong Kong conferences are over for another year, and our Aviation Finance team had another very productive week at the various sessions. It was great to see so many familiar faces and connect with new people, and doing so in what is fast becoming one of the world’s new aviation finance powerhouse jurisdictions gave the meetings a real buzz.…
Aviation seems to be facing a fuel-related existential crisis at the moment, as pressures mount on the industry from various angles. Within asset finance generally the major discussion is the looming bite of the IMO 2020 regulations, which will reduce the amount of sulphur permitted in ship fuel oil to a limit of 0.50 per cent mass by mass from 1 January 2020. Aside from the huge impact this will have on the world’s vessel…
In this blog post we take a brief look at export credit agency (“ECA”) supported finance in the asset finance industry, and the development of a new template loan agreement by the UK’s Loan Market Association. The role of the ECAs  ECA finance describes transactions where states (whether by direct sovereign bodies or by separately mandated organisations) provide (financial) support to would-be purchasers of certain goods or equipment constructed in that ECA’s home jurisdiction. ECA…
The heatwave may be over but the wave of August out-of-office responses is still building, so rather than post about controversial redelivery conditions or the fascinating behaviour of interest rates, and prompted by the striking intersection of aviation and literature recently, we thought it seemed high time to offer Legal Flight Deck: The Summer Reading Edition. You’re welcome.…
The Reed Smith Aviation team were out in force for FIA 2018. It’s always nice to be able to catch up with clients and old industry friends from across the globe on our own doorstep – and even better when it’s in the middle of a heatwave! New orders Boeing’s executives are likely to be flying back to Seattle feeling very pleased with the week’s work, having secured/announced $79 billion in orders during the show.…
Summary In last week’s case of Triple 7 MSN 27251 Ltd v. Azman Air Services Ltd,[1] Azman Air Services argued that two aircraft lease agreements were void under the English law doctrine of common mistake. The High Court considered this question and found that common mistake is only sufficient to void a lease agreement (or any other contract) where: the mistaken assumption on which the parties acted was fundamental to the contract; and the…
According to PWC research, half of the world’s workforce will be millennials (people born between 1980 and 1995) by 2020. It is also estimated that over the course of the ‘Great Wealth Transfer’ occurring over the coming 30 years, this generation will inherit wealth to the value of $30 trillion. A lot of editorial ink has been spent on the analysis of millennials, especially on the ways in which their spending habits differ…
The green button has been pressed – airlines are placing orders for turboprop aircraft at top speed. With high velocity, low thrust and the exciting potential of 3D printing, will turboprops make their return to the “hot spot”? In the constant search for efficiency and ways to generate revenue, there are many advantages to this kind of aircraft and more in store as new technologies highlight the possibilities – some of which are already being…
The aviation industry is a major contributor to the world’s carbon emission and greenhouse gas problem, generating 2% of the world’s carbon dioxide emissions and estimated to account for 3% by 2050. The UK’s aviation sector, for example, was responsible for 34 million tonnes of CO2 emissions in 2012, a figure forecast to rise to 43.5 million tonnes by 2030 [1]. The huge volume of commercial aviation activity, the long distances we now travel,…