At any price?

摘要

The prevailing truths for operating leasing are frustrating for lessors but are nonetheless cyclical truths with which they have to live. The situation is not improved by the entry of airlines into bankruptcy protection mechanisms and the negotiation of lease rates within that protection down to alarming levels. While it would seem, on a simplistic level, that airlines hold all the trump cards - even if many are fighting their own battle on the liquidity front - there are a number of checks and balances that will bring common sense to bear in the negotiation of a lease contract, albeit that such deals are few and far between at present. If anyone is exposed to the vagaries of the market from all the parties' points of view it is the air finance lawyers retained to represent the airline, lessor, financier or perhaps even the manufacturer. They will have seen it all - often arguing one point when representing one party one day and then arguing the reverse on another deal the next. They are well placed to comment on how good the airlines have it from a negotiating point of view and how far a lessor is prepared to go in this environment.