The ability to restructure loans and leases is an integral part of aircraft lending and leasing – often resulting in the best solution for the lender and lessor. Whether through experiencing an economic downturn or for reasons far beyond their control, airlines welcome their counterparty lenders’ or lessors’ willingness to restructure their contractual obligations. Fiscally responsible lenders and lessors with an eye to the future acknowledge that airlines will remember those partners who were there to support them in their moment of need.
STAR Aero Services has over 20 years’ experience restructuring delinquent airline accounts.
Default & Repossession is always the last recourse.
Restructuring strategy is specific to the viability of the airline, with consideration to:
- Government and stakeholder support
- Current cash on-hand
- Actions undertaken by the airline to navigate crisis
- Long-term fleet plans
Options, depending upon the airline’s needs and lender’s and lessor’s financial requirements, include:
- Rent abatement
- Deferral
- Reduction with extensions
- Security deposits and maintenance reserves
Balance airline’s needs against lender’s and lessor’s short, medium, and long-term financial requirements