It's an important week for aircraft financing and leasing as the Global Aircraft Trading System (GATS) has gone live. The system will modernise aircraft trading and financing and reduce current inefficiencies in aviation financing transactions.
A&L Goodbody's Aviation & Transport Finance team has been heavily involved in GATS from the start. The team worked on drafting the Irish law GATS standard form documents as part of their role as the Irish appointed law firm to work with the Aviation Working Group (an industry body made up of the world's largest aircraft leasing companies, financing banks and manufacturers).
David Berkery, Partner, Aviation & Transport Finance commented: "GATS is by far the most significant innovation to facilitate aircraft trading and leasing in decades. It will significantly increase the efficiency of trading commercial aircraft subject to leases to airlines. The historic approach typically involved months of tripartite negotiations of lease novations between the buyer, the seller and the airline who is leasing the aircraft. GATS also moves the process of trading aircraft to a wholly-electronic platform, embracing digital signatures and increasing transparency in the industry by providing a searchable on-line ledger of ownership."
Marie O'Brien, Partner and Head of Aviation & Transport Finance, said, "GATS is particularly important for many Irish companies as Ireland is the global hub for aviation finance. More than 50% of the aircraft leased to airlines globally are owned by Irish companies. Being so involved with the Aviation Working Group on the GATS project underlines our market leading position in international aviation finance."