Finance, Taxes, Insurance
Fortis offers structured finance to buy a plane
Given the bucks or the ability to borrow them, buying a business jet ought to be a straightforward affair.

Given the bucks or the ability to borrow them, buying a business jet ought to be a straightforward affair. And if you don’t care about the potential downsides, it may be. But the typical business aircraft transaction involves a multinational cast of players and a plethora of contracts to go with them.

Stefan Müller, CEO of Lausanne-based Fortis Lease Suisse, said that its structured air finance offering is based on a tripartite agreement with the first element being a leasing agreement. This is the main contract that establishes the relation between the lessee, typically a special purpose vehicle (SPV) that acts as the representative of the economical owner, and the lessor. The beneficial owner will supply guarantees and will pledge SPV shares, since the aircraft is the property of the lessor.

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