Negotiating Aircraft and Engine Lease Agreements Effectively

Identify and prioritize lease agreement points correctly, acknowledge acceptable fallback positions, and recognize next best alternatives.


Language: English
Category: Aircraft Leasing
Duration: 3 days

Course description

Aircraft leasing is an alternative financing method for many airlines as owning aircraft can rack up to expenses starting at $89 million a piece. So, aircraft leasing companies are slowly becoming the backbone which makes commercial aviation possible and attainable for an everyday traveler.


The leasing industry has also shown its strength and adaptability during the last couple of years and it has demonstrated that such financial support as aircraft leasing is critical for the aviation industry.


While the aircraft leasing sector has grown dramatically over the last several decades, the years of the pandemic have really sped up the expansion of the leased fleet of airlines.


This course will examine the key points to consider in negotiating aircraft lease agreements in a changed commercial aircraft leasing environment, covering:


  1. what can and cannot be achieved
  2. what are acceptable fallback positions
  3. and the importance for both parties to reach an agreement throughout the lease period of the aircraft


Participants, with guidance from our experienced instructor will go over:


  1. letter of intent negotiation
  2. structuring of the lease deal
  3. negotiating the provisions of the aircraft lease agreement itself


At the end of the course, you will have a sound basis for protecting your interests while reaching agreement. The course will also consider the leasing of aircraft engines.


Participants enrolled to this class will get access to the Aircraft Financing and Leasing Fundamentals course 14 days before class starts and it is strongly recommended, they complete it before day one of the course.


Learning outcomes

By the end of this class, participants will be equipped to:


  1. Distinguish between aircraft and engine lease types and their financial and operational impacts
  2. Evaluate key risks and rewards in lease negotiations under different deal structures
  3. Interpret and negotiate essential lease clauses, conditions, and covenants
  4. Apply negotiation strategies and tactics suited to aviation transactions
  5. Use case study insights to inform real-world negotiation decision-making

Who should attend

  1. Airline managers and staff handling aircraft and engine lease negotiations
  2. Aircraft trading consultants and brokers seeking deeper industry insight
  3. Legal professionals looking to better understand the practical concerns of aviation clients
  4. Aircraft leasing company staff who wish to gain a broader perspective on lessee needs and challenges

Meet your instructor

Donal Hanley

Donal Hanley

Professor, Aircraft Finance Professional

Dr. Donal Hanley, a Fellow of the Royal Aeronautical Society, is an Adjunct Professor teaching Aircraft Financing and Leasing Law at the Institute of Air and Space Law of McGill University, a Visiting Lecturer teaching Aircraft Financing and Leasing Law at the International Institute of Air and Space Law at Leiden University, and an Instructor in Aircraft Acquisition and Financing at the International Air Transport Association.


He has extensive board experience, as managing director, executive director, or non-executive director, for aircraft leasing companies in Ireland, France, Sweden, and Egypt, establishing and leading the Irish office of Aviation Capital Group and co-founding CIAF Leasing, an aircraft leasing company established under the auspices of the Egyptian Civil Aviation Ministry.


He has over 30 years of experience in practicing aircraft financing and leasing law in Ireland, the UK, Japan, and the USA, both in private practice for McCann FitzGerald and Linklaters and in-house for Mitsui & Co., Ltd. and Aviation Capital Group aircraft leasing companies.


Qualified as a lawyer in Ireland, England, and California, he has also studied in Japan, Canada, and the Netherlands and has, among others, MBA, LLM, and Ph.D. degrees, all specializing in aviation.


He has published a number of articles, as well as the leading textbook on aircraft operating leasing law, and is a regular speaker at industry conferences. He is a member of the editorial boards of the peer-reviewed McGill University Annals of Air and Space Law and Kluwer Law Air and Space Law journals and is a committee member of the European Air Law Association.

Read moreabout Donal Hanley
Learn to find mutually acceptable solutions in an increasingly turbulent market.

Why you should attend?

Over half of the world’s commercial aircraft fleet is leased, and the share continues to grow as airlines seek flexibility, conserve cash, and adapt to market volatility. With high asset values and complex contract structures, aircraft and engine leasing leaves little room for error - making negotiation skills critical.


This course equips you with the insights and tools to approach lease negotiations confidently and strategically.


You will:


  1. Understand how market forces and financial constraints shape leasing decisions
  2. Explore real-world examples and analyze letters of intent and lease terms
  3. Compare lessor and lessee perspectives to achieve balanced, effective agreements
  4. Strengthen your ability to identify risks, avoid ambiguities, and secure favorable outcomes


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