Family Office & Yacht Management Management Legal Analysis Profile
Family Office & Yacht Management
BASYCS JETFIN
SEMINAR
O
n Thursday the 26th
of April 2018, the
BUSINESS AVIATION &
SUPERYACHT
COMMUNITY, SWITZERLAND,
(BASYCS) had the pleasure
of commencing its breakfast
seminar series, with a dedicated
Corporate Aviation Finance theme
that was presented by BASYCS
Members and co-sponsors, BNP
PARIBAS (SUISSE) SA and MEYER
AVOCATS, Geneva.
Family offices, aviation law
firms, jet operators, brokers and
private banks heard a presentation
by Jet Finance specialist Marie-
Laure Gassier of BNP Paribas and
Aviation lawyer Raphaël Baeriswyl
of Meyer Avocats.
Ms Gassier and Mr Baeriswyl’s
presentation “AVIATION
FINANCING: STAKES AT PLAY
FOR CLIENTS AND FINANCIERS?”
commenced with an examination
of prevailing market drivers before
g o i n g o n t o e x a m i n e t h e d i ff e r i n g b u t
often complementary motivators
between financier and customer
when the latter decides to finance
their corporate jet. According to
market intelligence the Global Fleet
of corporate jets reached 22,368
units in 2017, a 126% increase since
20001 , and demand especially in
the pre-owned market continues
to grow. Of the 2,668 deliveries in
2017, 75% of those were for
pre-owned Jets^2.
Given relatively low interest
rates and the assets concerned,
it makes sense for owners to
explore financing opportunities
with specialist banks and save their
liquidity for other investments.
BNP Paribas, as part of their
private bank offering, provide tailor
made credits for corporate jets,
whether new or pre-owned, upon
acquisition or post-delivery forcash extraction purposes.
Mr Baeriswyl then went on to
consider the key milestones in
the negotiation of a corporate jet
financing, from agreement on the
initial terms of the financing or
refinancing, to the closing of the
documentation and negotiation
process. It was an interesting
observation that, as far as a bank is
concerned, it has fulfilled its central
contractual obligation under the
finance documents (i.e. provision
of the loan), upon the moment
of drawdown, post completion.
However, the borrower’s
obligations (essentially to repay the
loan and maintain the asset in the
state and operation agreed under
the finance documents) continuefor the term of the loan, which can
be anywhere from 5-7 years. Given
this dynamic there is an equilibrium
to be found between the interests
of the lender with its entitlement
to be repaid and those of the
borrower with the its right to quiet
enjoyment of its jet.
This highly informative
and discursive presentation
conveniently held just before
the annual EBACE Corporate Jet- SOURCE: AMSTAT, ASCEND, HONEYWELL, BOMBARDIER
© All images courtesy of Cluster Yachting Monaco2. SOURCE: JETNET, GAMA
Above: From left to right: Mark
Burgess (BASYCS), Fanny Eyraud
(BASYCS), Marie-Laure Gassier
(BNP Paribas Suisse) SA), Raphaël
Baeriswyl (Meyer Avocats),
Anouch Sedef (BASYCS), Patrick
Bachofner (BASYCS)and Helicopter show in Geneva,
stimulated much in the way of
discussion and Members and
Friends were able pose questions
afterwards while enjoying coffee
and fabulous continental breakfast
provided by the Hôtel Métropole.
BASYCS is most grateful
to BNP Paribas (Suisse) SA
and Meyer Avocats for their
generous sponsorship of this
successful event.YI28_pp38 BAYSCS _v6 NB.indd 38 11/06/2018 13:19