Guide

Aircraft financing – What you need to know about using a Cayman orphan SPV structure

The Cayman Islands is a leading offshore jurisdiction for commercial aircraft financing and leasing transactions. Tax neutrality, combined with a commercially flexible civil aviation authority and depth of expertise makes the Cayman Islands a market leader in the structuring of such transactions. Airlines, operating lessors and lenders have grown familiar with the typical 'off-balance sheet' or 'orphan' structures, affording bankruptcy remoteness of the underlying asset. This Guide gives an overview of how to set up, manage and use a Cayman Islands orphan SPV structure in aircraft financing transactions.