Research on the Legal Risk of Securitization Bankruptcy in Aircraft Finance Lease

Abstract

Aircraft financing leasing has become an important form of aircraft trading. The use of predictable cash flow brought by financing leasing to achieve asset securitization business operations is conducive to revitalizing market resources and promoting the prosperity and development of market participants. But it is also because the asset securitization process under aircraft financing lease involves multiple parties and the legal relationship is complicated, so lessors, lessees and special purpose carriers are more likely to have bankruptcy in market competition, which affects the entire asset securitization working normally. Therefore, this paper puts forward some measures to deal with the above-mentioned legal risks from the angles of establishing the means of pre-prevention and termination of losses, perfecting the bankruptcy legislation of financial lease, and innovating the system of special purpose company, in the hope that the law can produce a marked effect in the asset securitization of aircraft finance lease.