Services for Aircraft Owners
The introduction of aviation into the UN’s ICAO CORSIA global emissions compliance scheme may significantly increase aircraft owners’ credit risk exposures to airlines and operators globally. Any operator offering international flights that fails to comply with CORSIA and/or EU ETS regulations may face substantial financial penalties in a patchwork of different jurisdictions, as well as a potential withdrawal of their aircraft operator’s certificate or the enforcement of qualifying liens against aircraft.
CORSIA and EU ETS present aircraft financiers and lessors with additional operational risk and due diligence obligations that needs to be continually monitored and controlled. This may require having to deal with a number of different entities including Government Departments, accredited verifiers, ICAO and Eurocontrol.
Our services for Airfinance providers are:
• CORSIA / EU ETS advisory and risk mitigation: AVOCET has developed specific expertise in managing CORSIA and EU ETS risk exposures and provides dedicated risk mitigation and advisory resources to banks, aircraft lessors and investors. Management of is a difficult task due to the complexities and differences between each scheme including confidentiality undertakings and external political influences.
• CORSIA / EU ETS credit risk management: Operators of international flights that fail to comply with CORSIA and/or EU ETS can face operational penalties as well as heavy fixed and daily local fines. Non-compliance could also lead to aircraft detention and seizure resulting in lease termination by the aircraft owner. AVOCET provides aircraft owners with risk analysis of airline CORSIA/EU ETS compliance and offers proactive risk management and risk mitigation strategies.