Complex Cross-Border CFM56 Engine Transactions

Šulija & Partners successfully advised Air Company SCAT JSC, one of the leading airlines in Central Asia, in connection with a complex cross-border transaction involving the acquisition and disposal of multiple CFM International CFM56-7B series aircraft engines.

The transaction involved the transfer of ownership of high-value aviation assets, together with related sale and purchase agreements, technical documentation transfers, and a bespoke tripartite set-off and netting arrangement.

Aircraft engines are among the most valuable and technically sophisticated assets in commercial aviation. The successful completion of this transaction required the coordination of complex contractual, technical, financing and regulatory considerations across multiple jurisdictions.

Šulija & Partners advised SCAT Airlines throughout all stages of the transaction, including:

• structuring the transaction and negotiating the engine sale and purchase agreements;
• advising on title transfer, warranties and delivery mechanics;
• negotiating the tripartite set-off and netting arrangements;
• reviewing technical acceptance and delivery documentation; and
• coordinating closing matters among the parties involved in Ireland and Kazakhstan.

This transaction further reinforces the firm's position as a leading adviser in aviation finance, leasing and asset transactions, with extensive experience in the acquisition, disposal, financing and restructuring of aircraft and aircraft engines worldwide.

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