Islamic leasing

Shariah, or Islamic law, prevents lenders from charging interest. The main Islamic aircraft finance technique is Ijara or leasing.

Exercise 149. Translate into English.

Оперативний лізинг, зворотна оренда, державний експортний кредит, податковий лізинг, трастовий сертифікат на обладнання, орендодавець, орендар, податкові пільги, податкова знижка на амортизацію, кредит під заставу зданого в оренду майна і орендних платежів, залишкова вартість, цільова компанія, відсотки по облігаціях.

Exercise 150. Give Ukrainian equivalents.

Purchase and operation of aircraft, operating leasing, sale/ leaseback, profitable airlines, operating lessors, lease crew and pilots with aircraft, syndicating a loan, finance leases, downturn, tax leases, depreciation allowances, leverage lease, equipment trust certificates, special purpose company.

Exercise 151. Answer the questions.

1. What techniques do airlines use to pay for their fleet? 2. What companies can finance aircraft with cash? 3. What is operating leasing? 4. Who is called “a lessee”? 5. What is known as “wet lease”? 6. How many times do operating lessors place an aircraft? 7. How are bank loans used to finance aircraft? 8. What is known as “syndicating a loan”? 9. How do governments help aircraft exports? 10. What are “tax leases” and “leverage leases”? 11. What are EETCs? 12. What is the main Islamic aircraft finance technique?

Exercise 152. Speak on “Aircraft Finance”.