The ‘Wing to Wing’ Process

Business aircraft financing is no easy feat. This is where Echo Aviation Leasing comes in.

Doing your research, analyzing your needs, finding the right aircraft & negotiating the best deal takes time. We help you decide on the optimal source of direct funding solution we have available to pay for the acquisition, navigate through the various legal and tax aspects & more.

Through our ‘Wing to Wing’ Process, Echo Aviation Leasing can set-forth the best solutions either through direct financing or by leveraging our industry relationships, using our expertise and know-how and providing sound advice at every stage of the deal cycle. The result? An accelerated deal process, so you can make better use of your valuable time.

Save time, energy and money through early engagement with Echo.

We accelerate the process like nobody else.

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How the

Process Works

Purchasing

Aircraft Selection

Before reviewing actual listings – potential buyers should undertake an in-depth and realistic analysis of their travel needs and budget. One of the most common mistakes buyers make when searching aircraft, is not taking the time to understand each individual set of requirements. Echo assists you in defining your needs, budget and expected usage of the aircraft – finding what works best for you.

Letter of Intent & Deposit

The letter of intent sets the tone for the entire transaction. It shapes the structure of the deal and it puts the details which have been discussed in writing. We draft and present on behalf of our customers, to specify the purchase price being offered for the aircraft, the scope of the pre-purchase inspection and location of inspection, the condition provisions and the deposit to be sent into escrow upon execution of the letter of intent.

Pre-Purchase Inspection

A technical adviser oversees this stage of the transaction. Echo has a network of licensed aircraft engineers, specializing in model-specific analyses, providing a list of detailed deficiencies & discrepancies with an indication of cost rectification. This list is the basis for any negotiations to fix the deficiencies or reduce the listing price.

Purchase Agreement

The Purchase Agreement covers all the terms including: the identity of the parties to the contract, the final purchase price, the deposit amount, terms of any refunds, the timing of closing, representations and warranties, the delivery location, the results and acceptance of the pre-purchase inspection & more. If customers don’t already have an aviation attorney, Echo can recommend an attorney who is experienced in such transactions. Their expertise is essential to prevent any legal and tax implications that may arise from the outcome of the purchase agreement.

Technical Acceptance & Closing

This occurs after the inspection has occurred and any remediation or price adjustments have been agreed upon. The buyer executes the technical acceptance and the deposit becomes non-refundable at this stage. Funding is then requested, and money moves in and out of escrow so the title to the aircraft can be transferred. Aircraft is then registered to the new owner, followed by insurance purchasing and finally, the aircraft is physically transferred to the new owner. Echo ensures the smoothest process along the way.

Financing

Source of Funds

Customers should determine early on what source of the funds they will use to close the aircraft purchase. Although many of our customers have the liquidity on-hand to close their purchase, it may be in their best interest to rely on third-party funding to keep their liquidity for higher yield opportunities. Being independent from traditional banks, Echo’s direct lending platform offers more flexibility in terms of preferred structures. For unique and ordinary transactions that fall outside of our credit box, we leverage our industry relationships from an extensive network of competing lenders to ensure credit-worthy customers obtain financing in time for closing. Echo’s primary focus is to save you time, energy and money in all phases of the transaction.

Request for Proposal & Deal Negotiation

With the proven track record, Echo ensure to close on the optimal deal structure – whether it be a loan, lease, credit-based or asset-based financing. Echo will gather the necessary information, underwrite and analyze the entire profile and submit your application to our internal credit department and ensure a timely decision with each application. Upon obtaining a credit commitment, you will then be asked to provide executed copies of our proposal and in good faith, a factual deposit.

Aircraft Appraisal

A technical adviser oversees this stage of the transaction. Echo has a network of licensed aircraft engineers, specializing in model-specific analyses, providing a list of detailed deficiencies & discrepancies with an indication of cost rectification. This list is the basis for any negotiations to fix the deficiencies or reduce the listing price.

Commitment

Upon completing our financial, legal and tax review of the transaction, Echo will ensure its proposed structure is in line with the borrower’s expectation of the final terms and when both parties are satisfied with the outcome, execution of all commitment documentation will be arranged.

Closing & Administration

Once funding has been requested and issued, the assigned counsel issues all final documentation for review and execution by both parties. Echo can recommend an attorney from our broad network of lawyers who are experienced in such aviation transactions and assist the parties in the closing stages of the transaction.