The Aircraft Sector Understanding: New Financing Rules that Reflect the Aviation World of Today

In late February, the Organisation for Economic Cooperation and Development (OECD) held a signing ceremony for the new Aircraft Sector Understanding (ASU) that governs export financing rules for aircraft manufactured in all OECD countries and Brazil. Unlike a treaty, which results in countries adopting a document with compulsory obligations, this accord is a “soft law” non-binding arrangement. And yet, this multilateral gentlemen’s agreement, in its many versions, has been an effective tool in providing financing rules for civil and commercial aircraft. The ASU sets forth the most favorable terms that can be extended by export credit agencies to eligible parties acquiring aircraft