Team size: Four

Major legal advisers: McCann Fitzgerald, Clifford Chance, K&L Gates, and Pillsbury

What impact did Brexit have on the financial industry in Ireland?

Brexit has had an impact on our business in several ways particularly when dealing with airline customers located in the UK. There are potential differences of the requirements and regulations between the UK civil aviation authorities and EASA, the European equivalent, regarding the technical maintenance of aircraft in the UK. The current position is broadly the same however it is something that needs to be considered for operating leases as requirements may deviate in the future. Additional due diligence is required at the outset to ensure that leases continue to be fit for purpose when dealing with aircraft registered in the UK. Tax is another area that requires additional due diligence particularly in relation to customs duties and sales tax that may arise regarding the import of an aircraft into the UK or the sale of aircraft while located in the UK.

In what ways do you see the in-house legal role evolving in your region over the next few years?

The move to hybrid working resulted in a positive development but also created certain challenges particularly in managing a legal team and handling risk management. Training and supervision are key areas which will need to be focused on to ensure that team members feel supported and are adequately supervised. The move toward ESG focus is another area that is rapidly evolving in Ireland and the EU. The EU commission has set a target of a 55 percent reduction in carbon emissions by 2030 and this will necessitate an unprecedented level of adaption and behavioural change over the next decade. ESG requirements will need to be identified and tracked so to meet voluntary and compulsory reporting requirements.

What are the most significant cases and/or transactions that your legal team has recently been involved in?

Our team completed an AFIC financing of an aircraft with a Dubai based airline earlier this year. This was the first credit insured Japanese operating lease transaction which was an innovative approach to financing a Boeing 737-8 Max aircraft. This was a complex financing that involved several insurers, financiers, the airline, and aircraft owner based across multiple jurisdictions. The AFIC product allowed the financier to offer financing on more favourable terms than what would have been available without such cover. The team was also involved in several complex restructurings of airline customers in 2021 including examinership proceedings in Ireland.

As we enter the next decade, what skills will a corporate legal team need to succeed in the modern in-house industry?

A corporate legal team needs to be adaptable and prepared to drive change to succeed going forward. For example, ESG requirements are no longer a ‘nice to have’ but a ‘must’, and to implement such changes, top level engagement by management is required.