Virgin Australia x Bank of Utah

Posted by theladydothprotest-@reddit | aviation | View on Reddit | 11 comments

I found this mildly interesting.

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Adjutant_Reflex_@reddit

Bank of Utah is a pretty well-known tax haven for planes.

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gimp2x@reddit

It’s not a tax thing, it’s a registration thing specifically for foreign owners

It can also be used to shield true ownership with double blind registration and trustees

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PennyG@reddit

It’s not that. Bank of Utah is the lender on the mortgage on the plane. Some other lender probably has the engines

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FrozenDickuri@reddit

Mormons, they like secrecy, and money, and secret money.

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It’s the financing structure for the plane. This looks like a lease. Airline pays rent to Bank of Utah (or Wilmington Trust or UMB Bank, or another financial institution) as Owner Trustee. This role is an agent role and the banks are basically handling administrative functions for the financing. The bank then remits payment onto the owner/manager of the aircraft, in this case, Hinode.

Depending on the terms of the lease, the airline can return the aircraft to the owner at the end, extend the lease, or buy the aircraft back outright.

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