The aviation industry continues to use it for aircraft financing , operating fees and related hedging products , adding to the number of new contracts compared to the outgoing reference rate , according to Clifford Chance . The law firm said it would be prudent for the industry to assume a divergence in the alternative reference rates used in different contracts and take action to avoid confusion between lease cash flows and related loan and deposit payments . There is also a risk that different contracts in the same commercial transaction may not share fallback triggers for alternative rates .
The aviation industry continues to use LIBOR for aircraft financing, operating leases and related hedging products, adding to the number of legacy contracts linked to the outgoing reference rate, according to Clifford Chance. The law firm said it would be prudent for the industry to assume a divergence in the alternative reference rates used in different contracts and take action to avoid mismatches between lease cash flows and related loan and swap payments. There is also a risk that different contracts in the same commercial transaction may not share fallback triggers for alternative rates.