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 . A year since our briefing "LIBOR and Operating Leases" and the aviation sector is still waiting for a clear contender to replace LIBOR as the common reference rate in aircraft financings, operating leases and related hedging arrangements. 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 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 .