Linklaters

The sector is affected by the pressures on transportation generally, such as volatility in fuel prices and the emphasis on reducing CO² emissions. Industry consolidation resulting from the contraction in global trade and the reduction in passenger travel leads to competition issues and an increase in the number of mergers, joint ventures and takeovers as well as outsourcing. Financial pressures in the rail market are leading to liberalisation, particularly in Europe, which raises the potential for full or part privatisation of national rail companies and their playing an increasingly acquisitive role in emerging markets.

With superb cross-border M&A, finance and competition practices, Linklaters is involved in many of the sector’s most significant transactions. Airlines, rail companies and shipping companies and their financiers rely on Linklaters’ ability to anticipate their needs. As the industry’s requirements have become more sophisticated, Linklaters’ services have evolved, developing heavyweight expertise in areas such as Islamic finance for its clients in the Middle East and Asia.

The long lead-times associated with the acquisition of transport assets such as aircraft and ships require transport sector companies to commit to equipment procurement up to ten years ahead. In an economic downturn, it is likely that companies will need to restructure financing arrangements that become difficult to service. The creative approach of Linklaters’ finance experts helps our clients to optimise their investment in major assets, whether using asset-based financing techniques, corporate finance or capital markets.

Financial pressures in the rail market are leading to liberalisation, particularly in Europe, which raises the potential for full or part privatisation of national rail companies.