 In this module, we would look at a specific application of EJARA and that is the of Islamic aircraft leasing. A number of aircraft deals in the countries like UAE and elsewhere are actually based on EJARA. Now, this seems like a very simple straightforward use of EJARA in case of aircraft financing, but there are some major area issues involved. If I highlight one, that would that would tell us how serious a Sharia issue could be. Just imagine that an Islamic bank has actually financed an aircraft for an airline like Emirates airline. So, when we use leasing what happened the bank would buy the aircraft from the aircraft manufacturing company and would then lease it to Emirates airline. Now, as we know that Emirates airline has got duty free shop. So, it sells a number of items on board including alcohol and tobacco etcetera and of course, it does serve alcohol to its customers. Now, what should be the treatment of this kind of activities? If the bank is actually the owner of the aircraft, it has just leased this aircraft to the airline. The income the rental coming out of this arrangement, would it be Sharia compliant? Would it be Halal or what? So, there are solutions to this one. For example, in case of the duty free shop, the Sharia boards have taken the view that this duty free shop component that is a separate line of business and it has nothing to do with the main business of the airline which is actually transportation of the passenger. When it comes to serving of the alcohol, this is something more serious and the Sharia view is that ideally like Pakistan international airline and like Kuwait airline and like some other airline they do not serve alcohol. Those airlines should not be serving alcohol on board as well. However, given that this is not happening and Islamic banks would like to enter into this kind of transactions, then an exception could be created because the main business of the company would be taken into account and that is the transportation of the passengers which is a Sharia compliant activity and the rental paid by Emirates airline actually is independent of its revenue from different activity. For example, if the revenue earned by Emirates airline goes down for a certain time period, its rental obligations towards the Islamic bank would not change. So, given this kind of relaxation, it is still possible to go for Islamic aircraft leasing which is happening in quite a number of countries. Let us look at the structure. So, we have a bank, we have Emirates airline, the Dubai Islamic Bank. Dubai Islamic Bank has agreed to finance what we call purchase of Boeing 777. It is actually not purchase, but because this is something we use in our daily language, otherwise this is a lease arrangement. Even I saw in the newspaper, few days back, Pakistan bought its first Boeing 777 this year. But actually that is a lease based arrangement, so the bank would actually buy Boeing 777 from the Boeing, the company and would enter into a lease agreement for a certain time period. Maybe it is for five years, it could be for seven years depending on the Emirates airlines policy for keeping certain aircraft in operation. So, this is actually aircraft financing with the help of Ijarra. This is a plain vanilla product in the sense that at the end of the financing period, the bank actually takes the aircraft back. Unlike Ijarra Muntahiyyabi Tamli and unlike Ijarra Waikhtina, this is a pure Ijarra kind of contract, pure Ijarra mode of financing which is based on the classical Ijarra contract with some kind of provision. Still it is an Islamic mode of financing because insurance and so many other things are wrapped around the basic Ijarra structure. However, this is a very good example of plain vanilla use of Ijarra which is also happening in case of some rent a car deals as well. Quite a few years back, there was a deal in which an Islamic bank actually financed fleet of I think Hertz or budget rent a car in Saudi Arabia. So, a lot of this kind of Ijarra based transactions, Ijarra based financing transactions are taking place in the market. Given that this is a rather simple structure, the main contracts and documents in this case are sale and purchase agreement between bank and Boeing for example, lease agreement between the bank and the airline, insurance the carful cover and of course, a service level agreement. The service level agreement is important because especially in case of aircraft, Dubai Islamic Bank would not get a good deal for servicing of the aircraft. Airlines, they have very good contract in that domain and hence they would be getting very good deals appropriate and suitable for their business. A bank would find it very difficult to enter into this kind of maintenance contract with the