Document:

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                                                                   Exhibit 10.51

                                                                  EXECUTION COPY

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR
THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREUNDER AND IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

                                                      Dated:  September 20, 2000

                                    WARRANT

                     To Purchase Shares of Common Stock of

                           HAWKER PACIFIC AEROSPACE

                          Expiring September 19, 2001

          THIS IS TO CERTIFY THAT, for value received, Lufthansa Technik AG or
its designated assigns (the "Holder") is entitled to purchase from Hawker
                             ------
Pacific Aerospace, a California corporation (with its successors, the
"Company"), at any time or from time to time between the Effective Date (as
 -------
defined herein) and 5:00 p.m., Los Angeles, California  time, on September 19,
2001 (the "Expiration Date"), at the place where the Warrant Agency (as defined
           ---------------
herein) is located, at a price per share equal to the Exercise Price (as defined
herein), the number of shares of common stock of the Company, par value $0.01
per share (the "Common Stock") which is the Exercise Amount (as defined herein)
                ------------
shown above, all subject to adjustment and upon the terms and conditions
hereinafter provided, and is entitled also to exercise the other appurtenant
rights, powers and privileges hereinafter described.

          This Warrant entitles the Holder to purchase, subject to shareholder
approval, the Exercise Amount, as adjusted pursuant to Article V.  This Warrant
has been issued pursuant to that certain Loan Agreement by and between the
Company and the Holder dated September 20, 2000 (the "Loan Agreement").  The
                                                      --------------
Company acknowledges that the Holder is further entitled to certain benefits as
set forth in the Shareholders Rights and Voting Agreement dated as of September
20, 2000 among the Company, the Holder, and shareholders set forth therein (as
amended from time to time, the "Shareholders Rights Agreement").  The Company
                                -----------------------------
shall keep a copy of the Shareholders
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Rights Agreement, the Loan Agreement and any amendments thereto, at the Warrant
Agency and shall furnish, without charge, copies thereof to the Holder upon
request.

                                   ARTICLE I

                                  DEFINITIONS

          The following terms, as used in this Warrant, have the following
meanings:

          "Business Day" means a day other than (i) Saturday, (ii) Sunday, or
           ------------
(iii) any day on which banks located in New York, New York or Hamburg, Germany
are generally closed.

          "Capital Reorganization" has the meaning set forth in Section 5.5.
           ----------------------

          "Cashless Exercise" shall have the meaning set forth in Section
           -----------------
2.1(b)(vi).

          "Cashless Loan Exercise" shall have the meaning set forth in Section
           ----------------------
2.1(b)(ii).

          "Cashless Principal Only Exercise" shall have the meaning set forth in
           --------------------------------
Section 2.1(b)(iii).

          "Cashless Interest Only Exercise" shall have the meaning set forth in
           -------------------------------
Section 2.1(b)(iv).

          "Closing Price" on any day means (a) if the Common Stock is listed or
           -------------
admitted for trading on a national securities exchange, the reported last sales
price regular way or, if no such reported sale occurs on such day, the average
of the closing bid and asked prices regular way on such day, in each case on the
principal national securities exchange on which Common Stock is listed or
admitted to trading, or (b) if Common Stock is not listed or admitted to trading
on any national securities exchange, the average of the closing bid and asked
prices in the over-the-counter market on such day as reported by NASDAQ or any
comparable system.

          "Common Stock" has the meaning set forth in the first paragraph of
           ------------
this Warrant, subject to adjustment pursuant to Article V.

          "Common Stock Distribution" has the meaning set forth in Section
           -------------------------
5.3(a).

          "Common Stock Reorganization" has the meaning set forth in Section
           ---------------------------
5.2.

          "Company" has the meaning set forth in the first paragraph of this
           -------
Warrant.

          "Convertible Securities" has the meaning set forth in Section 5.3(b).
           ----------------------

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          "Effective Date" means the date hereof which is also date on which the
           --------------
Holder extends the loan to the Company as provided in the Loan Agreement.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
           ------------
and any successor Federal statute, and the rules and regulations of the
Securities and Exchange Commission (or its successor) thereunder, all as the
same shall be in effect at the time.

          "Exercise Amount" means 2,500,000 shares of Common Stock, assuming
           ---------------
shareholder approval is obtained in accordance with Section 2.7.

          "Exercise Price" means $4.25 per share of Common Stock, subject to
           --------------
adjustment pursuant to Article V.

          "Expiration Date" has the meaning set forth in the first paragraph of
          ----------------
this Warrant.

          "Fair Market Value" means fair market value as determined in good
           -----------------
faith by the Board of Directors of the Company after consultation with and
receipt of a written report thereon from an independent investment bank of
national standing selected by the Company and reasonably acceptable to the
Holder (which written report will be made available to the Holder prior to any
determination of fair market value).

          "Fully Diluted Basis" means, with respect to any determination or
           -------------------
calculation, that such determination or calculation is performed on a fully
diluted basis as determined in accordance with GAAP.

          "GAAP" means U.S. generally accepted accounting principles as in
           ----
effect from time to time.

          "Holder" has the meaning set forth in the first paragraph of this
           ------
Warrant.

          "Holder Control" shall have the meaning set forth in Section 5.3 of
           --------------
this Warrant.

          "Loan Agreement" has the meaning set forth in the second paragraph of
           --------------
this Warrant.

          "Market Price" means, on any date, the unweighted average of the daily
           ------------
Closing Prices per share of Common Stock for the five consecutive Business Days
prior to such date; provided that for purposes of the application of Section 5.3
                    --------
to a Common Stock Distribution pursuant to a public offering registered under
the Securities Act, "Market Price" means the Closing Price per share of Common
                     ------------
Stock on the Business Day immediately preceding the effective date of the
registration statement with respect to such public offering; and provided
                                                                 --------
further that if the Common Stock is not listed or admitted to trading on any
-------
national securities exchange, nor reported on NASDAQ or any comparable system,
"Market Price" means the Fair Market Value of a share of Common
-------------

                                       3
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Stock (determined without giving effect to any discount for (i) a minority
interest or (ii) any lack of liquidity of the Common Stock).

          "NASD" means The National Association of Securities Dealers, Inc.
           ----

          "NASDAQ" means The National Association of Securities Dealers, Inc.
           ------
Automated Quotation System.

          "Note" has the meaning set forth in Section 2.1(b)(ii).
           ----

          "Options" has the meaning set forth in Section 5.3(b).
           -------

          "Person" means any natural person, corporation, limited liability
           ------
company, limited partnership, general partnership, limited liability
partnership, joint stock company, joint venture, association, company, trust,
bank, trust company, land trust, business trust or other organization, whether
or not a legal entity, and any government agency or political subdivision
thereof.

          "Registration Rights Agreement" means that certain registration rights
           -----------------------------
agreement of even date herewith by and between the Company and the Holder.

          "Securities Act" means the Securities Act of 1933, or any similar
           --------------
Federal statute, and the rules and regulations of the Securities and Exchange
Commission (or its successor) thereunder, all as the same shall be in effect at
the time.

          "Special Dividend" has the meaning set forth in Section 5.4.
           ----------------

          "Shareholders Rights Agreement" has the meaning set forth in the
           -----------------------------
second paragraph of this Warrant.

          "Warrant Agency" has the meaning set forth in Section 3.1.
           --------------

          "Warrant Shares" means the shares of Common Stock issuable upon the
           --------------
exercise of this Warrant under the Exercise Amount.

          "Warrant" shall mean this Warrant issued in accordance with Section
           -------
3.1 of the Loan Agreement, as the same may be amended from time to time, and all
warrants issued upon transfer, division or combination of, or in substitution
for, this Warrant. All Warrants so issued shall at all times be identical as to
terms and conditions, except as to the number of shares of Common Stock for
which a Warrant may be exercised.

                                  ARTICLE II

                             EXERCISE OF WARRANTS

          SECTION 2.1.  Method of Exercise.
                        ------------------

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          (a)   To exercise this Warrant in whole or in part, the Holder shall
deliver on any Business Day to the Company, at the Warrant Agency:

          (i)   this Warrant;

          (ii)  a written notice of the Holder's election to exercise this
     Warrant ("Election Notice"), which notice shall specify the number of
               ---------------
     shares of Common Stock to be purchased (which shall be a whole number of
     shares if for less than all the shares then issuable hereunder), the
     denominations of the share certificate or certificates desired and the name
     or names in which such certificates are to be registered; and

          (iii) payment of the Exercise Price with respect to such shares in
accordance with Section 2.1(b).

          (b)   Payment of the Exercise Price with respect to any shares may be
made, at the option of the Holder, by any of the following methods:

          (i)   by wire transfer of immediately available funds in U.S. Dollars
     in an amount equal to (A) the Exercise Price times (B) the number of
     Warrant Shares as to which this Warrant is being exercised,

          (ii)  presentment of the Company's Note dated September 20, 2000, or
     as amended in accordance with Section 2.11 of the Loan Agreement (the
     "Note") for cancellation, to the extent that any principal and accrued
     interests remain unpaid under such Note as of the time of such presentment
     and to the extent that such aggregate unpaid principal and interest equals
     (x) the Exercise Price multiplied by (y) the number of Warrant Shares as to
     which this Warrant is being exercised (the "Cashless Loan Exercise"),

          (iii) presentment of the Note for partial cancellation of the
     principal only to the extent such aggregate unpaid principal equals (A) the
     Exercise Price multiplied by (B) the number of Warrant Shares as to which
     this Warrant is being exercised (the "Cashless Principal Only Exercise");

          (iv)  presentment of the Note for partial cancellation of the accrued
     but unpaid interest only to the extent such interest equals (A) the
     Exercise Price multiplied by (B) the number of Warrant Shares as to which
     this Warrant is being exercised (the "Cashless Interest Only Exercise");

          (v)   any combination of clauses (i) - (iv); or

          (vi)  the Holder may surrender this Warrant to the Company together
     with a notice of cashless exercise, in which event the Company shall issue
     to the Holder the number of Warrant Shares determined as follows (the
     "Cashless Exercise"):

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               X = Y (A-B)/A

     Where:

     X = the number of Warrant Shares to be issued to the Holder.

     Y = the number of Warrant Shares with respect to which this Warrant is
being exercised.

     A = the average of the closing trading prices of the Common Stock for the
ten (10) trading days immediately prior to (but not including) the Date of
Exercise.

     B = the Exercise Price.

For purposes of Rule 144 promulgated under the Securities Act, it is intended,
understood and acknowledged that the Warrant Shares issued in a Cashless
Exercise transaction shall be deemed to have been acquired by the Holder, and
the holding period for the Warrant Shares shall be deemed to have commenced, on
the issue date.

          (c)  The Company shall, as promptly as practicable and in any event
within ten (10) Business Days after receipt of such notice and payment, execute
and deliver or cause to be executed and delivered, in accordance with such
notice, a certificate or certificates representing the aggregate number of
shares of Common Stock specified in the Election Notice together with cash in
lieu of any fractions of a share as provided in Section 2.3. The share
certificate or certificates so delivered shall be in such denominations as may
be specified in the Election Notice, and shall be issued in the name of the
Holder or such other name or names as shall be designated in the Election
Notice. This Warrant shall be deemed to have been exercised and such certificate
or certificates shall be issued, and the Holder or any other Person so
designated to be named therein shall be deemed for all purposes to have become a
holder of record of such shares of Common Stock, effective as of the date the
aforementioned notice and payment is received by the Company. If this Warrant
shall have been exercised only in part, the Company shall, at the time of
delivery of such certificate or certificates, deliver to the Holder a new
Warrant evidencing the rights to purchase the remaining shares of Common Stock
called for by this Warrant, which new Warrant shall in all other respects be
identical with this Warrant, or, at the request of the Holder, appropriate
notation may be made on this Warrant which shall then be returned to the Holder.
If this Warrant shall have been exercised by in accordance with Section
2.1(b)(ii) of Section 2.1(b)(iii) 2.1(b)(iv) or 2.1(b)(v), in whole or in part,
and the payment of the Exercise Price is less than the outstanding principal and
accrued interest then owed under the Note such exercise of the Warrant shall act
as only a partial cancellation of the Note and the Company shall, upon the
issuance of the number of shares specified in the Election Notice, issue an
amended promissory note to the Holder for the amount of the outstanding
principal immediately following such exercise of the Warrant, assuming Company
does not pay in full the Remaining Balance (as defined in the Loan Agreement) on
the date of issuance of such Warrant Shares.

                                       6
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          (d)  At any time during the period of the date of this Warrant to the
Expiration Date, the Holder shall be entitled to exercise this Warrant to
purchase up to either (A) the Initial Exercise Amount or (B) the Initial
Exercise Amount plus the Subsequent Exercise Amount at the Exercise Price, as
adjusted pursuant to Article V. The Holder's right to exercise this Warrant
under this section 2.1(c) shall expire at 5:00 p.m., Los Angeles, California
time, on September 19, 2001.

          (e)  This Warrant shall be exercisable, at the election of the Holder,
either in whole or in part from time to time.

          (f)  The Company shall pay all expenses, taxes and other charges
payable in connection with the preparation, issuance and delivery of share
certificates and new Warrants.

          SECTION 2.2.  Shares to be Fully Paid and Nonassessable; Listing of
                        -----------------------------------------------------
Additional Shares. All shares of Common Stock issued upon the exercise of this
-----------------
Warrant are duly authorized, validly issued and nonassessable, free and clear of
all claims, liens, pledges, options, preemptive rights and liens or encumbrances
of any kind and the Holder shall acquire complete and absolute legal, marketable
and equitable title to such Common Stock. All shares of Common Stock issued upon
the exercise of this Warrant shall be duly listed or quoted on the applicable
national securities exchange or NASDAQ, as the case may be.

          SECTION 2.3.  No Fractional Shares Required to be Issued.  The Company
                        ------------------------------------------
shall not be required to issue any fractions of shares of Common Stock upon
exercise of this Warrant. If any fraction of a share would, but for this Section
2.3, be issuable upon final exercise of this Warrant, in lieu of such fractional
share the Company shall pay to the Holder, in cash, an amount equal to the same
fraction of the Market Price per share of Common Stock on the Business Day on
the date of such exercise.

          SECTION 2.4.  Share Legend.  Each certificate for shares of Common
                        ------------
Stock issued upon exercise of this Warrant, unless at the time of exercise such
shares are registered under the Securities Act, shall bear the following legend:

     "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
     UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
     INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
     OR DISTRIBUTION THEREOF IN VIOLATION OF APPLICABLE SECURITIES LAWS.
     NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
     REGISTRATION STATEMENT RELATED THERETO OTHER THAN PURSUANT TO AN
     EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
     1933.  THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A SHAREHOLDERS
     RIGHTS AND VOTING AGREEMENT BY AND AMONG THE COMPANY, THE
     SHAREHOLDERS NAMED THEREIN AND THE HOLDER (A COPY

                                       7
<PAGE>

     OF WHICH MAY BE OBTAINED FROM THE COMPANY), AND BY ACCEPTING ANY
     INTEREST IN SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE
     DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF
     SAID SHAREHOLDERS RIGHTS AND VOTING AGREEMENT."

          Any certificate issued at any time in exchange or substitution for any
certificate bearing such legend (except a new certificate issued upon completion
of a public offering pursuant to a registration statement under the Securities
Act) shall also bear such legend unless, in the opinion of counsel selected by
the holder of such certificate (who may be an employee of such holder) and
reasonably acceptable to the Company, the securities represented thereby need no
longer be subject to restrictions on resale under the Securities Act.

          SECTION 2.5.  Reservation. The Company has duly reserved and will keep
                        -----------
available for issuance upon exercise of the Warrants the total number of Warrant
Shares, as adjusted pursuant to Article V, deliverable from time to time upon
exercise of all Warrants from time to time outstanding. The Company will not
permit the par value of a share of Common Stock to be greater than the Exercise
Price per share without the consent of the Holder.

          SECTION 2.6.  Shareholders Rights.  All shares of Common Stock issued
                        -------------------
upon the exercise of this Warrant shall be subject to and entitled to all rights
and benefits held by the Investor (as defined therein) under the Shareholders
Rights Agreement.

          SECTION 2.7.  Adjustment to Exercise Amount. Pursuant to Section 5.19
                        -----------------------------
of the Loan Agreement, the Company has undertaken to recommend and to seek the
approval of its shareholders for the issuance pursuant to the Warrant of the
Exercise Amount. Concurrent with, and conditioned upon, the Company's obtaining
such shareholder approval, the number of shares of Common Stock issuable upon
exercise of this Warrant shall be the Exercise Amount.

                                  ARTICLE III

                    WARRANT AGENCY; TRANSFER; EXCHANGE AND
                            REPLACEMENT OF WARRANTS

          SECTION 3.1.  Warrant Agency.  As long as any of the Warrants remain
                        --------------
outstanding, the Company shall perform the obligations of and be the warrant
agency with respect to the Warrants (the "Warrant Agency") at its address set
                                          --------------
forth in the Section 6.1 or at such other address as the Company shall specify
by notice to the Holder.

          SECTION 3.2.  Ownership of Warrant. The Company may deem and treat the
                        --------------------
person in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by any person
other than the Company) for all purposes and shall not be affected by any notice
to the

                                       8
<PAGE>

contrary, until due presentment of this Warrant for registration of transfer as
provided in this Article III.

          SECTION 3.3.  Transfer to Comply with the Securities Act.  This
                        ------------------------------------------
Warrant has not been registered under the Securities Act, and has been issued to
the Holder for investment and not with a view to the distribution of either the
Warrant or the Warrant Shares. Neither this Warrant nor any of the Warrant
Shares or any other security issued or upon exercise of this Warrant may be
sold, transferred, pledged or hypothecated in the absence of an effective
registration statement under the Act relating to such security or an opinion of
counsel satisfactory to the Company that registration is not required under the
Act. Each certificate for the Warrant, the Warrant Shares and any other security
issued or issuable upon exercise of this Warrant shall contain a legend in form
set forth in Section 2.4 hereof which sets forth the restrictions on transfer
contained in this Section.

          SECTION 3.4.  Transfer of Warrant. Subject to compliance with Section
                        -------------------
3.3, this Warrant shall be transferable and assignable by the Holder hereof in
whole or in part from time to time to any other Person, without the prior
consent of the Company. The Company agrees to maintain at the Warrant Agency
books for the registration of transfers of the Warrant, and transfer of this
Warrant and all rights hereunder shall be registered, in whole or in part, on
such books, upon surrender of this Warrant at the Warrant Agency, together with
a written assignment of this Warrant duly executed by the Holder or its duly
authorized agent or attorney, with signatures guaranteed by a bank or trust
company or a broker or dealer registered with the NASD, and funds sufficient to
pay any transfer taxes payable upon such transfer, unless such transfer is to an
Affiliate of the Holder in which case Company shall pay the transfer taxes. Upon
surrender and, if required, such payment and compliance with the requirements of
any legend set forth thereon, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees and in the
denominations specified in the instrument of assignment (which shall be whole
numbers of shares only) and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant not so assigned, and this Warrant shall promptly be
canceled.

          SECTION 3.5.  Division or Combination of Warrants.  This Warrant may
                        -----------------------------------
be divided or combined with other Warrants upon presentment of this Warrant and
of any other Warrants with which this Warrant is to be combined at the Warrant
Agency, together with a written notice specifying the names and denominations
(which shall be whole numbers of shares only) in which the new Warrant or
Warrants are to be issued, signed by the holders hereof and thereof or their
respective duly authorized agents or attorneys. Subject to compliance with
Section 3.4 as to any transfer or assignment which may be involved in the
division or combination, the Company shall execute and deliver a new Warrant or
Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

          SECTION 3.6.  Loss, Theft, Destruction or Mutilation of Warrant
                        -------------------------------------------------
Certificates. Upon receipt of evidence satisfactory to the Company of the
------------
ownership of and the loss, theft, destruction or mutilation of any Warrant and,
in the case of any such loss, theft or destruction, upon receipt of indemnity or
security satisfactory to the

                                       9
<PAGE>

Company or, in the case of any such mutilation, upon surrender and cancellation
of such Warrant, the Company will make and deliver, in lieu of such lost,
stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and
representing the right to purchase the same aggregate number of shares of Common
Stock.

          SECTION 3.7.  Expenses of Delivery of Warrants.  The Company shall
                        --------------------------------
pay all expenses, taxes and other charges payable in connection with the
preparation, issuance and delivery of Warrants hereunder; provided however, the
Company shall not pay the transfer taxes involved in the transfer of Warrant
Shares or this Warrant in a name other than the Holder or an Affiliate of the
Holder.

                                  ARTICLE IV

                                CERTAIN RIGHTS

          SECTION 4.1.  Rights and Obligations under the Shareholders Rights
                        ----------------------------------------------------
Agreement. This Warrant is entitled to the benefits and subject to the terms of
---------
the Shareholders Rights Agreement. The Company shall keep or cause to be kept a
copy of the Shareholders Rights Agreement, and any amendments thereto, at the
Warrant Agency and shall furnish, without charge, copies thereof to the Holder
upon request. Upon the exercise of this Warrant, in whole or in part, shares
issued to the Holder upon such exercise shall be deemed subject to the
Shareholders Rights Agreement and entitled to the full benefits afforded the
Investor (as defined therein) under such Shareholders Rights Agreement.

          SECTION 4.2.  Financial Statements and Other Information. The Company
                        ------------------------------------------
will, and will cause its subsidiaries to, maintain a system of accounting
established and administered in accordance with sound business practices to
permit preparation of financial statements in accordance with GAAP, and will
deliver to each of the Holder:

          (a)  promptly upon the mailing thereof to the shareholders of the
Company generally, copies of all financial statements, reports and proxy
statements so mailed; and

          (b)  with reasonable promptness, such other information and data with
respect to the Company or any of its subsidiaries as from time to time may be
reasonably requested by the Holder.

          SECTION 4.3.  The Company agrees to use its best efforts to ensure
that the rights granted hereunder are effective and that the Holder enjoys the
benefits thereof. The Company will not, by any voluntary action, avoid or seek
to avoid the observance or performance of any of the terms to be performed
hereunder by the Company, but will at all times in good faith assist in the
carrying out of all of the provisions of this Warrant and in the taking of all
such actions as may be necessary or in order to protect the rights of the Holder
hereunder against impairment.

                                       10
<PAGE>

          SECTION 4.4.  The Company covenants that it (i) will file any reports
required to be filed by it under the Securities Act and the Exchange Act,
including without limitation Section 13 and 15(d), (ii) shall provide the Holder
and prospective purchasers of its respective shares or assigns of this Warrant
with the information specified in Rule 144(A), and (iii) will take such further
action as the Holder may reasonably request to the extent required from time to
time to enable the Holder to sell the Common Stock (and any other shares
convertible into Common Stock) beneficially owned by it without registration
under the Securities Act within the limitation of the exemptions provided by
Rule 144 under the Securities Act, as such Rule may be amended from time to
time, or any similar rule or regulation hereafter adopted by the Commission.
Upon the request of any the Holder, the Company will deliver to such holder a
written statement as to whether it has complied with such reporting
requirements.

          SECTION 4.5.  After the requirement for the restrictive legend
described in Section 2.4 hereof is no longer applicable because such Common
Stock held by the Holder are freely transferable under the Securities Act, the
Company shall remove such legend upon the request of the Holder of such Common
Stock, if outside counsel for such Holder reasonably determines that the
transfer of such Common Stock is no longer restricted by the Securities Act and
outside counsel for the Company reasonably concurs in such determination.

          SECTION 4.6.  Registration Rights. Upon the exercise of this Warrant,
                        -------------------
in whole or in part, the Holder shall be entitled to the rights and benefits and
subject to the limitations as set forth in the Registration Rights Agreement
with respect to the registration of any Warrant Shares and any other capital
stock of the Company beneficially owned by the Holder.

                                   ARTICLE V

                            ANTIDILUTION PROVISIONS

          SECTION 5.1.  Adjustment Generally. The Exercise Price and the Initial
                        --------------------
Exercise Amount and the Subsequent Exercise Amount (or other securities or
property) issuable upon exercise of this Warrant shall be subject to adjustment
from time to time upon the occurrence of certain events as provided in this
Article V; provided that notwithstanding anything to the contrary contained
           --------
herein, the Exercise Price shall not be less than the par value of the Common
Stock.

          SECTION 5.2.  Common Stock Reorganization.  If the Company shall
                        ---------------------------
subdivide its outstanding shares of Common Stock (or any class thereof) into a
greater number of shares or consolidate its outstanding shares of Common Stock
(or any class thereof) into a smaller number of shares (any such event being
called a "Common Stock Reorganization"), then (a) the Exercise Price shall be
          ---------------------------
adjusted, effective immediately after the effective date of such Common Stock
Reorganization, to a price determined by multiplying the Exercise Price in
effect immediately prior to such effective date by a fraction, the numerator of
which shall be the number of shares of Common Stock

                                       11
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outstanding on such effective date before giving effect to such Common Stock
Reorganization and the denominator of which shall be the number of shares of
Common Stock outstanding after giving effect to such Common Stock
Reorganization, and (b) the number of shares of Common Stock subject to purchase
upon exercise of this Warrant shall be adjusted, effective at such time, to a
number determined by multiplying the number of shares of Common Stock subject to
purchase immediately before such Common Stock Reorganization by a fraction, the
numerator of which shall be the number of shares of Common Stock outstanding
after giving effect to such Common Stock Reorganization and the denominator of
which shall be the number of shares of Common Stock outstanding immediately
before such Common Stock Reorganization.

          SECTION 5.3.  Common Stock Distribution.
                        -------------------------

          From the Effective Date until the earlier of the time the Holder (i)
obtains at least 51% of the seats of the Company's Board of Directors or (ii)
owns beneficially 51% or more of the total issued and outstanding shares of
capital stock of the Company on a Fully Diluted Basis, the Holder shall be
entitled to the rights set forth in this Section 5.3; provided, however, if at
any time after either clause (i) or clause (ii) has become effective, the Holder
(x) does not hold 51% of the seats of the Company's Board of Directors and (y)
owns beneficially more than 40% but less than 51% of the total issued and
outstanding capital stock of the Company on a Fully Diluted Basis then the
Holder shall be entitled to the rights set forth in this Section 5.3.

          (a) If the Company shall issue, sell or otherwise distribute any
shares of Common Stock, other than pursuant to a Common Stock Reorganization
(which shall be governed by Section 5.2 hereof) (any such event, including any
event described in Section 5.3(b) or Section 5.3(c) below, being herein called a
"Common Stock Distribution"), for a consideration per share that is less than
 -------------------------
85% of the Market Price per share of Common Stock on the date of such Common
Stock Distribution, then, effective upon such Common Stock Distribution, the
Exercise Price shall be reduced to the lowest of the prices (calculated to the
nearest one-thousandth of one cent) determined as provided in clauses (i), (ii)
and (iii) below:

          (i)    if the Company shall receive any consideration for the Common
     Stock issued, sold or distributed in such Common Stock Distribution, the
     consideration per share of Common Stock received by the Company upon such
     issue, sale or distribution;

          (ii)   by dividing (A) an amount equal to the sum of (1) the number of
     shares of Common Stock outstanding immediately prior to such Common Stock
     Distribution multiplied by the then existing Exercise Price, plus (2) the
     consideration, if any, received by the Company upon such Common Stock
     Distribution by (B) the total number of shares of Common Stock outstanding
     immediately after such Common Stock Distribution; and

          (iii)  by multiplying the Exercise Price on the Business Day
     immediately prior to such Common Stock Distribution by a fraction, the

                                       12
<PAGE>

     numerator of which shall be the sum of (A) the number of shares of Common
     Stock outstanding immediately prior to such Common Stock Distribution
     multiplied by such Market Price per share on the date of such Common Stock
     Distribution, plus (B) the consideration, if any, received by the Company
     upon such Common Stock Distribution, and the denominator of which shall be
     the product of (1) the total number of shares of Common Stock outstanding
     immediately after such Common Stock Distribution multiplied by (2) the
     Market Price per share on the date of such Common Stock Distribution.

          If any Common Stock Distribution shall require an adjustment to the
Exercise Price pursuant to the foregoing provisions of this Section 5.3(a),
including by operation of Section 5.3(b) or 5.3(c) below, then, effective at the
time such adjustment is made, the number of shares of Common Stock subject to
purchase upon exercise of this Warrant shall be increased to a number determined
by multiplying the number of shares of Common Stock subject to purchase
immediately before such Common Stock Distribution by a fraction, the numerator
of which shall be the number of shares of Common Stock outstanding immediately
after giving effect to such Common Stock Distribution and the denominator of
which shall be the sum of the number of shares outstanding immediately before
giving effect to such Common Stock Distribution (both calculated on a Fully
Diluted Basis) plus the number of shares of Common Stock which the aggregate
consideration received by the Company with respect to such Common Stock
Distribution would purchase at the Market Price per share of Common Stock on the
date of such Common Stock Distribution. In computing adjustments under this
paragraph, fractional interests in Common Stock shall be taken into account to
the nearest one-thousandth of a share.

          The provisions of this Section 5.3(a), including by operation of
Section 5.3(b) or 5.3(c) below, shall not operate to increase the Exercise Price
or reduce the number of shares of Common Stock subject to purchase upon exercise
of this Warrant.

          (b)  If after the date hereof the Company shall issue, sell,
distribute or otherwise grant in any manner (including by assumption) any rights
to subscribe for or to purchase, or any warrants or options for the purchase of
Common Stock or any stock or securities convertible into or exchangeable for
Common Stock (such rights, warrants or options being herein called "Options"
                                                                    -------
and such convertible or exchangeable stock or securities being herein called
"Convertible Securities"), whether or not such Options or the rights to convert
 ----------------------
or exchange any such Convertible Securities in respect of such Options are
immediately exercisable, and the price per share for which Common Stock is
issuable upon the exercise of such Options or upon conversion or exchange of
such Convertible Securities in respect of such Options (determined by dividing
(i) the aggregate amount, if any, received or receivable by the Company as
consideration for the granting of such Options, plus the minimum aggregate
amount of additional consideration payable to the Company upon the exercise of
all such Options, plus, in the case of Options to acquire Convertible
Securities, the minimum aggregate amount of additional consideration, if any,
payable upon the issuance or sale of such Convertible Securities and upon the
conversion or exchange thereof, by (ii) the total maximum number of shares of
Common Stock issuable upon the exercise of such Options or upon

                                       13
<PAGE>

the conversion or exchange of all such Convertible Securities issuable upon the
exercise of such Options) shall be less than the Market Price per share of
Common Stock on the date of granting such Options, then, for purposes of Section
5.3(a) above, the total maximum number of shares of Common Stock issuable upon
the exercise of such Options or upon conversion or exchange of the total maximum
amount of such Convertible Securities issuable upon the exercise of such Options
shall be deemed to have been issued as of the date of granting of such Options
and thereafter shall be deemed to be outstanding and the Company shall be deemed
to have received as consideration of such price per share, determined as
provided above, therefor. Except as otherwise provided in this Warrant
(including Sections 5.3(d) and 5.3(f) below), no additional adjustment of the
Exercise Price shall be made upon the actual exercise of any Options or upon
conversion or exchange of any Convertible Securities, notwithstanding any change
in the Market Price between the date of issuance, sale, distribution or grant
and the date of exercise, conversion or exchange.

          (c)  If the Company shall issue, sell or otherwise distribute
(including by assumption) any Convertible Securities, whether or not the rights
to exchange or convert thereunder are immediately exercisable, and the price per
share for which Common Stock is issuable upon such conversion or exchange
(determined by dividing (i) the aggregate amount received or receivable by the
Company as consideration for the issuance, sale or distribution of such
Convertible Securities, plus the minimum aggregate amount of additional
consideration, if any, payable to the Company upon the conversion or exchange
thereof, by (ii) the total maximum number of shares of Common Stock issuable
upon the conversion or exchange of all such Convertible Securities) shall be
less than the Market Price per share of Common Stock on the date of such
issuance, sale or distribution, then, for purposes of Section 5.3(a) above, the
total maximum number of shares of Common Stock issuable upon conversion or
exchange of all such Convertible Securities shall be deemed to have been issued
as of the date of the issuance, sale or distribution of such Convertible
Securities and thereafter shall be deemed to be outstanding and the Company
shall be deemed to have received as consideration such price per share,
determined as provided above, therefor. Except as otherwise provided in this
Warrant (including Sections 5.3(d) and 5.3(f) below), no additional adjustment
of the Exercise Price shall be made upon the actual conversion or exchange of
any Convertible Securities, notwithstanding any change in the Market Price
between the date of issuance, sale or distribution and the date of conversion or
exchange.

          (d)  If (i) the purchase price provided for in any Option referred to
in Section 5.3(b) above or the additional consideration, if any, payable upon
the conversion or exchange of any Convertible Securities referred to in Section
5.3(b) or 5.3(c) above or the rate at which any Convertible Securities referred
to in Section 5.3(b) or 5.3(c) above are convertible into or exchangeable for
Common Stock shall change at any time (other than under or by reason of
provisions designed to protect against dilution upon an event which results in a
related adjustment pursuant to this Article V, in accordance with 5.6(b)), or
(ii) any of such Options or Convertible Securities shall have terminated, lapsed
or expired, the Exercise Price then in effect shall forthwith be readjusted
(effective only with respect to any exercise of this Warrant after such
readjustment) to the Exercise Price which would then be in effect had the
adjustment made upon the issuance, sale,

                                       14
<PAGE>

distribution or grant of such Options or Convertible Securities been made based
upon such changed purchase price, additional consideration or conversion rate,
as the case may be (in the case of any event referred to in clause (i) of this
Section 5.3(d)) or had such adjustment not been made (in the case of any event
referred to in clause (ii) of this Section 5.3(d)).

          (e)  If the Company shall pay a dividend or make any other
distribution upon any capital stock of the Company payable in Common Stock,
Options or Convertible Securities, then, for purposes of Section 5.3(a) above,
such Common Stock, Options or Convertible Securities shall be deemed to have
been issued or sold without consideration.

          (f)  If any shares of Common Stock, Options or Convertible Securities
shall be issued, sold or distributed for cash, the consideration received
therefor shall be deemed to be the amount received by the Company therefor. If
any shares of Common Stock, Options or Convertible Securities shall be issued,
sold or distributed for a consideration other than cash, the amount of the
consideration other than cash received by the Company shall be deemed to be the
Fair Market Value of such consideration, after deduction of any expenses
incurred in connection therewith. If any shares of Common Stock, Options or
Convertible Securities shall be issued in connection with any merger in which
the Company is the surviving corporation, the amount of consideration therefor
shall be deemed to be the Fair Market Value of such portion of the assets and
business of the non-surviving corporation as shall be attributable to such
Common Stock, Options or Convertible Securities, as the case may be. If any
Options shall be issued in connection with the issuance and sale of other
securities of the Company, together comprising one integral transaction, then
such Options shall be deemed to have been issued (i) for such consideration as
shall be allocated to such Options by the parties thereto, or (ii) in the
absence of such an allocation by the parties thereto, by a reasonable
determination made in good faith by the Board of Directors of the Company, or
(iii) in the absence of such an allocation by the parties thereto and such a
determination by the Board of Directors, without consideration.

          SECTION 5.4.  Special Dividends.  If the Company shall issue or
                        -----------------
distribute to any holder or holders of shares of Common Stock evidences of
indebtedness, any other securities of the Company or any cash, property or other
assets (excluding a Common Stock Reorganization or a Common Stock Distribution),
whether or not accompanied by a purchase, redemption or other acquisition of
shares of Common Stock (any such nonexcluded event being herein called a
"Special Dividend"), (a) the Exercise Price shall be decreased, effective
 ----------------
immediately after the effective date of such Special Dividend, to a price
determined by multiplying the Exercise Price then in effect by a fraction, the
numerator of which shall be the Market Price per share of Common Stock as of
such effective date less any cash and the then fair market value of any
evidences of indebtedness, securities or property or other assets issued or
distributed in such Special Dividend with respect to one share of Common Stock,
and the denominator of which shall be such Market Price per share and (b) the
number of shares of Common Stock subject to purchase upon exercise of this
Warrant shall be increased to a number determined by multiplying the number of
shares of Common Stock subject to purchase

                                       15
<PAGE>

immediately before such Special Dividend by a fraction, the numerator of which
shall be the Exercise Price in effect immediately before such Special Dividend
and the denominator of which shall be the Exercise Price in effect immediately
after such Special Dividend. A reclassification of Common Stock (other than a
change in par value, or from par value to no par value or from no par value to
par value) into shares of Common Stock and shares of any other class of stock
shall be deemed a distribution by the Company to the holders of such Common
Stock of such shares of such other class of stock and, if the outstanding shares
of Common Stock shall be changed into a larger or smaller number of shares of
Common Stock as part of such reclassification, a Common Stock Reorganization.

          SECTION 5.5.  Capital Reorganizations.  If there shall be any
                        -----------------------
consolidation or merger to which the Company is a party, other than a
consolidation or a merger of which the Company is the continuing corporation and
which does not result in any reclassification of, or change (other than a Common
Stock Reorganization) in, outstanding shares of Common Stock, or any sale or
conveyance of the property of the Company as an entirety or substantially as an
entirety, or any recapitalization of the Company (any such event being called a
"Capital Reorganization"), then, effective upon the effective date of such
 ----------------------
Capital Reorganization, the Holder shall no longer have the right to purchase
Common Stock, but shall have instead the right to purchase, upon exercise of
this Warrant, the kind and amount of shares of stock and other securities and
property (including cash) which the Holder would have owned or have been
entitled to receive pursuant to such Capital Reorganization if this Warrant had
been exercised immediately prior to the effective date of such Capital
Reorganization. As a condition to effecting any Capital Reorganization, the
Company or the successor or surviving corporation, as the case may be, shall
execute and deliver to the Holder and to the Warrant Agency an agreement as to
the Holder's rights in accordance with this Section 5.5, providing, to the
extent of any right to purchase equity securities hereunder, for subsequent
adjustments as nearly equivalent as may be practicable to the adjustments
provided for in this Article V. The provisions of this Section 5.5 shall
similarly apply to successive Capital Reorganizations.

          SECTION 5.6.  Adjustment Rules.  Any adjustments pursuant to this
                        ----------------
Article V shall be made successively whenever an event referred to herein shall
occur, except that, notwithstanding any other provision of this Article V:

          (a)  no adjustment shall be made to the number of shares of Common
Stock to be delivered to the Holder (or to the Exercise Price) if such
adjustment represents less than 1% of the number of shares previously required
to be so delivered, but any lesser adjustment shall be carried forward and shall
be made at the time and together with the next subsequent adjustment which
together with any adjustments so carried forward shall amount to 1% or more of
the number of shares to be so delivered; and

          (b)  no adjustment shall be made pursuant to this Article V in respect
of the issuance from time to time of shares of Common Stock upon the exercise of
the Warrant.

                                       16
<PAGE>

If the Company shall take a record of the holders of its Common Stock for any
purpose referred to in this Article V, then (i) such record date shall be deemed
to be the date of the issuance, sale, distribution or grant in question and (ii)
if the Company shall legally abandon such action prior to effecting such action,
no adjustment shall be made pursuant to this Article V in respect of such
action.

          SECTION 5.7.  Proceedings Prior to Any Action Requiring Adjustment.
                        ----------------------------------------------------
As a condition precedent to the taking of any action which would require an
adjustment pursuant to this Article V, the Company shall take any action which
may be necessary, including obtaining regulatory approvals or exemptions, in
order that the Company may thereafter validly and legally issue as fully paid
and nonassessable all shares of Common Stock which the Holder is entitled to
receive upon exercise thereof.

          SECTION 5.8.  Notice of Adjustment.  Not less than 10 nor more than 30
                        --------------------
days prior to the record date or effective date, as the case may be, of any
action which requires or might require an adjustment or readjustment pursuant to
this Article V, the Company shall give notice to the Holder of such event,
describing such event in reasonable detail and specifying the record date or
effective date, as the case may be, and, if determinable, the required
adjustment and the computation thereof. If the required adjustment is not
determinable at the time of such notice, the Company shall give notice to the
Holder of such adjustment and computation promptly after such adjustment becomes
determinable.

                                  ARTICLE VI

                                 MISCELLANEOUS

          SECTION 6.1.  Notices.  Any notice required or permitted by this
                        -------
Agreement shall be in writing and shall be deemed sufficient on the date of
delivery, when delivered personally or by overnight courier or sent by telegram
or fax, or by certified or registered U.S. mail, and addressed to the party to
be notified at such party's address as follows:

          If to the Holder:

                    Lufthansa Technik AG
                    Weg beim Jager 193
                    D-22335 Hamburg, GERMANY
                    Attention: HAM-TB/B
                    Fax: 011 49 40 5070 5366

          with a copy to:

                    Wilmer, Cutler & Pickering
                    2445 M Street, N.W.
                    Washington, D.C. 20037

                                       17
<PAGE>

                    Attention: Stephen P. Doyle, Esq.
                    Fax: 202 663 6363

          If to the Company to:

                    Hawker Pacific Aerospace
                    11240 Sherman Way
                    Sun Valley, California, 91352
                    Attention: Chief Financial Officer
                    Fax: 818 765 2416

          SECTION 6.2.  Amendment.  This Agreement may not be modified or
                        ---------
amended except by written agreement specifically referring to this Agreement and
executed and delivered by the parties hereto.

          SECTION 6.3.  Waivers.  No waiver of a breach or default hereunder
                        -------
shall be considered valid unless in writing and signed by the party giving such
waiver, and no such waiver shall be deemed a waiver of any subsequent breach or
default of the same or similar nature.

          SECTION 6.4.  Governing Law.  This Warrant shall be construed in
                        -------------
accordance with and governed by the laws of the State of California (without
regard to principles of conflicts of law).

          SECTION 6.5.  Binding Effect.  All covenants, stipulations, promises
                        --------------
and agreements in this Warrant contained by and on behalf of the Company or the
Holder shall bind its successors and assigns, whether so expressed or not.

          SECTION 6.6.  Severability.  In case any one or more of the provisions
                        ------------
contained in this Warrant shall be invalid, illegal or unenforceable in an
respect, the validity, legality and enforceability of the remaining provisions
contain herein shall not in any way be affected or impaired thereby. The parties
shall endeavor in good faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

          SECTION 6.7.  Section Headings.  The section headings used herein are
                        ----------------
for convenience of reference only, are not part of this Warrant and are not to
affect the construction of or be taken into consideration in interpreting this
Warrant. All references to sections, articles, Exhibits or Schedules shall mean
the sections, articles, Exhibits or Schedules of this Agreement. Terms used with
initial capital letters will have the meaning specified, applicable to both
singular and plural forms, for all purposes of this Agreement. The words
"include" and "exclude" and derivatives of those words are used in this
Agreement in an illustrative sense rather than a limiting sense.

          SECTION 6.8.  Specific Performance.  The Company hereby acknowledge
                        --------------------
and agree that the failure of the Company to perform its obligations under

                                       18
<PAGE>

this Warrant, the Shareholders Rights Agreement or the Loan Agreement in
accordance with their specific terms or to otherwise comply with such
obligations will cause irreparable injury to the Holder for which damages, even
if available, will not be adequate remedy. Accordingly, the Company hereby
consent to the issuance of injunctive relief to prevent breaches, and to the
granting by any such court of the remedy of specific performance of the terms
and provisions of this Warrant, the Shareholders Rights Agreement and the Loan
Agreement.

                         [signature on following page]

                                       19
<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
in its corporate name by one of its officers thereunto duly authorized, all as
of the day and year first above written.

                                       HAWKER PACIFIC AEROSPACE

                                       By:    /s/ David L. Lokken
                                       Name:  David L. Lokken
                                       Title: CEO
<PAGE>

                                  ASSIGNMENT

            (TO BE EXECUTED BY THE REGISTERED HOLDER IF IT DESIRES
                  AND IS PERMITTED TO TRANSFER THE WARRANT OF
                           HAWKER PACIFIC AEROSPACE)

          FOR VALUE RECEIVED _______________________________ hereby sells,
assigns and transfers unto _____________________ the right to purchase shares of
Common Stock evidenced by the within Warrant, and does hereby irrevocably
constitute and appoint__________________________________________________
Attorney to transfer the said Warrant on the books of the Company (as defined in
said Warrant) with full power and substitution.

          The undersigned represents and warrants to the Company that this
assignment has been effected in compliance with all applicable provisions of
said Warrant.

                                       Signature: ________________________(SEAL)

                                       Address:   ______________________________

                                                  ______________________________

Dated: _______________

In the presence of

______________________________          ______________________________________
(Witness)                                     (Signature of Witness)

NOTICE:   The signature to the foregoing Assignment must correspond to the name
          as written upon the face of the within Warrant in every particular,
          without alteration or enlargement or any change whatsoever.
<PAGE>

                                 PURCHASE FORM

                (TO BE EXECUTED ONLY UPON EXERCISE OF WARRANT)

The undersigned registered owner of this Warrant irrevocably exercises this
Warrant for and purchases Shares of Common Stock of HAWKER PACIFIC AEROSPACE
purchasable with this Warrant, and herewith makes payment therefore: (circle the
following as applicable)

     1.  By cash in the amount of $________.

     2.  By bank cashier's check in the amount of $___________.

     3.  By certified check in the amount of $_____________.

     4.  By request for partial satisfaction of the Loan Agreement, dated
         September 20, 2000, between the Company and the Holder as defined
         herein.

all at the price and on the terms and conditions specified in this Warrant and
requests that certificates for the shares of Common Stock hereby purchased (and
any securities or property issuable upon such exercise) be issued in the name of
and delivered to _____________________, whose address is _______________________
and, if such shares shall not include all of the shares issuable as provided in
this Warrant that a new Warrant of like tenor and date for the balance of the
shares of Common Stock issuable thereunder be delivered to the undersigned.

Dated:

________________________________
(Signature of Registered Owner)

________________________________
(Street Address)

_________________________________
(City)    (State)    (Zip Code)<PAGE>

                                                                  EXECUTION COPY

                                                                   Exhibit 10.52

--------------------------------------------------------------------------------

                         REGISTRATION RIGHTS AGREEMENT

                                     among

                             LUFTHANSA TECHNIK AG

                                      and

                           HAWKER PACIFIC AEROSPACE

                           DATED SEPTEMBER 20, 2000

--------------------------------------------------------------------------------
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                        Page
                                                                                                        ----
<S>                                                                                                     <C>
1.       Definitions...................................................................................  1
         -----------

2.       Restrictions on Transferability...............................................................  1
         -------------------------------

3.       Restrictive Legend............................................................................  2
         ------------------

4.       Notice of Proposed Transfers..................................................................  2
         ----------------------------

5.       Demand Registration...........................................................................  3
         -------------------

6.       Piggyback Registration........................................................................  5
         ----------------------

7.       Registration on Form S-3......................................................................  6
         ------------------------

8.       Expenses of Registration......................................................................  7
         ------------------------

9.       Registration Procedures.......................................................................  7
         -----------------------

10.      Termination of Registration Rights............................................................  9
         ----------------------------------

11.      Lock-up Agreement.............................................................................  9
         -----------------

12.      Information by Holder.........................................................................  9
         ---------------------

13.      Indemnification...............................................................................  9
         ---------------

14.      Rule 144 Reporting...........................................................................  11
         ------------------

15.      Transfer of Registration Rights..............................................................  11
         -------------------------------

16.      Subsequent Grant of Registration Rights......................................................  11
         ---------------------------------------

17.      Arbitration..................................................................................  12
         -----------

18.      Miscellaneous................................................................................  12
         -------------
</TABLE>
<PAGE>

                         REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (this "Agreement") is made as of this
20th day of September, 2000 by and among Hawker Pacific Aerospace, a California
corporation (the "Company"), and Lufthansa Technik AG, a company organized under
the laws of Germany (the "Holder").

                                   RECITALS
                                   --------

     A.   The Company and Holder have entered into that certain Loan Agreement
of even date herewith pursuant to which Holder shall extend a loan to the
Company for $9,300,000 (the "Loan Agreement").

     B.   The Company has issued in conjunction with the Loan Agreement a
Warrant equal to 2,500,000 shares of Common Stock subject to shareholder
approval (the "Warrant").

     C.   The Holder and certain shareholders of the Company have entered into a
Purchase Agreement by which Holder shall acquire 2,336,495 shares of Common
Stock (the "Purchase Agreement").

     D.   The obligation of Holder to extend the loan under the Loan Agreement
and the obligation of Holder to acquire shares pursuant to the Purchase
Agreement are conditioned upon, among other things, the execution and delivery
by the Company of this Agreement.

     NOW THEREFORE, in consideration of the foregoing recitals and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto, intend to be legally bound, agree as follows:

     1.   Definitions.  For purposes of this Agreement, and except as otherwise
          -----------
provided herein or unless the context otherwise requires, capitalized terms
shall have the meaning ascribed to them in Annex I.
                                           -------

     2.   Restrictions on Transferability.  The Restricted Securities shall
          -------------------------------
not be transferable except upon satisfaction of the conditions specified in this
Agreement, which conditions are intended to ensure compliance with the
provisions of the Securities Act.  The Holder will cause any proposed transferee
of the Restricted Securities held by Holder, other than a transferee acquiring
such securities in connection with a registered offering covering such
disposition, to agree to take and hold such Restricted Securities subject to the
provisions and upon the conditions specified in this Agreement.  Notwithstanding
anything to the contrary in this Agreement, a Holder may Transfer to any
transferee (i) all its Restricted Securities or (ii) an amount equal to at least
10,000 shares of its Restricted Securities (as adjusted for stock splits, stock
dividends and the like); provided, that such transferee shall agree to be bound
                         --------
by the terms of this Agreement; provided further, that such
                                ----------------
<PAGE>

transferee shall be subject to the limitations set forth in Section 15.
Notwithstanding anything to the contrary in this Agreement, a Holder may
Transfer Restricted Securities, in whole or in any part, to a wholly-owned
Affiliate of such Holder or otherwise in accordance with the Shareholders Rights
Agreement and such Transfer shall not be subject to any restrictions on
transferability set forth in this Agreement; provided, that such wholly-owned
                                             --------
Affiliate or transferee shall agree to be bound by the terms of this Agreement.

     3.   Restrictive Legend.  Each certificate representing (i) the shares of
          ------------------
the Company's Common Stock and (ii) any other securities issued in respect of
the Common Stock issued upon any stock split, stock dividend, recapitalization,
merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 4 below) be stamped or otherwise imprinted with a legend
in the following form (in addition to any legend required under applicable
securities laws):

     THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
     THE SECURITIES ACT OF 1933 AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT
     WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO
     SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
     STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN FORM SATISFACTORY TO
     THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

     Holder consents to the Company making a notation on its records and giving
     instructions to any transfer agent of the Common Stock in order to
     implement the restrictions on transfer established in this Section 3. The
     Company shall be obligated to reissue promptly unlegended certificates at
     the request of the Holder thereof if the Holder shall have obtained an
     opinion of counsel at Holder's expense (which counsel may be counsel to the
     Company) reasonably acceptable to the Company to the effect that the
     securities proposed to be disposed of may lawfully be so disposed of
     without registration, qualification or legend.

     4.   Notice of Proposed Transfers
          ----------------------------

     The Holder of each certificate representing Restricted Securities by
acceptance thereof agrees to comply in all respects with the provisions of this
Section 4. Prior to any proposed transfer of any Restricted Securities, unless
there is in effect a registration statement under the Securities Act covering
the proposed transfer, the Holder thereof shall give written notice to the
Company of such Holder's intention to effect such transfer. Each such notice
shall describe the manner and circumstances of the proposed transfer in
sufficient detail, and shall, if the Company reasonably requests, be accompanied
(except in transactions in compliance with Rule 144) by either (i) a written
opinion of legal counsel who shall be reasonably satisfactory to the Company,
addressed to the Company and reasonably satisfactory in form and substance to
the Company's counsel, to the effect that the proposed transfer of the
Restricted Securities may be effected without registration under the

                                       2
<PAGE>

Securities Act, or (ii) a "No Action" letter from the Commission to the effect
that the transfer of such securities without registration will not result in a
recommendation by the staff of the Commission that action be taken with respect
thereto, whereupon the Holder shall be entitled to transfer such Restricted
Securities in accordance with the terms of the notice delivered by the Holder to
the Company; provided, however, that no opinion or "No Action" letter need be
             --------  -------
obtained with respect to a transfer to (A) a partner or member, active or
retired, of a Holder of Restricted Securities, (B) the estate of any Holder of
Registrable Securities, (C) an "affiliate" of a Holder of Restricted Securities
as that term is defined in Rule 405 promulgated by the Commission under the
Securities Act, (D) if to a corporation, to its stockholders, (E) if to a
limited liability company, to its members or former members or (F) the spouse,
children, grandchildren or spouse of such children or grandchildren of any
Holder or to trusts for the benefit of any Holder or such persons, if the
transferee agrees to be subject to the terms hereof. Each certificate evidencing
the Restricted Securities transferred as above provided shall bear the
appropriate restrictive legend set forth in Section 3 above, except that such
certificate shall not bear such restrictive legend if the transferee provides an
opinion of counsel as provided in Section 3 or in the opinion of counsel for the
Company such legend is not required in order to establish compliance with any
provisions of the Securities Act.

     5.   Demand Registration.
          -------------------

          (a)  Request for Registration.  Subject to Section 5(b), if at any
               ------------------------
time or times after the date hereof, the Company shall receive from Holder a
written request that the Company effect any registration with respect to all or
any part of the Registrable Securities held by Holder (the "Demand
Registration"), the Company will:

               (i)  promptly give written notice of the proposed registration,
qualification or compliance to the Holder; and

               (ii) as soon as practicable, use its best efforts to effect such
registration (including, without limitation, filing post-effective amendments,
appropriate qualification under applicable blue sky or other state securities
laws and appropriate compliance with applicable regulations issued under the
Securities Act and any other governmental requirements or regulations) as would
permit or facilitate the sale and distribution of all or such portion of such
Registrable Securities as are specified in such request.

     Provided, however, that the Company shall not be obligated to take any
     --------  -------
action to effect any such registration pursuant to this Section 5:

                    (A)  in any particular jurisdiction in which the Company
would be required to execute a general consent to service of process in
effecting such registration, qualification or compliance unless the Company is
already subject to service in such jurisdiction and except as may be required by
the Securities Act; or

                                       3
<PAGE>

                    (B)  after the Company has effected two such registrations
pursuant to this Section 5(a), such registrations have been declared or ordered
effective and the securities offered pursuant to such registration have been
sold.

     Subject to the foregoing clauses (A) and (B), the Company shall file a
registration statement covering the Registrable Securities so requested to be
registered as soon as practicable after receipt of the request or requests of
the Holder.  If, however, the Company shall furnish to the Holder a certificate
signed by the President of the Company stating that, in the good faith judgment
of the Board of Directors of the Company, it would be (i) seriously detrimental
to the Company and its stockholders for such registration statement to be filed
or (ii) necessary in connection with any expected Company-initiated registration
statement pertaining to securities of the Company (other than a registration of
securities in a Rule 145 transaction or with respect to an employee benefit
plan) and it is therefore pursuant to clauses (i) or (ii) essential to defer the
filing of such registration statement, the Company shall have the right to defer
such filing for a period of not more than 90 days after receipt of the request
of the Holder; provided, however, that the Company may not utilize this right
               --------  -------
more than once in any twelve-month period.  The Company shall have no obligation
to maintain the effectiveness of a registration statement with respect to
Registrable Securities during periods when the Holder are required to suspend
the sale of such Registrable Securities as provided in this paragraph.

          (b)  Limitations.  The Holder may make up to two written requests for
               -----------
a Demand Registration with respect to all or any part of the Registrable
Securities.

          (c)  Underwriting.  If the Holder intends to distribute the
               ------------
Registrable Securities covered by their request by means of an underwriting, it
shall so advise the Company as a part of its request made pursuant to Section
5(a) and the Company shall include such information in the written notice
referred to in Section 5(a). The right of the Holder to registration pursuant to
Section 5 shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable Securities to be
registered in the underwriting to the extent requested and to the extent
provided herein. The Holder may elect to include in such underwriting all or a
part of the Registrable Securities it holds.

     The Company shall (together with all shareholders proposing to distribute
their securities through such underwriting) enter into an underwriting agreement
in customary form with the managing underwriter selected for such underwriting
by a majority in interest of the Holder. Notwithstanding any other provision of
this Section 5, if the managing underwriter advises the Holder in writing that
marketing factors require a limitation of the number of shares to be
underwritten, then, subject to the provisions of Section 5(a), the Company shall
so advise the Holder and the number of shares of Registrable Securities that may
be included in the registration and underwriting shall be allocated among all
shareholders requesting inclusion in the registration as follows: (A) all
securities proposed to be offered by the Company for its own account or for the
account of holders of securities other than Registrable Securities shall be
excluded before any Registrable Securities are excluded; and (B) if, after all
non-Registrable Securities have been

                                       4
<PAGE>

excluded, additional limitations are required, then the number of Registrable
Securities included in the registration shall be allocated among all
shareholders requesting inclusion thereof in the registration in proportion, as
nearly as practicable, to the respective amounts of Registrable Securities
proposed to be registered by such shareholders at the time of filing the
registration statement. No Registrable Securities excluded from the underwriting
by reason of the managing underwriter's marketing limitation shall be included
in such registration.

     If the Holder disapproves of the terms of the underwriting, it may elect to
withdraw therefrom by written notice to the Company, the managing underwriter
and the other shareholders. The Registrable Securities and/or other securities
so withdrawn shall also be withdrawn from registration; provided, however, that
                                                        --------  -------
if by the withdrawal of such Registrable Securities a greater number of
Registrable Securities held by other shareholders may be included in such
registration (up to the maximum of any limitation imposed by the underwriters),
then the Company shall offer to Holder in the registration the right to include
additional Registrable Securities in the same proportion used in determining the
underwriter limitation in this Section 5(b). If the registration does not become
effective due to the withdrawal of Registrable Securities at the behest of the
Holder and the withdrawal of the registration is not at the request or on the
advice of the Company or the underwriter nor is the result of a material adverse
change in the Company's business, financial condition, results of operations or
prospects since the date of the written request of the Holder pursuant to this
Section 5 then either (1) the Holder requesting registration shall reimburse the
Company for expenses incurred in complying with the request or (2) if the Holder
fails to make such reimbursement, the aborted registration shall be treated as
effected for purposes of Section 5(a)(ii)(B).

     6.   Piggyback Registration.
          ----------------------

          (a)  Notice of Registration. If at any time or times after the date
               ----------------------
hereof, if the Company shall determine to register any of its securities, either
for its own account or the account of a security holder or holders exercising
their respective demand registration rights, other than (i) a registration
pursuant to Section 5 or 7, (ii) a registration statement on Form S-4 or S-8 or
(iii) a registration relating solely to a Rule 415 transaction (or any
substitute form or rule, respectively, that may be adopted by the Commission)
the Company will:

                    (i)  promptly give to Holder written notice thereof at the
address set forth in the share register of the Company as soon as reasonably
practicable (but in no event less than 15 days before the anticipated filing
date); and

                    (ii) subject to Section 6(b), include in such registration
(and any related qualification under blue sky laws or other compliance), and in
any underwriting, if any, involved therein, all the Registrable Securities
specified in a written request or requests (the "Piggyback Registration"),
mailed by Holder within 20 days after receipt of such written notice from the
Company. The written request of Holder may specify that all or a part of
Holder's Registrable Securities shall be included in such registration.

                                       5
<PAGE>

          (b)  The Company may limit, to the extent so advised by the
underwriters, the amount of Registrable Securities to be included in the
registration by the Holder to an amount not less than 15% of the total number of
securities requested to be included by the Holder unless the inclusion of such
Registrable Securities would cause a Material Adverse Effect in which case all
Registrable Securities may be excluded from such offering; provided further,
                                                           ----------------
that the Registrable Securities held by employees, officers or directors shall
be reduced prior to any such reduction in the Holder's Registrable Securities.
Any partial reduction in number of Registrable Securities of the Holder to be
included in the Piggyback Registration shall be effected pro rata based on the
ratio which the Holder's requested shares bears to the total number of shares
requested to be included in such Piggyback Registration by all Persons other
than the Company who have the contractual right to request that their shares be
included in such registration statement and who have requested that their shares
be included, subject to the 15% floor referenced in the first sentence of this
Section 6(b). If the Company initiated the registration, for its own account or
for the account of any other Person other than the Holder, then the Company may
include all of those securities in such registration statement before any of
Holder's requested shares are included. If another security holder initiated the
registration, then the Company may not include any of its securities in such
registration statement unless all Registrable Securities requested to be
included in the registration statement by the Holder are included in such
registration statement. If as a result of the provisions of this Section 6(b)
the Holder shall not be entitled to include all Registrable Securities in a
registration that the Holder has requested to be so included, the Holder may
withdraw its request to include Registrable Securities in such registration
statement prior to its effectiveness.

     7.   Registration on Form S-3.
          ------------------------

          (a)  In addition to the rights set forth above and subject to Section
7(b), if the Holder requests in writing that the Company file a registration
statement on Form S-3 (or any successors thereto) ("Follow-On Registrations")
for a public offering of shares of Registrable Securities the reasonably
anticipated aggregate price to the public of which would equal at least
$1,000,000, and the Company is entitled to use Form S-3 to register securities
for such an offering, the Company shall use its best efforts to effect such
registration (including, without limitation, filing post-effective amendments,
appropriate qualifications under applicable blue sky or other state securities
laws, and appropriate compliance with the Securities Act).

          (b)  If a registration under this Section 7 is underwritten, the
Company may limit to the extent so advised by the underwriters, the amount of
Registrable Securities to be included in the registration by the Holder to an
amount not less than 15% of the total number of securities to be requested to be
included by the Holder, unless the inclusion of such Registrable Securities
would cause a Material Adverse Effect in which case all Registrable Securities
may be excluded from such offering; provided further, that the Registrable
                                    ----------------
Securities held by employees, officers or directors shall be reduced prior to
any such reduction in the Holder's Registrable Securities. Any partial reduction
in number of Registrable Securities of the Holder to be included in the Follow-
On Registration shall be effected pro rata based on the ratio which the Holder's
requested shares bears to the total number of shares requested to be included in
such Follow-On Registration by all Persons

                                       6
<PAGE>

other than the Company who have the contractual right to request that their
shares be included in such registration statement and who have requested that
their shares be included. If the Company initiated the registration, for its own
account or for the account of any other Person other than the Holder, then the
Company may include all of those securities in such registration statement
before any of Holder's requested shares are included, subject to the 15% floor
referenced in the first sentence of this Section 7(b). If another security
holder initiated the registration, then the Company may not include any of its
securities in such registration statement unless all Registrable Securities
requested to be included in the registration statement by the Holder are
included in the registration statement. If as a result of the provisions of this
Section 7 the Holder shall not be entitled to include all Registrable Securities
in a registration that the Holder has requested to be so included, the Holder
may withdraw its request to include Registrable Securities in such registration
statement prior to its effectiveness.

     8.   Expenses of Registration   All Registration Expenses incurred in
          ------------------------
connection with any registration, qualification or compliance pursuant to
Sections 5, 6, and 7 shall be borne by the Company. All Selling Expenses
relating to securities registered by the Holder shall be borne by the Holder.

     9.   Registration Procedures.
          -----------------------

     In the case of each registration, qualification or compliance effected by
the Company pursuant to this Agreement the Company will keep Holder advised in
writing as to the initiation of each registration, qualification and compliance
and as to the completion thereof. At its expense the Company will:

          (a)  prepare and file with the Commission a registration statement
with respect to such securities and use its best efforts to cause such
registration statement to become and remain effective for at least 120 days or
until the distribution described in the registration statement has been
completed; provided, however, that (i) such 120-day period shall be extended for
           --------  -------
a period of time equal to the period the Holder refrains from selling any
securities included in such registration at the request of an underwriter of
securities of the Company; and (ii) in the case of any registration of
Registrable Securities on Form S-3 which are intended to be offered on a
continuous or delayed basis, such 120-day period shall be extended, if
necessary, to keep the registration statement effective until all such
Registrable Securities are sold;

          (b)  furnish to the Holder and to the underwriters, if any, of the
securities being registered such number of copies of the registration statement,
preliminary prospectus, final prospectus and such other documents as such Holder
or underwriters may reasonably request in order to facilitate the public
offering of such securities;

          (c)  prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement or to applicable anti-fraud
provisions;

                                       7
<PAGE>

          (d)  use its best efforts to register and qualify the securities
covered by such registration statement under such other applicable securities or
blue sky laws; provided that, the Company shall not be required in connection
               --------
therewith or as a condition thereto to qualify to do business or to file a
general consent to service of process in any such states or jurisdictions unless
the Company is already subject to service in such jurisdiction and except as may
be required by the Securities Act;

          (e)  cause all such Registrable Securities which are Common Stock
registered pursuant hereunder to be listed on each securities exchange on which
similar securities issued by the Company are then listed;

          (f)  provide a transfer agent and registrar for all Registrable
Securities which are Common Stock registered pursuant to such registration
statement and a CUSIP number for all such Registrable Securities, in each case
not later than the effective date of such registration;

          (g)  if applicable, enter into an underwriting agreement in form
reasonably necessary to effect the offer and sale of Registrable Securities;

          (h)  notify Holder covered by such registration statement at any time
when a prospectus relating thereto is required to be delivered under the
Securities Act of the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of circumstances then existing;

          (i)  make available for inspection by the Holder and any attorney,
accountant or other professional retained thereby (collectively, the
"Inspectors"), all financial and other records, pertinent corporate documents
and properties of the Company (collectively, the "Records") as shall be
reasonably necessary to enable them to exercise their due diligence
responsibility, and cause the Company's officers, directors and employees to
supply all information reasonably requested by any such Inspectors in connection
with such Registration Statement; provided that the Company shall not be
required to make such information available to more than one law firm on behalf
of the Holder.

     use its best efforts to furnish, at the request of Holder requesting
registration of Registrable Securities pursuant to this Section 9, on the date
that such Registrable Securities are delivered to the underwriters for sale in
connection with a registration pursuant to this Section 9, if such securities
are being sold through underwriters, or, if such securities are not being sold
through underwriters, on the date that the registration statement with respect
to such securities becomes effective, (i) an opinion, dated such date, of the
counsel representing the Company for the purposes of such registration, in form
and substance as is customarily given to underwriters in an underwritten public
offering, addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a "comfort" letter, dated as of
such date, from the independent certified public accountants of the Company, in
form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering and

                                       8
<PAGE>

reasonably satisfactory to a majority in interest of the Holder, addressed to
the underwriters, if any, and the Holder.

     10.  Termination of Registration Rights.
          ----------------------------------

     The registration rights granted pursuant to this Agreement shall terminate
as to any Holder, at the earlier of (i) the time as such Holder is able to sell
all Registrable Securities held by it in a single transaction pursuant to Rule
144 promulgated under the Securities Act or (ii) five (5) years after the
Effective Date.

     11.  Lock-up Agreement
          -----------------

     In consideration for the Company agreeing to its obligations under this
Agreement Holder and each transferee pursuant to Section 4 hereof agrees, upon
request of the Company or the underwriters managing any underwritten offering of
the Company's securities, not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any Registrable Securities
(other than those included in the registration) without the prior written
consent of the Company or such underwriters, as the case may be, for 180 days
from the effective date of the applicable underwritten offering; provided,
                                                                 --------
however, that all executive officers and directors of the Company must enter
-------
into similar lock-up agreements as well. Each Holder agrees that the Company may
instruct its transfer agent to place stop transfer notations in its records to
enforce the provisions of this Section 11.

     12.  Information by Holder.
          ---------------------

     The Holder included in any registration shall furnish to the Company such
information regarding such Holder and the distribution proposed by such Holder
as the Company may reasonably request in writing and as shall be reasonably
required to effect the registration of such Holder's Registrable Securities in
connection with any registration, qualification or compliance referred to in
this Agreement.

     13.  Indemnification.
          ---------------

          (a)  The Company will indemnify Holder, each of its officers,
directors and partners, members, legal counsel, accountants and each person
controlling such Holder within the meaning of Section 15 of the Securities Act,
with respect to which registration, qualification or compliance has been
effected pursuant to this Agreement, and each underwriter, if any, and each
person who controls any underwriter within the meaning of Section 15 of the
Securities Act, against all expenses, claims, losses, damages and liabilities
(or actions in respect thereof), including any of the foregoing incurred in
settlement of any litigation, arising out of or based on any untrue statement
(or alleged untrue statement) of a material fact contained in any registration
statement, prospectus, offering circular or other document, or any amendment or
supplement thereto, incident to any such registration, qualification or
compliance, or based on any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein, not misleading, or any violation by the Company of the Securities Act
or any rule or regulation promulgated thereunder applicable to the Company and
relating to action or inaction required of the

                                       9
<PAGE>

Company in connection with any such registration, qualification or compliance,
and will reimburse each such Holder, each of its officers, directors, partners
and members and each person controlling such Holder, each such underwriter and
each person who controls any such underwriter, for any legal and any other
expenses reasonably incurred in connection with investigating, preparing or
defending any such claim, loss, damage, liability or action; provided that, the
                                                             --------
Company will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any untrue
statement or omission or alleged untrue statement or omission, made in reliance
upon and in conformity with written information furnished to the Company by an
instrument duly executed by such Holder or underwriter and stated to be
specifically for use therein.

          (b)  Holder will, if Registrable Securities held by such Holder are
included in the securities as to which such registration, qualification or
compliance is being effected, indemnify the Company, each of its directors and
officers, each underwriter, if any, of the Company's securities covered by such
a registration statement, each person who controls the Company or such
underwriter within the meaning of Section 15 of the Securities Act, against all
claims, losses, damages and liabilities (or actions in respect thereof) arising
out of or based on any untrue statement (or alleged untrue statement) of a
material fact contained in any such registration statement, prospectus, offering
circular or other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and will reimburse the Company, such
directors, officers, underwriters or control persons for any legal or any other
expenses reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability or action, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or
omission (or alleged omission) is made in such registration statement,
prospectus, offering circular or other document in reliance upon and in
conformity with written information furnished to the Company by an instrument
duly executed by Holder and stated to be specifically for use therein; provided,
                                                                       --------
however, that the obligations of Holder hereunder shall not apply to amounts
-------
paid in settlement of any such claims, losses, damages or liabilities (or
actions in respect thereof) if such settlement is effected without the consent
of Holder; and provided further that the obligations of Holder hereunder shall
               -------- -------
be limited to an amount equal to the net proceeds after expenses and commissions
received by Holder from Registrable Securities sold in such offering by Holder.

          (c)  Each party entitled to indemnification under this Section 13 (the
"Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that, counsel for the Indemnifying
                                --------
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party (whose approval shall not be unreasonably
withheld), and the Indemnified Party may participate in such defense at such
Party's expense; and provided further that the failure of any Indemnified Party
                     -------- -------
to give notice as provided herein shall not relieve the Indemnifying Party of
its obligations under this Agreement, except to the extent, but only to the
extent, that the Indemnifying Party's ability to defend against such claim or
litigation is impaired as a result of such failure to give notice. No

                                       10
<PAGE>

Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such Indemnified Party
of a release from all liability in respect to such claim or litigation.

     14.  Rule 144 Reporting.  With a view to making available the benefits of
          ------------------
certain rules and regulations of the Commission which may at any time permit the
sale of the Restricted Securities to the public without registration, the
Company agrees to:

          (a)  make and keep public information available, as those terms are
understood and defined in Rule 144 under the Securities Act, at all times after
the effective date of the first registration under the Securities Act filed by
the Company for an offering of its securities to the general public;

          (b)  file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), at any time after it has
become subject to such reporting requirements; and

          (c)  so long as any of the Holder owns Restricted Securities, furnish
to Holder of Registrable Securities forthwith upon written request, a written
statement by the Company as to its compliance with the reporting requirements of
Rule 144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company for an offering of its securities to
the general public), and of the Securities Act and the Exchange Act (at any time
after it has become subject to such reporting requirements), a copy of the most
recent annual or quarterly report of the Company, and such other reports and
documents of the Company as the Holder may reasonably request in availing itself
of any rule or regulation of the Commission allowing such Holder to sell any
such securities without registration.

     15.  Transfer of Registration Rights.  The right to cause the Company to
          -------------------------------
register securities granted hereunder may be assigned by Holder to a transferee
or assignee who acquires the lesser of (i) all of such Holder's Registrable
Securities or (ii) 450,000 shares of Registrable Securities (as adjusted for
stock splits, stock dividends and the like); provided that, the Company is given
                                             --------
written notice of such assignment at the time of or within a reasonable time
after said transfer or assignment, and the transferee agrees in writing to be
bound by the provisions of this Agreement regarding the right to register
securities;  provided further, Holder may assign its rights under this Agreement
             -------- -------
to a wholly-owned Affiliate of Holder upon the Transfer of Restricted Securities
to such wholly-owned Affiliate, irrespective of the number of shares acquired by
such Affiliate.

     16.  Subsequent Grant of Registration Rights.  After the date hereof, the
          ---------------------------------------
Company shall not grant rights to have securities other than the Registrable
Securities registered under the Securities

                                       11
<PAGE>

Act if such rights would be superior to the registration rights granted herein
without the written consent of the Holder.

     17.  Arbitration.
          -----------

          (a)  Disputes.  Within fifteen (15) days of the written request of
               --------
either Party, the Parties shall meet to negotiate in good faith a resolution of
any dispute, claim, controversy or claim arising out of or relating to this
Agreement or the subject matter of this Agreement, or the breach, termination or
invalidity thereof (a "Dispute").

          (b)  Arbitration.  Any Dispute which cannot be resolved pursuant to
               -----------
Section 17(a) above within twenty (20) days of the written request provided
pursuant to Section 17(a) , will be finally settled by arbitration before a sole
arbitrator in accordance with the Commercial Rules of Arbitration of the
American Arbitration Association in effect on the date of this Agreement. The
arbitrator shall be appointed in accordance with the applicable rules of
arbitration. The arbitrator shall be an individual with significant experience
in the aircraft maintenance sector.

          (c)  Timing and Location of Arbitration.  The Parties agree that any
               ----------------------------------
arbitration process related to this Agreement shall be structured to the fullest
extent possible in accordance with the applicable arbitration rules in such a
way as to enable a decision to be rendered by the arbitrators within ninety (90)
days of the date of the commencement of such arbitration.  The place of
arbitration will be Salt Lake City, Utah.  By this agreement to arbitrate, the
Parties waive their right to any form of appeal or recourse to a court of law or
other judicial authority, to the fullest extent permitted by law, provided that
                                                                  --------
any judgment upon an award rendered by the arbitrator may be entered in any
court having jurisdiction therefore.

          (d)  Confidentiality; Expenses.
               -------------------------

               (i)  The parties shall keep the arbitration confidential and
shall not disclose to any Person, other than those necessary to the proceedings,
the existence of the arbitration, any document submitted or exchanged in
connection with it, any oral submissions or testimony, transcripts, or any award
unless disclosure is required by law or is necessary to challenge, recognize or
enforce an award. The arbitrators and any experts shall be required to agree to
comply with this confidentiality provision accepting appointment.

     All expenses of the arbitration procedure and tribunal will be borne
equally by the Parties, or as otherwise prescribed by the applicable arbitration
rules. Each Party's expenses with respect to the conduct of the arbitration,
including the fees of attorneys, accountants, or other experts used in
connection with the arbitration, will be borne by the unsuccessful party in the
arbitration, in whole or in part as determined by the arbitration tribunal.

     18.  Miscellaneous.
          -------------

                                       12
<PAGE>

          (a)  Severability.  If any term, provision, covenant or restriction of
               ------------
this Agreement is held to be invalid, void or unenforceable, such provision
shall be amended by the Parties only to the extent necessary to be enforceable
consistent with the Parties' intent, and the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect, unless such action would substantially impair the benefits to any Party
of the remaining provisions of this Agreement.

          (b)  Specific Performance..  The Parties each acknowledge and agree
               --------------------
that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed in accordance with their specific terms or
were otherwise breached. It is accordingly agreed that the Parties shall be
entitled to preliminary relief to prevent or cure breaches of the provisions of
this Agreement and to enforce specifically the terms and provisions hereof, this
being in addition to any other remedy to which they may be entitled by law or
equity.

          (c)  Entire Agreement; Amendments..  This Agreement and the other
               ----------------------------
documents and instruments referred to herein contain the entire understanding of
the Parties with respect to the matters covered hereby and supersede all other
prior agreements and understandings, both written and oral, among the Parties or
any of them, with respect to the subject matter hereof. This Agreement may be
amended only by an instrument in writing executed by the Parties.

          (d)  Notices.
               -------

               (i)  All notices, requests, demands, and other communications
provided in this Agreement shall be in writing and shall be deemed given if
delivered personally, transmitted by facsimile (receipt confirmed), sent by
internationally recognized overnight courier service, to the parties at the
following addresses (or at such other address for a party as shall be specified
by like notice, provided that notices of a change of address shall be effective
only on receipt of such notice):

          if to the Holder to:

          Lufthansa Technik AG
          Weg beim Jager 193D-
          22335 Hamburg, GERMANY
          Attention: Bernhard Langlotz
          Fax: 011 49 40 5070 4909

          with a copy to:

          Wilmer, Cutler & Pickering
          2445 M Street, N.W.
          Washington, D.C. 20037
          Attention: Stephen P. Doyle, Esq.
          Fax: 202 663 6363

                                       13
<PAGE>

          if to the Company to:

          Hawker Pacific Aerospace
          11240 Sherman Way
          Sun Valley, California, 91352
          Attention: Chief Financial Officer
          Fax: 818 765 2416

All notices, requests, demands, and other communications shall be deemed to have
been given as of the date so delivered or telefaxed and, if given by any other
means, shall be deemed given only when actually received by the addressees.

          (e)  Waivers.  No waiver by either Party of any default with respect
               -------
to any provision, condition or requirement hereof shall be deemed to be a
continuing waiver in the future thereof or a waiver of any other provision,
condition or requirement hereof; nor shall any delay or omission of either Party
to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter.

          (f)  Headings; Interpretation.  The headings herein are for
               ------------------------
convenience only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof. All references to
sections, articles, Exhibits or Schedules shall mean the sections, articles,
Exhibits or Schedules of this Agreement. Terms used with initial capital letters
shall have the meanings specified, applicable to both singular and plural forms,
for all purposes of this Agreement. The words "include" and "exclude" and
derivatives of those words are used in this Agreement in an illustrative sense
rather than a limiting sense.

          (g)  Successors and Assignees.  Except as otherwise expressly provided
               ------------------------
herein, this Agreement shall be binding upon and inure to the benefit of the
Parties and their successors and permitted assigns. Holder may assign this
Agreement and any rights or obligations pursuant to Section 4. The Company may
not assign this Agreement nor any of the rights or obligations hereunder without
the prior written consent of the Holder.

          (h)  No Third Party Beneficiaries.  This Agreement is intended for the
               ----------------------------
benefit of the Parties hereto, and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

          (i)  Counterparts.  This Agreement may be executed in two
               ------------
counterparts, all of which shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each Party and
delivered to the other Party, it being understood that all Parties need not sign
the same counterpart.

                                       14
<PAGE>

          (j)  Governing Law.  This Agreement shall be governed by and construed
               -------------
and enforced in accordance with the laws of California, without regard to the
conflicts of laws principles thereof.

                           (signature page follows)

                                       15
<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the date first set forth above.

                                             COMPANY:

                                             HAWKER PACIFIC AEROSPACE

                                             By:    /s/ David L. Lokken
                                             Name:  David L. Lokken
                                             Title: CEO

                                             Holder:

                                             LUFTHANSA TECHNIK AG

                                             By:    /s/ Bernhard Langlotz
                                             Name:  Bernhard Langlotz
                                             Title: General Counsel
<PAGE>

                                    ANNEX I

                                  DEFINITIONS

     "Action or Proceeding" means any action, suit, arbitration, proceeding or
Governmental Entity investigation or audit.

     "Affiliate" shall mean, with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under direct or indirect
common control with such Person. For purposes of this definition, a Person shall
be deemed to control another Person if it possesses, directly or indirectly, the
power to direct or cause the direction of the management and policies of such
other Person, whether through ownership of voting securities, by contract or
otherwise, or the power to elect at least 50% of the directors, managers,
general partners, or persons exercising similar authority with respect to such
Person.

     "Business Day" means a day other than (i) Saturday, (ii) Sunday, or (iii)
any day on which banks located in New York, New York or Hamburg, Germany are
generally closed.

     "Commission" shall mean the Securities and Exchange Commission or any
successor agency.

     "Common Stock" shall mean the common stock, par value $0.01 per share, of
the Company.

     "Demand Registration" has the meaning set forth in Section 5 hereof.

     "Exchange Act" shall have the meaning set forth in Section 14(b) hereof.

     "Follow-On Registrations" has the meaning set forth in Section 7 hereof.

     "Governmental Entity" means any court or tribunal or administrative,
governmental or regulatory body, agency, commission, division, department,
public body or other authority.

     "Indemnified Party" has the meaning set forth in Section 13 hereof.

     "Indemnifying Party" has the meaning set forth in Section 13 hereof.

     "Inspectors" has the meaning set forth in Section 9 hereof.

     "Material Adverse Effect" means, with respect to the Company, a material
adverse effect on the business, prospects, assets, liabilities, revenues, costs
and expenses, income before provision for income taxes, operations or condition,
financial or otherwise, of the Company. In determining whether any individual
event would result in a Material Adverse Effect, notwithstanding that such event
does not of itself have such effect, a Material Adverse Effect shall be deemed
to have occurred if the cumulative effect of such event and all other then
existing events could reasonably be expected to result in a Material Adverse
Effect.
<PAGE>

     "Order" means any writ, judgment, decree, injunction or similar order of
any Governmental Entity (in each case whether preliminary or final).

     "Parties" shall mean the Company and Holder.

     "Person" means and includes any individual, partnership, joint venture,
corporation, trust, limited liability company, joint stock company, an
unincorporated organization, a Governmental Entity or any political subdivision
or agency thereof, or any other entity.

     "Piggyback Registration" has the meaning set forth in Section 6 hereof.

     "Records" has the meaning set forth in Section 9 hereof.

     "Restricted Securities" shall mean the securities of the Company required
to bear the legend set forth in Section 3 hereof (or any similar legend).

     "Registrable Securities" shall mean (i) shares of the Company's capital
stock held by Holder on the date hereof or acquired hereafter, including any
securities convertible into Common Stock; (ii) any capital stock of the Company
or other securities issued or issuable in respect of capital stock referred to
in clause (i) above, including without limitation any capital stock issued in
connection with a merger with or into another company; and (iii) shares of the
Company's capital stock or other securities issued or issuable in respect of the
capital stock described in clause (i) or (ii) upon any stock split, stock
dividend, recapitalization, or similar event; provided, however, that any
                                              --------  -------
capital stock described in clauses (i)-(iii) above which have been resold to the
public shall cease to be Registrable Securities upon such resale.

     The terms "register," "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

     "Registration Expenses" shall mean all expenses incurred by the Company in
complying with Sections 5, 6, and 7 hereof, including, without limitation, all
registration, qualification and filing fees, printing expenses, escrow fees,
fees and disbursements of counsel for the Company, blue sky fees and expenses
and the expense of any special audits incident to or required by any such
registration.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Selling Expenses" shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the securities registered by
the Holder and the legal expenses of counsel to the Holder, except that the
Company shall pay the legal expenses of one counsel for the Holder and such
expenses shall not be deemed Selling Expenses.
<PAGE>

     "Shareholders Rights Agreement" shall mean that certain shareholders rights
and voting agreement of even date herewith entered into by and among the
Company, the Holder, and certain shareholders named therein.

     "Transfer" means, as a noun, any voluntary or involuntary transfer, sale,
pledge or hypothecation or other disposition, and as a verb, voluntarily or
involuntarily to transfer, sell, pledge or hypothecate or otherwise dispose of.

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