Aviation Finance

Developments

On today! - #AFCDublin 2019 - Network with the leaders of the global aircraft leasing industry
October 15th 2019: #AFCDublin 2019, kicks off today (Tuesday Oct 15th) with an address by the president of ISTAT followed by On-Stage interviews and trading panels with many of the leading figures in the global aircraft leasing industry. At the heart of the conference is aircraft asset trading, to quote #AFC2019 's opening keynote speaker, ISTAT president Gerry Butler, CMO of Merx Aviation, aircraft trading is 'still only in its infancy'. Featuring also interviews with Aercap CEO Aengus Kelly and CDB Aviation's CCO Patrick Hannigan, conducted by Aviation Finance's contributing editor Joe Gill. Following an address by Virginia Fox, Head of Risk of GECAS, on the ever-important matter of risk management, AFC2019 features the first ever CFO Forum, featuring a panel of the world's top aircraft lessors on the ' finance function of the future', chaired by EY's Danny Buckley. More details: here.


The September 19th edition of Aviation Finance is published
In the latest issue: Latest speakers at annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next. We note the continuing strong signs of enthusiasm for aviation assets in various forms, including Pacific Life's sale of its stake in ACG after 23 years in its $3.0 bn deal with Tokyo Century.

 

Perspectives

Milestone pivots - new CEO and GECAS trading chief Greg Conlon on how it can be transformed

Greg Conlon's mission to put the rotorcraft industry business model right


Peter Chang on relationships between OEMs and lessors
IBA's Stuart Hatcher on values and lease rates
Willis LF's Brian Hole: 'Time to Uberize spare engines'
Marsh's Bob Morin on AFIC's first year

Analysis

Apollo and Athene's acquisition of GECAS' PK AirFinance lending unit
Apollo Global Management and Athene Holding Ltd are to purchase PK AirFinance with Apollo acquiring the PK AirFinance aircraft lending platform and Athene acquiring PK AirFinance’s existing portfolio of loans. Financial details of the transaction were not disclosed, although the $3.6 billion of PK AirFinance financing receivables that were held for sale in the second quarter of 2019 are being sold at a premium to book value in the transaction. Alec Burger, GE Capital President & CEO, said, “Apollo’s vast lending experience, complementary platforms, and exceptional track record across diversified assets and geographies make it the ideal partner to accelerate PK AirFinance’s growth. This sale is aligned to GE Capital’s overall strategy to become smaller and simpler, and our commitment to reduce our assets by $10 billion in 2019 is now more than halfway complete".


The September 5th edition of Aviation Finance is published
In the latest issue: Latest speakers at annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next. We note the continuing strong signs of enthusiasm for aviation assets in various forms, including BA’s return to the EETC market and the purchase of GECAS’ subsidiary PK Finance by Apollo Global Management and Athene.

The August 22nd edition of Aviation Finance is published
In the latest issue: Once again, the importance of trading as an inherent component of the aircraft leasing business model – a topic at the heart of the annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next – is highlighted by industry leaders in connection with their reports to shareholders and other stakeholders. SMBC Aviation Finance, BOC Aviation and ALC have all remarked on its role as an intrinsic element of their business models.

 

From Our Latest Issues:

« »

Financing & Risk Strategies

« »
  The Aviation Finance Conference
« »

The August 8th edition of Aviation Finance is published
In the latest issue: The significance of trading as an inherent component of the aircraft leasing business model – a topic at the heart of the annual conference of Aviation Finance in Dublin Castle, Ireland, on October 15th next – has been highlighted once again by leading exponents of the business. In their remarks about AerCap’s record Q2 both CEO Gus Kelly and CFO Pete Juhas emphasised the important of the trading role in creating a sustainable base for growing shareholder value, as opposed to ‘one-off’ gains.


CDB Aviation supplies 737-800 to NordStar Airlines, and is the first global lessor to place a new Airbus A320neo with an African airline, Air Seychelles
July 31st 2019: CDB Aviation announced the placement of a Boeing 737-800 aircraft on a long-term lease to a new customer in Russia, Joint-stock company NordStar Airlines, with airport bases in Krasnoyarsk and Moscow (Domodedovo).


GECAS supplies two Airbus A321neos to Ural - delivering the enhanced fuel efficiency of LEAP engines
July 31st 2019: GECAS will supply two Airbus A321neo aircraft to Ural Airlines. The LEAP-powered narrowbody aircraft - from the lessor’s orderbook – are due to be delivered in October and December of this year. With a current in-service fleet of 45 aircraft from the Airbus A320 family – including A319, A320 and A321 – the Russian operator now transports more than nine million passengers annually and is among the largest rapidly-developing Russian airlines.

 

Analysis

In the July 25th issue:
Cutting edge developments in aircraft trading. The Aviation Working Group (AWG)'s initiative in developing the GATS system - a potentially revolutionary adjunct to commercial aircraft trading. SMBC's head of trading Michael Weiss discusses the lessor's new fund, and elsewhere in the issue we reflect on the impact of the decline in lease yields, and the prospects for the near term. These stories are reflective of the main themes at the heart of the Aviation Finance annual conference on October 15th .


In the July 11th issue:
FLY’s leasing’s sale this week of a portfolio of aircraft at a premium to book value, and latest results from other exchange-traded lessors which confirm the importance of residual values to an aircraft industry which engages with a complex buy-sell series of markets from the placing of orders for new aircraft through a lengthy life cycle of more than two decades.


The June 27th edition of Aviation Finance is published
In the latest issue: Two new ABS issues amounting to over $1 billion; and a GECAS sale & leaseback with David Neeleman's new Moxy airline; Insurance trends are under the spotlight too, as we look at the findings of a new report by Allianz Global Corporate & Specialty; Still no clarity on how soon Boeing will resolve 737 MAX issues as FAA identifies need for a further fix; The Paris Air Show - one of the quietest for a number of years: IAG's LoI for 200 737MAXs and the launch of the Airbus’s A321XLR were notable.


The June 13th edition of Aviation Finance is published
In the latest issue: What's behind the pause in airline profitability in 2019; Expectations for the Paris Air Show - they may not be high, but..; Ruth Kelly: Goshawk's serial issuance plan; The evolution of Ryanair as a multi-airline player; Arrival of a new manufacturer in place of Bombardier; Good results from SMBC Aviation Capital; Strong activity on the ABS and lessor funding front


The May 30th edition of Aviation Finance is published
In the latest issue: Airline valuation malaise presents M&A opportunities; Perspectives: Aviation needs carrier, lessor leadership for a positive future; Talks on Boeing 737 MAX return to service progress, albeit slowly; ALC raises $1.05bn through two note issues; The foremost deals of the year Deals of the Year 2019 in Irish aviation finance recognised in the Finance Dublin Deals of the Year Awards 2019; Ryanair will take profit pain to pressure competitors; India’s airlines optimistic despite hitting turbulence; Avianca Brazil grounded by regulator; Chile blocks LATAM JVs.


The May 16th edition of Aviation Finance is published
$554m JOL securitisation breaks new ground in ABS market; ALC conference call: fleet growth propels ALC profits, up 24 p.c. in Q1, matched by similar growth in credit line; Goshawk comes to ABS market with $529m first time issuance; PE investors seek value opportunities in airlines; Analysis: Green issues come to the fore for aviation; KBRA takes a positive view on the immediate outlook for the global airline industry and identifies potential clouds on the horizon.