Aviation Finance

Developments

The latest edition of Aviation Finance is published
February 23rd 2017: In the latest issue of Aviation Finance: Interview: Stellwagen Finance CEO Mark Bourgade - winning lessors 'will be the ones with shareholders who have the lowest expectations in terms of return on funds'; Interview: Moodys on the Aviation ABS outlook for 2017; Timelapse video - the making of the B787-10, rolled out this week; Iran - the aviation market potential; IAG to bring A321LRs into service on North Atlantic; Aercap's 2016 figures.

Juneyao makes its first widebody order as it plots global reach
February 22nd: China's Juneyao Airlines has finalised an order for five Boeing 787-9 Dreamliners. The order is valued at $1.3 billion at list prices and comes as Boeing rolls out the first 787-10, the largest variant of the 787 which is due to enter into service in 2018. Juneyao's new order includes options for five more 787-9s. It is the airlines first Boeing order and first widebody airplane order as the privately-owned airline looks to spread its network beyond China.

 

Perspectives

Returns, not scale the key ambition

SMBC Aviation Capital's Peter Barrett on chasing returns, not scale, how the leasing market has evolved and the best way to manage interest rate volatility.

AerCap's Kelly the lessor's strategy
IBA's Seymour on the business of aircraft appraisals
SMBC Aviation Capital's Weiss on selling aircraft
GECAS' Sean Flannery on the aircraft leasing market

See the Aviation Finance Perspectives Series here.

Analysis

The latest edition of Aviation Finance is published
February 9th 2017: In the latest issue of Aviation Finance: Peter Barrett on how SMBC Aviation Capital does business; Apollo's Robert Korn on the unprecedented situation in the mid-life aircraft market; GECAS helps cushion effects of oil and gas downturn for helicopter operators; Widebody orderbooks vulnerable to changing strategies at the major Gulf airlines; COMAC can take encouragement from Airbus' struggles in the 1970s as it prepares the C919 for its first test flight in Q1 2017; Downward pressure on European airfares.

The latest edition of Aviation Finance is published
January 26th 2017: In the latest issue of Aviation Finance: Aengus Kelly discusses the aircraft leasing market in 2017; The evolution of GECAS' aircraft portfolio; Analysis of 2016 aircraft-backed ABS; Airlines in Europe - signs of pressure building?; Brexit and a new US administration pose a whole new set of questions for the aviation market; CDB hires senior management team for its aircraft leasing business; The strong US dollar and what it means for aviation finance; BOC Aviation to enjoy another five years of Singapore's ALS scheme.

Avolon prices $3 billion senior note offering as part of CIT acquisition
January 20th 2017: Avolon Holdings is issuing $3.0 billion through its Park Aerospace wholly-owned subsidiary. Both $1.75 billion 5.25 per cent senior notes, due 2022, and $1.25 million of 5.5 per cent senior notes due 2024 are being offered at par. Avolon will fully and unconditionally guarantee the notes and the offer will close 'on or about' February 3rd.

 

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Aviation Finance Special Features

Aviation Finance special features


CDB Aviation Lease Finance appoints top management team, with Rob Murphy as COO, and Pat Hannigan as CCO
January 16th 2017: China Development Bank-owned CDB Aviation Lease Finance (CDBALF) today announced the appointment of former Freshfield's global aviation and asset finance team leader Rob Murphy as COO and its General Counsel and Avolon's former head of EMEA Pat Hannigan as Chief Commercial Officer. Former GECAS executive John Cunningham has been appointed SVP Asia Pacific. CEO Peter Chang said the team will be charged with expanding CDBALF's "market reach beyond China and shifting the company's current approach to a more western, customer-centric focus serving all global markets".

SpiceJet's 737 MAX order indicates this could be the year of the MAX
January 13th 2017: Indian low cost carrier SpiceJet has announced a deal with Boeing for up to 205 Boeing 737 MAX 8s. 2017 is a crucially important year for the MAX with Boeing keen to avoid any teething problems as the re-engined 737 enters into service with Norwegian in May. The order from SpiceJet adds further momentum to the programme, which has has already beaten test flight targets during 2016.

The January 12th edition of Aviation Finance is published
January 12th 2017: In the latest issue of Aviation Finance: IBA's Phil Seymour gives his response to Avolon's Dick Forsberg's white paper on aircraft valuations and valuers; Moody's Mark Wasden gives insight into his agency's outlook on the aircraft leasing sector in 2017; Floreat outline its first foray into the aircraft-backed ABS market; Will 2017 be the Year of the Max?; 10 key questions for aircraft financing stakeholders at the beginning of 2017; GECAS reveals strategy to share in growth in the sector while not growing its balance sheet; Avolon receives credit ratings, adds three independent directors to its board; AA kicks off the 2017 EETC market with a $1 billion issuance.

 

Analysis

Peter Chang to lead CDB Aviation Lease Finance
January 12th 2017: Industry veteran Peter Chang, who has been appointed President and CEO, will lead CDB Aviation Lease Finance into the next phase of growth as the lessor aims to build a world-class, industry-leading management team and expand its focus beyond China.

GECAS in talks with potential co-investors in 'structured vehicle'
January 10th 2017: GECAS is planning to launch a new vehicle, possibly some kind of 'sidecar,' with the aim of continuing to participate in the growth of the aircraft leasing sector without increasing the size of its balance sheet. The lessor is is considering interest for a potential co-investor in regards to a structured vehicle with limited scope, which could support our own growth opportunities.'

The December 15th edition of Aviation Finance is published
December 15th 2016: In the latest issue of Aviation Finance: FPG Amentum's Mitchel Simpson on NORD/LB and the lessor's business strategy; Moody's speaks with Aviation Finance on its sector outlook for 2017; Goshawk's pioneering move in German private funding market has opened the doors for more aircraft lessors; Wide ocean, narrowbody - North Atlantic air travel market being shaken up by new technology narrowbodies; Boeing's financing outlook for 2017; Abu Dhabi Global Market makes its regime more attractive for aircraft financing.

The December 1st edition of Aviation Finance is published
December 1st 2016: In the latest issue of Aviation Finance: The impact on aircraft financing if Dodd-Frank is repealed by the incoming US administration; SMBC Aviation Capital's Michael Weiss on aircraft investing and aircraft investors; Another nail in the coffin of VLAs? OEM orders - past peak or just a short pause? AVi8 Air Capital's strategy; The year ahead for aircraft investors.

KBRA rates Labrador Aviation Finance Limited
November 23rd: Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to two classes of notes issued by Labrador Aviation Finance Limited. The aircraft ABS will be backed by a portfolio of 20 aircraft, currently owned by affiliates of GECAS, which will be purchased through the proceeds from the sale of the notes. The aircraft are on lease to 16 airlines in 15 countries with an initial total value of approximately $928.0 million. GECAS will act as the servicer for the transaction.


The November 17th edition of Aviation Finance is published
November 17th 2016: In the latest issue of Aviation Finance: Cyclical moments?: After the US Presidential election; AERGO Capital chiefs Fred Browne and Gerry Power talk in detail to Aviation Finance about their business model, and where we are at in the cycle. Their views provide considerable food for thought; Warren Buffett buys 4 airline stocks, committing +1% of Berkshire Hathaway's portfolio - is this a cyclical moment in aviation finance?