Developments

The latest fortnightly edition of Aviation Finance (November 14th 2019) is published
In the latest issue: the progress achieved by Europe’s leading low cost carriers, by the continued growth in RPKs across the world in September, and by some stellar performances for aviation related stocks lately. It is also reflected in continued investor interest, with Marubeni Corporation and Mizuho Leasing agreeing to acquire Aircastle at a substantial premium and Airborne Capital joining this year’s long list of ABS issuers. Also: new GECAS CEO Greg Conlon speaks to Aviation Finance. ‘We have the ability to do large, complex deals. We have 20 offices around the world with very strong redeployment capabilities, broad product offerings and a large and diverse asset base of approximately 1,150 largely core commodity commercial jets’ he says.

The October 31st edition of Aviation Finance is published
In the latest issue: There is an abundance of evidence to demonstrate the continued vibrancy of the commercial aviation industry and the aviation finance sector that supports it. This ranges from observations by CDB Aviation CCO Pat Hannigan on his company’s ambitious growth plans to developments in the securitisation market, which is close to hitting last year’s record level of activity. It is also supported by latest data from IATA and the huge order for 300 new aircraft by Indian LCC Indigo.

Perspectives

GECAS's Chief Risk Officer on the global lessor's risk model

Virginia Fox gives key insights in address at AFCDublin
Milestone's Greg Conlon on the rotorcraft business model
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

The October 17th edition of Aviation Finance
In the latest issue: While there are distinct differences in the business models behind all of the leading aircraft leasing platforms, it is evident that trading is a core strategic component in all of them. That was demonstrated in several of the contributions made at AFCDublin, 2019 this week. In this issue we focus on some of these. We also note a new Russian leasing venture, developments with LCCs across the world, and the launch of three more ABS offerings in a busy Q4 securitisation market.

#AFCDublin 2019
October 15th 2019: #AFCDublin 2019, kicked off with an address by the president of ISTAT followed by On-Stage interviews and trading panels with leading figures in the global aircraft leasing industry. Central to the topics adressed was aircraft asset trading, to quote #AFC2019 's opening keynote speaker, ISTAT president Gerry Butler, 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.

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".

From Our Latest Issues:

Performance of Delta's A220 roll out significant for plane's commercial success

Leasing to gain further market share as airline business models shift away from ownership

AerCap CEO: leasing sector better prepared for a downturn now than it was 10 years ago

Carlyle Group's purchase of Apollo Aviation reflects sector's growth prospects

There's more to the LRF than meets the eye

Goshawk moves into new nest, acquires 51 young aircraft, becomes a Top 10 lessor

Mitsubishi's MRJ could be a major beneficiary of narrowbody market consolidation

GECAS' Lion Air and Jet deals demonstrates commitment to scale

CDB Aviation Lease's hybrid leasing model with 'behaviour befitting of a sovereign'

Engine leasing: 'a sexy industry with a remarkably short memory'

Financing & Risk Strategies

Variations in features mean not all aircraft ABS are equal

Life cycles: will 25 years still apply to new technology aircraft?

CALC's new investment vehicle targets $1.4 bn assets within two years

Aircraft transitioning: more efficient processes key to creating more liquid aircraft market

JOLCO market still rising

US EXIM Bank bounces back on basis of innovative risk sharing programme to reinsure two thirds of its aircraft credit risk exposure

Commercial UAVs a new frontier in aviation leasing

Is now the time to start a long haul low cost airline?

GA Telesis taps into new opportunities

ALC and Napier Park launch second Blackbird Capital JV

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.

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.

Analysis

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.

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