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Developments

BOC Aviation net profits rise 21% to $239m in first six months
August 29th 2016: BOC Aviation increased its pre-tax profits in the first six months of 2016 by 21 per cent to $239 million against the corresponding period last year. Net profits after tax improved by 24 per cent to €212 million. Total revenues and other income rose 8.2 per cent to US$579 million, while total assets at end June were US$13.6 billion, up 9 per cent over the end December 2015 figure.

The August 25th edition of Aviation Finance is published
August 25th 2016: In the latest issue of Aviation Finance: - Ultra low aircraft financing and what it may mean for airline fleet financing strategies; Perspectives: Astro Leasing's Johnny Lau on the leasing market, Chinese demand and the possibility of aircraft oversupply; Qantas adds to the VLA vs Big Twin debate; AerCap's share repurchases could hit $900 million in 2016; CALC finds 'significantly lower' pricing for second bond issuance in 4 months; The first regional variant of the A330 is delivered; Asia's importance for OEM backlogs; Frontier looks to be continuing to shape up for an IPO.

 

Perspectives

'Everyone wants to get into aircraft'

Astro Leasing's Johnny Lau on Chinese aircraft lessors international ambitions, aircraft oversupply and valuations.

ELFC's John Sharp on the engine MRO market
Embraer's John Slattery on the launch of the E2
Amedeo's Mark Lapidus on future leasing returns
Howard Millar on alternative financing for airlines
NAC's Soren Overgaard on the RJ market
Michael Dickey Morgan on private EETCs
See the Aviation Finance Perspectives Series here.

Analysis

CALC's second bond issuance in four months 'priced significantly lower'
August 16th 2016: Hong Kong-based lessor CALC has followed up its debut 3-year $300 million bond issuance in April with a 5-year $300 million bond issuance which has 'priced significantly lower' than its April issuance. Asian investors bought 93 per cent of the issuance which had a peak order book of $1.2 billion. China Everbright Bank Co., Ltd., Hong Kong Branch and DBS Bank Ltd. are engaged to act as the joint global coordinators, joint bookrunners and joint lead managers of the unsecured bonds issuance.

The August 11th edition of Aviation Finance is published
August 11th 2016: In the latest issue of Aviation Finance: - Lessors highlight durable business model in light of geo-political uncertainty; Perspectives: Goshawk's Ruth Kelly and Anand Ramachandran on their debut $200 debut note issuance and future plans; CIT's dual strategy aims to maximise value for shareholders; Is the time now right for a long haul LCC?; JetBlue's plans for A321LR further advances discussion about potential for transatlantic single aisle services; IATA warns airline capacity grew faster than passenger demand in June; Plus: GECAS $280m senior debt financing with Aerolineas Argentinas, BOC Aviation places 10 aircraft; Grabowski to leave DVB Bank, ALC $750m senior note issuance.

ALAFCO acquires 9 aircraft portfolio from GECAS
August 8th 2016: GECAS has disposed of a 9 aircraft portfolio to Kuwaiti lessor Aviation Lease and Finance Company (ALAFCO). The portfolio is made up of Boeing and Airbus narrowbodies and is the second aircraft portfolio that GECAS has sold in recent weeks following the sale of a 45 aircraft portfolio to Avolon.

 

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Aviation Finance Special Features

Aviation Finance special features


GECAS closes $280m senior debt financing deal with Aerolineas Argentinas
August 4th 2016: GE Capital Aviation Services has completed a 10-year, $280 million senior debt financing agreement with Buenos Aires headquartered airline Aerolineas Argentinas. The debt is secured on four A330-200s powered by GE’s CF6 engines and three B737-800s powered by CFM56 engines. GECAS said in a statement the four A330s are scheduled to fund in 2016 and the three B737-800s in 2018.

CALC completes new 'rental realisation transaction' on three aircraft
August 3rd 2016: In a 'first-of-its-kind' arrangement for a Chinese lessor, China Aircraft Leasing Group Holdings has entered into a 'rental realisation transaction' on three aircraft structured into senior and junior tranches to meet the different risk appetites and return expectations of investors. Winnie Liu, Deputy CEO and CCO of CALC, said the new structure also keeps the all-in-costs at a lower level for CALC.


The July 28th edition of Aviation Finance is published
July 28th 2016: In the latest issue of Aviation Finance: - Interview: SMBC Aviation Capital's Peter Barrett, after its debut $500m note issuance; Perspectives ELFC's Jon Sharp's post Farnborough view of the largest and most expensive rotable of all" - engine leasing, looking at the evolving jet engine aftermarket and the changing business models emerging in the engine leasing and MRO space; Joe Gill on results from the four leading European airlines - Wizzair, Easyjet, Lufthansa and Ryanair - underscoring the challenges facing carriers despite the benefits of lower jet fuel prices during 2016; Plus: Farnborough fails to dampen aviation industry confidence; Ortus JV aims to capture Japanese investor demand for aircraft; Bermuda set to implement Cape Town Convention.

 

Analysis

SMBC AC issues $500m senior notes, reveals operating profit of $530 million
July 20th 2016: SMBC Aviation Capital has closed its long-awaited $500 million senior unsecured notes offering and disclosed selected financial results for the first time. These show that in the year to end March 2016 it made an operating profit of $530 million, up 22 per cent on the preceding financial year, on revenues of $1,046 billion, up 15 per cent year-on-year.


The July 14th edition of Aviation Finance is published
July 14th 2016: In the latest issue of Aviation Finance: - Asia, technology and weak demand are Farnborough themes; Aviation's public equity markets after 'Brexit'; Perspectives Embraer's Commercial CEO on the story of the newly launched E2; India's new Commercial Aviation Policy dissected; An idea for the MOM market - a B575MAX; Avolon acquires 45 aircraft from GECAS; COMAC's order; China lessor IPOs - struggling so far; Freight Market Overview.

Chinese lessor IPOs struggle
July 14th 2016: Two Chinese lessor IPOs completed in the past two months are struggling to perform on the Hong Kong stockmarket. BOC Aviation has dropped from HK$42 on its debut in early June to HK$38.6 at the time of writing. CDB Leasing, which was priced at HK$2, fell 7 per cent to HK$1.86 on its first day of trading on July 11th.


The June 30th edition of Aviation Finance
June 30th 2016: Aviation Finance latest issue: Brexit's reverberations through the aviation financing complex; Amedeo's CEO on legitimate current aviation ROI expectations; CIT bidding battle goes to the next round; Stephen Udvar Hazy's milestone; Nordic sees E190 supply situation as continuing buying opportunity; Goshawk, Aircastle close new credit facilities; Aergen's debut ABS issuance; India and Brazil further liberalise airline ownership rules; European airline share prices hammered in wake of Brexit; CBD 'cornerstone' approach to IPO sets price at bottom end of expectations.


USD currency movements - a key short term indicator of the impact of 'Brexit' on the UK and eurozone aviation finance sectors
June 24th 2016: Sterling dropped by as much as 11% compared with its pre poll level, as the Brexit vote became evident overnight, but recovered to a net fall of c.7% off following the Bank of England's announcement of a £250bn intervention fund to calm markets. The selloff is a measure of the economic impact of the vote*, on aviation financing ultimately in sterling, but another aspect is the impact on euro sources, as the euro has fallen also, but by a lesser amount against the US dollar than the pound. After an initial tumble of c.8%, the euro recovered along with the pound to trade c. 5% off.


Delta Airlines and Burnham Sterling close $450 million in private placements, reaching over $1 billion in total transactions
June 8th 2016: Greenwich, Connecticut-based Burnham Sterling & Co. LLC (Burnham Sterling), the financial advisor specializing in asset financing, announced that it closed a $450 million private placement for the world’s second largest airline, Delta Air Lines (NYSE: DAL).