Aviation Finance


The February 7th edition of Aviation Finance is out now
In the latest issue: New Leasing IFRs in place since Jan 1st and their relevance to the impairment issue and hedge accounting; ABS prospects for 2019 - $26bn issued and more to go; Freight - IATA data not good; A380: Emirates next move could be decisive; Blockchain to revolutionise novation in lease documentation; A tough week in the European LCC space, and much more in the latest issue of Aviation Finance.

IBA's Phil Seymour: delays in new aircraft deliveries and low oil prices have allowed airlines and lessors kick the impairment can down the road
In the January 24th 2019 issue of Aviation Finance: Phil Seymour, the CEO and President of IBA in an exclusive interview expresses his concerns that delays in new aircraft deliveries and low oil prices have allowed airlines and lessors kick the impairment can down the road. He also criticises the ‘cosy’ relationship that has developed between companies and their auditors, with the latter relying on ‘management information’ with regard to values.



Is there scope for improvement in the relationships between aircraft manufacturers and lessors?

Peter Chang on the relationship, reflecting the role that the latter now play.

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
ELFC's Jon Sharp on the engine leasing market


Exclusive interview with the CEO of CDB Aviation Leasing, Peter Chang
January 10th 2019: in the first issue of Aviation Financein 2019:Exclusive interview with the CEO of CDB Aviation Leasing, Peter Chang; Boeing and Airbus hit their 2018 delivery targets; Joe Gill uses a 'Wall of Worry' analysis to assess market prospects for aircraft leasing stocks; KKR to invest $1 billion in Altavair AirFinance as part of a long-term partnership to create a global portfolio of leased commercial aircraft; Falko's Avolon deal, which, ‘puts us squarely in the upper echelons of the regional aircraft market’.

Leasing to gain further market share as airline business models shift away from ownership
The future is bright for global aircraft leasing and it looks set to grow its share of the global aircraft fleet further as airlines increasingly follow a business model prevalent in another asset-heavy industry, the international hotel industry, according to Avolon CEO Domhnal Slattery.

AerCap CEO: leasing sector better prepared for a downturn now than it was 10 years ago
Aercap, the world's largest owner of commercial aircraft, released financial results for the quarter ending September 2018. Net income was relatively flat year on year at $263.4m while earnings per share grew 10%, boosted by a share repurchase programme that commenced in July 2017.


From Our Latest Issues:

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Financing & Risk Strategies

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Lessor paradox: Rising interest rates could moderate intense competition
The highly competitive landscape in the aircraft leasing industry is likely to remain a theme for the near-term and drive further consolidation. However, rising interest rates, while not good for funding, could help slow the inflow of capital into the industry and moderate some of the negative effects of intense competition stemming from the abundant liquidity, particularly for established players who have maintained underwriting discipline, according to a new report from KBRA.

European airline CEOs talk up further market consolidation
A number of key European airline leaders are flagging further consolidation in the airline industry as the sector grapples with fragmentation, high oil prices and excess capacity. These features are especially pronounced in Europe where demand growth rates lag those of markets such as Asia.

Singapore sovereign fund GIC takes stake in NAC
In an announcement made jointly by Nordic Aviation Capital, its founder Martin Moller and investor EQT VI, it has been disclosed that GIC, Singapore’s sovereign wealth fund, is to become a significant minority investor in the world’s largest lessor of regional aircraft. The transaction will involve a partial sale by the existing shareholders and the introduction of new capital to further strengthen NAC’s balance sheet, the parties said.



Performance of Delta's A220 roll out significant for plane's commercial success
The US carrier Delta has revealed plans for the operational deployment of its new Airbus A220 aircraft. In so doing it is providing a platform within a large established mainstream carrier in which the A220 can be assessed from an economic and customer experience perspective. Delta is the most significant US customer for the former C Series aircraft, having ordered a minimum of 75 units.

Carlyle Group's purchase of Apollo Aviation reflects sector's growth prospects
The Carlyle Group is the latest big name institutional asset manager to make a substantive, long-term commitment to the aircraft leasing and finance sector. In a move which reflects confidence in the underlying prospects of the sector's future growth, and in the strength of an existing well-established platform, the global alternative asset manager is acquiring Bill Hoffman and Robert Korn's Apollo Aviation Group and its affiliates for an undisclosed sum.

Optimum ownership structure for leasing platforms
The question of ownership models emerged at the Aviation Finance Conference 2018 as an interesting side theme to which executives from a number of the leading aircraft lessors contributed their thoughts writes Aviation Finance's John Stanley.

Zephyrus launches with $337m ABS of 21 ex-CIT airplanes
A group of former CIT Aerospace executives have established a new business, Zephyrus Capital Aviation Partners, to build and manage a fleet of mid to late life narrowbody and widebody aircraft. It is commencing its operations with the acquisition and securitisation of 21 aircaft, part of the CIT portfolio sold to Avolon and now being disposed of by the Chinese/Japanese-owned aircraft leasing company.

Thank you to everyone who attended the Aviation Finance Conference 2018
The Aviation Finance Conference 2018 took place on October 2nd-3rd in Dublin, Ireland, and which heard from CEOs, CFOs and aircraft trading chiefs representing over half of the world's leased fleet on how the aviation finance eco-system is set to evolve in the context of potential demand patterns for aircraft financing amidst record order backlogs and increasing OEM run rates. We look forward to seeing you next year - October 15th & 16th, 2019 at Dublin Castle.

Investec set to deploy initial $150 million from new equity fund
Investec Aviation Finance is set to deploy up to $150 million on the acquisition of latest generation Boeing and Airbus aircraft as it embarks on the second round of funding for its new Investec Aircraft Syndicate (IAS) equity fund, which is capped at $500 million. To date it has raised cornerstone investment of about $150 million from UK and German financial institutions and it now plans to close an expected $350 million in a second round of funding by the end of Q1 next year.