 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.
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Analysis
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.
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