Aviation Finance

Developments

The latest edition of Aviation Finance is published
March 23rd 2017: In the latest issue of Aviation Finance: Adam Pilarski on the order and delivery mismatch and the short and medium term impact of changes to US economic policy; Johnny Lau on Chinese demand for aircraft assets in light; Update on regional jet programmes; Ryanair milestone underlines the merits of organic growth; IAG jumps into the long haul, low cost arena with LEVEL; CALC subsidiary acquires US part out business; Avianca's private EETC closes.

Avianca opts again for EAIV to finance three aircraft
March 21st 2017 Investment bank Burnham Sterling has closed its third privately placed EETC for Colombian airline Avianca, this time financing three aircraft - two Airbus A320s and one Boeing 787 – as it did with its first in December 2014. The transaction, again made using the bank's proprietary EAIV (Enhanced Aviation Investment Vehicle) structure, is its first multi-currency EAIV, providing both US dollar and Euro funding for Latin America’s second largest airline.

 

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
March 9th 2017: In the latest issue of Aviation Finance: China's domestic aviation market examined; The threat that Basel IV may present to aircraft financing; Rise of the drones - will technological leaps being made in automated flight lead to large cost savings for airlines?; President Trump and US EXIM Bank - uncertainty could play into the hands of Boeing's rivals. Lessor stocks start the year strongly, Norwegian steps up a gear; CALC shares eligible for Shenzhen-Hong Kong Stock Connect.

CDB Aviation Lease Finance delivers one Airbus A320-200neo to SAS
2nd March 2017 CDB Aviation Lease Finance, which is a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Limited, announced today the delivery of one Airbus A320-200neo aircraft to flag carrier SAS. The Airbus A320-200neo represents CDB Aviation’s first delivery of a six aircraft sale and leaseback transaction with SAS, the largest airline in Scandinavia. Patrick Hannigan, CDB Aviation Chief Commercial Officer commented, "It's our first deal with SAS. CDB Aviation has ambitious growth plans and we look forward to doing more business with them'.

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.

 

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Aviation Finance Special Features

Aviation Finance special features


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.

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.

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".

 

Analysis

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.

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.