Developments

GE Capital Aviation Services leases 12 Boeing 737s to Sriwijaya Air
May 16th: GECAS will lease 12 Boeing 737-500s as part of the Indonesian carrier Sriwijaya Air efforts to upgrade its fleet. The first aircraft went into service today, with the remaining scheduled for delivery through January 2013. The 12 aircraft, with blended winglets for improved fuel savings, are coming off long-term lease with Continental Airlines, now merged with United Airlines.

Latest issue published
May 10th: The latest issue of Aviation Finance is published: There is an Asian flavour to this week's issue of Aviation Finance, not inappropriate when we think of the continued travails of the eurozone, and indeed the United States' travails too, as shown by the latest US jobs statistics, and Wall Street's retreat. So, while, our coverage of publicly quoted companies in the aviation complex in this issue relates the often poor news coming from the aviation industry, it should be remembered that the probems are not endemic to the sector but economy-wide...

Perspectives

ICBC International Leasing, the $2 billion backed start up

ICBC International Leasing's Alex Hou on how the lessor is leading the international thrust of China's aircraft leasing industry

News Analysis

Avolon acquires two A321 aircraft for delivery to US Airways
May 8th: Avolon has acquired two Airbus A321 aircraft which will be delivered new to US Airways this year. Avolon currently has a fleet of 103 aircraft and has the youngest large lessor fleet in the world with a fleet age of 1.4 years. The lessor has raised committed capital of US$4.6 billion since May 2010 including an equity commitment of US$1.4 billion from four of the world’s leading investors Cinven, CVC Capital Partners, Oak Hill Capital Partners and The Government of Singapore Investment Corporation (GIC).

Air India looking to raise $1.1 billion for aircraft and working capital
May 8th: Air India is looking to raise $1.1 billion to fund its new aircraft acquisition programme, namely the delivery of four Boeing 787 Dreamliners, and to meet working capital requirements. This includes $500 million in short-term loans to finance the purchase of four 787 Dreamliner planes from Boeing Co. and up to $600 million in overseas borrowing to meet working capital requirements, including $300 million for its low-cost international arm, Air India Express.

EVA Airways to upgrade fleet with seven Boeing 777s
May 8th:Taiwanese carrier EVA Airways is to add seven Boeing 777-300ER passenger planes to its fleet to fly long-haul routes to North America and Europe. The seven new aircraft will include three to be purchased from Boeing with the remaining four to be leased from GECAS.

Deals & New Business

EVA Airways to upgrade fleet with seven Boeing 777s

Asset trades continue in leasing industry

Norwegian Air Shuttle plans dynamic asset management

Lessor fallout from Spanair and Malev collapses

Norwegian Air Shuttle's mega order raises interesting questions

Sumitomo RBSA acquisition for $7.3 bn. of major significance to aircraft leasing sector

Key 2012 issues for aircraft lessors

Tackling the size conundrum: VLA leasing structures

Could Big Twins be a sweet spot for lessors?

Financing & Risk Strategies

Delta moves to take control of its fuel costs

Asset impairment takes centre stage as residual values come under pressure

Airlines rely on hedging and newer jets to fight rising oil prices

Doric-like structures for Boeing 787s?

Expanding tax treaty network increases Ireland’s attractiveness for aircraft leasing

The numerous challenges facing airlines following its inclusion in the EU's cap-and-trade scheme from 2012

Innovations in aviation finance and risk management

Aircraft leasing securitisation structures that are compliant with Islamic Finance

Best of both worlds: Cayman Islands incorporated, Irish tax resident

The Cutting Edge

GECAS highlights opportunities in Africa and launches aviation resource network

Air Lease Corporation secures credit facility in 'a significant step forward' for the lessor's capital structure
May 7th: Air Lease Corporation (ALC) has closed a three year, unsecured revolving credit facility in excess of $850 million priced at LIBOR +1.75%, with no LIBOR floor. With the closing of this facility, ALC has now raised over $1.2 billion in unsecured bank financing.

FLY is 'undervalued' as Wells Fargo Securities commences coverage of the lessor
May 1st: FLY Leasing is undervalued according to Wells Fargo Securities which has commenced its coverage of the lessor and given it an initial 'Outperform' rating and a $13.50-$14.50 valuation range (80-85 per cent of book value).

ALC announces 13 new purchases and leases including its first Boeing 787-9 lease
April 30th: Air Lease Corporation have announced transactions covering 13 aircraft; 11 twin aisle planes and two single aisle planes. This includes the purchase of eight new Boeing 787-9 aircraft for lease to Vietnam Airlines, with delivery scheduled for 2017 and 2018. This marks Air Lease Corporation's first 787-9 lease as well as its longest lead time for a lease placement to date. The company will discuss its first quarter results in a conference call on May 14th. Also announced was the purchase from Macquarie Aviation of one B777-300ER on long term lease to Emirates, a new customer for ALC.

News Analysis

Delta moves to take control of its fuel costs
April 30th: Delta Air Lines wholly-owned subsidiary, Monroe Energy LLC, is to acquire the Trainer refinery complex south of Philadelphia from a division of Conoco Phillips in a move that the airline says could save it $300 million annually in fuel costs.

Latest issue published
April 26th: The latest issue of Aviation Finance is published: The emerging 'self originated debt model' in aircraft finance, as Ronan Doyle terms it in this issue, will be subject to important environmental shifts, notably capital standards, as dictated by Basel III, for example, and, as Ernst & Young's aviation sector chief, David Dickson, points out in his interview in this issue of Aviation Finance the impact of the global convergence of accounting standards. During the implementation period of Basel III over the next seven years the various changes to the banking sector will have a profound impact on the aviation finance industry...

Fitch explains its approach to rating securitisations backed by operating leases
April 18th: Ratings agency Fitch has published a report that presents its approach to rating securitisations backed by aircraft operating leases. It details the key rating drivers associated with the aircraft operating lease asset-back sector (ABS). These include the cyclicality of the aviation market, the volatility of asset values and lease rates, the reliance on servicers to remarket aircraft after lease termination and lessee defaults, and the credit risk associated with lessees. The findings represent no major changes from previous analysis criteria so individual ratings will not be affected.

AerCap announces transactions for Q1 2012
April 13th: AerCap has announced the completion of the following transactions during the first quarter 2012: the signing of new lease agreements for nine aircraft and letters of intent for another twelve; the delivery of six aircraft under contracted lease agreements; the purchase of five new aircraft; the closure of the sale of four aircraft; and the agreement of $311 million worth of debt facilities.

Delta voices dissatisfaction with Ex-Im Bank competitive issues
April 13th: At the 11th Annual Aviation Summit hosted yesterday in Washington by the US Chamber of Commerce and the National Chamber Foundation, the CEO of Delta expressed that the airline is struggling to compete with foreign carriers who are enjoying backing from the US Export-Import Bank.

ILFC refinances $550 million secured term loan
April 13th: International Lease Finance Corporation (ILFC) announced today that it has closed a new $550 million senior secured term loan. The loan will pay interest at LIBOR plus 3.75 per cent per annum with a LIBOR floor of 1 per cent, and is priced at 99.5 per cent of par value. It will be secured primarily by a first priority perfected lien on the equity of some of the company's aircraft and leases.