- Latest edition June 11th: Airline profits to slide
- May 28th: Retirement rates and increased deliveries
- May 14th: Spirit complications
- April 30th: Demand for aviation assets solid despite airline industry challenges
- April 16th: Sumisho ALC gets off the ground
- April 2nd: Jet fuel prices and airline hedging strategies
Aviation Industry Economics Aviation Finance Analysis: Airbus' GMF and the growth potential of commercial aviationAirbus published it's latest annual Global Market Forecast (GMF) on September 19th. We look at the drivers that will deliver a 100%+ increase in the number of aircraft in service over the next twenty years Aviation Finance Law The Blue Sky Case and the Cape Town Convention
Ernst & Young & Aviation Finance Ernst & Young joins forces with Aviation FinanceErnst & Young has joined forces with Aviation Finance to provide regular insights on trends emerging in the global aviation industry and to contribute to the publication through a series of articles, interviews and research, all relevant to the aviation sector. September Deals and new Business Buyers stay active although quarter ends with some worriesStrong interest in new aircraft continued in September, with sentiment at the ISTAT European conference in Barcelona, for example, remaining buoyant, despite financial clouds. Newport Beach-based ACG group, and Avolon were two lessors in the news in the past two weeks |
Aviation Finance No 2 Choppy waters, but fundamentals remain soundIn our inaugural issue, two weeks ago, we said that Aviation Finance, published every second Thursday, and www.AviationFinance.aero, will be 'a forum for cutting edge analysis and ideas on aircraft and airline financing'. Current market conditions have focussed that agenda. Perspectives: a new Aircraft Financing Gap opens up Opportunity for those with solutions as a new aircraft financing gap opens up
The Cutting Edge: Airline Returns Equity value destruction creates a “major hurdle” for airlines Aviation Finance's Gill tells World Low Cost Airlines Congress in London'Airlines have a poor record in creating shareholder value' according to Aviation Finance's JOE GILL in a speech at the World Low Cost Airlines Congress in London on September 21st. In a review of stock market performance over the past fifteen years Gill argues that global airlines have consistently generated returns on invested capital that were below those of their cost of capital. This value destruction creates a “major hurdle” for airlines seeking equity investors, he said. Q3 Financing Developments Q3 highlights in global aviation financeThe quarter is ending on a more subdued note than it began, as the euro debt crisis rumbled on, and sentiment on the other side of the Atlantic was affected by the US downgrade, prompting memories around the world of the events of Autumn 2008. Aircraft finance was not unaffected of course, with French banks coming under the microscope. |
DAVID MAUGHAN on the crucial difference between Irish and English law in regard to aircraft mortgages: 'The international interest created under an Irish law aircraft mortgage will exist under the laws of Ireland even where such Irish law aircraft mortgage is not considered effective security under the laws of the place where the aircraft is located at the time the Irish law aircraft mortgage is executed.'
By contrast, he says, 'it seems that the English courts will only treat an English law aircraft mortgage as creating a valid security interest if, when the English law aircraft mortgage is executed, the aircraft is located either in England or in another jurisdiction which will give legal effect to an English law aircraft mortgage.'
Amid the current financial uncertainty some very fundamental assumptions inherent to the nuts and bolts of how airline operational business models function and how their aircraft financing needs are addressed are being challenged. CIAN DOOLEY on the current financing landscape.