- 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
Lessors RBS Aviation transaction will be a key industry highlightWidespread media reports suggest that the sale process for RBS’ aviation finance unit is progressing towards the final stage. It also appears that bidders remaining engaged include institutions in Australia, China, Japan and the US. A price tag of $6-8bn is being mooted for the business. A successful completion of this deal has ramifications on a number of fronts for the global industry. Aircraft Emissions Trading: the EU cap and trade agenda for airlines The numerous challenges facing airlines following its inclusion in the EU's cap-and-trade scheme from 2012
Funding What type of equity financing?One of the continuing debates in the aircraft leasing sector is over what type of equity financing is optimal for long-term development. The industry is broken in to three key camps currently - publicly listed equities, private equity vehicles and subsidiaries of larger financial institutions. A key question exists over which of these provides the best structure for funding and developing individual companies. Aircraft Could Big Twins be a sweet spot for lessors?Boeing’s recent sale of 70 Boeing 777s (50 firm, 20 options) to the fast growing Emirates underlines the appeal of this twin-aisle, twin engined long haul aircraft. It occurs at a time when the new Boeing 787 is entering service and as Airbus continues to develop its A350 range. These new generation twins will eventually replace Boeing 767 and Airbus A330 equipment among global airlines. |
Aviation Finance Vol. 1 No.6 This issueThe continued fallout from the eurozone crisis overshadows all financing activity, even in China, and Australasia, and the fundamental fissures exposed by the crisis mean that an early resolution is improbable. This means that within the aviation complex, there will be a premium on risk management strategies in treasury, hedging, and, in financing an emphasis on innovation, and innovative solutions. The Cutting Edge Innovations in aviation finance and risk managementThe relative strength of the industry will see aviation finance remain at the forefront of financing innovation. Because of the relative strength of aircraft demand, despite the ongoing worries of recession, arising mainly in Europe, financing the sector is likely to be the locus of considerable innovation in finance, financing, and indeed banking in the months to come. Dubai Air Show Dubai shows centre of gravity shifting in commercial aviation
Equities Share prices give food for thought for aviation complexWith some fairly scary equity value destruction in evidence in recent weeks within the aviation complex, perhaps we can still maintain a sense of proportion by reminding ourselves of the relative stability in the performance to date of the major OEMs, notable in Boeing's share price. |
The EU has decided to include aviation in the EU Emissions Trading Scheme from 2012, and airline operators will have to surrender one allowance per tonne of CO2 emitted on a flight to and from (and within) the EU. PricewaterhouseCoopers' Yvonne Thompson summarises the challenges facing operators ahead of the deadline.
The Dubai Air Show during November underlined how the geographical centre of gravity is shifting in commercial aviation and, by definition, so is aircraft financing. It also further emphasized the technology shift that is taking place in the narrow body market, a point re-enforced by a large order from Indonesia’s Lion Air after the show.