- Latest edition 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
- March 19th: Air travel to more than double by 2050
Capital Markets Boeing's view: the year ahead for aviation financing and the capital marketsWith the aircraft financing requirement in 2011 expected to finish near the $77bn mark, and with projections for the figures in 2012 and 2013 to reach $95bn and $106bn respectively the proportion of financing provided through the capital markets is set to increase. Boeing Capital set out some themes regarding the air finance industry at a presentation in London during early December. Regions North America remains a key market for aircraft finance
Leasing GE sends strong message to air finance sectorThe US corporate giant GE has sent a strong message to aircraft financiers by re-iterating its enthusiasm for aircraft leasing amid a review of GE Capital. At a time when GE is prioritising its capital allocation process it has identified aircraft leasing as a core business for investment. Developments: Leasing & Airline financing Lessors and AMR; the DNA2 experiment unfolds; Goldmans' RBSA auction continues; BOC enters Embraer sale and leaseback marketWith AMR indicating that some leasing contracts will have to be cancelled the fallout from the airline's restructuring for lessors raises questions. The special purpose air finance company DNA2 has acquired a second Airbus A380 to be leased to Emirates, with the deal supported by ANZ Bank and Sumitomo. BOC Aviation moves into the Embraer sale and leaseback market while China Development Bank, one of three institutions reported to still be in the running to buy RBSA, supports Xiamen Airlines' expansion plans through a loan of $939 million. Aviation Finance - Ireland Christmas cheer for Irish aircraft leasing industry
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Aviation Finance Vol. 1 No.7 This issueAs a tumultuous year in aircraft financing draws to a close we see hopes rising that as 2012 unfolds the underlying buoyancy in the aviation complex will meet more orderly financing markets, especially as we see capital markets solutions grow, helped, perhaps, by a definitive resolution of the eurozone crisis. We also look at aircraft finance in North America, and report on the perspectives of a key US based lessor, ACG Group, on, among other things, residual values in the future. The Cutting Edge Will the MAX and NEO be game-changers? The first lessor to order both the Max and the NEO gives the views of Aviation Capital Group
Perspectives Looking to 2012: the year in prospect for aircraft financingAfter a year of significant change in the aircraft leasing industry, aviation finance can look forward to further material growth and expansion during 2012. The continuing flow of commercial aircraft deliveries, further build-outs of existing leasing companies and an evident contraction in traditional commercial lending sources are all germane to developing the sector worldwide, writes Aviation Finance Consulting Editor, Joe Gill. Developments: Capital Markets Capital markets to help fill the funding gap in 2012As 2012 looms with an more conservative banking environment expected (with some predicting the funding environment to be even tighter than in 2008 in the aftermath of Lehman's) stories abound of European banks deleveraging, exiting markets and tough capital requirements. Accordingly, many are looking to capital markets solutions in 2012. Irish Budget Budget 2012 delivers for aircraft leasing and the IFSCThe introduction of the Special Assignee Relief Program (SARP) 'will allow multinational and indigenous companies to attract key people to Ireland so as to create more jobs and to facilitate the development and expansion of businesses in Ireland', said the Minster for Finance Michael Noonan in his Budget 2012. This was foreshadowed in Aviation Finance (Issue No. 3) in October in an article by Enda Faughnan of PricewaterhouseCoopers, chair of the taxation group of the Clearing House Group, whose advice we would like to think the Government has listened to. |
Despite the surging growth rates being displayed by commercial aviation markets in developing countries, and especially in the Asia Pacific region, North America remains a key marketplace for the installed commercial airplane fleet and as a destination for significant future orders. Funding that market is a task airlines and lessors must tackle amid a consolidating sector.
The Irish Budget on December 6th (the feast of Saint Nicholas, aka Santa Claus) has given the Irish leasing industry something to cheer about, because of the decision to improve the SARP - see our scoop on this in issue No 3 (October 13th last), and our article on the measure (facing) by PWC's Enda Faughnan. Meanwhile, Ryanair's CEO Michael O'Leary gets in on the Christmas theme as well.
Newport Beach, California - based lessor Aviation Capital Group (ACG) was involved in one of the headline deals at the 2011 Dubai Airshow when it announced an order for 30 fuel-efficient Airbus A320 NEOs. The deal which is valued at $2.74 billion, is part of the firm's long-term fleet plan. ACG also announced an order for 35 Boeing 737 Max aircraft. The Boeing commitment by ACG makes it the first identified lessor of the 737 Max. In this exclusive interview with Aviation Finance, ACG's CEO Stephen Hannahs talks about the order, the MAX and the NEO.