- 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
The year ahead Key 2012 issues for aircraft lessors
The Cutting Edge Tackling the size conundrum: VLA leasing structures
Innovation file Doric declares a dividendDoric Nimrod Air Two, the company established to arrange the purchase and lease of three Airbus A380s, has declared a dividend of 2p to be paid on January 20th 2012. This is part of the quarterly dividend payment cycle that Doric envisages as lease income flows from its aircraft. Airline financing and developments Resolute decisionmaking to count in 2012The outlook for airlines business and financing in 2012, as individual airlines face major restructuring questions in the new year, such as AMR and Ireland's Aer Lingus. |
In this issue In this issueIt is a new year that starts on a cautious note, but which brings promise. Our first issue of 2012, and the first of Aviation Finance's second volume, sees us looking out to the prospects for the next twelve months, and this issue sees us providing two complementary perspectives coming from two sides of the industry - OEMS, in the form of our dialogue interview between Boeing Capital's Kostya Zolotusky, and Joe Gill, and, from the lessor side, in our article by AWAS' chief executive Ray Sisson. Perspectives Outlook for 2012: airlines, lessors and OEMs need to work together to offset multiple risks such as a possible OEM bubble, new ECA rules and constraints on liquidity
The aircraft leasing marketplace The limits to growthThe potential to the expansion of the leasing industry is currently being questioned, with some, including GECAS's chief recently asking whether it can, or should(?), grow beyond 40 per cent of total aircraft financing. Whatever will happen, big numbers are involved, Joe Gill writes. If these numbers can be delivered aviation financing is a growth opportunity for the global financial sector. Exploiting that marketplace will depend on the development of lessors with an appetite for growth and access to the funding needed. Tapping capital from public markets or from insurance-type financial institutions that seek long-term asset classes will be critical in creating an infrastructure that facilitates at least a doubling of the sector’s size. Lessor financing and developments Risk premia being factored in to new year prospectsTightening spreads towards the year's end underline the reality that capital markets funding is starting the new year at a price. |
Aviation Finance asked Kostya Zolotusky, managing director of Boeing Capital Markets to identify five key issues facing aviation financiers in 2012. JOE GILL, Consulting Editor of Aviation Finance provides his perspectives on what 2012 holds under Zolotusky's agenda.
A clear trend evident among aircraft leasing companies during 2011, and especially in newly established companies such as ALC and Avolon, was the concentration of single aisle new jet aircraft in their portfolios. Very Large Aircraft are a part of the aviation world that appear to have ongoing potential and are being supported by heavy R&D from the manufacturers through the creation of new models such as the B747-8 and the A380. It is also a market that is likely to remain a duopoly as new entrants focus on smaller jets. These planes, however, are not showing up as part of the mainstream leasing sector which itself has strong growth ambitions.
What will 2012 bring for the Commercial Aviation Industry? The ensuing marketplace volatility impacted global demand for aviation, as well as the industry’s ability to finance needed aircraft says Ray Sisson, president and CEO of global lessor AWAS.