- 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
Fleet Management The asset management skills needed for slow-growth Europe
Quoted Lessors Fly Leasing gives insight into widebody potential and how they are managing out of production aircraftFly Leasing reported Q1 results in early May that showed; (1) a 115 per cent rise in revenues to $104.5m which reflects an increased size of the fleet; (2) adjusted net income of $26.8m compared to $3.7m in Q1 2011; (3) a 10 per cent increase in dividends and approval to replace an existing $25m share repurchase programme. The conference call that accompanied its results also brought valuable insights to some of the dynamics that are flowing through the aviation financing community as it enters the middle of 2012, Joe Gill reports. Taxation Legal opinion of Advocate General of the ECJ on the 'look through' exemption welcome news for lessorsThe ECJ's release of the legal opinion of the Advocate General is welcome news for the aviation leasing sector as it maintains the 'look through' exemption that means that the supply of aircraft to companies who do not operate the aircraft themselves should not be liable to VAT, according to Ernst and Young's Brian Keenan. Airline Financing and Developments Air India looking to raise $1.1 billion for aircraft and working capitalFollowing a decision by the Indian Government to allow its domestic airline industry to raise up to $1 bn to meet working capital needs Air India has announced plans to raise $600 mn for working capital and is also seeking to raise a further $500 mn in a bridge loan to allow it to take delivery of four Boeing Dreamliners. Taiwan airline EVA, is to take delivery of 7 Boeing 777s to upgrade its fleet while Delta Airlines has taken a major step to take control of its fuel costs. The Aviation Complex Macro headwinds take their toll on aviation stocksShare prices in aviation related companies have borne the brunt of poor newsflow from the sector over the past month. Despite recent weakness oil remains at high prices and especially for euro based carriers who have to contend with a weaker home currency too. These macro headwinds have been accompanied by a series of negative news stories that are impacting short-term share prices across the aviation complex, writes Joe Gill. |
Aviation Finance Vol. 2 No.10 In this issueThere 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 Leasing - the $2 billion dollar backed start up
Order Books Aircraft backlogs can be read in two waysData on aircraft backlogs produced by Bloomberg Industries highlights key themes across the commercial aircraft marketplace. These datapoints can be interpreted both positively and negatively regarding the future prospects for OEMs and leasing companies, with the impact of the introduction of new technology airplanes causing steep reductions in backlogs of older generation aircraft, writes Joe Gill. Lessor Financing and Developments Wells Fargo Securities: FLY leasing is undervaluedWells Fargo Securities has initiated coverage of listed aircraft lessor FLY Leasing with an outperform rating. Elsewhere, Air Lease Corporation (ALC) has taken steps forward in developing its capital structure thanks to a new revolving credit facility, while Airbus' head of financing says French banks have remained active in aircraft financing, but have shifted their roles to structuring rathering than financing transactions. Ireland as an aircraft leasing hub ICBC's growth in Ireland, and the Shannon connectionThe decision of China's ICBC to establish its first international aircraft leasing hub in Ireland has been cemented by the recent signing of an MOU with the IDA and witnessed by the Taoiseach Enda Kenny, and Minister for Jobs, Enterprise and Innovation, Richard Bruton and the President of ICBC, Yang Kaisheng and Senior Executive Vice President of ICBC and Chairman of ICBC Leasing, Li Xiaopeng. Alex Hou, ICBC International Leasing's Deputy General Manager this week spoke to Aviation Finance about the company's decision to locate in Ireland. |
In the past fortnight we have witnessed a wide range of developments that underline the challenge facing commercial aviation in Europe - with the impact of these developments on the aircraft leasing community both mixed and complex. And with short-term financial pressure resulting in some European airlines delaying fleet renewal and expansion lessors must assess what implications this has for supply and demand, writes Joe Gill.
ICBC Leasing, the leasing arm of the Industrial and Commercial Bank of China Ltd, the world’s largest bank in terms of profit and market capitalisation, is leading the international thrust of China's aircraft leasing industry, and is already making waves, for example pricing the purchase of 48 aircraft from Airbus in yuan last August. It has established its first aircraft leasing hub outside of China, in Ireland, and, following the recent signing of an MOU between the company and the Irish Government in Beijing, is planning to use the platform for future growth. Alex Hou, deputy general manager of ICBC International Leasing, spoke exclusively to Aviation Finance about its plans.