Air Lease is 'bullish' as it reverses 2010 losses in Q4 2011
Gary Liebowitz of Wells Fargo, covering Air Lease Corp's recently hosted conference call on its earnings for the fourth quarter of 2011, said that the company was 'more bullish than others.' Comments made during the call were noticeably more optimistic than those of other lessors. Air Lease sounded supportive of rising OEM build rates, even 'at a time when there is already decelerating global capacity growth and some downward pressure on values.'

Capital markets feature for quoted lessors
Air Lease Corporation extended its issuance of Senior Notes, due in 2017, from $500 million to $1 billion while AerCap was assigned an investment grade rating by Standard and Poor’s. On the equity investment front, Mitsubishi sold half its share in Jetstar to Century Tokyo Leasing and Fortress Investment Group announced that it will reduce its stake in Aircastle.

Upbeat mood prevails despite volatility
Mood swings among investors in risk-on type assets has been impacting lessor share prices of late. Lessor share prices have fallen in the past four weeks even though lease returns (as a per cent of the asset’s value) remain high compared to some financing costs. The leasing sector remains highly dynamic and is ebbing and flowing with some force, writes Joe Gill.

In this issue: "a positive for investment in the right place in the aviation finance complex"
A recurrent theme of recent months have been the warnings, many of them emanating from the lessor community, of the dangers of overproduction by OEMS of aircraft worldwide. In this publication in recent issues we have published such warnings from the CEOs at AWAS, and FLY, and, in this issue, by AerCap's Aengus Kelly.

The Aviation Complex kicks 2012 off strongly
The "Aviation Complex" of publicly quoted stocks tracked by Aviation Finance has started strongly on global stock markets in 2012. In 2007-2008 stock market-quoted aviation assets proved useful barometers of looming economic crisis and maybe now they are telling us something more optimistic about the world economy.

Wider variety of financing options sees lessor portfolios reaching a size that suits a securitisation model
Airlines and lessors seeking finance are exploring less traditional forms of funding, said Maples' partner David Maughan in conversation with Aviation Finance. Maughan chaired a European airlines' panel discussion at the Airfinance European Air Finance Conference in Dublin on January 25th and spoke about the panel contributors' identification of a wide variety of financing opportunities, for instance that lessor portfolios have reached a size that suits a securitisation model. Contributors also focused on growing competition in the Asian market.

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.

Opportunity for those with solutions as a new aircraft financing gap opens up
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.

Leasing can provide an attractive investment opportunity for long-term equity investors: Forsberg.
The aviation leasing sector can provide an attractive investment opportunity for long-term equity investors looking to achieve steady risk-adjusted equity returns while participating in the growing global aviation business writes Avolon's DICK FORSBERG.

The DNA2 experiment
July 18th 2011: One of the intriguing aspects of aviation finance is the connection between risk and assets. Do financiers focus too much on airline credit risk when leasing commercial aircraft or must they always stay focussed on the risk inherent in the machine itself ? Last week's successful fundraising by DNA2 (see our article datelined July 14th) asks questions around this subject.

Aercap's CEO: 'There is still real money to be made by prudent lessors'
Aercap's CEO Aengus Kelly talks to Aviation Finance about the point we are at in the leasing cycle, aircraft values, delivery times, post-petition leases, and the 'funding gap', and says aircraft leasing 'is still a really profitable business'. In the interview he also dismisses the idea that used aircraft, particularly narrow-bodies, are suffering from a significant fall in lease rates and value. He paints a positive picture for prudent lessors and expresses AerCap's confidence in its leases with American Airlines, currently under the protection of Chapter 11.

The supply - demand metric
The linear growth projections presented by OEMs could yet prove optimistic. While they supply new planes used aircraft are popping up worldwide in increasing numbers and struggling to find buyers. At some point, the supply v demand metric could raise its ugly head, writes Joe Gill.

Fears of aircraft overproduction highlighted as lessors repossess planes
AerCap chief executive Aengus Kelly warned against the overproduction of aircraft this month when he questioned the viability of huge orders made by small airlines. Another point of interest was Oaktree Capital Management's move to sell its majority stake in Jackson Square, which comes at an interesting times given the state of commercial lending but also the strength of the RBSA sale and IPO of Air Lease.

'History shows that human ingenuity has always come up with financing sources and that aircraft for reasonable credits always attract finance' - Colm Barrington
Aviation Finance editor KEN O'BRIEN interviews COLM BARRINGTON, CEO of quoted aircraft lessor FLY Leasing, and non executive chairman of Aer Lingus, the Irish carrier, on the 'funding gap', the financial economics of aircraft leasing, and the business model of NYSE-quoted lessor FLY. He says there may be a lack of appreciation of the value of certain types of aircraft assets in the public markets in particular.

Lower yields on outstanding issuance encouraging for lessor issuance in 2012
A rally in the unsecured debt of lessors has paved the way for increased capital market activity by leasing companies to fill the funding gap left by banks that are reticent to lend.

Sumitomo RBSA acquisition for $7.3 bn. of major significance to aircraft leasing sector
The acquisition of RBS Aviation Finance by Sumitomo Misui Financial Group is a groundbreaking moment for the aircraft leasing industry. It is historic in a number of ways; it is the largest ever transaction in the leasing space, while also, incidentally, being the seventh largest overseas M & A in Japan's corporate history. That the price achieved is in excess of book value is a statement of the investor interest there is in the sector.

DNA listed aircraft vehicle manager issues Q3 report on A380 lease performance
October 6th: The third quarterly performance review of Doric Nimrod Air One Limited, the London (LSE) and Channel Islands SE listed aircraft vehicle (DNA 1) was issued today. The quoted vehicle consists of a single aircraft investment, based on an Airbus 380 leased on a 12 year term to Emirates. The review, besides commenting on the lease, also comments on the market, Emirates, and the aircraft's current market performance. (Also see our article opposite in the 'Perspectives' section: 'The DNA2 Experiment').

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.

Aircraft leasing opportunities as consolidation brings public and private equity into play
Ireland's buoyant aircraft leasing sector faces huge challenges and opportunities simultaneously, as the world of aviation finance sees seismic shifts in the wake of the global credit crunch.

Aircastle increases dividend 25 p.c.
June 27, 2011 Aircastle Limited (NYSE: AYR) announced a second quarter 2011 cash dividend on its common shares of $0.125 per share, representing a 25% increase in the dividend this quarter.