- Latest Edition June 12th: Positive market sentiments ahead of Paris 2025
- May 29th Edition: AWG's tariff recommendations
- May 15th Edition: Mega orders show long term optimism
- Latest Edition May 1st: Tariffs: a win-win solution for aircraft
- April 17th Edition: Tariffs on aircraft - delay and hope
- April 3rd Edition: Avoiding tariff turbulence
Leasing Business Biggest leasing deal of the year added scale and boosted earnings for Avolon
Global Taxation The global tax deal, new national ambitions and the future shape of the global leasing businessAs jurisdictions across the globe implement relevant aspects of the 'global tax deal', officially the OECD's Base Erosion and Profit Shifting (BEPS) framework, into their domestic legislation the way global aircraft lessors do business may be impacted. We asked two leading Ireland-based tax experts how, in general, BEPS may change how lessors carry out their global business, and, in particular, how changes in India's tax treatment of Irish leasing activity may reshape lessor activity. Leasing Business AerCap gives update on stranded assetsAerCap, in a judgment handed down by the Commercial Court in London on 11th June, is entitled to recover its claim for an indemnity of approximately $1 billion from the insurers under the "War and Allied Perils" Coverage section of its contingent and possessed insurance policy. The lessor said the judgement, which is in relation to a claim brought by its subsidiary AerCap Ireland Limited, is in respect of the aircraft and engines which AerCap and its affiliates formerly leased to Russian airlines and were not recovered from Russia following its invasion of Ukraine in February 2022. Developments BOC Aviation seals deals with Avianca and Gulf Air; Abelo secures $750m facilityBOC Aviation seals deals with Avianca and Gulf Air; Abelo secures $750m facility; Griffin Global Asset Management delivers six Boeing 737 MAXs to United Airlines; CALC in two aircraft deal with Uzbekistan Airways; Ryanair orders 30 CFM Leap-1B engines to deepen spare engine pool; Phoenix Aviation Capital and AIP Capital close $300m senior secured credit facility; Taiwan's UNI Air Signs Order For 19 ATR 72-600s; Aviation Capital Group delivers A321neos to Wizz Air; AerDragon's new $200m unsecured syndicated loan facility |
In this issue In this issueThe latest deals from Willis Lease Finance and Carlyle Aviation underline the renewed momentum in aviation ABS issuance following a pause precipitated by US trade policies. However, despite these deals - the third and fourth since the announcement of wide ranging tariffs from the US administration - Fitch has warned that despite the resilience of many aviation ABS structures there are some that are vulnerable to an economic downswing that clouds its 2025 aviation ABS market outlook. With Paris 2025 about to kick off we feature IBA's predictions for orders, we also look at the potential for the 'global tax deal' to change the shape of the leasing landscape. Paris Air Show 2025 Paris 2025 preview: a barometer of airline sentiment
ABS Fitch predicts aviation ABS resilience in face of tariffs but downgrades 2025 outlook for the marketFitch Ratings says it expects aircraft operating lease ABS asset performance to withstand growing pressures from tariffs, heightened policy uncertainty, and slower global GDP growth. It says the sector 'is broadly well-positioned to weather a more challenging environment given support for used aircraft values from continued under-supply and our expectation that tariffs on new aircraft will shift preferences toward used aircraft.' Additionally, although Fitch projects lower global GDP growth in 2025 relative to 2024, positive growth will still support overall demand for passenger air travel. However, it says some ABS pools are vulnerable to negative shocks and because of increased downside risks is lowering its outlook for the sector from 'neutral' to 'deteriorating'. Aviation ABS Willis and Carlyle add further momentum to aviation ABS marketThe latest moves in the aviation ABS market by Willis Lease Finance Corporation and Carlyle Aviation puts aviation ABS issuance back on track to have a stand out year as issuers and investors look to have shrugged off worries and uncertainty caused by erratic US trade policies and possible retaliation from its main trading partners. Part of the proceeds from Willis' mainly engine-backed deal will refinance its WEST IV deal while Carlyle's latest is its second series issuance under the AASET MT-1 structure. |
The largest deal in the aircraft leasing sector in 2024 has been recognised by Aviation Finance's sister publication Finance Dublin as a 'Deal of the Year'. Avolon's 2024 acquisition of Castlelake Aviation Limited accelerates its earnings growth and has built out its fleet at attractive yields, while maintaining its balance sheet metrics within investment grade target ranges. Since the closing of the deal the lessor has had its credit rating upgraded by Fitch and Moody's.
With the Paris Air Show 2025 fast approaching IBA's Stuart Hatcher gave his insights on the market and potential commercial aircraft order announcement at the global aviation showpiece at Paris-Le Bourget from 16th-22nd June.