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2022/23
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2 Airfinance Annual • 2022/23

Editorial
Darker clouds gather

over the horizon
With another global recession heading over the horizon, demand for leased assets
will remain strong. Operating lessors are set to further increase their market share.
T he International Air Transport Association (IATA) latest

monthly analysis (July 2022) showed that the recovery
in air travel is gaining momentum and remains strong.
Aercap’s chief executive officer, Aengus Kelly, admitted
during the company’s second-quarter results that leasing
has grown “much faster” than he had expected before the
Both passenger and domestic markets were substantially pandemic.
up compared with July 2021, benefitting from the lifting of “The OEMs [original equipment manufacturers] between
travel restrictions in most parts of Asia-Pacific. sale-leasebacks and direct lessor orders, we’re probably
After two years of lockdowns and border restrictions, looking at 65% of all deliveries will end up in the leasing
passengers have been taking advantage of the freedom channels. At one point, I did not believe that leasing would
to travel, according to IATA’s director general Willie Walsh. surpass 50% of the global market. We’re way past that
But headwinds such as rising inflation, fuel and currency now in terms of value, and it’s only going one way.”
fluctuations will challenge travel demand. Now airlines are turning to lessors for a different
Walsh was correct in his prediction that the lifting of travel reason: to source aircraft.
restrictions would unleash a torrent of pent-up travel demand Airlines are keen to build fleets of next-generation
in the summer months. However, meeting that demand aircraft but face restrictions from Airbus and Boeing
has proved challenging and likely will continue to be so. because of supply chain woes. However, recent lessor
According to Walsh, some hub airports were unable deals such as those with Condor and Air Europa are proof
to support their capacity even with the current 64% slot that leasing companies hold slots that airlines want.
threshold and have extended recent passenger caps until Furthermore, buying aircraft is becoming more
the end of October. expensive in an increasingly uncertain market.
Walsh tells Airfinance Journal that fuel remains a cost The world may soon be “teetering on the edge” of a
pressure that will continue for the rest of the year. global recession, according to the International Monetary
“The crack spread, between the crude oil price and jet Fund in its latest forecast.
fuel price, is still unusually wide,” he says. “The outlook has darkened significantly since April,”
“This is at levels I don’t recall before. In the first week said Pierre-Olivier Gourinchas, IMF economic counsellor
of September, the crack spread was at 50% and I looked and director of research in The World Economic Outlook
back over a 10-year period and it averaged at 17%. Fuel Update July 2022.
represents the single biggest cost for airlines and although The baseline forecast for global growth is for it to slow
the Brent oil price eat a little, the jet oil price is still very from 6.1% last year, to 3.2% in 2022 – 0.4% lower than
elevated. That will continue to put pressure on airlines forecast in the last outlook update in April.
costs for the rest of the year.” Inflation is surging in the USA and Europe. And Russia’s
Walsh adds that IATA had expected the spread would decision to cut off gas supplies to Germany has reduced
reduce the supply of jet fuel increases but clearly the the likelihood of inflation being brought under control any
recovery in demand is stronger than the recovery in time soon.
production. Walsh says the pandemic showed that aviation is not a
“Higher fuel prices will be reflected in ticket prices as luxury but a necessity in a globalised and interconnected
airlines don’t have the financial capacity to absorb the world.
significant increase that we have seen in prices,” says But it also demonstrated that airlines want flexibility, and
Walsh. with further cost pressures and supply chain challenges
This challenging operating environment of higher costs ahead, demand for leased assets in a post-pandemic
and uncertain traffic has supported the growth of aircraft market will remain resilient.
leasing during the pandemic.
Crippled demand meant lessors were forced to work
with troubled airlines rather than take aircraft back. This OLIVIER BONNASSIES,
saw lessors agree to deferred aircraft lease rentals or Managing editor
power-by-the-hour arrangements. Airfinance Journal
www.airfinancejournal.com 3
Contents
Deloitte: International tax reform: new

3 Editorial era for aviation structuring
4 Contents 24
6 Alton Aviation Consultancy: Route to recovery delayed

Alton Aviation Consultancy’s Industry Altimeter looks at the
state of commercial aviation and aircraft leasing.
Airfinance Journal Analysis: Engine Poll

24 Deloitte: International tax reform: the post-pandemic era 2022
Matthew Dolan, an aviation finance and leasing tax partner at
Deloitte, and Danielle Ryan, an aviation finance and leasing
senior tax manager at Deloitte, look at how the global tax
landscape has changed since Covid-19 struck.
32
32 Airfinance Journal Analysis: Engine Poll 2022
36 Airfinance Journal Analysis: Aircraft Investor Poll 2022

Airfinance Journal’s Global Awards 2021
42 Airfinance Journal Analysis: Legal Survey 2022

51
51 Airfinance Journal’s Global Awards 2021
67 Directory
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Industry review and outlook: Alton Aviation Consultancy
Route to recovery:
delayed
Alton Aviation Consultancy’s Industry Altimeter looks at the state of commercial
aviation and aircraft leasing.
T he aviation industry has cautiously

turned a corner from the Covid-19
pandemic, with traffic rebounding
Figure 1: Historical air traffic RPK and GDP growth
RPK-GDP multiplier RPK-GDP RPK-GDP
120% (1970-1999): 2.3 multiplier (2000- multiplier (2010- 20
as the world has largely opened. 2009): 1.2 2019): 2.1
100% 18
However, as of this writing in the
80% 16
middle of the third quarter 2022, new
60% 14
Annual Growth Rate
challenges are emerging that throw the Global Financial
Growth Index
40% SARS Crisis 12
Gulf War
industry’s path forward into uncertainty. 20% 10
The economic climate is volatile, 0% 8
with inflation and interest rate -20%
Recession Sep. 11
6
increases likely to affect market and -40% OPEC Crisis

Asian Financial 4
Crisis
consumer behaviour. Furthermore, -60% COVID-19 2
the Russian invasion of Ukraine has -80% GDP Growth RPK Growth Indexed GDP Growth Indexed RPK Growth 0
continued, while increasing tensions

over Taiwan cause further trepidation.
As a result, the aviation finance Historically, the global environment following the impacts of 11 September
industry and the broader aviation has engendered industry-wide 2001 and the Sars outbreak. The
industry face a cloudy outlook as growth. From 1970 to 1999, air traffic rate of air traffic growth in relation
the persistence of these trends may demand rose at an average of 2.3 to GDP over the decade 2010-2019
fundamentally change the nature of times GDP. Between 2000 and 2009, had accelerated compared with the
post-Covid recovery. the multiplier reduced to 1.2 times previous 10 years, with the multiplier
averaging 2.1 times GDP.
Three key factors drove global
Figure 2: International travel restriction mapping
air traffic growth: increased tourism
DECEMBER 2020 spending, global expansion of the
middle class and low fare stimulation
from low-cost carriers. All of this was
upended by Covid-19.
An uphill climb
The Covid-19 pandemic dramatically
impacted the global aviation industry.
The International Air Transport
Association (IATA) recorded a 66%
AUGUST 2022 RPK year-on-year decline in 2020,
bringing traffic for the year back to
near 1995 levels. IATA estimated
a 22% year-on-year increase in
passenger air traffic demand in
2021 and forecasted a stronger RPK
recovery during 2022 following
the relaxation of travel restrictions
globally, with a 98% year-on-year
growth compared with 2021.
Both air traffic demand and supply
rebounded in 2022, while the
recovery in the Asia-Pacific region
remained sluggish because of

travel restrictions. Key international

markets such as China maintained Figure 3: Change in monthly RPK and ASK versus same month in
stringent entry requirements, including 2019 by region
mandatory Covid quarantine periods.
20%
Recovery in both revenue passenger
CHANGE% VS. SAME MONTH IN 2019

0%
kilometres (RPKs) and available seat
miles (ASKs) had been sluggish over -20%
-32.9%
the past two years but has recently -40% -37.2%
accelerated in regions with large -60%

domestic markets and strong vaccination -80%
progress (eg, North America).
-100% -87.0%
Although recovery in the Asia-Pacific -94.3%
-120%
remains largely stagnant, global load Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 Apr-20 Aug-20 Dec-20 Apr-21 Aug-21 Dec-21 Apr-22
factors have risen from the trough and RPKs ASKs
ASIA PACIFIC EUROPE NORTH AMERICA LATIN AMERICA
are edging towards pre-Covid levels. MIDDLE EAST AFRICA GLOBAL
Load factors have recovered from
a low of 37% in April 2020 to 78% in
April 2022, reaching 94% of pre-
Covid levels globally. Recovery in load Figure 4: Load factors by region
factors has remained steady since 100%
early 2021, led by the North American 90%
region, benefitting from large 80% 80%
78%
domestic markets, faster vaccination 70%
rollout and lifted travel restrictions.
LOAD FACTOR %
60% 61%
Since the start of summer 2022, 58%
50% 51%
the aviation industry has faced
40%
considerable strain ramping up to 37%
30%
meet such demand. Labour shortages
20%
from staff laid off as part of pandemic
cost-reduction initiatives have 10%
contributed to operational challenges 0%

Apr-20
Oct-20
Apr-21
Oct-21
Apr-22
Jan-20
Nov-20
Dec-20
Feb-20
Mar-20
May-20
Jun-20
Jul-20
Aug-20
Sep-20
Jan-21
Nov-21
Dec-21
Feb-21
Mar-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Jan-22
Feb-22
Mar-22
across the value chain. Cases have
included airlines cancelling flights over ASIA PACIFIC EUROPE NORTH AMERICA LATIN AMERICA
the summer because of a lack of cabin MIDDLE EAST AFRICA GLOBAL
crew and airports unable to process
passenger numbers through security
searches and baggage handling. Figure 5: 2019-May 2022 scheduled frequencies by aircraft
Several incidents have received
high-profile media attention, such as
segment
London-Heathrow airport ordering NARROWBODY WIDEBODY
airlines to reduce frequencies to ease 2,500
300 273
operational pressure. 2,000
2,005
250
1,639
FREQUENCY (000S)
From a fleet perspective, recovery

FREQUENCY (000S)
1,500 200
in narrowbody capacity has been 150
148
stronger compared with widebody 1,000

686
100
capacity. Travel restrictions have 500
50
39
driven short-haul narrowbody routes 0 0
flying both in domestic and regional
Apr-20
Oct-20
Apr-21
Oct-21
Apr-22
Jan-20
Jul-20
Jan-21
Jul-21
Jan-22
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
markets to recover faster than long-

haul continental widebody routes.
Attempts at loss reduction and susceptible to sectoral and localised losses in 2021 are estimated to have
raising liquidity crises, but has shown resilience been $51.8 billion, but net losses are
The Covid-19 pandemic broke a 10- and recovered quickly from losses. expected to continue to narrow in
year streak of industry profitability However, the scale of current financial 2022. IATA projects that total industry
and caused a magnitude of predicaments is massive, and recovery losses from 2020 to 2022 will reach
loss unprecedented in aviation has proven to be slower. $201 billion.
history. Despite traffic growth’s IATA estimates global commercial Forced to curtail operations
strong historical correlation to airline revenue will increase by 55% in significantly, airlines have been
macroeconomic indicators such as 2022 from 2021, reaching $782 billion, pursuing multiple strategies to reduce
GDP, the air travel industry is highly similar to 2014. Airline-generated cash burn and increase liquidity to
weather long-term impacts of the

pandemic. A significant proportion Figure 6: Aviation net profit and profit margin ($bn)
of airline costs are fixed (eg, salaries,
lease rentals, etc) and depleted
$60 20%
revenues have been insufficient to $40 Early-1990s Recession September 11 Global Covid-19
cover both fixed and variable costs, $20

Attacks, SARS
Epidemic, Record Oil
Financial
Crisis
Pandemic 10%
Prices
PROFIT MARGIN (%)

NET PROFIT (US$B)
forcing airlines to use cash reserves. $0 0%
($20)
Strategies to reduce cash burn have
($40) -10%
included cutting salaries, laying off ($60)
staff, deferring lease rentals, etc. ($80) -20%
Governments had provided ($100) -30%

($120)
temporary assistance throughout the
($140) -40%
pandemic through wage support and
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022F
subsidies, reductions in airport and
NET PROFIT % MARGIN
navigation charges, and the reduction
or deferral of tax payments. However,
such support has come to an end in
many countries.
In the absence of this, airlines
have sought to increase the size of Figure 7: Airline capacity, revenue passenger and net
their cash reserves to maximise the profitability by region
probability of survival. Their strategies
have included raising debt by using 2019 VS. 2022E CHANGE IN ASKS AND RPKS
2022E NET PROFIT BY REGION
owned aircraft, parts inventory, and BY REGION
intangible assets such as airport slots Asia Pacific

North
America Europe Middle East Africa
Latin
America Global Asia Pacific North America Europe Middle East Africa Latin America Global
0%
and frequent-flyer programmes, as -1%
8.8
collateral. Some airlines have also -5%
gone to the market to raise cash via -5%
-6%
-7%
equity rights issuances. -10%
RPK CHANGE (%)
-10%
Governments have assisted in -12%
(0.7)
-15%
providing bailout packages to national (1.9)
(3.2)
carriers, typically in the form of loans -17% -18%
(3.9)
-20% -19%
or loan guarantees – which have -20%
-21%
added to the recipient airline’s debt -25%
(8.9)
(9.7)
-25%
in the medium term. Realising the -26%
-28%
value of aircraft and other assets on -30%
the balance sheet, both tangible and RPKS ASKS PROFIT (US$B)
intangible, has provided additional
liquidity for airlines.
Airlines have also increased their
incidence of sale and leaseback an increasing number of airlines equity requires the agreement of
transactions to help improve their are anticipated to deleverage their shareholders, whose holdings are
liquidity. While supply and demand balance sheet and pay off debts with diluted by new issuances. Shareholder
market dynamics should have higher financial costs. consent may therefore not always
negatively impacted value, available Despite the general pessimism be forthcoming. Though effective for
liquidity, particularly for new aircraft toward airlines given the climate, raising working capital in the short
sale and leasebacks, have enabled some carriers have also managed term, major equity financing moves
most airlines to maintain high sales to raise equity via financial markets. may burden airlines in the future.
prices. Recent sale and leaseback In May 2022, China Eastern Airlines While all these actions may help
transactions have included Flynas with received approval to raise up to $2.2 airlines in the short term, they will not
lessors CDB Aviation, CMB Leasing billion liquidity through non-public improve profitability. Instead, liquidity-
and Avolon for 14 Airbus A320neos issuance of A-shares and Air France- raising efforts to weather the impact
and Easyjet’s transaction with Aergo KLM planned to raise $2.4 billion from of the pandemic may fundamentally
Capital for 10 A319s. existing shareholders via the issue of change airline cost structures. The
While these short-term liquidity- 1.93 billion new shares. debt taken on may increase cost
enhancement methods will help tide Not all airlines are able to turn burdens, thereby making a return to
these airlines over, they put pressure to the markets to raise equity or pre-Covid profitability more difficult
on medium- and long-term credit government-backed unsecured debt, – particularly in a market with high
metrics, given increased leverage and because investors are in favour of inflation and rising interest rates. How
financial obligations. Following the airlines with a better credit profile and exactly this will affect airlines in the
improvement of their liquidity position, liquidity position. Raising additional long term remains to be seen.

Improving fleet dynamics

Passenger fleet size has experienced
Figure 8: Historical passenger fleet (2010-August 2022)
steady growth over the past decade,
benefitting from growing air travel
market demand. The global fleet (both 35,000
active and parked) has seen a near 30,628 31,048
29,322 29,974 30,111
40% increase since 2010, with the 30,000 28,086
26,945
fleet count growing from 22,087 to 24,898 25,833
23,380 24,071
31,048 in August 2022, supported by
25,000 22,087 22,818
the steady growth of air travel market 20,000
FLEET COUNT
demand. Narrowbody aircraft account
for 60% of the passenger fleet, while 15,000
widebody aircraft represent about 16% 10,000

of the global passenger fleet.
The parked passenger fleet size had 5,000
tripled around March 2020 because of
0
the onset of Covid-19; there has been 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Aug-22
a slow but steadily declining trend in
NARROWBODY - IN SERVICE WIDEBODY - IN SERVICE REGIONAL JET - IN SERVICE TURBOPROP - IN SERVICE
aircraft parking driven by vaccination
NARROWBODY - INACTIVE WIDEBODY - INACTIVE REGIONAL JET - INACTIVE TURBOPROP - INACTIVE
rollouts and the subsequent return of
air travel demand.
The sluggish recovery of
international air traffic is still
contributing to a high number of
parked passenger aircraft, totalling
6,223 units as of August 2022, 2.1 Figure 9: Historical parked passenger fleet (2019-2021) by aircraft
times more than the June 2019 level.
segment
It should be noted that the global
share of widebody parked aircraft is
still disproportionately higher than the 18,000
15,862
share of other fleet types. 16,000

NUMBER OF PARKED AIRCRAFT
13,228
Cancellations and deferrals were 14,000
12,000
significant in 2020-2021 as airlines ! 9,604
9,998
9,324 )!
10,000
looked to right-size their fleets, with ! 8,339
7,521 7,245 7,049 6,985
8,000 6,733 6,391
such behaviours continuing into 2022. 6,223
6,000
New orders from airlines and lessors 4,000 2,914
3,400
3,782
declined in 2020 because of Covid 2,000

but have begun slowly picking up 0
Dec-19
Sep-20
Dec-20
Apr-21
Aug-21
Sep-21
Oct-21
May-21
Nov-21
Dec-21
Apr-22
Aug-22
May-22
since the second quarter 2021 as the

Jun-19
Jan-20
Jun-20
Jan-21
Feb-21
Jun-21
Mar-20
Mar-21
Jul-21
Jan-22
Feb-22
Jun-22
Mar-22
Jul-22
industry recovers.
NARROWBODY WIDEBODY REGIONAL JET TURBOPROP
Freighter conversions of passenger
aircraft have increased because of
depressed values and an increase in
retirements providing a large quantity
of surplus aircraft to complement the
continued growth of air cargo demand.
Narrowbody aircraft have driven most Figure 10: Airbus and Boeing net orders (Jan 2020-Dec 2021)
of the passenger-to-freighter demand
over the past decade while widebody AIRBUS BOEING
conversions grew in 2021.
Aircraft typically become viable as
conversion feedstock about 18 to 25
years of age with conversion adding 1,154 1,093
10 to 15 years to the operational life 775 868
of an aircraft. Covid-19’s impact on

values and surplus of aircraft will likely (379) (225)
reduce the typical conversion age
and increased feedstock availability.
Indeed, in the post-Covid recovery Orders Cancellations Net Orders Orders Cancellations Net Orders
period, conversions for younger

aircraft types, particularly A330s,
have been seen because of value

degradation. Figure 11: Historical passenger-to-freighter conversions
Companies such as EFW reported (2010-2021)
an increase in passenger-to-freighter
140 0.7%
(P2F) demand for A320, A321 and 128
A330 conversions given a significant 120 0.6%
102
uptick in feedstock availability, and
P2F CONVERSIONS FLEET COUNT

95
100 90 0.5%
AEI has received at least 60 orders 87 86
% OF IN SERVICE FLEET
82 85
80 80 80
for its Boeing 737-800SF converted 80 0.4%
freighter. Blackrock was reported 60

57
0.3%
to have purchased three 747-400
40 0.2%
converted freighters and five 737-
800SFs. 20 0.1%
Incentivisation initiatives including
0 0.0%
China’s finance ministry reporting 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
it will subsidise up to 80% of P2F NARROWBODY JET WIDEBODY JET REGIONAL JET TURBOPROP % OF IN SERVICE FLEET
conversion costs are also emerging
worldwide. The uptick in demand
has also been driven by the reduced
cargo capacity in the market because Figure 12: IMF real GDP growth projections by region
of large numbers of widebody aircraft 9% 7.4% 7.3%
parked worldwide. 7%
6.7%
5.7%
6.8%
5.7% 6.1%
5.3% 5.4%
Some older unencumbered aircraft 5% 3.7% 3.7%
4.6% 4.5%
3.8% 3.6%
2.8%
– such as the A319 – that need heavy
YOY REAL GDP GROWTH
2.5%
3%
maintenance or have better early part- 1%
out value propositions are likely to -1%
-1.0%
drive initial retirements. A proportion -3% -2.0% -1.9%
-2.9% -2.9% -3.3%
-3.5%
of the parked fleet is expected to -5%
be permanently retired, including -7%
-6.6% -7.0%
ageing widebodies such as the A340, -9%
777-200, 777-300, and older A330s, -11% -9.9%
Advanced Emerging Europe United Kingdom United States Emerging Asia LatAm & MENA Sub-Saharan Global
Europe Caribbean Africa
767s and A380s. Older narrowbody
2020 2021 2022F
platforms such as the MD80/90 and
passenger 757s may also see an early
retirement.
Overall, fleet trends seem to be
on track for the coming years, if a bit Figure 13: Additional flight hours for eastbound Finnair flights
accelerated compared with previous from Helsinki (Feb 2022 versus Apr 2022)
estimates.
Effects of Russia’s invasion of

Ukraine
IMF’s April 2022 World Economic
Outlook initially recorded a 6.1% global
increase in real GDP in 2021 after
the 3.3% decline in 2020. Because of
the ongoing Russia-Ukraine conflict,
monetary tightening and financial
market volatility, the IMF slashed the
global 2022 projected GDP growth
to 3.6% and forecasts negative GDP
growth in the emerging European
economies – with Russian GDP
expected to decline by 8.5% in 2022.
Following the outbreak of the
Russia-Ukraine crisis, various
countries suspended Russian carriers’ As a result, Russian air traffic plunged, Europe-Asia and Asia-North America
operations within their airspace with its international segment routes were forced to re-route
in February 2022. Russia closed experiencing a 60% decrease in April following the Russian air space
its airspace simultaneously as a compared with January. closure, significantly increasing sector
countermeasure against the sanctions. Moreover, airlines operating on lengths. Finnair, which claimed the

fastest northern route between Europe

and Asia, has seen an average two- Figure 14: Russia passenger fleet composition
hour increase in flight time compared
with its original routes’ duration. RUSSIA CURRENT PASSENGER FLEET RUSSIA PASSENGER FLEET
Because of a lack of demand and a LESSOR PENETRATION
1,200 5% MEASURED BY FLEET COUNT
challenging operational environment, 1,032
4%
Finnair indicated it might halt routes to 1,000
774 843 4%
South Korea, Japan and China, and lay 27%
800 3%
% of Global Fleet
27%
FLEET COUNT
off up to 650 employees.
3%
Although the sanctions may 600
2%
49%
not significantly impede the post- 400 2% 24%
Covid global traffic recovery (since 1% 73%
the Russian market only accounts 200
1%
for about 4% of global air traffic 0 0%
historically measured by seat
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
22YTD
NON-RUSSIAN BASED LESSOR
RUSSIAN BASED LESSOR
capacity), its geographic position will
IN SERVICE INACTIVE % OF GLOBAL RUSSIAN BASED OPERATOR
heavily impact routes connecting Asia
to Europe, which further increases
operating costs of airlines focusing on
these key market segments.
Sanctions also threaten the long-
term feasibility of foreign aircraft Figure 15: Major non-Russian-based lessor impairments filed
leasing in Russia, a market whose in Q1 2022
growth was strategically important to
many lessors. $3,500 131 140
On 25 February 2022, the EU

$3,000 120
imposed broad and far-reaching
IMPAIRMENT VALUE (IN US$ MILLION)
LESSORS’ FLEET EXPOSURE IN RUSSIA

sanctions regarding the Russian
(MEASURED BY FLEET COUNT)

$2,500 100
aviation industry, limiting direct or
indirect export of aircraft, parts and $2,000 80
various aircraft-related services into $3,176

$1,500 60
Russia starting from April 2022. The
US issued similar aircraft export $1,000
36
40
restrictions within the same month. 27
21
The sanctions forced lessors to 15
$500 11 20
$802 8
$639
terminate leasing agreements and $538
$380 $304 $252
$0 0
attempt to repossess their fleet from AerCap ALC SMBC DAE ACG Avolon Aircastle
Russian carriers, which was largely
unsuccessful. Airbus cancelled 15
aircraft in April’s orderbook, while
Boeing removed nearly 90 aircraft
from its backlog. Boeing’s Max Figure 16: Major non-Russian-based lessor fleet exposure to
recertification is unlikely to occur in Russia measured by aircraft market value ($bn)
Russia in the foreseeable future.
$2.5
Sanctions will limit the fleet growth
in the near- to mid-term for both new $2.0
FLEET MARKET VALUE
deliveries from original equipment $1.5

(US$ BILLION)
manufacturers (OEMs) and the leasing $1.0

market. The existing in-service
$0.5
fleet size will also be impacted in
$0.0
the near- to mid-term following the
ICBC
BBAM
BOC Aviation
ACG
DAE
Avolon
CMB
Carlyle
SkyCo
Goshawk Aviation
Aircastle
AMCK Aviation
Merx Aviation Finance
SMBC
ALC
NAC
CALC
Orix
AerCap
CDB
Castlelake
BOC Financial Leasing

AviaAM
restrictions on aircraft parts imports

and maintenance, repair and overhaul
(MRO) services, because the Russian
carriers are expected to cannibalise
their western-built aircraft for spare
parts.
The immediate impact of Russian it has nonetheless been painful for In the first quarter of 2022, about $6
sanctions on the global aviation certain lessors, dragging on resources billion in impairments were reported
market is not as wide-ranging and and highlighting the limitations of by lessors in respect of their Russian
profound as the Covid-19 crisis. Still, insurance coverage. exposure. Investment-grade lessors
had seen their ratings moving back

to neutral outlooks from negative, Figure 17: Historical passenger airline profitability ($bn) and jet
and there were indications potential fuel price
upgrades may happen, but the impact
150 120
of the war and resulting impairments
AIRLINE NET PROFIT (US$ IN BILLION)

and reduced cash flows and increased 100 80
PRICE PER BARREL (US$)

debt-to-equity ratios may have put this 50 40
on hold for now.
0 0
The industry expects lessors to
-50 -40
recoup much of the lost asset value
via insurance claims of up to $10 -100 -80
billion, but that process is likely to be -150 -120

protracted.
2022F
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
As of June 2022, there were about NET PROFIT BRENT CRUDE SPOT PRICE (US$ PER BARREL) - AVERAGE
500 aircraft managed/leased by
non-Russian-based lessors operating Note: 2022F – net profit based on IATA June 2022 update, Brent Crude Spot Price as of 15 August 2022
in Russia, and lessors successfully
repossessed only a small portion of
these leased aircraft after the aviation Spiking fuel prices jet fuel expense was 1.3 times higher
sanctions. Following the Russian invasion of than in March 2019.
According to Insurance Journal, the Ukraine, jet fuel prices skyrocketed Jet fuel is a significant operating
total aviation insurance losses from compared with the stable low prices cost item for airlines and typically
the Russia-Ukraine war could range seen over the past seven years. represents 15% to 40% of total
from $6 billion to $15 billion. Fitch IATA estimated 2022’s jet fuel price operating expenses, varying between
estimates the aggregate loss limits are average to be $135.7 per barrel in May different business models. In response
likely to restrict claims to $5 billion to 2022, 75% higher than its previous to the jet fuel price spike, airlines
$6 billion, while a worst-case scenario estimate of $77.8 per barrel in October can partially transfer the cost to
could entail $10 billion. 2021. passengers in the short term through
Several lessors have filed insurance Prices of Jet fuel tracked crude increased fares and fuel surcharges.
claims or taken other measures oil prices closely with a limited In the near term, given the current
regarding their unrecoverable aircraft: pricing differential in the past pent-up travel demand in wealthier
Aercap filed a $3.5 billion insurance decade. Historically, there has been nations, passengers are willing to pay
claim for its 131 aircraft dispatched in a positive correlation between higher prices to get away after two
Russia, and SMBC Aviation Capital has airlines’ profitability and jet fuel years without travel.
written off the value of all its aircraft price given a large proportion of If oil costs remain at the elevated
stranded in Russia, worth $639 million. operating expenses attributed to jet levels or continue to increase, or
Following several business fuel expense. On an individual airline the global economy slows or enters
consolidations and some large basis, hedges can decouple the a recession, passenger demand,
insurers withdrawing from writing natural correlation. particularly with higher fare levels,
aviation risk in mid-2019, the dynamics Usage of Jet fuel for US-based would be tested, making the airlines’
of the aviation insurance market have airlines in March 2022 was almost ability to pass fuel costs onto the
shifted toward increased pricing, 90% of March 2019’s level, while the passenger uncertain.
which was further accelerated by
the Covid-19 pandemic in 2020 and
Russia sanctions in early 2022. Figure 18: Historical CPI % PPI for the USA and Eurozone
Given the broad scope of sanctions (2000-May 2022)
and sizeable lessors’ fleet exposure
15%
to Russia, the impact on aviation
MONTH-OVER-MONTH GROWTH (%)
insurance is unprecedented and will

10%
be profound in the long run, though
the full, true impact remains uncertain. 5%
A bilateral agreement between
insurance companies and lessors 0%
will likely come to fruition. Still, the
negotiation process may take much -5%
longer than initially anticipated. The

aviation insurance market will likely -10%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
May 2022
see a significant hardening of the

US PPI US CPI EUROZONE PPI EUROZONE CPI
insurance premium and tightening of
the insurance coverage, especially for
Note: producer price index (PPI) for the manufacturing industry within each region
contingent insurance.

Rapid inflation (CPI) and PPI. Increases in the cost of Volatility in fuel prices can quickly
As headline inflation numbers have fuel, labour, higher airport charges and raise costs, while more favourable
risen to levels not seen in 30 to 40 MRO charges will all be headwinds to operating conditions can lower the
years, there is the potential for a longer-term profitability. Higher asset barriers to entry and invite new
paradigm shift in how those deploying prices will hurt profitability because it competition to the field and, as a
capital assess opportunities, with costs airlines more to acquire/lease result, put pressure on revenues and
aviation no exception. assets. However, airlines can partially profits.
Inflation’s impact on the broader recapture these costs via increased
aviation value chain is complex ticket prices passed onto consumers. Rising interest rates
and wide-ranging, so it is difficult to The interest rate environment has
isolate and quantify what it will mean Airports: inflation will impact airports also changed dramatically since the
for the industry and asset prices. As primarily via labour and energy onset of the pandemic. While rates
with many factors, some time will be costs that affect the cost of running have been moving higher since
required before the impact of inflation operations; higher material costs summer 2020, in the past few months,
is fully reflected across the industry will manifest in higher capital costs rates have risen to heights not seen
value chain and in asset prices. that could impact expansion and in decades and have been a focus
While there may be a correlation infrastructure renewal expenditure. of discourse in the wider global
between inflation and asset prices, Airports may also be exposed to economy.
the impact can be categorised as reduced passenger service fees To combat high inflation, global
both direct (ie, higher escalation), should inflationary pressures depress central banks have sharply raised
and indirect (ie, the follow-on impact demand for air travel. interest rates recently. A high interest
inflation has on interest rates, rate environment discourages
economic activity and aircraft supply MRO: MROs face a similar impact borrowing and aircraft trading,
and demand); the indirect impact may as OEMs, with labour and material negatively impacting values of on-
be more important when considering inflation the most significant risk. The lease aircraft. Higher interest rates
the assets values over the medium to MROs will look to pass this through make thin-margin aircraft deals
long term. to the end customer where possible. that were executed in the previous
Stagflation would have a different Higher MRO costs should support the low-interest rate environment less
impact than a growth-driven inflation residual value of part-out engines as tradeable. Investors in these assets
environment because higher prices the relative cost of overhaul drives will seek higher returns to cover the
in the face of weaker growth would an increase in the value of engine higher financing costs. Higher interest
impact the supply-demand balance, components. rates will also be partially passed
which could outweigh the effects of Intuitively, higher inflation will drive through to lessees through rising
inflation on asset prices, particularly higher delivery prices, which, in turn, lease rates, increasing airlines’ overall
for older technology assets. In turn, should result in higher rentals and fleet-ownership costs.
an airline’s ability to pass on higher residual values. Other factors will The public markets and the most
costs to consumers without negatively ultimately determine the impact of liquid assets react quickly to interest
impacting customer demand is crucial inflation on long-term residual values rate changes. There has been a
in determining how inflation will and lease rates. The timing of when material decline in equity and bond
impact asset values. residual values are crystallised will asset prices in the second quarter
The impact of inflation on various be a critical determinant in realised of 2022, as rates increased and
market stakeholders is largely returns. the expectation of the higher cost
determined by the cost inputs to
which they have exposure:
Figure 19: 2012-2021 narrowbody and widebody transactions
OEM/new orders
OEMs are exposed to labour, energy by aircraft value* ($bn)
and material costs that are closely
linked to the producer price index $160
$145.7
(PPI). OEMs have some protection in $139.3
$134.5
$141.4 $140.8
$140
contracts via their escalation clauses. $124.2
$120
However, the hedge is not perfect, $101.7
$100 $92.8 $88.5
more so for Airbus, where its labour
and energy costs are more European- $80
$63.3
centric. Escalation caps and the ability $60
of airlines to absorb the higher asset $40
cost will impact how much escalation $20

OEMs can push through. $0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
NEW DELIVERY TO AIRLINES NEW DELIVERY TO LESSORS AIRLINE-LESSOR SLB (NEW) SECONDARY MARKET (USED)
Airlines: Airlines have direct exposure
to the rising consumer price index
of funds seeped into the market

valuations. The impact of higher Figure 20: Historical new aircraft ownership at delivery
interest rates typically sees a time lag
before manifesting itself in private 2,500 60%
and alternative asset prices, and this
55%
has been true in aviation, with long 2,000
50%
lead times on placements, sale and 1,574
NUMBER OF AIRCRAFT
1,414 1,460
leasebacks, and high levels of capital 1,500 1,325 1,374 45%
% OF FLEET
1,254
1,157 1,165
available, it takes some time before 40%
911
interest rates are fully reflected across 1,000 35%
693
the market. 30%
Aircraft that already have fixed-rate 500
25%
leases attached, dependent on the
0 20%
remaining lease term, will act like 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
a bond instrument and, in theory, AIRLINE OWNED LESSOR OWNED LESSOR OWNED (SLB) LESSOR DELIVERY SHARE
those cash flows are worth less than
in a lower rate environment putting
downward pressure on the price a
buyer will pay for a lease-encumbered
asset. Figure 21: Historical commercial aviation financing by channel
In the immediate future, airlines ($bn)
will be impacted by higher interest
rates through reduced disposable $300 $282 100%
incomes and subsequently consumer $250 $219 80%

spending. An associated drop in $200
$153 $151 $154 60%
demand would equate to the need $150 $125
$91 40%
for more revenue per passenger $100
$62
$80 $88 $90
to return to pre-Covid profit levels. $50 20%
As such, reduced air transportation $0 0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
could feed into lower demand for
aircraft, impacting lessor placement CAPITAL MARKETS COMMERCIAL LOAN EXPORT CREDIT INSURANCE
opportunities, oversupply and MANUFACTURER LESSOR % SECURED %
constraining asset values.
Funding the leasing market

The dynamic aviation financing and
leasing market have experienced Figure 22: Historical commercial aviation financing channel
significant change, with leasing further confidence
growing in importance. New aircraft
delivery financing grew steadily over
the previous decade, but volumes
fell in 2019 with the 737 Max issues
and again in 2020 amid the Covid-19
pandemic.
The share of transaction value
of new deliveries to airlines has
continued to decline, decreasing from
48% of transactions in value to about
40% pre-pandemic and dropping to as
low as nearly 25% in 2021 while most
airlines were financially distressed. On
the other hand, the secondary market
for used aircraft has seen significant
growth over the past two years.
Lessors play an increasingly initially ordered by airlines, but via the $62 billion in 2011 to $154 billion in
essential role in the primary aircraft sale and leaseback financing channel, 2019. Capital markets and commercial
financing market; via direct orders some 20% to 30% of the fleet was bank loans drove more than 95% of
and sale and leasebacks, lessors have transferred to lessors at delivery. total debt market funding, especially
acquired about 50% of the fleet at The aviation debt financing market post-2016 when export credit agency
delivery for many years. About 70% to has experienced strong growth over (ECA) loans were few. Secured debt
80% of new deliveries each year were the past decade, pre-Covid, from just financing had gradually declined

because of the increasing credit

profile of airlines and lessors. Since Figure 23: Historical commercial loan financing by segment
the outbreak of Covid-19, many large
($bn)
airlines and flag carriers have sought
government support and guarantees
$180 $168 100%
to obtain more unsecured financing. LESSOR UNSECURED
90%
Driven by liquidity, capital markets 80%
COMMERCIAL LOAN
AIRLINE UNSECURED
and leasing recovered faster than 70% COMMERCIAL LOAN
$120
other financing channels after the $104
60% LESSOR SECURED
pandemic. Following the recovery $88 $87 COMMERCIAL LOAN
$83 50%
$71 AIRLINE SECURED
from the 2008 global financial crisis, 40% COMMERCIAL LOAN
most financing channels, except for $60 $46 $44 30% LESSOR %
$38
export credit, were widely available, $30 $29 20%
SECURED %
competitive and efficient. 10%
Leasing equity, capital markets $0 0%

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
bonds and commercial loans have
been the three largest funding
channels since 2014. Unlike the
previous downturn, during the top-tier airlines. The size of certain of Covid when lessors raised only
pandemic, financing liquidity was airline loans was historical, such as $24 billion from the commercial loan
abundant for strong credits, but the ANA’s ¥900 billion-plus ($6.5 billion- market, $20 billion down from 2019.
aircraft supply/demand imbalance still plus) unsecured commercial loan and
negatively impacted participants with United’s $3 billion secured commercial Capital markets
pre-Covid exposures. loan collateralised with its Mileage Capital markets financing has
With market uncertainty moving Plus frequent-flyer programme. experienced rapid growth, especially
into 2023, it is expected that leasing In 2021, commercial loan borrowings after 2015, with borrowers’ credit
and capital markets will remain dropped back to pre-Covid levels as profiles improving amid solid industry
fundamental to funding new aircraft many airlines took on high leverage in performance and as investors seeking
deliveries. Highly leveraged airline 2020, requiring lesser liquidity in 2021 yield re-evaluated the industry’s
cost structures are likely to be along with some traffic recovery. Also, risk-and-return profile. As the
under further pressure from rising many airlines have started to report industry saw a more straightforward
interest rates and as such likely to positive operating cash flow during the path to recovery in 2021, sourcing
be dependent on leasing for fleet second half of 2021, reducing the need debt from capital markets became
expansion. for additional funding. more prevalent. The amount
Lessor borrowing volumes generally issued by lessors also increased
Commercial loans grew over the past five years in sharply, primarily driven by Aercap’s
The commercial loan market has line with increased aircraft trading acquisition of GECAS and the asset-
been a traditional financing source activity. Lessors have increasingly backed securities (ABS) market
for airlines to fund aircraft purchases. sought financing through the capital recovery.
Historically, commercial loans, markets with less dependence on the Since the sanctioning of Russia,
combined with cash, provided more commercial loan market. Lessors have capital markets financing has slowed
than 50% of the funding for new generally been moving away from the down significantly, especially with
aircraft acquisitions. commercial loan market since 2019, ABS fading away from the market.
The commercial loan channel saw migrating toward more-efficient capital Unsecured issuance has also
a record year in 2020 – driven by markets. A continuation of that trend decreased because issuers no longer
the liquidity requirements of many was accelerated in 2020 because need to raise capital after several
months of favourable conditions.
Airline bonds
Figure 24: Historical capital markets financing by segment The decline in demand because
of Covid-19 necessitated airlines’
$140 100%
$125 requirements for additional liquidity.
EETC
$120 Airlines have long used their owned
$105 80% ABS
$100
LESSOR UNSECURED BOND
aircraft as collateral for commercial
60%
$80
$59
$65 AIRLINE UNSECURED BOND loans and enhanced equipment trust
$47
$60
$43 40% LESSOR SECURED BOND (EX-ABS) certificates (EETCs), but also looked to
$35
$40 $28 $28 $29 AIRLINE SECURED BOND (EX-EETC) other tangible and intangible assets,
$14 20%
$20 LESSOR % such as slots, gates, routes, frequent-
$- 0% SECURED % flyer programmes and intellectual
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
property, for collateral in secured
financings in 2020.
Many flag carriers – especially

Asian carriers with close government Figure 25: Historical EETCs issued by airlines
ties, such as Singapore Airlines, China
Southern Airlines and China Eastern $60
$51
10%
Airlines – were able to raise significant 8%

capital via unsecured bonds at $40
$31 6%
$27
historically low rates, with investors $22 $23
$26
$18 4%
fleeing to quality under the challenged $20
$11 $10
$7 2%
market conditions. $6
Bond rates have dropped $0 0%
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
significantly since the global
financial crisis in 2008 and averaged SECURED BOND (EXCLUDE ABS) UNSECURED BOND
AVERAGE SECURED COUPON RATE AVERAGE UNSECURED COUPON RATE
about 4% in 2015. As a result of
Covid-19, coupons for secured
bonds increased to about 8%, given
increased perceived risk; coupons for top-tier airlines to access funding at Covid to repay their more expensive
unsecured bonds remained stable in relatively lower rates, with collateral funding and reduce their overall debt
2020, because many top unsecured requirements continuing to be less servicing cost.
borrowers were supported by their sensitive as credit rules the day; In 2021, Aercap raised $21 billion
governments or national sovereign however, the volume will be lower in unsecured bonds, most of which
funds. Both secured and unsecured than other channels because of the was used to fund the acquisition of
rates trended downward in 2021 but reduced number of airlines with GECAS. These loans accounted for
have now risen substantially in 2022. access to the market. 42% of total bonds raised by lessors
The markets will gradually open in 2021. In the long run, Alton projects
to more carriers as airline financial Lessor bonds the non-ABS secured bond market
performance recovers. In the longer As the economy improved after the for lessors is likely to continue being
term, airlines may seek to deleverage financial crisis, many lessors were muted, and long-term continued
and pay off their more expensive positioned to receive investment- access to capital at relatively lower
debts, including those secured by grade ratings through scale, changes rates through the unsecured bond
assets. in ownership through M&A, rise of market would seem assured for large-
Chinese lessors and large established scale lessors.
EETC lessors which have benefitted from The unsecured bond market is
Over the past two decades, more a robust market. Hence, financing anticipated to remain attractive to
than 85% of the EETCs were issued activities have shifted from secured to lessors and investors, supported
by major US-based airlines. While unsecured notes; non-ABS secured by lessors’ credit profiles and their
popular for US airlines, the number bond issuance almost disappeared ability to withstand near-term cash-
of EETCs issued by non-US airlines is after 2017. Lessors preferred the flow shortages. Further into the
modest, limited by corporate rating more attractive unsecured financing future, continued access to capital
needs, complicated structures and because of the lower cost, less at relatively lower rates through the
compliance, and a nexus to the United complexity and more flexibility. unsecured bond market would seem
States. After the Covid-19 outbreak, assured for large-scale lessors.
Since the outbreak of Covid-19, the government-backed lessors and other
flexibilities in EETC financing have top lessors have consistently been Asset-backed securities
appealed to airlines, and an increase able to access unsecured financing. ABS transactions have been popular
in EETC issuance was observed in Top-tier lessors were even able to among some larger lessors to sell
2020. Established airlines usually are raise funding at rates lower than pre- off assets strategically to financial
in better financial condition with more
unencumbered assets to leverage
for fundraising through EETCs. Many Figure 26: Historical bonds issued by lessors
also ran out of unencumbered aircraft
since they were used extensively to
$60 10%
raise secured financing throughout $51
8%
Covid-19. However, the surge in 2020
$40
was only temporary; issuance activity $31
$26 $27
6%
$22 $23
in 2021 fell to pre-Covid levels as $18 4%
$20
other capital market channels became $6 $7
$11 $10
2%
available that offer borrowers less
$0 0%
complexity and more flexibility, such
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
as unsecured bonds. SECURED BOND (EXCLUDE ABS) UNSECURED BOND

In the short-term, the EETC market AVERAGE SECURED COUPON RATE AVERAGE UNSECURED COUPON RATE
is expected to remain open for

investors to meet fleet age and airline

concentration targets. ABS also Figure 27: Historical commercial aircraft/engine ABS issuance
provided efficient term financing to
funds and small lessors. Mid-to-end-
12 9%
of-life asset lessors also seek ABS
8%
transactions because the tranche $9.2
7%
structure can provide investors $8.1
WEIGHTED AVERAGE %
8 6%
$6.3
BILLIONS OF US$
enhanced credit security, thereby $6.2 5%
achieving relatively lower costs of $5.0
4%
$4.2 $3.9 $3.8
borrowing and higher loan-to-values 4
$3.8
$3.4 3%
$2.5 $2.7
(LTVs) for issuers. $1.9 $2.1
$1.8 $2.1 2%
$0.9
A record year for ABS had been $0.4 1%
observed in 2019 with more than $9 0%
2000
2003
2006
2009
2012
2015
2018
2021
billion ABS issued, of which more
than 60% was used to sell assets. The
FINANCING AIRCRAFT SALE A1-BAA3 COUPON
following year, 2020, was expected
to follow the same trend until the
Covid-19 outbreak, which resulted
in airline defaults, impacting ABS
payback capability. Figure 28: 2012-2021 narrowbody and widebody transactions by
After the market paused in 2020,
number of aircraft
ABS transitions increased again in
2021 after a successful Castlelake 4,000
LESSOR-LESSOR OUTRIGHT
issuance, but because of the Russian 3,500 3,153 3,158
3,006 3,035 LESSOR-LESSOR LEASE ATTACHED
invasion of Ukraine and the rising 3,000 2,731
2,937
2,507 LESSOR-TO-AIRLINE OUTRIGHT
interest rate and inflation environment, 2,500 2,097
1,984 AIRLINE-TO-LESSOR OUTRIGHT
1,935
the ABS market paused again in 2022. 2,000
AIRLINE-AIRLINE OUTRIGHT
Carlyle tested the market with its 1,500
AIRLINE-LESSOR SLB (USED)
AASET 2022-1 issuance, which priced 1,000 AIRLINE-LESSOR SLB (NEW)
at an unusually high coupon rate. 500 NEW DELIVERY TO LESSORS
As the market stabilises, the ABS 0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
NEW DELIVERY TO AIRLINES
market is expected to return as a

popular tool, especially for mid-to-end- ! "&!
of-life asset lessors to finance aircraft. !
The outlook for using the ABS market
as a direct disposal channel remains Figure 29: 2012-2021 narrowbody and widebody transactions by
less certain. aircraft value ($bn)
Lessor acquisition and disposal $200.0
dynamics $180.0 LESSOR-LESSOR OUTRIGHT
Aircraft transactions were at historically $160.0 $145.7 LESSOR-LESSOR LEASE

$139.3 $141.4 $140.8 ATTACHED
high levels during the years preceding $140.0
$134.5
$124.2 LESSOR-TO-AIRLINE OUTRIGHT
the Covid-19 pandemic, driven by the $120.0 AIRLINE-TO-LESSOR OUTRIGHT
$101.7
robust macroeconomic environment. $100.0 $92.8 $88.5 AIRLINE-AIRLINE OUTRIGHT
New aircraft deliveries had already $80.0
$63.3 AIRLINE-LESSOR SLB (USED)
declined because of the cessation $60.0
AIRLINE-LESSOR SLB (NEW)
of 737 Max production; new aircraft $40.0
NEW DELIVERY TO LESSORS
deliveries were further reduced in $20.0
NEW DELIVERY TO AIRLINES
2021 because of the pandemic and the $0.0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
787-recertification issue.
Amid the pandemic-induced
decline, sale and leaseback
transactions in the secondary market Note: aircraft transaction value half of 2019. The 2021 transaction
for used aircraft sharply increased based on AVAC appraised value, not value has partially recovered, mostly
as operators sought liquidity. In actual transaction value; includes M&A because of an increased lessor
tandem with the post-pandemic at parent company. trading and M&A activities, but the
recovery, lessor trading activities In terms of value, because of new delivery level in 2021 remained
showed a strong recovery in 2021, sharply reduced new deliveries in low. As a result, while the total
partially driven by a few major M&A 2020 due both to the pandemic and transaction units recovered to 117% of
transactions, such as Aercap’s the 737 Max issue, the estimated 2019 levels, the total transaction value
acquisition of GECAS. transaction value in 2020 was only has recovered only to 71%.
Acquisition channels
Large lessors acquire most assets Figure 30: Airbus delivery financing
through three main channels:
$60 $58 50%
100% $53
90%
OEM direct order: lessor direct orders $50 $47
80% $45 40%
from OEMs have gradually grown 70% $39$41
$40
over the past decade. Financing for 60% $34
$37
$32 30%
$29
new Airbus and Boeing deliveries 50%
$30
$27 $27$29
$25 $24
has been heavily reliant on cash and 40% $24
$20 20%
30%
commercial loans, with increasing $20 $16$18
20%
support from sale and leasebacks. 10% $10
10%
Capital markets are an additional 0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019*
2020*
2021*
significant financing channel for $0 0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019*
2020*
2021*
Boeing deliveries. AIRLINE CASH & COMMERCIAL DEBT CAPITAL MARKETS MANUFACTURER EXPORT CREDIT (SLB)
Most orders come directly from LESSOR CASH & COMMERCIAL DEBT LESSOR SLB EXPORT CREDIT (LESSOR) EXPORT CREDIT (AIRLINE)
EXPORT CREDIT (AIRLINE) EXPORT CREDIT (LESSOR)
LESSOR SLB LESSOR CASH & COMMERCIAL DEBT
operators rather than lessors – EXPORT CREDIT (SLB) MANUFACTURER
CAPITAL MARKETS LESSOR SLB%
lessors account for less than 20%
of total orders from the leading
OEMs. The more established lessors
with stronger platform capabilities
dominate the OEM orderbooks – the Figure 31: Boeing delivery financing
top 10 lessors in terms of number of
100% 70
aircraft on order account for more $61 $60
90%
than 80% of all lessor orders. Although 80%
60 $55
$58 $57
some new aircraft deliveries were 70% 50 $48
delayed because of Covid-19, as the 60% $42
market continues to recover, lessors 50% 40 $37
are expected to take delivery of their 40%

30
$30
$27 $27
$29
30% $24 $24

significant forward orderbooks. $22
20% 20
Because of high placement 10%
$16 $15 $16
$11
$15
competition and lack of slots, it will 0% 10

be challenging for new entrants
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
0
to participate in the forward order
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
market. For key lessor aircraft CASH CAPITAL MARKETS BANK DEBT CASH CAPITAL MARKETS BANK DEBT
EXPORT CREDIT INSURANCE MANUFACTURER EXPORT CREDIT INSURANCE MANUFACTURER
types, A320neo family, 737 Max and SALE LEASEBACK CREDIT ENHANCED SALE LEASEBACK CREDIT ENHANCED % SLB
even the A220-300 – current OEM

backlogs present limited near-term
acquisition opportunities. As a result, leaseback market is typically highly At the onset of the pandemic,
opportunities for new lessor entrants contested, putting downward pressure lessors and investors remained
looking to place speculative orders for on rents and lease conditions. Lessors cautious and preferred to execute
new-generation aircraft will be minimal could get additional returns from sale and leaseback transactions
for the foreseeable future. scale effect by doing larger sale and with more creditworthy airlines,
leaseback transactions and then trade especially for illiquid older-generation
Sale and leasebacks: primary market down to other lessors/ABS. aircraft. Airlines with better credit
sale and leasebacks have become a During Covid-19, airlines actively ratings accounted for most of
popular method for lessors to acquire tapped the secondary sale and the surge in secondary sale and
early-life assets. In lieu of direct leaseback market to raise liquidity; leaseback transactions in 2020. For
orders, sale and leasebacks provided both the total transaction volume less creditworthy airlines, primary
a mechanism to leverage inexpensive and transacted aircraft value more and secondary sale and leaseback
airline pricing and early delivery slots. than doubled 2019 levels. In the past, transactions decreased and remained
With limited slot availability, sale and airlines used secondary sale and approximately constant, respectively,
leasebacks yield access to new- leasebacks to remove aircraft, debt despite such airlines similarly seeking
technology assets, increased traction and residual value risk from balance liquidity during the crisis.
with lessors looking for near-term sheets, but IFRS16 now requires Among the secondary transactions
portfolio growth and no forward order operating leases to be reported on that did take place, the number of
placement risk. balance sheets. legacy aircraft also decreased from
Since 2000, about 25% of new As the industry recovers and other the previous year, while the number of
aircraft deliveries have been financed financing channels gradually reopen new-generation aircraft increased. In
through sale and leasebacks; in to more airlines, the number of used 2021, as vaccination rates increased
2021, this increased to about 30% of aircraft sale and leasebacks has and the industry started to show
deliveries. The top end of the sale and declined significantly. signs of recovery, the proportion of

transactions between both groups

of airlines started to edge back Figure 32: 2012-2021 narrowbody and widebody lessor-to-lessor
towards pre-Covid norms. Increased transaction values and volumes
airline leverage taken on during the
pandemic is also thought to drive $40 1,600
transactions as airlines seek to relieve $35 1,400
TRANSACTION VALUE (USD BILLION)

pressure. $30 1,200
NUMBER OF AIRCRAFT
TRANSACTION VALUE (M&A)
From a lessor perspective, the $25 1,000
secondary market has higher returns $20 800
TRANSACTION VALUE (OUTRIGHT)
(and associated risks) than the primary $15 600

TRANSACTION VALUE (LEASE
ATTACHED)
market. This channel can provide $10 400 TOTAL NUMBER OF AIRCRAFT
lessors with opportunities to acquire $5 200
target assets from operators which $0 0
need liquidity (particularly early-to- 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
mid-life aircraft at favourable prices)

and/or are phasing out a fleet within
the short to medium term.
Portfolio trading and M&A: portfolio

Figure 33: 2012-May 2022 M&A transaction indicative value
trading and M&A have been used $35 $32.4
extensively by lessors to balance
$30
portfolios, achieve higher returns and
$25
grow rapidly.
Key reasons for engaging in trading $20
Value (USD Billions)
and M&A include balancing portfolios $15

$10.3 $11.0
to meet corporate objectives, $10 $7.5 $8.3 $7.4
achieving higher returns on assets $5
and achieving rapid fleet growth. $0.0 $0.0
$1.1
$0
Total transactions have increased
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
May-
22
sharply since 2014, spurred in large
part by an increase in M&A activity
among major players. Lessor-to-lessor
transactions dropped significantly in scale with no downside to its cost of young aircraft to investors who
2020 at the onset of the pandemic capital. Post-acquisition, Aercap also value investment stability over
but have since increased in 2021 enjoys relationships with more than return, because younger aircraft
in line with the industry’s recovery. 200 airlines and 45 engine lessees. generally exhibit lower volatility with
There have consistently been more Overall, the transaction cements lower return profiles.
transactions with leases attached than Aercap’s position as the dominant • Risk mitigation: reduce exposure to
without, because this reduces aircraft lessor in the market. a certain airline, asset type (residual
on ground time and allows for higher Because of the large size of the value), lease expiry schedule,
pricing. combined portfolio, Aercap is likely to country, or even region.
Recent M&A also provides increase its trading activity due to the • Investment profile: hold assets
buyers with the access to order need to further balance the portfolio or portfolios only for a certain
backlogs, which is critical for lessors for credit and asset exposures (eg, predetermined period to match
seeking to expand their fleet. The disposing of older technology aircraft specific investment horizons.
most in-demand aircraft types for from GECAS’s portfolio). It may also • Market conditions: take advantage
lease-encumbered lessor-to-lessor determine whether certain segments of conditions that enable higher
transactions have been mid-life, (engines, helicopters, freighters, selling prices, low interest rates and
medium-sized narrowbody jets. regionals, etc) are core or non-core. eased access to capital (such as the
M&A remains the most efficient pre-Covid environment).
way to gain scale quickly, grow the Disposal channels • Technical capability: sell aircraft
customer base, increase bargaining There are multiple factors influencing before they reach a certain age
power and expand market exposure. why lessors may look to dispose of to minimise maintenance costs,
The Aercap-GECAS acquisition has aircraft in their portfolio: especially for lessors with limited
created a clear dominant lessor, which technical capabilities to maintain
is expected to have a positive impact • Fleet transition: sell older and less ageing aircraft.
on the leasing market overall. desirable assets to bring down
Aercap maintained its investment- average age of fleet or reduce Lessors tap specific disposal channels
grade credit rating despite increasing exposure to less in-demand or that match their objectives and asset
its leverage by more than three times, liquid aircraft. profiles – and market environment.
allowing it to achieve immediate • Return risk: dispose of new or Portfolio sales declined significantly
in 2020 at the onset of the pandemic

because of higher discount on airline Figure 34: 2017-2021 narrowbody and widebody lessor-to-lessor
credit and depressed asset residual transaction values and volumes
values. M&A activity increased at the
$40 1,600
same time during the downturn as
$35 1,400
industry stakeholders viewed this as a
TRANSACTION VALUE (USD BILLION)

good opportunity to consolidate. $30 1,200 Transaction Value (M&A)
In 2021, trading activity resumed
NUMBER OF AIRCRAFT
$25 1,000
Transaction Value (Outright)
to near pre-pandemic levels as the $20 800
industry’s recovery path became $15 600 Transaction Value (Lease

Attached)
clearer, led by Avolon, which sold 24 $10 400
Total Number of Aircraft
aircraft at a total transaction value of $5 200
more than $629 million. Given the $0 0
rising interest rate environment kicked 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
off in 2022, all trading and financing

activities are expected to slow down
in the near term. planning on issuing ABSs. Balanced – lessors such as Orix, SMBC Aviation
within larger diversified portfolios, Capital, BBAM and Arena Capital
Lessor-to-lessor transactions lessors issuing into the ABS markets actively seek opportunities to sell
Before Covid-19, larger lessors were considering: assets into the Jol market.
leveraged the scale of their fleets As a result, arrangers valued
to reduce credit counterparty risk, • equity investors in ABS were willing mid-life aircraft positively for Jol
reduce residual value risk and to acquire less-liquid assets with arrangements, enabling large
generate trading gain. While there are older age profiles such as A319- traditional lessors such as Aercap
signs that this market segment may 100 (IAE-powered), A330 and 777 and GECAS to divest from previous-
be coming back, buyers are likely to aircraft; generation aircraft by selling them
be more focused on asset and credit • equity investors in ABS were willing to Jol arrangers. Jols place more
counterparty risk in the near term. to acquire aircraft on lease to emphasis on lessee credit over
weaker credit airlines such as UIA, lease rent and asset type; traditional
Sales to financial investors/non-asset XL Airways and Sky Angkor; and lessors see this as an opportunity
managers • ABS issuance proceeds are based to include assets that are less liquid
Certain lessors also leverage their on maintenance-adjusted base but operated by airlines with strong
asset management expertise to values rather than market value and credits when selling to Jol arrangers.
attract investors who do not have therefore issuers were often willing
the required platform or capabilities. to place higher value on assets than Sale to fund managers
Using this tactic, sellers can source non-ABS-issuing buyers. Pre-Covid, lessors could extract value
buyers that are attracted to the space from return-driven fund managers
but uninterested in developing in- After the increased risks that lower willing to take an aggressive view on
house asset management capabilities tranche bondholders have observed the return potential of certain assets:
– essentially expanding the pool and the losses equity investors have
of potential investors. Investors suffered during the pandemic, using • investors: equity investment
see this structure as a mechanism ABS as a disposal channel is likely funding from investors – fund
for safeguarding their investment less viable in the near term, especially managers raise funds designated
because of the servicer’s perceived given the current market uncertainties. for aircraft investments from a
asset management expertise. variety of investor groups including
Additionally, buyers without Sales to Jol arrangers private equity and pensions funds.
platforms are often less sophisticated Historically, lessors were able to These funds generally have a
and therefore lessors can often benefit from the specific nature of the predetermined return hurdle;
extract higher value from transactions. Japanese operating lease (Jol) market • fund manager: acquisition of
Certain lessors have entered joint and would tailor portfolios to suit the aircraft portfolios outright – driven
ventures with these types of investors, demand of these sales targets. by the investment target, fund
typically retaining a minority stake in Japanese investors use Jols as managers have been known to take
the venture; in some instances, the investments into aircraft ownership and aggressive views on the potential
value of the retained equity is less debt financing of aircraft in exchange yields they can achieve and shown
than the gain on sale that the seller for tax benefits because Japanese a propensity to invest in assets with
achieved. tax law allows aircraft owners to claim higher risk for a potentially better
tax depreciation over eight years return. The fund manager’s model
ABS issuance on a declining basis. As a result, Jol usually consist of a servicing team
Until the pandemic, sellers looking to investments are in demand, particularly that collects fees from investors for
rationalise their portfolios had been from small and medium enterprises, managing the aircraft;
targeting lessors/buyers which were as well as high-net-worth individuals • lessor aircraft portfolio sale:

packaged based on yield

requirements – higher yield return Figure 35: Historical lessor aircraft ownership
targets mean asset types sold to
fund managers can vary across a 16,000 100%
spectrum of airlines credit, assets
11,687
11,635
14,000
11,417
11,292
10,281
80%
liquidity and lease rates. Because
LESSOR FLEET % OF TOTAL FLEET

12,000
9,724
9,020
of this increased appetite for risk,
8,481
8,074
7,898
10,000 60%
# OF AIRCRAFT
7,281
coupled with pressure by investors 8,000
5,143
to deploy funds, these buyers 6,000 40%
have been willing to acquire mid-
2,380
4,000
20%
life aircraft from lessors, which 2,000
153
include a mixture of widebody and 0 0%
1980
1990
2000
2006
2008
2010
2012
2014
2016
2017
2019
2020
2021
2022
narrowbody aircraft, operated by a
mixture of airlines; and Leased NB Units Leased WB Units Lessor Owned Fleet vs Total Fleet (%)
• investment return: fund managers
return investment and any profits
to investors after a given length
of investment horizon, and take a Figure 36: Lease penetration of narrowbody and widebody
performance fee of about 20% of
the return.
aircraft
11,417 11,635 11,687
12,000 11,292 60%
10,864
Aircraft leasing competitive 10,281
2,252 2,282 2,276
10,000 2,219 2,316
landscape 2,143 55%
8,000
Lessor-owned fleets have grown at
LESSOR FLEET %
# OF AIRCRAFT
a compound annual growth rate of 6,000 50%
3% since 2006. It is driven by being 4,000 8,138 8,645 8,976 9,165 9,353 9,411
less capital-intensive than direct 45%

2,000
aircraft acquisition, particularly with
the emergence of new carriers with 0
2017 2018 2019 2020 2021 2022
40%
less mature finances in the low-cost Leased NB Units Leased WB Units % of Lessor Fleet (NB + WB)
market. From an investor perspective,
leasing is viewed as an avenue for
steady long-term returns and has Young and liquid narrowbody guarantees and assets as collateral.
helped increase market growth. aircraft were among the most popular In comparison, smaller airlines
On a percentage basis, lessor targets for sale and leasebacks, lack valuable assets and access to
penetration has remained relatively which has been the primary driver government guarantees sourced from
stable at about 50% since the early for recent overall increasing lease other financing channels that can
2000s. As most airlines faced penetration rate. Several airlines be pricy or can only provide limited
unprecedented liquidity pressure which restructured during Covid-19 financing. Increased leverage that
during the pandemic, many have either reduced high widebody lease resulted from the Covid-19 market
chosen to leverage through their rates and/or returned unnecessary environment has resulted in poorer
owned fleet to raise additional liquidity, expensive
!
widebody capacity. Airlines credit ratings, which will impact an #&!
either through EETC offerings for major also
! deferred widebody deliveries. airline’s ability to borrow and refinance
airlines with capital markets access, As widebody deliveries gather pace, in the near to medium term.
and/or sale and leaseback transactions some will be financed via sale and Given that many carriers now exhibit
for airlines without the same access. leasebacks but not at the same rate as higher levels of debt, lessors can step
In the near term, given the liquid narrowbodies. in and provide the necessary funding
increased leverage at most airlines, Lessor credit ratings have not been to airlines which is expected to result
financing aircraft acquisitions through downgraded much during Covid, in increased lessor market share and,
traditional debt channels may not be allowing them continuous access as the market returns to supply and
feasible and an increased appetite to unsecured debt markets. Some demand equilibrium, more power for
for lessor financing is expected. In lessors even used the low interest lessors.
the long term, airlines have and will rate environment to refinance more
continue to tap the lessor channel to expensive debt. As interest rates Operating lessor participants
finance new deliveries and to raise increase, lessors and airlines are While there have been significant
capital through the sale and leaseback expected to incur higher funding costs. M&A activities recently, the leasing
of their existing fleets. Airlines which have not undergone market remains highly fragmented
Leasing penetration increased material restructurings will carry with further consolidation possibilities.
during the pandemic, as many airlines a heavier financial burden. Flag The Aercap plus GECAS portfolio is
raised liquidity through sale and carriers and larger carriers raised about the size of the next three largest
leasebacks from lessors. funds by leveraging government lessors combined.
The aircraft leasing industry has

continued to consolidate throughout Figure 37: Lessor portfolio profiles (2020 versus 2022)
the past decade; however, the market $60 $60
remains fragmented with more than
180 active players in the market and $50 $50
AERCAP+GECAS
new investors continuing to enter.
TOTAL MARKET VALUE (USD BILLION)
TOTAL MARKET VALUE (USD BILLION)

Because of the strong competition $40 AERCAP $40
in the market, which has led to
reduced margins and bargaining $30 GECAS
$30
power for lessors, many existing AIR LEASE AVOLON
SMBC +
AIR LEASE GOSHAWK
players must continue to grow in $20
BOCA
SMBC
BBAM
$20 AVOLON BBAM…
BOCA
scale and achieve stronger credit to ICBC ICBC
CARLYLE + FLY
reduce further operating and financing $10 CDB
ACG DAE AIRCASTLE $10 CDB ACG DAE
AIRCASTLE LEASING + AMCK
GOSHAWK JSA
costs which has continued to drive CALC
BOCOMM
AMCK
ORIX
PEMBROKENAC
CASTLELAKE
MACQUARIE CARLYLE
JSA
BOCOMM ORIX CASTLELAKE
NAC MACQUARIE
PEMBROKE CALC APOLLO (MERX)
for more consolidation. New entrants $0
APOLLO (MERX)
$0
0 5 10 15 0 5 10 15
tend to focus their investments on WEIGHTED AVERAGE FLEET AGE (YEARS) WEIGHTED AVERAGE FLEET AGE (YEARS)
new technology-equipped and young
aircraft because of the lower risk and
less technical capability required.
Figure 38: Consolidated lessor return on equity
Lessor financial performance 20%
Before Covid-19, lessors were 18%
16%
beginning to see profitability decline 14.1%
14% 12.0% 12.5% 11.9% 11.7%
because of the increase in lower 12%
11.3%
yielding deals, and natural roll off 10%

8%
of first leases, but this was not yet 6%
5.3%
fully reflected in the financial results. 4%

1.8%
2%
Reported return on equity (ROE), 0%
excluding trade gains, was declining 2014 2015 2016 2017 2018 2019 2020 2021
and those that completed M&A at high ROE LEASING ROE TRADING
values saw a compression in ROE.

Lessors were able to keep ROE
strong in the pre-pandemic period In down markets, several such an investment-grade rating are more
via strong sales proceeds and gain lessors have demonstrated an ability attractive to debt investors, especially
on sales as they sold down higher to deploy even more capital and in an economic downturn. As a result,
yielding current-technology assets secure higher returns, while managing credit ratings have opened new
into a buoyant market. The early 2019 the current book. Some state-owned sources of funding, along with the
E-Note ABS market was potentially the banks are even legally obligated to availability of unsecured financing at
high-water mark in terms of realised provide liquidity to domestic lessors. very attractive rates.
current-tech values. Like the Chinese bank-backed lessors, Because of relatively strong credit
While headlines have focused on Japanese bank-backed lessors ratings, Air Lease Corporation was
deferrals, the level of “amend and include Aviation Capital Group and able to raise a total of about $3.95
extend”, lease expiry and restructured SMBC Aviation Capital. billion in unsecured issuances in 2021,
leases have hurt the near- to mid-term With a strong focus on Jol and $750 million of which were issued at a
outlook profitability. Japanese operating lease with call record low rate of 0.7%.
Lessors face a tough battle ahead to option leases, the investors for Mid-tier lessors without access
recover profitability. Changing course these leases are usually very credit- to inexpensive capital or with
takes time and the results of decisions sensitive, and therefore are more problematic portfolios may struggle
made today may not be seen for a stringent with their selection of lessee, to maintain relevance in the market.
number of years in the results. leading to a lower return but better Lessors with higher cost of capital will
risk exposure. need to take higher risks to secure
Critical success factors The big wave of investment from sufficient returns and asset quality –
Funding – lessors that are bank China and Japan over the second half and asset quality is a key factor that
subsidiaries, state-owned lessors, or of the past decade flooded the market will impact the future performance of
with strong credit ratings will continue to with lower cost funding, which has a lessor.
thrive from cheaper and easier access significantly increased the industry’s Old-technology aircraft are more
to capital. Chinese lessors which are competitiveness. Established lessors likely to be retired, widebodies are
bank subsidiaries receive strong financial have had to identify further and less favourable and regional jets/
backing, allowing access to cheaper sharpen their competitive niche and turboprops are also less favoured as
capital, enabling them to generate pushed for investment-grade ratings the ultimate lessees are usually less
strong returns during a bullish market. to remain competitive. Lessors with creditworthy customers.

Risk management – historical data the lack of international long-haul travel near-term bargaining position in the
indicates that the recovery trajectory demand compared with narrowbodies, placement market. As the market moves
of an aircraft type following a demand which can be utilised efficiently on further past the impacts of Covid-19
shock is linked to the life cycle of the short-haul and domestic routes. and towards supply and demand
aircraft programme. Older-technology Because of the sharply decreased equilibrium, lessors’ power in the market
widebody aircraft, such as A330s belly cargo space and an increasing will improve, but the environment is
and 777s, experience steeper value cargo demand due to the growing expected to remain competitive.
degradation and a more uncertain path e-commerce, widebody freighters Placement opportunities for various
to value recovery. As such, lessors with such as the 777F, on the other hand, airline regions and business models will
a larger exposure to older-technology have increased in value during the depend on recovery, environmental,
assets, especially widebodies, are pandemic. To catch the rising cargo social and governance, fleet, orders
likely to face the prospect of future demand and to avoid significant and creditworthiness. Bargaining
flight equipment impairment charges book value write-offs on passenger power for sale and leasebacks of new
and reduced profitability. widebodies, some lessors and aircraft will remain with the highly
Popular, in-production narrowbody investors were prompted to convert creditworthy airlines for some time,
jets have been resilient in previous older widebody aircraft into freighters. with improved yields available with less
downturns with recovery, until The value of old-generation creditworthy counterparties, albeit at
replacement technology aircraft enter. widebody passenger aircraft is an increased risk.
The A320neo is expected to be the expected to continue declining even
next decade’s most popular and liquid after international traffic recovers,
aircraft type; its value has remained because the market will prefer the NEW YORK
relatively resilient during the crisis and more fuel-efficient new-technology 1700 Broadway
has very quickly recovered its ground as widebody aircraft; a cool down in the Suite 2202
the domestic traffic returns in significant value of the widebody freighters is New York, NY 10019 USA
regions (North America and Europe) also expected, as the cargo capacity
during the second half of 2022. shortage will be filled gradually by the DUBLIN
The 737 Max has retained value returning of belly space of passenger No. 1 Grant’s Row
better than other older-generation aircraft, although the impact will be Lower Mount Street
aircraft types but has still suffered mild because of the continuously Dublin, Ireland
more degradation than the A320neo growing e-commerce industry.
because of its technical issues. DUBAI
Since 2021, as more jurisdictions re- Hope for clearer skies ahead Media One Tower, Level 38
cleared it for the skies, the value of the The leasing market is a capital- Sheikh Zayed Road
737 Max has recovered rapidly, catching intensive space, projected to continue Al Sufouh 2, Dubai, UAE
up with the A320neo. In the near term, recovering over the next five years
the value for both the A320neo and the with increasing demand for financing, HONG KONG
737 Max will remain strong, especially providing inflationary pressures and Suite 1301
as many airlines and lessors are trying high interest rates do not remain for FWD Financial Centre
to gain additional delivery slots for these the long haul. Should unfavourable 308 Des Voeux Road Central
aircraft – delivery delays and supply market dynamics last, uncertainty may Hong Kong SAR
limitations should help to support near- prevail across the aviation finance
term value retention. industry with airlines highly leveraged BEIJING
Moving forward, strong competition post-pandemic with further pressure 8 Guanghua Dongli
will remain with these liquid narrowbody from inflation and rising interest rates. China Overseas Plaza, South Tower
asset types, and low returns will be Fundamentally, such market forces Floor 11, Suite A053
expected, especially with long-term are likely to shape passenger demand Chaoyang, Beijing 100020, China
leases with top operators. for air transportation with potential to
Values of older-technology impact demand from lower disposable SINGAPORE
widebodies have been declining incomes and cost-conscious 80 Raffles Place
gradually since 2013 because of shifts corporates, particularly in the current 11-20 UOB Plaza
in market preference for newer and high fare market, challenging some Singapore, 048624
more fuel-efficient counterparts such airlines’ ability to repay debt.
as 787s and A350s, in addition to Given the current liquidity position TOKYO
the overall oversupply of widebody of most airlines, it is expected that Taiyo Seimei Shinagawa Building
aircraft in the market. the portion of leased aircraft will grow 28th Floor, 2-16-2
Widebody passenger aircraft have over the next few years. As the market Konan, Minato-Ku
also been impacted much more continues to recover from Covid-19, Tokyo 108-0075, Japan
severely by the pandemic because of airlines remain in a slightly stronger
Data and charts in this article, and analysed by Alton, are sourced from the following (numbers shown in parentheses relate to chart figure numbers in the article):
ABS New Issue Report (21, 27); Airfinance Journal (15, 16, 21, 23, 25, 26, 27); Airbus (10, 30); Airline Monitor (1); Airlines Financial Release (21, 23, 24, 25); AVAC (19, 28, 29,
30, 31, 33); Boeing (10, 22, 31); CAPA (8, 9, 11, 14, 15, 16, 19, 20, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37); Federal Reserve Bank of St. Louis (18); Fitch (16); IATA (1, 3, 4, 6, 7, 17);
ICAO (6); IMF (12); Insurance Journal (16); Lessor Company Filings (38); OAG (5, 13, 14); Our World In Data (2); US Energy Information Administration (17); World Bank (1).
Sponsored editorial: DELOITTE
International tax reform:

the post-pandemic era
Matthew Dolan, Aviation Finance and Leasing Tax Partner, Deloitte Ireland,
and Danielle Ryan, Aviation Finance and Leasing Senior Tax Manager,
Deloitte Ireland, look at how the global tax landscape has changed since
Covid-19 struck.
A s the aviation industry

continues along on its road
to recovery, we have seen the
changes requires airlines and
lessors to revisit historically tax-
efficient structures and consider
interest, tax, depreciation, and
amortisation (Ebitda). The rules
have been legislated for in Part
reopening of country borders the impact these changes in tax 35D of the Taxes Consolidation Act
and passenger numbers steadily legislation will have for them. 1997 and comprises five chapters
increase back towards pre-March In this article, we have reviewed spanning the scope of the rules, the
2020 numbers. However, one the key changes in international calculation of the restriction (where
market factor that no longer and Irish domestic tax legislation applicable) and the carry forward of
resembles its pre-pandemic self is and the impact these may have on disallowed amounts or total spare
that of the global tax landscape. aircraft leasing structures. capacity.
Over the past number of years On 4 August 2022, the Irish
international tax reform has ILR guidance Revenue Commissioners issued
become an area of increased Finance Act 2021 saw the more than 60 pages of guidance on
focus, with the seemingly relentless introduction of the Interest Limitation the ILR. This guidance addresses
release of new OECD guidance, Rules (ILR), as required under Article various aspects of the law as
EU directives, and US and Irish 4 of the EU Anti-Tax Avoidance enacted, including, but not limited
domestic legislation fast becoming Directive (ATAD 1). The ILR imposes to, key definitions, the meaning
the post-pandemic norm. a restriction on the interest of interest equivalent and the
While the outlook for the aviation deductibility of corporate entities calculation of allowable and
industry remains positive, the up to 30% of a taxpayer company disallowable amounts for both single
emergence of fundamental tax or group’s taxable earnings before taxpayers and for interest groups.

The guidance addresses the Adequate resourcing and sufficient

calculation of Ebitda and operation timing should be allocated to the
of the restriction including the use calculation of the interest equivalent
of any carried forward disallowable amount, which may need to be
amounts and total spare capacity. calculated on a lease-by-lease basis
Some other key areas addressed in for some aviation platforms.
the guidance are as follows:
Group and equity ratios. The
Interest equivalent. The ILR intends application of the group and equity
limiting the deductibility of in-scope ratios in the context of worldwide
taxpayers’ net interest expense accounting groups is an important
(taxable interest and other interest element of the new rules that is
equivalent taxable revenues less addressed in the guidance, because
deductible borrowings). Therefore, these ratios provide exemptions from
the greater the proportion of an the rules, which ultimately can result Matthew Dolan, Aviation Finance
aircraft lessor’s income which is in a zero adverse impact for some and Leasing Tax Partner, Deloitte
treated as taxable interest income aircraft leasing platforms.
and other interest equivalent taxable With respect to the equity ratio rule, In dealing with the calculation
revenues, the lesser the effect of the such a rule requires a comparison and operation of the restriction in
ILR. of the equity-to-assets ratio of the the context of interest groups, the
Therefore, an important feature of relevant entity to the worldwide group legislation provides that amounts
the ILR for aviation platforms, which (or single company worldwide group calculated in respect of an interest
is addressed in the guidance, is the as appropriate). This requires that group will comprise the results
element of the aircraft lease rentals accounting standards and policies of all members of the interest
that can be regarded as economically must be equivalent and therefore may group. It is silent as to the exact
equivalent to interest. For finance necessitate adjustments to the results method for such a calculation. The
leases, this is the “finance element of the relevant entity. The guidance guidance issued by Irish Revenue
of finance lease payments”. The recognises that where an Irish confirms that such a calculation
finance income element and finance subsidiary prepares financial results may be carried out on either an
cost element of non-finance lease under a set of accounting standards aggregation or a consolidation basis
payments of a company that carries different to the ultimate consolidated (whereby results may be adjusted to
on a separate trade of leasing for accounts, a reporting pack may be remove intercompany transactions
the purpose of the tax acts are also prepared for the entity under the between interest group members).
treated as “interest equivalent” – i.e. GAAP of the ultimate parent. The guidance confirms that the
the interest portion of an operating The guidance indicates that the methodology chosen should be
lease payment. Revenue is prepared to accept such a applied on a “consistent basis”.
The guidance provides helpful reporting pack as a basis for assessing
worked examples on the calculation whether the conditions of the equity Administration. The guidance
of interest equivalent in this regard ratio rule are accepted; such a provides further detail on the
and highlights the requirement to simplification will be welcome to reporting requirements which arise in
recalculate the interest equivalent aircraft lessors assessing the potential the context of the ILR, with details to
amount, where the terms of the lease impact of the ILR in the context of large be provided on the relevant entity’s
(finance or non-finance lease) have and complex aircraft leasing platforms. corporation tax return (Form CT1).
been amended during the life of the However, whether or not a reporting Several disclosures will be required
lease, as if a new lease was entered pack is produced, a reconciliation from to be made on the Form CT1 even
into at the date of the amendment. local statutory accounts to accounts where no interest restriction applies.
Where the lease agreement is used for the purposes of the equity Aircraft lessors should ensure to
linked to floating interest rates ratio test must be maintained. consider this additional level of detail
such as the Libor, best estimates that will be required as part of the
on commencement of the lease are Interest group. Electing to be a filing of the corporation tax return.
required to be used to calculate the member of an “interest group” allows
total finance cost/income of the lease aviation groups to be treated as a Preliminary tax. Last, the guidance
over the life of the lease and the total single taxpayer for the purpose of the provides further commentary on the
expected cost/income of the lease. ILR. This election is available to the treatment of preliminary tax payments
Further worked examples have companies which are subject to Irish in an ILR context. In recognition of
been included in the guidance, corporation tax and part of the same the difficulties that some companies
which address scenarios such as worldwide group (i.e. the accounting may face in accurately forecasting
the treatment of guarantee fees consolidation group) or where not their expected corporation tax liability
connected with the raising of finance, members of the same worldwide in advance of their year end, the
hedging derivatives and interest group, members of the same Irish legislation enacted allows for a top-up
equivalents on non-performing loans. corporation tax loss group. payment to be made six months after
the end of the accounting period Under current tax rules, businesses cannot be deducted because the
where there is an underpayment in EU member states generally deductible allowance on equity is
of preliminary tax caused by the may deduct interest attached to higher than the taxpayers’ net taxable
ILR. This temporary measure will debt financing, but, in contrast, income may be carried forward
cease to be in effect for accounting no deduction is available in most indefinitely.
periods ending after 31 December member states for the costs Several other anti-abuse provisions
2027. However, the guidance associated with equity financing. As to prevent both the use of equity
issued confirms that the ability to a result of this disproportionate tax increases in an abusive manner and
make top-up payments in respect treatment, a bias towards debt in to ensure the equity allowance is not
of gains on disposals of assets or in investment decisions can exist. used as a new mechanism for base
respect of certain profits or gains on The EC has highlighted its erosion have also been included in
financial assets or liabilities remains concerns with encouraging the draft directive.
unchanged. companies to accumulate debt Structuring opportunities may arise
because this may lead to high rates of for the aviation industry with the
Next steps insolvency, with a negative effect for equity allowance, while bearing in
The ILR is applicable to accounting the EU as a whole. This debt bias also mind investors will be keen to ensure
periods commencing on or after 1 penalises the financing of innovation any disposal of their investment by
January 2022. An advance body of through equity. The EC has proposed way of equity financing will not be
work is required by aviation platforms two new rules in the draft directive subject to exit taxes.
in terms of modelling and preparation to tackle this. These rules would
for the impact of the ILR in highly operate independently and apply Debt rule. The second rule included
leveraged platforms and assessing to all taxpayers that are subject to in the draft directive intends limiting
any potential mitigation strategies. In corporate income tax in one or more the deductibility of interest to 85% of
particular, aviation platforms should member states, except for certain the taxpayer’s exceeding borrowing
act now (if they have not already financial undertakings. costs – i.e. the excess of interest paid
done so) to put in place sufficient over interest received. This element
resources and infrastructure to assess Equity allowance. The first rule of the directive, in particular, is worthy
accurately the impact of the ILR as provides for an allowance on equity of more attention than it is receiving.
part of the FY2022 compliance cycle. financing by allowing a tax deduction The EC launched a public
Advance modelling needs to for notional interest on increases in consultation on Debra that sought
be carried out for larger and more an entity’s net equity position year on stakeholder feedback on the directive
complex platforms to identify the year – i.e. the difference between the as currently drafted. Deloitte has
projected impact of the rules on cash net equity at the end of each relevant engaged with the EC in this regard
tax liabilities, the availability of group tax year, being relevant equity. In and highlighted some key concerns
exemptions and, in particular, the order to calculate the deductible with the proposed directive:
identification of which lessors should amount, the relevant equity is
elect into an interest group, if such an multiplied by the applicable notional • the directive is not clear as to
election is to be made. interest rate (NIR). whether the notional equity
As currently drafted, the proposal deduction is mandatory or optional
Debra provides that the NIR is intended for taxpayers and seems to suggest
While the introduction of the ILR to consist of two components: the that it could be mandatory. Where
has increased the already complex currency specific risk-free rate and optionality is not available, the
requirements to secure an interest a risk premium. The risk-free rate is equity allowance could reduce
deduction for Irish lessors, this based on the Solvency II directive the effective tax rate (ETR) of
legislation is by no means the end of and the risk premium generally would companies below 15% – i.e. below
new interest restrictions, with further be set at 1%, deferring from the arm’s- the upcoming 15% global minimum
restrictive measures on the horizon. length principle endorsed by the EU. ETR
A draft of another new directive The allowance on equity would be • additional definitions and
was announced by the European available for 10 years – i.e. it would be clarifications on various aspects of
Commission (EC) on 11 May 2022. deductible in the year it was incurred the proposal are also required. For
The proposed directive, focusing and in the next successive nine years. example, tax consolidation and the
on the debt-to-equity bias reduction A number of anti-abuse measures potential to pool the taxable results
allowance (Debra), is aimed at have been included in the draft of group entities is an area that will
addressing the tax-induced debt- directive, one of which limits the need to be addressed by the EC
equity bias. The proposal includes deductibility of the allowance for each • as with the ILR, the additional
both a debt-equity bias reduction tax year to a maximum of 30% of the compliance burden Debra could
allowance in the form of a notional taxpayer’s Ebitda. An entity may create for aviation platforms needs
interest deduction on equity and carry forward any excess allowance to be considered. One critical area
a general limitation on the tax that cannot be deducted because that also needs to be monitored
deductibility of debt-related interest of this 30% limitation for a maximum as the directive progresses is
payments. period of five years. Any excess that the calculation of the net interest

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restriction under Debra. While digital economy) and Pillar Two

the calculation of this restriction is (global minimum taxation), and these
based on the net interest expense, are part of the second phase of the
similar to ILR, Debra does not OECD’s Base Erosion and Profit
currently include the concept Shifting (BEPS) framework. Both
of “interest equivalent”, rather it Pillars One and Two are targeted
speaks only to “interest”. Therefore, for implementation in 2023 but with
it remains to be seen if a portion 2024 appearing at present to be the
of operating lease income may more likely implementation year.
also be treated as interest for the
purposes of Debra as it is treated Pillar One. Pillar One deals with the
as interest equivalent for ILR reallocation of certain profits from
• although an allowance for equity large multinational enterprises (MNEs)
would be welcomed in the aviation to market jurisdictions – i.e. based
industry, further restrictions on an Danielle Ryan, Aviation Finance and on where sales or users are located.
entity’s ability to deduct interest Leasing Senior Tax Manager, Deloitte The new taxing right is known as
on debt is not supported. The Amount A, and will initially apply to
ILR under ATAD 1 has already point for discussions. multinational businesses with global
been introduced throughout EU If adopted, EU member states annual turnover above €20 billion
member states, and Irish aviation would be required to transpose ($19.8 billion) and profitability above a
platforms continue to grapple with the directive into their domestic 10% margin.
assessing the implications of these legislation. Currently, the In-scope businesses will reallocate
rules despite them having taken implementation deadline is set at 31 25% of their residual profit (defined as
effect on 1 January 2022. Debra December 2023 and it is proposed profit of more than 10% of revenue) to
proposes the introduction of a that member states apply the market jurisdictions using a revenue-
new limitation of the deductibility directive as from 1 January 2024. based allocation key. Amount A will
of financial expenses to 85% of The six member states (Belgium, be implemented through a multilateral
exceeding borrowing costs. This is Cyprus, Italy, Malta, Poland and convention to be developed and
in addition to the ILR noted above. Portugal) that already have rules in open for signature in 2022, with the
The proposed directive provides place providing for an allowance stated objective of Amount A coming
that the taxpayer will apply the 85% on equity may choose to apply a into effect in 2023.
limitation rule as a first step and “grandfathering” clause. This means Amount B will apply transfer-
then, calculate the ILR limitation that taxpayers that already benefit pricing rules to the remuneration of
applicable in accordance with from a domestic allowance on equity related party distributors that perform
ATAD 1. as at the date of entry into force “baseline marketing and distribution
If the result of applying the ILR of the directive would be able to activities” in the market jurisdiction.
is a lower deductible amount, the continue to benefit from the specific We await further detail on the design
taxpayer will be entitled to carry national allowance for a period of up and scope of Amount B, which is
forward (or back as domestic to 10 years. expected to be complete by the end
legislation provides for) the Given the capital-intensive nature of 2022.
difference in accordance with of the aviation finance industry and While Pillar One may generally not
ATAD 1. high levels of relative leverage, any be relevant for the aircraft leasing
Further consideration is needed further interest restriction could industry, there are a number of
by the European Commission have a significant impact on aviation platforms owned by large banks and
to ensure alignment of ATAD 1 platforms. Industry participants should conglomerates that could potentially
and Debra – i.e. all carve-outs therefore be mindful that further come within scope. Helpfully, as
and escape clauses under ATAD restrictions on the deductibility of currently drafted, Pillar One provides
1 should also be applicable to interest are on the horizon and these for a regulated financial services
taxpayers that are in the scope of will need to be considered for new exclusion (i.e. a depositary institution,
the new interest limitation rule. and existing platforms. mortgage institution, investment
institution, insurance institution, asset
The directive is still draft and for it to Pillar One and Two manager, a mixed financial institution,
be adopted, member states would Since 2017, the 140 member countries and an RFI service entity).
need unanimously to agree in the of the OECD inclusive framework The application of the regulated
Council of the European Union on the have been jointly developing a financial services exclusion comprises
draft text. The European Parliament two-pillar approach to address the of seven steps which ultimately
and European Economic and Social tax challenges arising from the allows for the exclusion of certain
Committee also must be consulted digitalisation of the economy. These revenues earned by regulated
and give their opinion, although this discussions have resulted in the financial institutions in the calculation
is not binding. The proposal may, introduction of Pillar One (taxation of Amount A. So, while the exclusion
therefore, be viewed as the starting of multinational enterprises in the is not aviation specific, revenues

generated by leasing and other non- in Ireland. In other words, several When determining the GloBE tax
excluded activities at the group level aircraft leasing platforms would not base, a formulaic substance carve-
that is less than €20 billion (with the be affected by this rule but aircraft out will exclude income that is a 5%
potential to reduce to €10 billion in the leasing platforms with an effective tax return on tangible assets and payroll.
future) is not expected to be in scope. rate below 15% which are part of a A transition period will apply during
To note, groups are defined by large group may be affected. which 8% of the carrying value of
reference to accounting principles, The three areas of Pillar Two that tangible assets (potentially excluding
requiring the identification of ultimate are of importance to aircraft lessors assets leased out, based on current
parent entities and the group entities are the Income Inclusion Rule (IIR), wording) and 10% of payroll initially
included in consolidated financial which imposes top-up tax on a parent will be excluded, declining gradually
statements. entity in respect of the low taxed over a 10-year period to 5%. There
Comments on the draft model profits of a subsidiary, ensuring a also will be a de minimis exclusion in
rules were invited by 19 August minimum ETR of 15% on profits of respect of countries where a group
2022. The inclusive framework international business, regardless of has revenues of less than €10 million
will review stakeholder input and what country they are headquartered and profits of less than €1 million.
seek to “stabilise” the Amount A in or where they operate, the The UTPR is intended to apply as
rules in October 2022. The rules Undertaxed Payments Rule (UTPR) a backstop rule and kick in should
on administration and tax certainty denies deductions for payments the IIR not apply. For example, if the
for Amount A are expected to be made to low taxed entities, and the ultimate parent company has not
released in advance of October and Subject to Tax Rule (STTR), which implemented the IIR or is tax resident
the model rules once finalised will be seeks to impose a withholding tax on in a low ETR country. The UTPR
included in a multilateral convention payments to low-taxed entities. operates by denying tax deductions
to be signed in early 2023. The IIR operates by requiring an for related party payments to low ETR
additional top-up amount of tax to jurisdictions. The UTPR would not
Pillar Two. While the potential for be paid by the parent entity of the be applicable to payments between
Debra to increase the ETR of certain group to its tax authority. Whether a third parties, therefore aircraft lease
aviation platforms will be subject top-up amount of tax is required or payments to low ETR countries would
to further debate, one area that will not is determined by calculating the not be impacted, unless the lessor
likely increase the minimum tax rate ETR of each group company on a and lessee are related (e.g. in captive
for organisations in scope is Pillar jurisdictional basis. lessor airline structures or lease-in-
Two. The ETR is calculated by dividing lease-out structures) and the €750
On 22 December 2021, the the amount of covered taxes by the million group revenue threshold has
EC proposed a draft directive to amount of income as determined been met.
implement the G20/OECD inclusive by “GloBE rules”. Covered taxes As a result, the impact of the
framework on BEPS’ Global Anti-Base are taxes on a group company’s rule in an aviation finance context
Erosion Model Rules (Pillar Two). Pillar income or profits, including both is expected to be more relevant
Two is designed to ensure a global domestic and foreign taxes imposed to interest payments made to
minimum ETR (15%) for multinational on the company. Once the entity has low ETR jurisdictions within large
groups. determined their covered taxes, they aircraft leasing groups (or aircraft
The introduction of a global must calculate the “GloBE tax base”. leasing platforms owned by large
minimum effective rate of tax will, This is done by calculating its net multinationals).
among other things, likely impact income using the financial accounting The STTR applies on a payment-
on any deductible payments to standard of its parent company in the by-payment basis (covering interest,
related parties which are taxed at a preparation of consolidated financial royalties and a defined set of other
low ETR or a zero-nominal rate. The statements (after making certain payments) and is triggered where
draft directive would apply only to prescribed adjustments). the full amount of a payment will
entities located in the EU that are Subject to some exclusions, not be subject to tax at a nominal
members of MNE groups or large- included in the proposed definition rate of least 7.5% to 9%. Where the
scale domestic groups that meet the of covered taxes is both current STTR applies, treaty relief that would
annual threshold of at least €750 and deferred tax with the latter otherwise have been provided
million of consolidated revenue in at including a recapture rule that limits may be denied, with the maximum
least two of the four preceding years. the allowable timings differences applicable withholding tax being 9%.
This threshold would be consistent to those which reverse within five While it is clear that Pillar Two will
with the threshold adopted in years. Helpfully, deferred tax on create additional tax implications,
existing international tax rules such tangible assets is excluded from this compliance burdens, and require
as the country by-country reporting recapture, meaning aircraft lessors lessors and airlines to review what
rules. can include deferred tax expense technological solutions they have in
Accordingly, groups below the (capped at 15%) on aircraft in their place to manage both, the ultimate
threshold should still be able to calculation of covered taxes and question for industry participants is,
avail of the existing 12.5% rate of potentially increasing their ETR for the will there be cash tax payable as a
corporation tax on trading income purpose of the calculation. result?
In calculating the ETR, the model additional tax compliance obligations immovable property, royalties,
rules allow for pre-Pillar Two losses on taxpayers, provides for sanctions dividends and notably income
to be taken into account during the and extends the scope of automatic from financial leasing, among
year of transition (year one of the exchange of information between EU others. The first gateway will
rules applying) at the lower rate of member states. also be considered to be met if
15% or the applicable domestic rate. The draft, which requires a more than 75% of its assets are
Lessors with deferred tax assets unanimous vote by all EU member real estate property or certain
originally recorded at the Irish 12.5% states in order to be adopted as a other private movable property of
corporation tax rate, may take these directive, would be required to be particularly high value.
into account at the higher 15% rate transposed into national law by the ii. If at least 60% of the entity’s
to the extent it can be demonstrated EU member states before 30 June relevant income is earned or paid
that the DTA is attributable to a GloBE 2023, and is expected to be applied out via cross-border transactions,
loss, had the rules been applicable from 1 January 2024 (although 1 or in the case of income from
when the loss originally arose. This January 2025 is increasingly looking immovable property or certain
would result in an adjustment to the more likely). high-value movable property, if
covered taxes included in the ETR A two-year look-back rule more than 60% of the book value
calculation and is therefore an area will be applied to determine if a of such assets are located outside
lessors should be cognisant of as part company falls within the scope of of Ireland.
of preparing for the introduction of the directive. Taking these dates iii. If the entity outsourced the
Pillar Two. into consideration, a company’s administration of day-to-day
It still, however, remains unclear position as of 1 January 2022 may operations and the decision
how the Irish government will seek be the first reference point as to making on significant functions in
to introduce these rules: will the whether the directive will apply to the preceding two tax years.
headline corporation tax rate for them, and companies may want
in-scope entities move from 12.5% to to consider appropriate actions Entities that do not meet the above
15% or will a 2.5% top-up tax apply based on their current position. three gateway tests would not have
instead? The movement from a rate Moreover, companies may need to any reporting obligations.
of 12.5% to 15% could impact the anticipate necessary operational Further, an entity that meets the
deferred tax balance with a potential changes. Aircraft lessors in Ireland above gateways may still submit
impact on the profit-and-loss account. which outsource certain functions to a request for an exemption. On
Alternatively, the introduction of external corporate service providers providing sufficient evidence that the
a 2.5% top-up tax may result in urgently need to take note of the entity’s existence does not in fact
unforeseen cash tax due by lessors current ATAD 3 draft provisions. reduce the tax liability of its beneficial
as it remains to be determined All entities that are considered tax owner (or of its group), an exemption
whether this top-up tax would be resident and are eligible to receive a may be granted for one year and is
treated as a separate tax, for which tax residency certificate in a member extendable up to five years.
losses from a trade of leasing may state are considered to be within
or may not be available to shelter. scope of the directive. However, Step 2: Entities that may benefit
Further clarity is needed in this area. the rules are structured by use of a from carve-out or exemption from
step-by-step process, filtering out reporting. There are a number of
ATAD 3 entities that qualify for an exemption specific exclusions to the above rules,
On 22 December 2021, the EC from reporting, meet the minimum the most notable being, broadly:
published a draft for a new directive substance requirements or do not
“unshell initiative” or ATAD 3 result in a tax advantage. Should the • certain regulated financial entities
designed to prevent “the misuse of entity still remain in scope following (including certain securitisation
so-called ‘shell entities’ for improper the application of these steps, the special purpose entities, investment
tax purposes”. The proposed directive imposition of tax consequences will funds and certain pension
is aimed at establishing standards apply. institutions)
for substance and transparency • entities with transferable securities
to enable tax authorities to easily Step 1: Are substance indicators met? listed on a regulated market
detect any abuse from the use of The draft directive will apply to an • entities with at least five of its own
shell companies that exist merely on entity meeting all three “gateways” full-time equivalent employees
paper, through the use of indicators established by levels of indicators. or members of staff exclusively
such as income, staff, premises, etc. The proposed gateways are: carrying out the activities
The purpose of the directive is to generating the relevant income.
deny certain tax benefits (double i. The first gateway is met if 75%
tax relief, application of treaty or more of overall revenue in Notably, as currently drafted, ATAD 3
benefits) where these minimum the previous two tax years is does not contain any leasing-specific
substance requirements are not met. considered “relevant income” carve-out; however, commentators
Furthermore, the “substance test” as defined in the directive. This believe there may be arguments for
contained in the directive imposes includes interest, income from same as the directive progresses.

Step 3: Reporting minimum substance by the proposed directive (i.e. if the common concerns identified. For
requirements. If an entity crosses all requirements at Step 3 are not met) example, multiple concerns were
three gateway criteria (Step 1) and is do have the option to rebut this raised about clarity of the definitions
not covered in the exclusions (Step presumption by providing additional (e.g. undertaking’s shareholders,
2), it is required to report information supporting evidence of the business economic activities, private purposes,
in its annual tax return on whether activities which they perform to associated enterprises, outsourcing,
it meets the minimum substance generate relevant income. significant function).
requirement. For example, additional supporting ATAD 3 remains a highly important
Failure to comply leads to a penalty evidence could include the viable area of focus for the aircraft leasing
that at minimum includes a fine of at commercial (non-tax) reasons industry that needs to be monitored
least 5% of the entity’s turnover in the supporting the entity’s establishment as the directive progresses. The
relevant tax year. in the member state, that core industry relies heavily on treaty
The draft directive sets out the income earning activities are actually access and therefore any potential
minimum substance requirements as carried out in the member state denial of same warrants thorough
follows: of tax residence and the board of review.
directors have the skills, expertise, For many large aircraft leasing
a) the entity has an office space or experience, authority and capability platforms, it is relatively common
exclusive use of an office space to make key decisions concerning practice to outsource the day-to-
b) the entity has at least one active the core income-generating day operations of its business.
bank account in the EU activities. Consequently, the trajectory of travel
c) the entity meets one of the for these platforms may ultimately
following two indicators: Step 5: Tax consequences. There be through ATAD 3’s gateways.
are a number of adverse tax Therefore, platforms that do not
i. At least one director of the entity consequences where the minimum benefit from the carve outs provided
substance requirement have not for in the proposed directive, will
• is resident of or, broadly, lives close been met, including denial of double need to consider whether they meet
to the jurisdiction of the entity taxation relief; no longer receiving the substance requirements set out
• is qualified and authorised to make a certificate of tax residency (or the therein.
relevant decisions receipt of an amended tax residency As a result, going forward
• actively, independently and on a certificate indicating that the reporting increased efforts will need to be
regular basis make use of their entity is no longer entitled to treaty made by many aircraft lessors to
authorisation benefits or relevant EU directives); potentially justify and increase the
• is not also an employee of an and in the relevant income of the level of substance they have in
unrelated party and is not a director entity may be subject to tax in the jurisdictions where tax residence is
of any other unrelated entity. hands of its EU shareholder as if it claimed.
received that income directly (i.e. by Furthermore, additional
ii. The majority of the entity’s ignoring the existence of the shell consideration as to the make-up of
employees are resident or live entity). the board of in-scope lessors will
close to the jurisdiction of the also be required, as the need for
entity, and those employees are Step 6: Exchange of information/ these directors to have significant
qualified to carry out the income- potential request for the performance leasing experience in order to
generating activities. of a tax audit. Information on all make decisions regarding the
entities in scope would be exchanged management of these platforms and
The statement needs to be automatically between EU member the transactions they undertake is
substantiated with documentary states’ tax authorities, even in the fast becoming an area that will face
evidence (e.g. address and type of case of rebuttal or exemption. increased scrutiny by tax authorities
premises, gross revenue, director With the exchange of information and lessees.
details, outsourced business activities in relation to this, comes also an
and bank account details, among increased risk of tax audits. Conclusion
others) supplied with its tax return. The future international tax
If an entity fails to meet the Impact on the aviation finance developments discussed in this
minimum substance requirements set industry article should be closely monitored
out in a-c above, it is presumed to be The European Commission launched and considered by aircraft lessors
a shell entity for the purpose of the a public consultation on the directive and airlines to assess the impact
directive. On the contrary, if an entity which closed on 6 April. Stakeholders they will have on these companies.
meets all of a-c above, it shall be across member states provided While fundamental changes to the
presumed not to be a shell. feedback on the directive as currently framework of international taxation
drafted (including Deloitte), and are expected and fast becoming the
Step 4: Possibility of rebuttal. Entities although there has been no further norm, tax planning and investment
that are presumed not to have the feedback at the time of writing opportunities still exist for aircraft
minimum substance levels required this article, there were several leasing platforms.
Airfinance Journal Analysis: engine poll 2022
New-tech engines
stay out in front
A strong recovery in narrowbody aircraft utilisation has led to greater value stability
for engines equipping mature aircraft. The new-technology engines continue to lead.
T he market has peaked up over

the past few months with the
reopening of travel. One source
There have been numerous AD
revisions and inspections for cracking
and potential replacement,” says an
getting into the mature phase, and its
intervals are rather shorter than the
CFM56 engine equivalent. There is a
says there is a general consensus engine source. lot of demand for shop visits.”
that there is not going to be enough He adds that the V2500 The V2500-A5 engine is dominant
narrowbody aircraft available to maintenance market is relatively on the Airbus A321 models and this is
operate for the summer season. narrow and limited and there are where the market is strongest.
The V2500-A1 market is marginal not a lot of shops performing engine The CFM56-5B market compared
and essentially a part-out market and works. “The engine needs to be done with other narrowbody engines is
greentime. This engine is stable and in the shop and this has led to a lot of relatively “soft” at the moment and
at the value floor, says one pollster. backlog.” has not recovered, says the lessor.
Backlog on the V2500-A5 engine The V2500-A5 has an established “There is oversupply. The -5B is
shop work has been affected by fleet but issues persist, says another dominant on the Airbus A319 model,
the February 2021 airworthiness engine lessor. “It continues to lease which is where the market is softest.”
directives (AD) that address potential well and will do like the -5B and -7B On the freighter narrowbodies,
anomalies in the material during in future.” the CFM56 engine appears to be the
inspection of the high-pressure Another pollster says the most popular choice.
turbine (HPT) stage 1 and stage 2 V2500-A5 engine is a strong liquid The engine lessor explains that
stage hubs. market. “Demand is driven by AD on a modification which can be done
“The AD is about the HPT stage 1 HPT hubs.” on the thrust reversers allows a
and stage 2 fault disk that requires A lessor says: “We have a situation reduction of noise, especially for
an inspection with defined limits. now where the V2500 engine is night-time operations.

“There is still upside in the -5B engine Narrowbody engines

market. Available engines will present
multiple options due to factors affecting Investor Remarketing Residual
the host aircraft fleet. Values now make
appeal potential value
the engine,” says a pollster.
“The -5B is still in good demand. We CFM56-3C (737 Classic) 2.50 2.83 3.08
see demand for package deals where
customers are after multiple engines CFM56-5A (A320 Family) 1.50 1.83 2.25
as they try to address capacity or wider CFM56-5B (A320 Family) 4.75 4.42 5.00
fleets. It is probably quicker for an airline
to address capacity ramp-ups with an CFM56-7B (737NG) 5.50 5.25 5.33
A320 or [Boeing] 737NG rather than
CFM LEAP-1A (A320neo Family) 6.36 6.09 5.82
relying on the aircraft OEMs [original
equipment manufacturers] and be CFM LEAP-1B (737 Max Family) 6.36 5.91 5.73
potentially delayed in their fleet plans,”
says another pollster. IAE V2500-A1 (A320 Family) 1.25 1.58 1.58
Still, the CFM56-5B market continues IAE V2500-A5 (A320 Family) 4.67 4.67 4.83
to lag behind the CFM56-7B or
V2500-A5, which have both benefitted PW1100G (A320neo Family) 6.27 5.91 5.45
from domestic market recovery, PW1500G (A220 Family) 5.45 4.91 5.00
especially in the USA and China.
The CFM56-7B demand seems PW2000 (757s) 3.08 3.42 3.42
balanced and values are recovering
on the leasing side, particularly on
RB211-535 (757s) 3.08 3.50 3.33
greentime leasing. NB: Rating of 1 means lowest rating, 7 highest. Source: Airfinance Journal engine poll, March 2022
On the aftermarket, the -5B and -7B
run-out engines are trading between
$1.2 million to $1.5 million depending on The market for 757 aircraft is now on this engine – book value constraints
the quick engine change and assuming essentially a freighter market with low were a factor we felt.”
minimum of life-limited parts life, says utilisation. Another lessor says demand has
the lessor. Delta Air Lines, FedEx and UPS increased for spare engines since the
“Those were trading between $1.8-2 are the primary operators of Pratt & beginning of the year.
million per engine pre-Covid. It has Whitney-powered 757s. Aersale bought “We have seen a lot of demand but
not fully recovered yet, but it could 24 units from American Airlines last not in the traditional way. Airlines are
recover in the fourth quarter of this autumn. managing their engines pool and using
year. We will see how airlines perform There seems to be a market for greentime on their classic fleets as they
in the summer and have better long- trading. “The engines have their price, reintroduce some of their aircraft into
term market conditions,” adds the and we have seen market values the system.”
lessor. exceeding base values,” says one The lessor representative says the
There is a distinction in the -7B pollster. trend is different for new-technology
engine market. Depending on the The new-technology engine market is aircraft. “New-technology aircraft
operations, some airlines may lease the more balanced. fleets are also being reintroduced but
24,000lbs thrust but the 22,000lbs is The LEAP-1B has been reintroduced are under warranty periods from the
where the issue is for demand. into the system and the market is manufacturer, therefore demand is not
The rentals in the narrowbody engine waiting to see if there are similar as significant.”
market are creeping up. problems as the -1A before, according He observes that in the current high
The short-term lease rates will to one lessor. “As a consequence, oil price environment, most airlines are
recover quicker than the long-term everybody is waiting on will there be looking to operate their new-technology
lease rates, which are still being priced additional demand requested.” aircraft fleets. He expects aircraft
below pre-Covid-19 levels. Boeing delivered 245 Max aircraft in manufacturers to speed up deliveries
“Some lessors are placing -7B 2021. With production on track to reach of parked Max aircraft while those that
engines on three-year leases at $75- 31 aircraft a month sometime this year, have not returned to service yet, may
80,000 a month. That would go up but the US manufacturer must ramp up 737 also enter service again.
the lease rates are not there yet,” says Max deliveries significantly to keep its Still the gap between what Boeing
the lessor. inventory winding down and newly built can deliver and capacity that airlines
Another lessor points out that the aircraft flowing to customers. want to deploy will be filled by existing
issue is there are too many greentime The LEAP products are described as types.
engines. the heart of the market for investors. But He observes that aircraft OEMs are
“Some that purchased greentime one lessor cautions that book values are facing the dilemma of how quickly
engines prior to the Covid pandemic restricting deals from its perspective. they can ramp-up production rates to
paid a premium. Consequently, they He adds that the PW1100G engine reasonable levels to allow the airlines
need to get revenues against their market is similar to LEAP engines. “Still transition to new-technology aircraft.
asset and unfortunately are placing their on-going developments from a technical “The market is starting to shift to new-
engines at relatively low lease rates to standpoint that will determine how long technology engines and more engine
ensure cash flows,” he states. this engine stays on-wing. We have bid lessors are moving into that space.
Some have the financial resources to

support their customers. Others are
Widebody engines
focusing on acquiring used serviceable
materials, greentime engines off the Investor Remarketing Residual
aircraft to lease the engines.” appeal potential value
He expects more airlines to come up
with sale and leaseback opportunities CF6-80 (747s, 767s) 3.67 4.50 4.17
on new-technology engines. GE90 (777s) 2.75 2.92 2.92
“Engine lessors are focusing on
managing their portfolio the best GEnX (787s, 747-8s) 5.82 5.18 5.27
possible way to address the demand
in the market in existing technology GP7200 (A380) 1.33 1.25 1.25
engines but also grow their exposure to
new-technology engines,” he concludes. JT9D (747s, 767s) 1.00 1.00 1.33
“It is inevitable that as the demand PW4000 (A330s, 747s, 767s, 777s) 3.09 3.36 3.18
grows for new-technology types, the
largest engine lessors migrate to this RB211-524 (767s, 747s) 1.33 1.83 1.75
market.”
Trent 700 (A330s) 2.58 2.92 2.50
Widebody market
Trent 800 (777s) 1.58 1.50 1.42
Widebody aircraft utilisation has steadily
improved but at a slow pace because Trent 900 (A380) 1.42 1.25 1.33
long-haul flying is not expected to
recover fully for another two years. Trent 1000 (787s) 4.00 3.73 3.27
The slowed recovery has continued
to depress engine values of mature Trent 7000 (A330neo) 4.00 3.36 3.36
fleets.
Trent XWB (A350s) 5.09 4.45 4.27
“The widebody market is still
struggling to recover fully and, as NB: Rating of 1 means lowest rating, 7 highest. Source: Airfinance Journal engine poll, March 2022
expected, we don’t see as much activity
when compared with the narrowbody
market. We see demand for sale and interest for the GE90 engines to get The Trent XWB values are holding
leaseback spare engines on the Trent additional capacity. Those are typically firm and the engine is Rolls-Royce’s
XWB side, but on the widebody, short- charter operators which are after large strongest product. As one source says,
term spares engine requirements are capacity aircraft. it is a “reliable engine on a growing fleet
usually not plentiful. This is because Another pollster confirms interest in with residual value likely dictated by the
airlines are normally covered by the the GE90 market. OEM”.
OEM’s long-term lease power by the “There seems to be some pick up in “It will be interesting to see what
hour (PBH) contracts,” says a source. this GE90 market. Some engines are happens with the Qatar Airways A350
The perception of the widebody being sold for part-out and the numbers issue with Airbus and if that means
market is activity mainly on new are quite high. This may reflect that more impairment and grounding of
engines. some are looking at being there in the aircraft? What would that do to the
“It is still quiet on most markets but long-term support basis,” he comments. engines?” asks another source.
there is activity on the Trent 700 engine The freighter market will certainly The GEnx-1B remains a strong
as more Airbus A330s head back in help the GE90 engine market. There engine/aircraft platform. The GEnx-2B,
operations. There seems to be a trend has been an increasing appetite over which is predominantly cargo, has a
of short-term lease appetite for this the past year with Mammoth Freighter limited appeal.
market with A330 operations during the launching a conversion programme The CF6-80 market is still buoyant.
next six months, not long term,” says a with Delta Air Lines Boeing 777-200LR Freight drives demand, and some North
source. aircraft, while the first converted 777- American operators are resilient in 767
He adds that there has been 300ERSF by GECAS is scheduled by the operations. Boeing still get orders for
increasing talk about aftermarket end of this year. the factory-built 767F version.
services on the Trent 700, with Rolls- The Trent 1000 has been impacted Despite the market moving to the
Royce offering spare parts support by the pause in deliveries of the 777 conversions, the 767-300ER has
on a mature basis. “This has been 787 variants, and some believe the benefitted from a second life in the
considered but it could be a reality now significant entry into service (EIS) issues cargo conversion market over the past
and be helpful.” are resulting in losing large market few years, although Boeing continues to
The GE90 market represents the long share to the GEnx-1B model. More than sell the factory-built 767F model.
widebody hangover, and is a depressed 110 787s are undelivered and in storage The Chicago-based company found
market, observes a source. Market because of production quality issues. strength in the widebody market
values of GE90 engines have reduced One pollster says the aircraft supported by strong demand for
significantly over the past two years, longevity, because of technology and freighters last year and recorded 84
but were arguably decreasing prior to limited other future options, should orders for 777F, 767F and 747-8F
Covid-19. keep this market stable despite being models, which beat the previous record
Some 777 operators have expressed the unfavoured engine option. of 83 freighters ordered in 2018.

The CF6-80 market benefits from the Regional engines

Amazon effect, high demand because
of a shortage of good engines and USM
Investor Remarketing Residual
parts, says a pollster.
The CF6-80C2B6F is the only
appeal potential value
opportunity on 767s but the market CF34-8C (CRJs) 3.50 3.92 3.54
remains volatile.
“Engine values have been on or CF34-8E (E170/175) 4.29 4.57 4.25
above expectations for some time,”
remarks another pollster. CF34-10E (E190/195) 3.59 3.53 3.47
PW123 (Dash 8) 2.27 2.77 2.55
Regionals
The regional engine market improved PW127E (ATR42-500) 3.00 3.38 3.33
over the past year with the exception
of the old-generation engines for PW127F (ATR72-500) 3.29 3.58 3.92
turboprops.
Demand for CF34 engines with PW127M (ATR72-600) 4.13 4.46 4.58
greentime is expected to be quite 3.25 3.42 3.71
PW150A (Q400)
strong for mid-life aircraft as PR and life-
limited parts costs are high, observes PW1919 (E190/195-E2) 4.25 4.04 4.42
one pollster.
The CF34-8C market continues NB: Rating of 1 means lowest rating, 7 highest. Source: Airfinance Journal engine poll, March 2022
to be active. One pollster says it is a
concentrated market and the fleet will
benefit from the move away from the mostly absorbed, with more than 50 fleet, include imminent retirements at
50-seat CRJ200/ERJ145s in the medium aircraft placed at Alliance Airlines, Olympic Air and LOT Polish Airlines.
term. “It is a long established engine Airlink and Breeze Airways alone, plus The secondary market demand has
lessor market,” he adds. smaller numbers at carriers such as BA been very limited for the passenger
The biggest drive in the CRJ700 Cityflyer, Bamboo Airways and Cobham side with several operators adding
market can be the engine condition Aviation. Nevertheless, there is little capacity while main trading has been
and its costs relative to the trading of doubt that between the abundance aerial firefighting applications at Conair
aircraft, which has been around the $3 of E190s on the market and Covid-19, Aviation.
million to $5 million range. many of the E190s placed (not only in The PW127F engine ranked lower
The -8E market is well established Australia) had an element of distress, than last year. More airlines are moving
and currently irreplaceable in the North which, in turn, helped stimulate the to the ATR72-600 models but demand
American market. demand, says one source. has in the meantime increased on the
The Embraer 170 operator base is The PW150A market continues to freighter side because conversions are
relatively thin compared with other be relatively quiet, compared with the now only for the ATR72-500 type.
members of the family but the type is PW127 engine models. The PW127 engine fleet is dominated
seeing a new lease of life in the USA, “As hot section inspections and by original equipment manufacturers
flying for American Airlines as 65-seaters. life-limited parts costs are more and few players, observes one pollster.
The best-selling E175 continues manageable for turboprop engines than Growth in freight and inter-island
to sustain Embraer, making up about jets, and TBOs [time between overhauls] services (on-going and expected) will
50% of the entire commercial aircraft tend to be lower, the attractiveness support the fleet. Still, the types have a
backlog. But the US concentration of of used engines is lower,” says one large number of aircraft in service and
global fleet is increasing. pollster. benefit from transitions to second- and
The fact that no scope clause- The PW150A is expensive to put third-tier operators.
compliant aircraft can replace E170/ through the shop at about $1.5 million LOT’s ATR72-500s are still parked or
E175 fleets in the US means less volatile to $1.6 million and the Q400 type has stored, potentially with engines needing
residual values, but at a much lower experienced difficulties in placement work. Airfinance Journal’s Fleet Tracker
level now, observes a source. in the market. Some airlines have showed about 90 ATR72-500 units
Demand has picked up for CF34-10 expressed interest in the type but their inactive in March 2022, while another
engines, albeit in a limited market, but price expectation was lower than offers. 40 had been retired. Still, the ATR72-
new and secondary operators such as Production for the Dash 8-400 is 500 fleet accounted for more than 300
Air Dolomiti, Sky High Aviation Services, still paused, with limited demand. The aircraft in service.
United Nigeria and Congo Airways Flybe bankruptcy (54 aircraft) has not In 2021, 17 ATR72-500 passenger
could boost demand, according to one helped the type. When combined with aircraft were converted into cargo.
source. Air Baltic, LGW, Austrian Airlines and SA This compared with eight units before
The CF34-10 is a relatively expensive Express phase-outs, a total of 90 units the Covid-19 pandemic. In addition,
engine considering the market and have been on the market looking for the manufacturer delivered four new
this has restricted appeal outside new homes. ATR72-600Fs last year.
established players, adds the source. The type is effectively retiring from ATR is confident that this is a growing
The E190 model has probably been the European markets and one source market because airlines operating for
the most traded regional aircraft over points out as many as 110 units, or more large integrators increased their flights
the past two years. Supply has been than 25% of the estimated 420-active substantially in 2021.
Airfinance Journal Analysis: investor poll 2022
Narrowbodies
continue to lead
Not surprisingly, narrowbodies remain the most popular types when it comes to
remarketing potential, operational success, value for money and residual value –
the four criteria in Airfinance Journal’s investor poll.
S ince the start of the Covid pandemic,

narrowbodies have increased their
lead over the widebody aircraft, in the
Second was the A320neo model with
improved marks in all four categories.
The 737-800 came third, like in 2020,
As Airfinance Journal passed to press
(January 2022), Allegiant Air opted for the
Max family to renew its Airbus fleet, but,
Airfinance Journal’s investor poll. scoring better in three criteria than Airbus could also clinch another Boeing
In 2021, the Boeing Max models in the previous year. The model has operator in Europe: LOT Polish Airlines.
benefitted from the gradual lift in bans benefitted from the Max crisis. Despite The proposed A220-500, a higher-
from certain jurisdictions. The Boeing the ongoing replacement with the Max capacity variant of the A220 family,
Max 8 was the star performer last year family, the 737-800 remains a key asset could be a crucial part of negotiations
and recorded a 0.39-point improvement on the passenger side, while cargo between the European manufacturer
over the previous year to make the top conversion appetite continues to rise. and the Polish flag carrier.
five. The Max 10 was not far behind with The lift in bans of the Max family gave The A220-300 enjoyed a successful
a 0.30-point improvement. investors confidence in the remarketing year on the commercial side. The type
Airbus’s competitive products, the potential and residual values categories has also benefitted from more diverse
A321neo and the A320neo models, also last year and this is set to continue sources of financing from the investor
recorded some improvements in 2021. in 2022. However, Airbus continues community, as well as more leasing
Once again, the A321neo was the to extend its lead with airlines by appetite. The A220-300 continues to
clear winner in the single-aisle category converting some 737 operators into attract many bids for sale and leaseback
and, for the first time, it led the way in all A321neo customers. In December, it transactions at decent lease rate factors,
four criteria. clinched the KLM Group (which also when compared with other products.
One pollster noted that the type has includes Transavia France) and Qantas This was reflected in the investor poll
recorded four times more orders than Group (although this was announced as with all four criteria.
the 737-10, adding: “The market has a memorandum of understanding) as Could it become the new darling of
voted.” new narrowbody Airbus customers. the industry? (Continued on page 38)
Single-aisles
Aircraft types in each category are rated from 1 (worst) to 5 (best).
Aircraft type Residual Value for Operational Remarketing Overall Last year's Difference
value money success potential score score
A321neo 4.79 4.42 4.68 4.89 4.70 4.54 0.16
A320neo 4.60 4.30 4.55 4.68 4.53 4.39 0.14
737-800 4.05 4.32 4.79 4.17 4.33 4.19 0.14
A321 3.87 4.11 4.53 4.06 4.14 4.05 0.09
737 Max 8 4.24 4.00 3.74 4.33 4.08 3.69 0.39
A220-300 4.11 3.97 4.05 4.06 4.04 3.88 0.16
A320 3.43 3.95 4.63 3.74 3.93 3.88 0.05
737 Max 10 3.33 3.56 3.29 3.15 3.33 3.03 0.30
737 Max 9 3.11 2.95 2.78 3.19 3.01 2.96 0.05
737-900ER 2.79 3.47 3.11 2.61 2.99 3.11 -0.12
737-700 2.39 3.06 3.53 2.25 2.81 2.74 0.07
A319 1.90 3.10 3.65 2.00 2.66 2.64 0.02
A319neo 2.32 2.61 2.77 2.17 2.47 2.29 0.18
737 Max 7 2.50 2.56 2.50 2.29 2.46 2.17 0.29
C919 1.27 1.60 1.38 1.18 1.36 1.38 -0.02
ARJ21 1.19 1.25 1.25 1.08 1.19 1.19 0.00

A GLOBAL LE ADER
I N A I RC R AF T LE AS ING
851
Aircraft
146
Airlines Countries
62
avolon.aero
Twin-aisles
Aircraft type Residual Value for Operational Remarketing Overall Last year's Difference
value money success potential score score
A350-900 4.17 4.14 4.56 3.76 4.16 3.81 0.35
787-9 4.00 4.00 4.29 3.94 4.06 3.95 0.11
787-10 3.47 3.38 3.80 3.38 3.51 3.4 0.11
767-300ER 3.06 3.44 4.12 3.34 3.49 3.5 -0.01
777-300ER 2.72 3.67 4.22 2.65 3.31 2.99 0.32
A350-1000 3.29 3.24 3.53 2.94 3.25 3.26 -0.01
787-8 3.00 3.12 3.65 2.88 3.16 3.08 0.08
A330-300 2.39 3.61 3.89 2.41 3.08 2.82 0.26
A330-900neo 2.89 3.03 2.89 2.76 2.89 2.99 -0.10
777-9 2.93 3.08 2.78 2.69 2.87 2.83 0.04
A330-200 2.18 3.18 3.44 2.00 2.70 2.4 0.30
777-200ER 1.78 3.06 3.22 1.71 2.44 2.14 0.30
777-8 2.57 2.54 2.22 2.00 2.33 2.26 0.07
777-200LR 1.94 2.65 2.53 1.81 2.23 1.86 0.37
A330-800neo 2.15 2.41 2.11 2.13 2.20 2.27 -0.07
747-8 pax 1.88 2.38 2.50 1.63 2.10 1.89 0.21
A380 1.22 2.17 2.33 1.00 1.68 1.44 0.24
“This aircraft type has proven to be The A330 models and the 777- 900 is not immune because it was
successful so far and current operators 300ER entered the Covid-19 period impacted in the LATAM restructuring.
seem to be satisfied with the aircraft. against a landscape of oversupply and Beyond both successful models, the
While Airbus has managed to attract declining values and lease rates. But gap was further widened last year. Third
interest for the type in North America current-technology aircraft placements came the 787-10 with a similar scoring
and Europe among different carriers have happened since the onset of the than in 2019, and a slightly improved
operating under various business pandemic and this was reflected in the overall performance on 2020.
models, it has yet to attract interest from A330/777-300ER performances in 2021, The 787-10 benefits from strong
Asian carriers,” observes one financier. which showed year-on-year improvement. interest from full-service carriers – such
The A220-100 market has yet to One pollster believes that when as the A350-1000 – but as one pollster
develop and it will be interesting if Airbus international travel returns to normality, observes, its overall success could be
launches the larger A220-500 model. the 777-300ER will be the “best bang for impacted as the widebody market shifts
Airbus current-technology narrowbody the buck”. to smaller widebody aircraft.
productions are almost completed. The While the passenger life for those “We see the Boeing 787-10 aircraft as
A321 model continues to see strong models may be limited as the years an asset with limited secondary market
marking in the four criteria, as some pass, the cargo conversion market could opportunities as operators tend to
markets continue to upgauge. But there is take some of the capacity next. favour the smaller variant -9,” says the
an increasing distinction between younger The 767-300ER has benefitted from financier.
and mid-life aircraft versus older assets. a second life in the cargo conversion The A350-1000 and the 787-
The type is being gradually replaced market over the past few years and, 8 remained fifth and sixth with no
by the A321neo, which offers improved although Boeing continues to sell the noticeable improvements over 2020.
economics and better operational 767F model, the market is moving to the The A330neo products have yet to
performance. The passenger-to-freighter 777 conversions. convince pollsters. While interest for the
conversion programme suggests that The A350-900 and 787-9 continue A330-800 is limited, current backlog
aircraft values will stabilise over time. to be the reference models in the figures for the A330-900 suggest
widebody market. In fact, both have that operators are willing to shift from
Widebody changes extended their lead over the past year, previous aircraft series to new aircraft
The Covid pandemic has highlighted an the investor poll shows. programmes such as the A350 or the
acceleration to new-technology aircraft, In 2021, the A350-900 topped the 787, notes one pollster.
and this was no more apparent than in charts after reporting a 0.35-point Airbus sold the A330-900 model to
the widebody market. improvement over the previous year – Condor and ITA Airways in 2020, but
With capacity seriously hampered the 787-9 improved by 0.11. the type has attracted non-tier one
in international markets over the While the A350-900 enjoys large operators with the exception of Delta Air
past two years, operators have used success from customers, it may also Lines, and this seems to penalise it.
new-technology aircraft to resume or have benefitted from the technical Air Lease, Avolon and BOC Aviation
maintain services. A return to a more issues around the 787-9 model, along are the main lessors on the programme
normal capacity will include more new- with the ongoing restructurings of (via direct orders) and total about 65
technology aircraft. some 787 operators. Still, the A350- units, or about 20% of the orderbook.

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ATR72-600 makes it
three in a row
The European manufacturer’s turboprop celebrates a hat-trick of wins in
Airfinance Journal’s Investor Poll regional aircraft category.
T he ATR72-600 model continues to

top Airfinance Journal’s Investor Poll
regional aircraft category. This is the
-600s as shown with Binter Canarias,
Air Corsica and Tarom while winning
new campaigns such as Greece’s Sky
in regional aviation. Customers will
benefit from 40% extended time on
wing, bringing the engine overhaul
third year in a row the turboprop has Express and Maldivian carrier Island to 20,000 hours, resulting in fewer
won, but in last year’s results the top Aviation Services. events over the lifecycle of the aircraft.
five models were slightly down in their This followed six orders for its This will allow a 20% reduction in
overall ratings. products in 2020 while deliveries to engine maintenance costs, says the
The regional market recovery has customers accounted for 10 units. manufacturer.
been fuelled by domestic traffic and The French turboprop manufacturer The PW127XT will provide 3%
public service operations. However, delivered 31 new aircraft to customers improvement in fuel efficiency from
airline failures and bankruptcies have in 2021. technology injection. It consumes more
not spared it. ATR, which celebrated 40 years of than 40% less fuel versus other regional
ATR has had a decent year in terms of operations in November 2021, also jets, amounting to a similar proportion of
new orders, with 35 units. launched a new engine variant, the CO₂ savings. The engine is compatible
The European manufacturer PW127XT engine. with sustainable aviation fuels, says ATR.
reinforced its market position by The engine sets a new standard for There is no doubt that ATR continues
updating ATR72-500 fleets with new sustainability and operating economics to increase its market share in the
turboprop sector and the -600 series
is enjoying a relatively favourable
Regionals perception in today’s lean, increasingly
ESG-focused market.
Aircraft type Residual Value Operational Remarketing Overall Last Difference
However, the ATR series is
value for success Potential Score year's fundamentally a 40-year-old aircraft
Money score design concept, despite the numerous
improvements especially over the past
ATR72-600 3.81 3.92 4.39 3.97 4.02 3.60 0.42
10 to 12 years with improved engines,
E175 3.33 3.56 4.33 3.25 3.62 3.52 0.10 updated avionics and cabins.
ATR72-500 3.03 3.44 3.89 3.11 3.37 3.28 0.09 The manufacturer has beefed up its
offering over the past few years with
ATR42-600 3.22 3.28 3.53 3.31 3.33 3.06 0.27 a full cargo version, which is attractive
E195-E2 3.21 3.22 3.19 3.06 3.17 2.72 0.45 and suitable to dedicated freighter
operations, and a short take-off and
CRJ900 2.79 3.26 3.74 2.88 3.17 3.07 0.10
landing version to address some limited
A220-100 3.06 3.16 3.39 3.06 3.16 2.88 0.28 runways. Those have allowed ATR not
E190 2.69 3.19 3.67 2.75 3.08 2.85 0.23 to commit to launching a radically new
successor to the ATR42/72-600 series.
Dash 8-400 2.63 3.05 3.39 2.89 2.99 2.99 0.00 ATR benefits from a broader customer
E190-E2 2.97 2.97 3.00 2.88 2.95 2.53 0.42 base than its closest competitor, but
like de Havilland, some of its customers
CRJ700 2.68 2.88 3.47 2.76 2.95 2.82 0.13
have defaulted, thereby resulting in
ATR42-500 2.72 2.94 3.28 2.72 2.92 2.89 0.03 structurally high availability of relatively
Dash 8-300 2.76 2.88 3.24 2.76 2.91 2.95 -0.04 young aircraft on the market.
Some new operators such as Irish
E195 2.72 2.94 3.22 2.69 2.90 2.67 0.23 regional carrier Emerald Airlines are
E175-E2 2.73 2.79 2.80 2.57 2.72 2.18 0.54 emerging taking some capacity, while
others such as Air Serbia, Windrose
ERJ-145 1.82 2.71 3.35 2.35 2.56 2.74 -0.18
Aviation and Loganair are leasing
E170 2.31 2.67 2.89 2.17 2.51 2.47 0.04 ATR72-600 equipment to renew their
CRJ1000 1.79 2.44 2.38 1.76 2.10 2.26 -0.16
ATR existing fleets.
On the lessor side, Truenoord
SSJ-100 1.03 1.44 1.22 1.09 1.20 1.24 -0.04 Regional Aircraft Leasing has acquired

new aircraft on an opportunistic basis.

Azzora Aviation, Falko and Acia Aero
Leasing are expanding their portfolio
with the -600 models, while Avation and
debtholders on some Nordic Aviation
Capital aircraft have sold assets with
leases attached.
The Embraer E175 model is firmly
installed in second place in the regional
aircraft market, because of its continuing
sales.
The type has been described as the
“sweet spot” for regional aircraft in the
USA despite a potential threat of airlines
being able to renegotiate their scope
clauses amid the Covid-19 pandemic.
Embraer has, however, opened some The ATR72-600 model continues to top Airfinance
markets for the type outside North Journal’s Investor Poll regional aircraft category
America. The sales to Nigerian carrier
Overland the most traded regional aircraft since converting the 2007/09-vintage fleet
Airways also supports the 2019. Supply has been mostly absorbed into Q400AT air tankers and Q400MR
manufacturer’s efforts in the African over the past two years, with more than multi-role variants to join its firefighting
market on the E2 front. 50 aircraft placed at Alliance Airlines, fleet of 70 aircraft, which also includes
The best-selling E175 continues to Airlink and Breeze Airways alone, Convair 580s and BAe Avro RJ85s.
sustain Embraer, making up about 50% plus smaller numbers at BA Cityflyer, The freighter conversion could also
of entire commercial aircraft backlog. Bamboo Airways, Cobham, etc. be revived, though.
But as one pollster observes, the The E195 has had different fortunes
US concentration of global fleet is only regarding trading over the same period. End of CRJ900 production
increasing and demand is only for new Main customer Azul Linhas Aereas The final two deliveries of the Canadair
E175 types. Former Flybe and Alitalia was planning to rollover its fleet in Regional Jet (CRJ) family were
E175s are taking time to place, asking 2020 over a two-year period as it was performed in February 2021.
the question: just how liquid is the E175 receiving new E195-E2s. One aircraft went to Chorus Aviation,
on the secondary market? All its E195s were expected to be for forward lease to Jazz Air. The
The pollster says that it could be that phased out by the end of 2022 and second was delivered to Delta Air Lines,
the market will start to distinguish more were to be sub-leased at least until the for operations at Skywest Airlines.
between the original E175 (only about end of the original operating lease term. The CRJ family, made up of the
180 built) and the more efficient, more LOT Polish Airlines had signed letters 50-seat CRJ100/200/550s, the niche
ubiquitous E175+ that has comprised all of intent covering 18 units, Breeze for up 44-seat configured CRJ440, the 70-seat
deliveries since 2014. to 28 E195s, while some aircraft were CRJ700, the 86-seat CRJ900 and 104-
The E195-E2 model was the most being earmarked to Portugalia Airlines seat CRJ1000 models, has received
improved aircraft in operations last year, (PGA). more than 1,950 orders in almost 30
up 0.45 points overall and dramatically Azul has nine E195-E2s and operates years in production.
improving in all four categories: its 50 E195s alongside them, but plans One pollster says the CRJ900
remarketing potential, operational could be revised to make way for the E2 unsurprisingly shares similarities with
success, value for money and residual orderbook. the E175: the best-selling member of its
values. Production for the Dash 8-400 is still family, driven largely by demand from
The type is Embraer’s best-selling E2 paused, with limited demand. The Flybe the USA in 76-seat configuration. The
variant, and despite strong competition bankruptcy (54 aircraft) has not helped CRJ900 type recorded limited activity in
from the larger Airbus A220-300 type, the type. the second-hand market in 2021. Only
the Brazilian manufacturer shows it When combined with Air Baltic, LGW, a handful of Lufthansa Cityline aircraft
can sell the E195-E2 to replace small Austrian Airlines, SA Express phase- were sold to lessor Regional One for
narrowbodies such as the Boeing 737- outs, a total of 90 units have been on forward lease to Elite Airways. Another
700s, with KLM Cityhopper. the market looking for new homes. unit was leased to Copenhagen Air Taxi.
Embraer also has further opened the The type is effectively retiring from The CRJ700 customer base is now
leasing sector beyond Aercap, ICBC the European markets and one source 88% concentrated in North America. As
Leasing and Aircastle. Lessor Falko points out as many as 110 units, or more with the E170, aircraft being phased-
has also played a role in that market, than 25% of the estimated 420-active out by European operators are finding
supporting some deliveries (through fleet, include imminent retirements at their way to the USA, so expect
the sale and leaseback market) for new Olympic Air and LOT. concentration in the latter market to
customer Porter Airlines. Demand and the secondary market grow, observes a pollster.
The polls also show the E190 and demand has been very limited for the There is one real CRJ1000 operator,
E195 models strongly improving in 2021 passenger side while the main trading Air Nostrum. Air France’s Hop has tried
over the previous year. has been aerial firefighting applications to sell its fleet for about 18 months, but
The E190 has benefitted from a at Conair Aviation. demand is relatively limited, and offering
liquid market and has probably been The Canadian operator intends prices are low.
Airfinance Journal Analysis: Legal survey 2022
Clifford Chance reclaims top spot

Airfinance Journal’s legal survey sifts through more than 1,200 deals reflecting a
more active year in 2021.
I n the 2021 legal survey, Airfinance

Journal received submissions from 15
firms, compiling 1,195 unique deals overall,
Methodology
Airfinance Journal’s annual legal survey
includes aviation finance deals based
jurisdictions: 5 points
• Less complex transaction: 3 points
• Low complexity: 1 point
including transactions gathered from on submissions from law firms as well
Deal Tracker. as Airfinance Journal’s Deal Tracker Role:
The 2021 survey is tempting to transactions. Those are subsequently • Drafting counsel for major
compare with pre-Covid, or the 2019 aggregated to create the winners. transaction documents: 10 points
activity. The Airfinance Journal data team • Primary counsel to major transaction
In 2019, Airfinance Journal recorded then reviews the different deals and parties: 7 points
1,520 deals from 15 law firms. selects those eligible for Deal Tracker. • Secondary counsel to transaction
The capital markets were buoyant This list is then used to select the most parties: 3 points
in 2021 with the first deals closing active law firms, which are then selected
in January and signalling a return, by region and product type. The legal For all Deal Tracker transactions that
especially in the asset-backed securities survey reviews transactions for calendar were not part of the submitted deals,
(ABS) market, after a nine-month pause. year 2021 only. Airfinance Journal assigned one point
Lessors and airlines continued to tap This is significant because we for the complexity of a transaction and
the capital markets last year. In total, recognise that markets change, as do three points for the role played by the
260 eligible transactions were recorded law firms; however, we felt this was the law firm. This resulted in total score
versus 216 in 2020 and 179 the previous only way to offer an accurate snapshot of four that was assigned to all Deal
year. of aviation finance legal activity. Tracker transactions that were not part
The other categories considered in Our aim is to continue being of the submitted deals.
the legal survey, improved year on year transparent and impartial. All of the
but are lagging behind the 2019 levels. deals used to judge the winners are Overall rankings
Asia-Pacific became, for the first eventually loaded into Deal Tracker and Like previous years, the survey records
time last year, the number one region can be reviewed by our readers. the overall number of deals for each law
in terms of deal origination. The region In this sense, our survey is unique. firm. A deal, as defined by the survey,
recorded 381 eligible deals in 2021, or Our research team assesses each deal represents one mandate and can
32% of the total. It totalled 326 deals in to verify them and to avoid double include multiple aircraft and lawyers.
counting. The benefit of using Deal In addition to presenting the most
the 2020 legal survey, down from 410
Tracker is that we can offer a granular active law firms by product and region,
the previous year (representing a 27%
presentation of law firm activity by both the survey also aggregates how law
market share).
product type and region. firms have performed to produce an
Just over 30% of the submitted deals
There are limitations to the survey. overall ranking.
originate with European customers
Client confidentiality may be an issue Law firms secure points based on
versus 34% in the 2020 legal survey.
for law firms when submitting deals and where they are placed for each region,
Europe represented 362 transaction some firms opted not to participate. As product and category.
points, compared with 562 deals in a consequence, the survey does not
2019. necessarily represent all of the deals Overall winners
North America is the region that saw happening in the marketplace but Clifford Chance secured the number
the most progression last year with 313 it remains the most comprehensive one spot among the law firms by
eligible transactions (versus 237 deals survey of its type and crucially offers topping Asia-Pacific, Europe, Middle
in 2020). The region reduced the gap real insight into the aviation market. East, sales and purchases, and
with Europe and Asia-Pacific in terms The survey gives a strong indication operating lease categories.
of percentage with 26.2%, compared of which law firms are most favoured The firm represented 14.6% of the
with 23% in the 2020 legal survey. The for certain deal types and for certain total transactions recorded by the
region’s level of activity matched the regions. survey, with 175 eligible deals. Its
2019 levels. Airfinance Journal continues to listen overall score was 2,412 points, or about
Activity in Latin America slightly to its audience. 500 more points than second-paced
increased last year with 62 deals Law firms were asked to self-assess Milbank.
recorded. This was up from 52 the the complexity of each transaction and “We are delighted once again to be
previous year and three years of their role in the transaction according the overall winner of Airfinance Journal’s
decline. Some 5.1% of last year’s total to the following new set of criteria Legal Survey, which recognises the
involves clients from that region, against for which the specified points will be most active firms in the aviation sector
6% three years ago. awarded: based on deals completed in a dozen
Activity in the Middle East remains categories. This achievement is the
at the previous year’s level, with 42 Complexity: result of the dedication and quality of
eligible transactions. This represented • Ground-breaking pioneer our hard-working and high-achieving
about half of the activity in the region transaction: 10 points team of lawyers, and the firm’s cross-
pre-Covid, according to the data. • Complex transaction, some new practice capabilities throughout our
In Africa, 35 transactions closed parties or jurisdictions: 7 points global network.
last year, up from 29 in the 2020 legal • Average complexity, repeat “As ever, we are grateful to our
survey and 55 the previous year. transaction with same players and fantastic clients for the trust and

Legal Transaction of the Year:

Aercap-GECAS merger
The Airfinance Journal editorial team selected the Aercap-GECAS merger as the
winning submission in 2021.
O n 10 March 2021, Aercap

Holdings entered into a definitive
agreement with General Electric
with a market value of about $6.6 billion
based on the closing share price of
$59.04 on 29 October 2021; and $1
transaction, as well as on global anti-
trust clearances.
A&L Goodbody represented GE as
Company (GE) under which Aercap billion paid in Aercap senior notes. GE Irish counsel while Paul, Weiss, Rifkind,
would acquire 100% of GE Capital transferred $34 billion of GECAS’s net Wharton & Garrison advised GE on US
Aviation Services. assets, including its engine leasing and M&A aspects of the transaction.
The acquisition positions Aercap as Milestone helicopter leasing businesses, Cravath, Swaine & Moore (as US M&A
the worldwide industry leader across to Aercap. counsel), NautaDutilh (as Dutch counsel)
all areas of aviation leasing: aircraft, Clifford Chance advised GE on and McCann Fitzgerald (as Irish counsel)
engines and helicopters. The combined aviation business aspects of the acted legal advisers to Aercap.
company will serve about 300
customers worldwide and will be the
largest customer of Airbus and Boeing.
The transaction, which closed on
1 November 2021, was extremely
complex and involved more than 300
operator jurisdictions.
Under the terms of the transaction
agreement, GE received total
consideration of greater than $30
billion on closing, including about $23
billion in net cash proceeds; 111.5 million
ordinary shares equivalent to about 46%
ownership of the combined company,
Top 10 law firms by number of deals

Total number of unique eligible deals 1,195
3,000 200
175
180
2,500
160
● Score — Number of deals 140

2,000
111 120
1,500 100
79
80
2,412 63
1,000 58
1,701 52 60
45
1,196 35 32 31 40
500
887 853
734 20
525 511 471 460
0 0
Clifford Chance Milbank K&L Gates Vedder Price White & Case Norton Rose Stephenson Allen & Overy A&L Goodbody Walkers
Fulbright Harwood
500
Asia-Pacific 381
40
Total number of unique eligible deals
T
450
he number of unique eligible 34 35
transactions rose significantly
last year in the Asia-Pacific region to 400 ● Score — Number of deals
381. This was an 18% increase on the
30
previous year.
In 2021, the manufacturers delivered 350
more aircraft to customers. Airbus

handed over 611 aircraft to customers 300 23
25
last year, up from 566 units in 2020,

while Boeing delivered 340 units. 20
Asia-Pacific deliveries were up but 250 19 20
the airline industry also went through
significant restructuring of flag carriers 431
200
as well as low-cost carriers. 15
Clifford Chance says the extremely 350 12
challenging conditions experienced 150
by the aviation sector in the APAC 282 275
10
region in 2020 continued into 2021 and
100
largely persisted into 2021 . “Although 178
some major airline restructurings were
5
completed or substantially completed 50
(Virgin Australia, Philippine Airlines,
HNA, MAB, Thai Airways), others
have dragged on (Lion Air) and new 0 0
Clifford Chance Bird & Bird Stephenson Harwood K&L Gates Milbank
restructurings have commenced
(Garuda, Thai Air Asia X, Hong Kong Source: law firm submissions and AFJ Deal Tracker
Airlines,” says Clifford Chance’s APAC

partner and foreign legal consultant,
Fergus Evans. headwinds and challenges that face the been a marked pick-up in air travel
The law firm maintained its lead in the aviation industry, the firm’s Asia-Pacific across South-East and South Asia as
Asia-Pacific market. practice remains nimble and robust. restrictions have fallen away in recent
“International travel into some major “We have been fortunate to work on months. However, capacity remains
markets (the People’s Republic of a number of significant restructurings, a good deal lower than in 2019 as
China, Japan, Hong Kong) continues litigations and new transactional airlines work to get aircraft back into
to be very restricted while other matters. This highlights the depth, service, and re-hire the staff to support
markets (Singapore and Australia) have dynamism and capability of our Asia- this – with yields up accordingly,” says
rebounded strongly as borders reopen,” Pacific team, which works out of our Fattorini.
says Evans. offices in Tokyo, Hong Kong, Singapore, He adds: “Airlines in APAC will need
“After a hiatus, save for strong lessors Brisbane and Sydney. We look forward to be careful to balance their recovery of
and airlines (Singapore Airlines) the to continuing to advise and support our higher operating costs from passengers,
number of commercial financings of clients across the region as the sector while still offering competitive fares to
aircraft have recently increased but continues to recover,” adds Bradley. a travelling public increasingly facing
are still below pre-pandemic levels. We Bird & Bird benefitted most from the financial pressures themselves.”
have also seen an increase in ECA/Ex- Asia-Pacific activity with its ranking Fattorini says the operating lease
Im supported financings as well as AFIC/ jumping from fifth in 2020 to second market (especially for multiple newer
Balthazar transactions. last year. technology aircraft) appears bullish
“On the investor side, while some Bird & Bird partner and head of for the moment as airlines begin to
APAC-based lessors have seen aviation and aerospace sector group, take delivery of deferred aircraft.
restructurings (especially US Chapter Leo Fattorini, says: “The aviation market “Established and newer equity funds
11 proceedings) resolved, for others the in Asia-Pacific remained constrained continue to look for new deals in the
continuing pandemic-related pressures for much of the past year, such that a region, and commercial debt financing
have been exacerbated by large significant portion of our work has been is starting to pick up. Over the past few
exposures to Russian airlines and other related to ongoing restructurings, court- months, we’ve also seen an uptick in
counterparties impacted by sanctions. based and otherwise. In this respect, trading between lessors. Throughout
There was significant M&A activity in it’s been terrific to see the vast majority the pandemic we have been busy
the region with sales by Hong Kong of lessor, financier and OEM [original supporting lessors involved in the
investors CK Asset Holdings, and NWS equipment manufacturer] creditors cargo market, with P2F converted
Holdings and Chow Tai Fook Enterprises supporting their cash-strapped airline aircraft in particular. We see this area of
of their respective interests in aircraft customers throughout the crisis. the industry continuing to thrive, with
leasing platforms AMCK Aviation and “Although the vast China market is large numbers of aircraft still awaiting
Goshawk Aviation,” adds Evans. still largely closed to international traffic conversion and air carriers keen to
K&L Gates partner James Bradley (with a consequent ongoing impact get their hands on them as quickly as
says that despite the regional economic on the region as a whole), there has possible,” he comments.

Africa 100
Total number of unique eligible deals 35 7
90 6
T
6
he African market recorded 35 deals
80
in 2020, up from 29 the previous
year. However, this is far below the 5
70 ● Score — Number of deals
level of activity pre-Covid-19 pandemic,
60
where 55 transactions closed in 2018 4
and 2019. 50
Activity in the regional market 86
3
40
included operating lease transactions
2
for second-hand ATR72-500/600s, 30 2
De Havilland Dash 8s, as well as the
20 1 1 1 1 1 1 1
first Airbus A220-300 deal for Senegal 32 1
20
Airlines. 10
15 15 15 15 15 15
K&L Gates has topped the ranking for 0
0
two consecutives years. The law firm K&L Gates Clifford McGuireWoods Tadesse & White Vedder Price A&L Flynn O Milbank
Chance Delnessahou & Case Goodbody Driscoll LLP
was particularly involved in the trading
of Boeing 737-700s and 737-800s in Source: law firm submissions and AFJ Deal Tracker
the region, notably the Royal Air Maroc
fleet. The mandate follows a previous
representation of the carrier in its first of the top law firms advising on aviation ready to assist further expansion,” says
Japanese operating lease with call deals on the African continent. This Manuela Krach, a partner at K&L Gates.
option (Jolco) covering Max deliveries reflects the trust our clients are putting Clifford Chance acted as law firm in
in 2020. in us to guide them in this high growth some operating lease, and sale and
“We are delighted with the continued market. We are excited for the huge leaseback transactions for Ethiopian
recognition by Airfinance Journal as one opportunities to come in this region and Airlines last year.
362
900 70
Europe 800
60 Total number of unique eligible deals
60
700
E urope represented 362 transactions

points, a slight increase on 2020,
but far from matching the levels of 2019
600
36
40
500 33
when 562 eligible deals were recorded.
In 2021, the top five law firms in this 400 842
30
market accounted for 172 eligible deals, or 21 22
300
48% of the total transactions. This was up 561 20
in percentage terms from 34% and 35% 200
453
recorded in 2020 and 2019, respectively. 317 308 10
Commercial loans account for 82 100
transactions points, of which 62 are 0 0

secured. Clifford Chance K&L Gates Milbank Clyde & Co Norton Rose Fulbright
Among the unsecured activity in Source: law firm submissions and AFJ Deal Tracker
2021, operating lessors represented
less than half of the transactions with “The start of 2021 continued to prove impact across the aviation industry – the
Aercap, Gilead Aviation and Nordic challenging for the European aviation publication of draft technical screening
Aviation Capital notably issuing debt. industry, with the slower-than-expected criteria for aviation by the European
Clifford Chance regained the top roll-out of vaccines and the continued Commission has, in particular, focused
position in 2021 in the number of eligible application of travel restrictions minds on how such legislation may
deals in this market. The survey shows 60 continuing to weigh on the industry. As impact European lessors and carriers.
transactions, with about an equal share the year progressed, Europe did see a We expect these ESG concerns, the
of representation of airlines and leasing partial but sustained recovery across continued impact of Covid and the fall-
or financing entities-related transactions. the sector, though we continued to out from new headwinds coming out of
Clifford Chance represented the major see distress in some areas, including the war in Ukraine and rising fuel prices,
flag carriers in the region last year and the amongst certain lessors, as evidenced to dominate discussion during 2022.”
major lessor entities. by Nordic Aviation Capital’s Chapter Pete O’Hare, a partner K&L Gates,
In terms of products, a large share 11 filing (and subsequent successful says 2021 “was another turbulent year
was through commercial loans-related emergence) at the end of the year,” says for the industry due to the emergence
transactions (21 transactions), DCM Clifford Chance partner Richard Evans. of new Covid variants. However, airline
deals (five), structured leases (eight), He adds: “2021 also saw a continuing revenue and passenger numbers
operating leases (11) and aircraft increase in the level of focus placed returned to around 50% of pre-
acquisition (13 transactions), shows the on ESG [environmental, social and pandemic levels, whilst cargo revenue
data. governance] legislation and its potential saw a record year.”
Latin America 400
350
25
25
W hite & Case partner Chris

Hansen says 2021 was another
challenging year for the commercial
300
250
● Score — Number of deals
20
aviation sector in Latin America with 200 12 15

362
most airlines in the region forced to 150 9 9
8 10
continue with some form of restructuring
100
efforts – in Chapter 11 proceedings in 179
5
143 137 117
the cases of Avianca, Aeromexico and 50
Latam, and informally through direct 0 0

White & Case Clifford Chance Vedder Price Davis Polk & Wardwell Holland & Knight
negotiations with lessors and other
creditors in several others.
Source: law firm submissions and AFJ Deal Tracker
“This was in large part due to the lack
of direct government financial support
that many other airlines around the awaits regulatory approvals).” willing to place more new aircraft into
world received. We also began to see White & Case topped the ranking in the Latin American market on quite
the initial phases of consolidation in the region, for the second time in a row. reasonable terms in the midst of the
response to these ongoing challenges The law firm played a role in most of restructuring processes.
(Avianca-Gol-Sky), and we would not the major restructuring transactions in “The main trend we have noted
be surprised to see additional moves Latin America last year. It was counsel recently has been a move back to sale
toward consolidation (whether through to a group of bondholders and the and leasebacks of new fuel-efficient
alliances, joint ventures or otherwise) in debtor-in-possession lenders in Latam single-aisle aircraft such as the Max and
the near future.” and acted for its long-time client, the Neo aircraft. It will be interesting to
He adds: “In a sign that the tide was Aeromexico, as its special aviation see over the next few years whether
turning, the low-cost sector of the Latin counsel throughout its Chapter 11 case. certain market segments, such as Jolco
American market rebounded much “We were very gratified to see [Japanese operating lease with call
more quickly in 2021 than the legacy the OEM [original equipment option] and EETC [enhanced equipment
carriers. Viva Aerobus in Mexico is a manufacturer], lessor and lender trust certificates] investors, are willing to
good example of that trend, which led communities strongly support their re-enter the Latin American market after
to a unique cross-border alliance of low- Latin American customers during the facing substantial pressure due to the
cost carriers with US carrier Allegiant Air very difficult times created by the Covid Chapter 11 filings of three of the largest
that was signed at the end of 2021 (and pandemic,” says Hansen. “Many were regional carriers.
Middle East 100

90
80
6
C
5
lifford Chance maintained its lead 70
in the Middle East last year with six 60 4
50 3 3
transaction points for a total score of 90. 90 3
40
The law firm was involved in different 72 2
30 2
types of activities and different aircraft 54
20
types in the region. It acted as lenders’ 36 35 1
10
counsel in DAE Capital’s unsecured 0 0
facility, a complex dual-tranche structure Clifford Chance Milbank K&L Gates Allen & Overy Walkers
combining a long-term Murabaha

contract and a series of short-term
Murabaha contracts.
Clifford Chance also acted on a amid the renewed threat of the Omicron entry, including in the Middle East, our
commercial loan for the lessor, as well variant had a sustained impact. expectation is that passenger numbers
as Navigator 2021-1, an asset-backed Stephen Chance, Clifford Chance will rebound further in 2022, albeit
security serviced by Dubai Aerospace counsel, says: “Despite the significant still taking some time to return to 2019
Enterprise on the secured side. improvement on 2020 performance, levels.”
The law firm was also counsel on the ongoing impact of the restrictions K&L Gates’ Krach says: “Looking at
lease transactions with Fly Baghdad, was clear, with passenger numbers the reports of passenger numbers, it
Flydubai and Emirates Airline. below pre-pandemic levels. Amidst appears that the aviation sector in the
The firm observes that while there this ongoing slowdown, the Middle Middle East has successfully put the
were increasing signs of recovery in East airlines once more relied on a Covid-19 crisis behind it. We at K&L
the region’s aviation industry towards combination of state funding and funds Gates are pleased to have played an
the end of 2021, with passenger loads raised through secured financings and important role in helping airlines in the
increasing significantly in the second half sale and leaseback transactions. As region increase their fleet even during
of the year, the continued restrictions restrictions continue to ease and many challenging times and appreciate the
on travel imposed by many countries destinations permitting unfettered recognition, once again.”

North America
1,000
L ast year North America was the only

region that matched the level of
activity of 2019. The region recorded
900
800
58
61
60
313 transaction points. 50

700
Milbank and Clifford Chance were
neck and neck in North America, with 600
both firms representing 38% of the total 500
eligible transactions in volume. 947 28
838 30
Last year saw a rebound for the 400
aviation industry in North America, but it 300 16 16 20

was not without turbulence.
200
“While many airlines started increased 360
10
operations and the cargo market 246 244
100
remained hot, a number of carriers
0 0
sought bankruptcy protection,” says Milbank Clifford Chance Vedder Price Norton Rose Fulbright Hughes Hubbard
Clifford Chance partner Emily Wicker. & Reed
“Most notably, three large Latin American Source: law firm submissions and AFJ Deal Tracker
carriers sought refuge under US Chapter

11 filings, bringing a flurry of restructuring to be continuing into 2022 both in the market back on hold. Those same
activity and a host of new market entrants, lessor and airline sectors. The ABS factors are the source of disruption
including distressed debt investors.” market came back in 2021 and fed across the industry for 2022, and we
She adds: “We saw a rise in M&A some of the pent-up demand from 2020 expect rising interest rates and fuel
activity, most notably the acquisition of but, by early 2022, the war in Ukraine, costs to be especially burdensome on
GECAS by Aercap. This trend seems rising fuel prices and inflation put that North American carriers.”
Sales & purchases 700

T he sale and acquisition market

performed better last year than in
2020 as a lack of liquidity since the
600 48 50
onset of the pandemic had prevented 500

many buyers to acquire assets. There 37 40
were 263 transactions recorded, the ● Score — Number of deals
data shows, up from 59 in the 2020 400
legal survey and 300 the previous year. 30
Still, at the height of Covid, some
649
lessors expanded their footprint in the 300
marketplace by acquiring aircraft on a 552
strategic basis. 20
Last year, activity in the sale and 200 13

leaseback market, and portfolio sales that 11
resumed during the year, were plentiful. 8 10
Clifford Chance was the most active 100
181 187
law firm with 48 transaction points out of 157
a total of 263. K&L Gates racked up 37
transaction points, well ahead of Vedder 0 0
Clifford Chance K&L Gates Vedder Price White & Case McGuireWoods
Price with 13 deals.
“We saw a concentration of aircraft Source: law firm submissions and AFJ Deal Tracker
trading in the US market throughout
2021, due in part to the swift upturn Trading has progressed from small need to ensure novations are run as
of travel (both domestically within the opportunistic deals to mid-sized efficiently as possible for those lessees.
US and internationally to and from the portfolios, with purchasers including “The Russian invasion of Ukraine has
US), once restrictions were lifted,” says both new entrants and established further impacted sale and purchase
Amanda Darling, a partner at K&L Gates. lessors. The make-up of portfolios has transactions in 2022, causing the early
“We expect this trend to continue – been critical to the success of these termination of sales of some Russian
in particular, with other jurisdictions transactions, with a clear focus on the aircraft, and a renewed analysis of other
recovering slower than the US market.” right asset type and lessee customer. deals. An increase to the size and
The aircraft trading market saw This has led to a level of frequency of portfolio sales is expected
a steady increase in appetite and concentration in the trading of particular as the year progresses,” says Paul
transactions through 2021, without airline names, with a corresponding Carrington of Clifford Chance.
returning to pre-pandemic levels.
Structured leases 250

13
12
12
T he activity for structured leases in

2021 was lower than the previous
year for commercial aircraft.
200
10
Japanese investors remain wary of 150 8

8
the aviation market. The restructuring
at airlines over the past two years 6
6
has exposed those investors through 100 208
difficult times.
Some of the names that had 151 150 4
119
Japanese operating lease (Jol)/ 50
Japanese operating lease with call 74 2
option (Jolco) exposure included

all three Latin American carrier 0 0
K&L Gates Freshfields Nishimura & Asahi Clifford Chance Norton Rose Fulbright
bankruptcies – Aeromexico, Avianca
and Latam.
The restructurings at Air Mauritius,
Virgin Australia, Virgin Atlantic Airways, Air Lines A220-100s in the Japanese Jolco market for our clients. It appears
Norwegian and Malaysia Airlines market. that at least some of the established
also had an impact on Japanese Air France opened up the Jol market players on the equity side pursue high
equity investors and commercial debt for some of its A220-300 deliveries. quality investments, irrespective of any
providers. Osaka-based Chishima Real Estate’s set-backs that their portfolios may have
Japanese equity arrangers are aviation division last year secured a deal suffered in airline restructurings over the
reluctant to restructure because this for Japanese investors that involved two last two years. Those equity arrangers
directly impacts the tax position of deliveries acquired and leased back to that we have seen being active again at
their investors and, in turn, impacts the Air France under a Jol structure. an early stage of the recovery seemed
market for future investment by Jolco Tokyo Century financed three to be able to firmly underwrite even
investors. A321neos under a Jolco mandate for larger tickets and modern widebody
A top executive at an investment Wizz Air, as well as two A321neo aircraft aircraft for later placement in the equity
bank recently told Airfinance Journal for Lufthansa. market. This development led to a
that while some equity arrangers still shy “It’s a very different story for Jols as number of warehousing transactions
away from new underwriting, or at least funding is readily available for lessors which have been placed successfully
require very specific conditions, certain and underwriters. The market size of in the market within a reasonably short
players became more aggressive when Jols is much more difficult to assess, as period of time,” comments Konrad
new opportunities arose in 2021. we would probably need to start from Schott, a partner at Freshfields.
“This is a typical recovery scenario, defining what Jols are, but with the He adds: “The development on the
like during past crises, although the likes of Bleriot successfully concluding debt side was slightly different, as
magnitude of Covid-19 is much worse,” deals, we do feel there is momentum,” a number of the established market
he says. Tokyo Century aviation financer, Marito participants seemed to be distracted
The deal flow in the Jolco market Takamasa, told Airfinance Journal earlier by the numerous work-outs and
remains relatively light and concentrated this year. restructurings, while others showed
on the best credits, long-standing and K&L Gates remained the top law interest in high quality credits and some
established names. Yet, the major firm in this market last year, ahead of new (or previously less active) lenders
players are cautiously optimistic that Jol Freshfields and Nishimura & Asahi, the seized the opportunities which the still-
and Jolco aircraft financings will pick up data shows. Covid market offered.”
again this year. “Notwithstanding Covid, Japanese “More generally, we expect demand
Still, some innovative transactions equity investment in the aviation sector for legal advice in conjunction with
closed last year. remained very high and we continued the impact of Covid-19 crisis to
FPG Amentum and Societe Generale to see high demand for Jolco lease persist beyond 2022, followed by
closed the first financing of a Jol structures,” says Bob Melson, head of consolidations and reorganisations
supported by Aircraft Finance Insurance aircraft finance and finance practice on a corporate level that will lead
Consortium secured against a Boeing area leader at K&L Gates. “However, to M&A and further restructuring
737 Max 8 leased to Flydubai. given the zero or low Covid goals of activities. Most recent geopolitical
ABL Aviation was very active in the some countries in Asia, we are seeing developments have prompted the
market last year with the Jolco financing more Jolcos in Europe and even a few necessity for ad hoc advice on various
of two Airbus A350-900s for Germany’s in the US with structures that ameliorate matters in connection with the sanctions
Lufthansa, an A320neo for Pegasus Japanese withholding tax.” imposed against Russia and Belarus.
Airlines as well as the sale of an A320 “After the Chapter 11 bankruptcy At the same time the latest industry
on lease to Wizz Air and an A321 on filing of two Jolco lessors in December numbers appear to indicate that the
lease to Eva Airways from Jol investors 2021, certain market participants airline market may actually recover
to US investors. claimed that the Jolco market would more quickly than originally expected,”
The firm also sold eight A320s on not survive the pandemic. However, we comments Johannes Vogel, a partner at
lease to Latam and placed eight Delta observe a strong coming back of the Freshfields.

Operating leases 800

B etter productions rates from the 700 48

50
original equipment manufacturers, 600
as well as more trading in the secondary 40
market through lease placements, 500
benefitted the operating lease market 30
400
in 2021. 23
671 21 21
However, the industry is far behind 300
20
the level of activity in this market pre- 492
pandemic, when 634 transaction points 200
336 328 306 10
were recorded as operating leases 100
continued to be popular for new deliveries.
In total, 377 transactions closed 0 0
Clifford Chance White & Case Stephenson Harwood K&L Gates Vedder Price
compared with 310 in 2020.
“The operating leasing market has Source: law firm submissions and AFJ Deal Tracker
continued to be heavily impacted by

the pandemic and its effects on airlines
around the world,” says Justin Benson, leaseback arrangements and aircraft strong demand from lessors with capital
global head of asset finance of White trading over the past year. to invest, and equally strong supply.
& Case. “However, some lessors have “We have also supported new Airlines in need of capital following
been able to seize opportunities to entrants into the operating lease space the pandemic have continued to offer
develop new relationships with airlines establish leasing platforms and acquire aircraft for sale and leaseback, and
and/or acquire favourable delivery slots aircraft in distressed situations,” adds lessors have had many off-lease aircraft
to new aircraft types in the sale and Benson. for which new homes were needed.
leaseback market, and the pandemic K&L Gates partner Sebastian Smith Many new aircraft too have been
has seen several operating lessor says: “As the Covid aviation crisis took put on lease, with some allowances
mergers and acquisitions.” hold, we saw airlines going into Chapter needing to be made for delivery delays
His firm has been very busy helping 11 insolvencies or negotiating early at manufacturers. Transactions tied to
its operating lessor clients with a redelivery of aircraft to lessors. These pre-delivery financing or other complex
wide range of matters, including rent assets had to be remarketed and we products have ensured that deals are
deferral arrangements, navigating saw a large number of smaller players carefully tailored to the parties’ needs.
through airline defaults, bankruptcy move into the operating lease space.” Increased passenger demand has seen
and claims processes, remarketing “2021 was a busy year for operating these trends continue in 2022,” adds
and repossessions, as well as sale and lease transactions. The market saw Paul Carrington of Clifford Chance.
Capital markets 600

31 Total number of unique eligible deals 260 35
T
30
he capital markets category has 500
not been very active since the turn 400 ● Score — Number of deals
25
19
of this year, but in 2021 the level of 20
300
activity continued to rise on previous 496 15
11
years as airlines, and particularly leasing 200
10
7 6
companies, benefitted from the low 100
248
5
funding cost in the sector. 123 130 117
According to Airfinance Journal, 0
Milbank Clifford Chance Allen & Overy Walkers Hughes Hubbard
0
lessors alone tapped about $60 billion- & Reed

worth of debt in 2021 from the capital
markets.
Last year’s 260 eligible transactions last year, with more than $8.65 billion of reverted to mid-life or older assets,
total compared with 216 in the 2020 debt raised in the ABS market, versus rather than the young or new assets
legal survey and 179 the previous year. $2.4 billion in 2020. featuring in some transactions in the
The capital markets are still open for More than $7 billion-worth of debt second quarter.
business, with substantial quantities was issued on the senior tranches Milbank was a clear winner in the
of investor liquidity actively seeking in 2021. Appetite for the B tranches capital markets category last year
opportunities in the sector. totalled more than $1.2 billion-worth of and has dominated this category for a
Aircraft lessors displayed greater financings, while another $416 million number of years.
financing appetite in 2021 than the was invested in ABS C tranches. The law firm was involved in almost
previous year. Still, aircraft deliveries are below pre- every ABS transaction in the sector,
The asset-backed securities (ABS) Covid levels. While 2020 represented as well as enhanced equipment trust
market recovered strongly in 2021. the weakest year on record for net certificate deals. Milbank also acted
Airfinance Journal Deal Tracker shows commercial orders, last year saw a in many North American airline bond
that 15 transactions (of which two were substantial resurgence in demand. issuances along with leasing companies
engine deals) were issued by sponsors Towards the end of 2021, issuer focus fundraising in the unsecured market.
Commercial loan 900
800 51
48 50
T he commercial loan market was

more to the 2019 levels in 2021, after
a surge in activity in 2020 as a result
700
600 ● Score — Number of deals 40

of airlines and lessors raising funds for
500
liquidity purposes. 30
Covid-19 highlighted the importance 400 811
22 21
of the traditional banks supporting the 669 18 20
sector, while alternative sources of 300
financing, in search of reasonable yields,

200
has dramatically increased over the past 355 10
309
259
two years. Commercial loans include 100
insurance-supported financing transactions
0 0
which are also growing in the aviation Milbank Clifford Chance Norton Rose Fulbright Vedder Price A&L Goodbody
sector with now AFIC, Balthazar and
IFLI, which executed its first transaction
last year through the refinancing of an
Airbus A350-900 held under a Japanese their fleet renewals. Lessors raised more Clifford Chance in terms of eligible
operating lease with call option structure. than $46 billion in this market last year, transactions but the gap between the
Airlines continue to use the according to Airfinance Journal’s data. top two law firms has reduced over the
commercial debt markets to support Milbank finished the year ahead of past two years.
Export credit 70
5
60
5
E xport credit financing (ECA) for the

aviation sector is expected to remain
resilient as the industry continues to
50
40
4 4 ● Score — Number of deals
3
4
66 3
recover from the Covid-19 pandemic. 30 62
2
56
Its role has historically played an 2
20 38 37
important part to support the industry
10 1
when needed and plug any potential
funding gaps. European ECAs were 0 0
Allen & Overy Walkers Clifford Chance Norton Rose Fulbright Slaughter & May
supportive at the start of the pandemic
in offering deferrals of loan principal Source: law firm submissions and AFJ Deal Tracker
payments across the field.

Export credit was particularly ECA support for Cathay Pacific Airways. deliveries in 2021.
beneficial for airlines undergoing or Some A320neo deliveries were also Ex-Im supported 4.7% of Boeing
emerging from restructuring. Lessors financed in the ECA market in 2021 for deliveries last year.
have hardly used this tool of financing Turkey’s Pegasus Airlines, as part of a Ex-Im provided a $500 million
because of the competitiveness in the 10-aircraft mandate. loan guarantee covering four Boeing
capital markets. The ECAs stepped up their presence 787-9 aircraft deliveries to Canada’s
One milestone in 2021 was Emirates for other commercial aircraft products Westjet Airlines. Panama’s Copa
Airline financing its final Airbus A380 in 2021. Airlines received a $324.5 million loan
deliveries in the ECA market. Brazilian carrier Azul Linhas Aereas guarantee for the financing of several
Emirates completed its A380 Brasileiras turned to the ECA market 737 Max 8 deliveries.
financing programme on 16 December for the financing of three ATR72-600 Ex-Im also approved two tranches of
with the last aircraft of that type deliveries in the final days of December $389.8 million and $442.7 million in loan
to be built by Airbus. The delivery through financing backed by export guarantees for 787-9, 737 Max 8 and
was financed under an ECA-backed credit agencies. 737 Max 9 deliveries to Turkish Airlines.
financing with Bpifrance Assurance The Brazilian Development Bank Last year, 6% of Airbus deliveries
Export acting as lead and fronting approved more than $500 million in were supported by guarantees from
export credit agency for the transaction. export credit financing to support the ECAs. This was down from 10% of Airbus
UKEF and Euler-Hermes acted as export of 24 Embraer 175 deliveries to deliveries in 2020.
reinsurers in the transaction. Utah-headquartered Skywest Airlines Alternative sources of financing have
The French ECA supported the last August. grown over the past few years and have
financing of five A380 deliveries to Boeing Capital said export credit- become very competitive to both the
Emirates in 2021 and a total of eight backed financing plays a crucial role commercial debt market and the ECAs.
deliveries over the past two years for in shoring up confidence in times of This trend is expected to persist. But
the carrier. market dislocation. In 2021, the ECAs while customers continue to look for
Last year, also saw A350 deliveries supported about 9% of funding for diversity in financing sources, the ECAs
being financed under the European the industry and nearly 5% of Boeing provide an attractive alternative option.

Airfinance Journal Global Awards 2021
Airfinance Journal’s 2021 deals of the year awards

Airfinance Journal reveals the winners of our prestigious annual Awards, recognising the
most innovative deals, individuals and teams in aviation finance.
Africa-Middle East Deal of the Year: DAE Capital $1bn unsecured bond
Borrower/issuer: DAE Capital O n 15 June 2021, Dubai Aerospace
Enterprise (DAE) successfully issued
a $1 billion three-year Reg S/144A senior
The deal’s initial price thoughts (IPT)
was in the “T+175 bps area” for its
three-year USD benchmark issuance
Structure: Senior unsecured notes unsecured issuance at a coupon of 1.55%. at 6am UK time/9am UAE time on 15
Banks: Active bookrunners: BNP The issuance marked the lowest June, which marked a circa 20-25 basis
Paribas, Credit Agricole-CIB, coupon achieved by DAE in the capital points (bps) new issue concession. The
Emirates NBD Capital, JP Morgan markets. orderbook momentum throughout the
(B&D) and Truist Securities. Joint DAE’s planned transaction was re- European morning allowed the company
lead arrangers and bookrunners: announced to the market on 14 June and to revise IPTs to the “T+155bps area”
BNP Paribas, Credit Agricole-CIB, included contemplated tenors of three around 9:30am NY time/2:30pm UK
Emirates NBD Capital, Fifth Third and/or seven years in order to focus time with the intention for books to go
Securities, First Abu Dhabi Bank, investor feedback on these maturities. subject at 10am NY time.
Goldman Sachs International, HSBC, The targeted one-day virtual Orders showed resilience to the
JP Morgan (B&D), Mizuho Securities, roadshow saw participation from more tightening and continued to grow as
Morgan Stanley, Natixis and Truist than 50 investors across one-on-one/ books went subject, prompting the
Securities small group calls, with engagement from company to release final guidance of
some of the largest and most active “T+140-145bps (WPIR)” at 10:45am NY
Law firms: Allen & Overy and Clifford high-grade, real-money and emerging- time.
Chance market accounts globally. The continued growth in demand
Amount: $1 billion After gathering strong feedback allowed the company to launch a $1
from accounts across both tenors, the billion deal, increasing the size of the
Tenor: Three years company decided to proceed with a transaction from initial considerations
Date mandated: 7 June 2021 three-year maturity issuance to minimise of $750 million, and to set the spread
absolute cost of funding in light of the at T+140bps – 35bps tighter than IPTs,
Date closed: 22 June 2021 steepness of the UST curve and the which marks a new issue concession of
credit curve extension. (10)-(15)bps.
Asia-Pacific Deal of the Year: PAL’s pre-negotiated Chapter 11 cross-border restructuring
Borrower/issuer: Philippine Airlines

Structure: Chapter 11 plan
P hilippine Airlines (PAL) filed for
Chapter 11 on 3 September
2021 to implement a pre-negotiated
Adviser: Seabury Securities restructuring that it reached with all of
represented PAL as financial adviser its lenders, aircraft lessors, and aircraft
and investment banker and engine suppliers and maintenance
providers, as well as its majority
Assets: Aircraft and frequent-flyer shareholder.
programme
This was the first pre-negotiated
Law firms: Debevoise & Plimpton Chapter 11 by an airline and, at less than
represented PAL as Chapter 11 four months in total duration, it was
restructuring counsel. Norton Rose probably the fastest Chapter 11 in the to re-optimise the size and shape of its
Fulbright represented PAL as special history of the airline industry. business in order to compete effectively
aircraft restructuring counsel. Angara The PAL restructuring will produce in the post-pandemic marketplace.
Abello Concepcion Regala & Cruz about $4.5 billion in incremental Almost every single impaired creditor
law offices represented PAL as affirmatively supported the plan (far
liquidity, permanently reduce costs
Philippines counsel. Other law firms surpassing the two-thirds by value
by more than $2.75 billion, and allow
including Clifford Chance, Dentons,
the company to re-optimise the size required for confirmation) and not one
Dorsey & Whitney, Herbert Smith
Freehills, Holland & Knight, Hughes and shape of its business in order issue was contested or litigated in the
Hubbard, K&L Gates, Morris Nichols to compete effectively in the post- case.
Arsht & Tunnell, Perkins Coie, Sidley pandemic marketplace. It resulted in The PAL restructuring demonstrates
Austin, Vedder Price and White & more than $3 billion in improvements, that an airline Chapter 11 restructuring
Case represented various creditors including $1.8 billion in permanent can be accomplished in a pre-
aircraft lease savings, a $630 million negotiated fashion that avoids a “free-
Amount: About $6 billion
reduction in unsecured bank and other fall” Chapter 11 case that may take years
Date mandated: 13 September 2021 funded debt and undisclosed savings to complete and result in significant
Date closed: 17 December 2021 from original equipment manufacturer costs and negative impacts on the
modifications, and allowed the company business and values.
Europe Deal of the Year: Turkish Airlines US Ex-Im Bank

French Lease for nine 737 Max and three GEnx engines
Borrower/issuer: Turkish Airlines and
various SPCs
T he European Deal of the Year
Award established a new market
benchmark as the first US Ex-Im Bank
Structure: ECA-guaranteed French tax transaction structured by BNP Paribas
lease for Turkish Airlines since 2015.
The transaction was structured as
Banks: BNP Paribas as sole bookrunner,
French Lease financings in euros for
lease arranger and debt arranger,
the acquisition of nine new Boeing
lender of record of the entire facilities,
737 Max aircraft operated by Turkish
facility agent and foreign exchange
Airlines and three spare widebody
provider. Citibank, Bank of America and
engines. because it combined a French tax
Caixa acted as sub-participants
For each aircraft and the three lease and US Ex-Im Bank-guaranteed
Assets: Nine Boeing 737 Max and three engines, a term loan was provided financing ensuring optimal loan
GEnx 1B74/75 engines in euros to a French special purpose advance and pricing terms for the
Law firms: Norton Rose Fulbright as vehicle for the purchase of the related airline thanks to lease rebates payable
legal counsel to lessor, lessor parent, asset, which is leased to the airline throughout the lease term and
facility agent and guaranteed lenders. for a period coterminous with the comprehensive risk protection for the
Clyde & Co as legal counsel to lessee. loan. Lease payments are used to lenders.
Dikici Law as Turkish legal counsel to repay the debt. Payments of principal The financing amount consists of
lessee. Robert Wray as US legal counsel and interest under the loan are the euro equivalent of $54.5 million
to US Ex-Im Bank. Watson Farley & 100% guaranteed by the US Ex-Im covering three spare engines while
Williams as French legal counsel to US Bank. Each of the spare engines and the balance was aircraft related.
Ex-Im Bank two spare propulsors was initially During the Covid crisis, the size of
purchased by Turkish Airlines from transaction for three spare engines
ECAs: US Ex-Im Bank as guarantor General Electric Aviation. Turkish guaranteed financing was particularly
Amount: $400 million Airlines then refinanced the purchase large when spare engine financings
Tenor: Eight years price it paid for each spare engine were taken into consideration.
using the proceeds of a US Ex-Im The transaction also closed in a
Date mandated: 15 March 2021 Bank-guaranteed euro-denominated deteriorated market environment and
Date closed: 15 December 2021 loan from the lenders. after a pause of several months in the
The transaction was innovative deliveries from manufacturers.
Latin America Deal of the Year: Avianca $482m sale and

leaseback for 27 aircraft
Borrower/issuer: Avianca
Structure: Sale and leaseback
T his winning transaction was put
together on an extremely short
timeframe to facilitate Avianca’s
the SPVs to Castlelake and Fortress
Transportation and Infrastructure
Investors.
Adviser: Seabury Securities as exclusive planned exit from Chapter 11. The A330F transaction with Castlelake
financial adviser and arranger The Colombian carrier entered involved a simultaneous purchase
Assets: 27 aircraft, including A319s, umbrella agreements with Castlelake of four engines from Castlelake to
A320s, A321s and A330Fs for six Airbus A330-200Fs and replace four of Avianca’s engines
Lessors: Castlelake as purchaser and with Fortress Transportation and that needed overhaul. This allowed
lessor. Fortress Transportation and Infrastructure Investors for 14 A319s, Avianca to minimise cash otherwise
Infrastructure Investors as purchaser four A320s, two A321s and one A330- needed to restore the engines.
and lessor 300 aircraft. The lease plus an engine solution
Law firms: Smith Gambrell & Russell The transaction involved provided by Fortress Transportation
acted as Avianca’s deal counsel. a restructuring deal with the and Infrastructure Investors helped
Milbank acted as Avianca’s bankruptcy export credit agency (ECA) while Avianca transition out of an engine
counsel. Norton Rose Fulbright simultaneously pursuing a market type that it no longer wanted to
represented Castlelake. Clifford Chance alternative to pay off the ECAs. In operate long term but wanted to
represented Fortress Transportation and each case, the special purpose operate for six to 12 months.
Infrastructure Investors vehicle (SPV) purchased the aircraft Highly structured power-by-the-
Amount: $482 million with proceeds from a loan advanced hour arrangements on the passenger
Tenor: Six months to 10 years by ECA lenders and guaranteed by aircraft in the fleet allowed Avianca
Date mandated: 1 April 2021 European export credit agencies. to maximise cash proceeds and
Date closed: 3 December 2021 Under the transactions, Avianca operational flexibility as it managed
sold the beneficial interest in each of uncertain Covid demand.

North America Deal of the Year: United Airlines $4bn

bond issuance/$5bn term loan
Washington DC. Slots with about 70% of
Borrower/issuer: United Airlines the pledged international routes touch
Structure: Bond and term loan airports classified as slot constrained –
indicating the value of these assets.
Adviser: Goldman Sachs The transaction was part of United’s
planned $10.75 billion debt package
Law firm: Milbank
consisting of a revolver, loan and bonds.
Amount: $9 billion The credit facility includes a $1.75
billion revolving credit commitment that
Tenor: Six months to 10 years expires in 2025 and a term loan B due
Date mandated: 31 March 2021 in 2028.
At the time, the carrier had an existing
Date closed: 21 April 2021 credit facility consisting of a $1.4 billion
outstanding loan from March 2017 and a
W hile slots, gates and routes (SGR)

collateral is not unusual for airlines
to secure, the United Airlines transaction
$2 billion revolver backed by its Pacific
SGRs. United also had access to a total
of $7.5 billion ($520 million already
was unique in that it will be the first time drawn) in government loans under
that an airline pledged its entire SGR the CARES (coronavirus aid, relief and
portfolio into a single transaction. economic security) Act, secured by its
The collateral package included a remaining SGRs.
pledge of United’s entire international The transaction refinanced both the
network and all of United’s material existing credit facility and the CARES driving a collateral coverage ratio of
domestic SGR collateral including at Act outstanding loan. 2.3x, assuming a fully drawn revolver.
New York-JFK and New York-LaGuardia The collateral package was valued at The two-series notes offering are due
airports and Ronald Reagan National in $25.5 billion by independent appraisers, in 2026 and 2029.
Bank loan Deal of the Year: Easyjet $1.87bn secured loan

Borrower/issuer: Easyjet
Structure: Senior secured debt
E asyjet’s $1.87 billion secured loan
supported by a guarantee from UK
Export Finance achieved a double first:
refinance in the first quarter of 2021 the
existing $500 million fully drawn revolving
credit facility and the two outstanding
facility Easyjet was the first carrier to secure a term loans amounting to £400 million and
Banks: Citibank, Banco Santander, loan through the UK Export Finance’s due to mature in 2022, and further boost
BNP Paribas and Societe Generale Export Development Guarantee (EDG) liquidity required for general corporate
as coordinating mandated lead scheme, and the transaction also needs. As such, the facility has become
arrangers and bookrunners. Bank marked the first secured EDG facility to Easyjet’s new central flagship and core
of America, Bank of China, Barclays reach financial close. relationship bank facility.
Bank, Sumitomo Mitsui Banking Valued at $1.87 billion, the financing In spite of its very significant size, the
Corporation, Morgan Stanley and was underwritten by a syndicate of transaction was vastly oversubscribed,
Lloyds Bank as mandated lead 10 banks. The term of the loan is for a demonstrating lenders’ continued
arrangers period of five years and allows Easyjet willingness to support core clients and
to refinance existing commercial debt confidence that Easyjet has the ability
ECA: Export Credits Guarantee
and further boost liquidity. The loan was to emerge from the Covid-19 crisis as
Department (operating as UK Export
secured against a portion of its existing one of the industry winners. It also
Finance)
fleet of Airbus A320 aircraft. demonstrates the attractive nature of
Assets: A pool of Airbus A320 The purpose of the facility was to the EDG product.
aircraft
Law firms: Herbert Smith Freehills
acted as counsel to Easyjet. Allen
& Overy represented the UK Export
Finance and the lenders
Amount: $1.87 billion
Tenor: Five years
Date mandated: 1 January 2021
Date closed: 11 January 2021
Guaranteed Financing Deal of the Year: Crianza Aviation $425m

AFIC-supported and Balthazar-guaranteed loans for three aircraft
Borrower/issuer: Three special

purpose companies organised by
T his winning deal had many firsts:
first Aircraft Finance Insurance
Consortium (AFIC)-supported sale
Crianza and leaseback on a limited recourse
Structure: Limited recourse financing basis; first AFIC-supported financing
of each aircraft of a Boeing 787-10 aircraft; first AFIC-
Assets: Two Boeing 787-10 aircraft supported financing with a balloon for
and one Airbus A350-900 which the AFIC insurers recourse was
only to the aircraft and the end of lease
Banks: Natixis and Apple Bank as
maintenance adjustment payments;
senior lenders for the two 787-10
first Balthazar-supported transaction
aircraft; KfW-IPEX as senior lender for through Crianza Aviation.
for a lessor; first Balthazar-supported
the A350-900 aircraft. Cerritos and More than $450 million of total
operating lease financing; and first
other Korean financial institutions
Balthazar supported sale and leaseback financing (senior debt, mezzanine debt
as mezzanine lenders for the three
financing with a balloon. and equity) was in connection with the
aircraft
The transaction also marked the financing of the three widebodies under
Law firms: Milbank (London) counsel first AFIC-supported and Balthazar- sale and leasebacks.
to the AFIC Insurers, Jaffa & Co (UK) guaranteed financing for Singapore The transaction also marked the
counsel to Crianza, HSF (Singapore), Airlines, the first AFIC-supported and reopening of the Korean market for
counsel to the senior lenders for the Balthazar-guaranteed financing with operating lease financings after an
Boeing aircraft, Norton Rose (Paris) Eastmerchant Capital and the first AFIC- 18-month hiatus.
counsel to the senior lender for the supported and Balthazar-guaranteed As the AFIC- and Balthazar-
Airbus aircraft, Clifford Chance (Asia financing with Crianza and Korean supported transactions were each
Practice), Norton Rose (Singapore), based on separate sets of financing
investors.
Yulchon, Lee & Ko, Rajah & Tann, documents, broadly based on the
The base transaction was the
Walkers and Matheson (Ireland) different philosophies of Ex-Im Bank and
purchase and leaseback of three
Insurance support/guarantee: widebody aircraft consisting of two 787- the European export credit agencies,
Aircraft Finance Insurance 10s and a single Airbus A350-900 from respectively, there were two groups
Consortium and Marsh SAS Singapore Airlines, which was closed as of lenders/insurance consortiums with
(Balthazar) one package on the same day. their respective counsels (four law firms),
Adviser: Eastmerchant Capital as The deal was funded by a multilayered which had to agree on identical lease
overall arranger of the transaction financing structure, including senior terms and also intercreditor terms with
Amount: Over $425 million supported financing provided by both the mezzanine lenders and Crianza.
Natixis and Apple Bank and backed by Essentially, this resulted in managing two
Tenor: 13 years with a balloon individual operating lease financings in
AFIC, KfW and Balthazar. Mezzanine
Date mandated: 18 February 2021 financing was sourced in South Korea parallel, which proved to be a significant
Date closed: 15 April 2021 from institutional investors and equity task when targeting a single closing date,
funds were also sourced in South Korea as required by the airline.
Tax Lease Deal of the Year: SAS Jolco for one A350-900
Borrower/issuer: SAS T his winning deal was the very
first Piiq’s insurance-supported
financing. The transaction was a
System under a Jolco leasing structure.
The IFLI product allows banks and
capital market investors the protection
Structure: IFLI-supported Jolco market first refinancing of a Japanese of an insurance-backed aviation finance
financing operating lease with call option (Jolco) product when financing new aircraft
on a 2020-vintage Airbus A350-900 or refinancing aircraft already owned
Assets: One Airbus A350-900 operated by SAS. by airlines or lessors and is a market
Allen & Overy advised the insurers first because it is the first time that an
Bank: Credit Agricole-CIB and IFLI on the very first IFLI transaction insurance-backed product of this nature
– drafting all the documentation and has supported the refinancing of an
Law firm: Allen & Overy acted for
creating the product that competes aircraft already in operation. This further
IFLI and the insurers
with export credit agency-supported development of the insurance-backed
Amount: $139 million financings and commercial financing Jolco market enables Japanese financial
and other credit insurance-supported institutions to access IFLI through
Date mandated: 1 March 2021 transactions. Japanese insurers, and customers
The debt was provided by Credit simultaneously to access the Japanese
Date closed: 30 March 2021 Agricole-CIB and is for one A350 equity market and the credit insurance
operated by Scandinavian Airlines markets.

Sale and Leaseback/Operating Lease Deal of the Year:

Aeromexico operating lease for 12 737 Max 8 aircraft
lessors under the Chapter 11 bankruptcy its first direct 737 Max purchase with
Borrower/issuer: Aeromexico protection. Aeromexico petitioned for Boeing.
Structure: Operating lease Chapter 11 in June 2020 and emerged The lessor has supported the Max
from its restructuring process as a programme through sale and leaseback
Assets: Twelve Boeing 737 Max 8
reorganised airline valued at $2.56 transactions, notably with American
aircraft billion in March this year. Airlines and Brazilian carrier Gol.
Lessor: Dubai Aerospace It will invest $5 billion over the next In January this year, Dubai
Enterprise five years to improve its fleet after Aerospace Enterprise announced
receiving 31 aircraft in 2021, and a it had successfully completed the
Date closed: 1 September 2021 further 22 units will deliver this year. placement of its 14-aircraft orderbook,
Aeromexico operates a mix of 737 Max allocating the remaining two new units
D ubai Aerospace Enterprise signed

lease agreements for 12 Boeing 737
Max 8 aircraft just months after having
8, 9, -700, -800, 787 and Embraer 190
units.
In March 2021, Middle East-based
to Icelandair. Deliveries commenced
in October 2021 and all aircraft are
scheduled be to be delivered before the
placed a speculative order for 14 such Dubai Aerospace Enterprise placed end of the first half of 2022.
aircraft with the manufacturer.
The deal is significant because of
the size of the transaction, especially
because the aircraft type had only just
been recertified.
In April 2021, Aeromexico reduced its
737 Max orderbook to 24 aircraft from
more than 50 units previously as part
of its $2 billion restructuring agreement
with manufacturers, suppliers and
Structured Lease Deal of the Year: Turkish Airlines Italian lease

combined with ACG guarantee for three A321neo aircraft
Borrower/issuer: Turkish Airlines A viation Capital Group (ACG)
provided delivery financing for an
Airbus A350-900 and three A321neos to
Andrew Falk, managing director of
ACG, said the fact that the lessor was
able to respond to address Turkish
Structure: Cross-border financing
lease Turkish Airlines (THY) under its Aircraft Airlines’ needs as both a direct lender
Financing Solutions (AFS) programme and a loan guarantor demonstrated
Assets: Three Airbus A321neo last year. the “flexibility of the AFS programme
aircraft The California-based lessor partnered and our ability to utilise a multitude
with Societe Generale to provide an of financing structures to address our
Banks: Societe Generale as
ACG guarantee for the secured loan clients’ requirements”.
arranger and facility agent, UMB
component of an Italian lease structure Societe Generale’s managing director
Bank as security trustee for three A321neo aircraft. and head of aviation finance for EMEA,
Guarantor: Aviation Capital Group This deal marked the first time Laurent Floquet, said both Turkish
an Italian Lease was combined with Airlines and ACG are “key clients of SG’s
Law firms: Norton Rose Fulbright an ACG guarantee. The successful global aviation finance franchise”.
acted as counsel to lender, Dikici combination provided Turkish Airlines
Law Office as local counsel to with an innovative solution at a
borrower, Matheson as local competitive overall cost of financing.
counsel, Clyde & Co as counsel to Documentation and initial delivery have
Turkish Airlines, Smith Gambrell been achieved in a very tight timeline
& Russell as counsel to guarantor despite the continuing negative impacts
and security trustee of the Covid-19 crisis and the global
lockdowns.
Amount: $150 million
Turkish Airlines’ senior vice-president
Tenor: 12 years finance, Ayşegül Denli, said the airline
obtained a competitive overall cost of
Date mandated: 11 March 2021 financing with a “solid commitment”
Date closed: 14 June 2021 from lenders during a challenging time
for the industry.
Used Aircraft Deal of the Year: SAS $18m portfolio

financing for four aircraft
Borrower/issuer: SAS
Structure: Full recourse secured portfolio
T his deal was innovative
because it involved upsizing
and extending financing for four
of the advance against this A321
portfolio to be held in a security
deposit pledged against another
financing 2001/02-vintage Airbus A321s two A320s the bank had previously
Assets: Four Airbus A321 aircraft helping a key client for the MUFG financed for SAS – to help improve
Bank: MUFG as mandated lead arranger, Bank to manage its cash flow in the loan-to-value profile on the
agent, security trustee and account bank a dynamic period in the industry overall portfolio.
with Covid-19 headwinds in full During this period, aviation
Law firms: Dentons acted for MUFG. pressure. finance banks were generally
Watson Farley was SAS legal counsel The term sheet for the deal was on pause, in terms of lending –
Amount: $18 million agreed early in 2021, swiftly moving especially on used and/or old
Tenor: 18 months to documentation for closing at aircraft but MUFG stepped up and
Date closed: 31 March 2021 the end of March. The additional provided an adequate solution for
structuring element had $2 million SAS, being a key client.
New Fund/Alternative Financing Platform of the

Year: Castlelake $2.6bn inaugural capitalisation
Borrower/issuer: Castlelake Aviation T his winning deal transaction was
a means of raising the initial
capitalisation of Castlelake Aviation
binding purchase agreement as of
the closing date) with an estimated
book value of $2.4 billion,
Structure: Senior secured RCF, term loan
B; high yield bond and senior secured term Limited, a newly established weighted average age of 5.7
loan corporate-rated entity, which is years, remaining lease term of 10.3
owned and operated by Castlelake. years and 72% narrowbody/28%
Assets: Portfolio of 71 aircraft and secured
aviation loans To achieve this, it closed widebody split.
on the following transactions: The landmark and innovative
Banks: High-yield unsecured bond: Morgan revolving credit facility, term transaction encompassed
Stanley as lead-left bookrunner and arranger;
loan B, unsecured bond and the corporate formation and
Citigroup, Barclays, BNP Paribas, Goldman
Air Asia term loan amendment. capitalisation of Castlelake Aviation
Sachs, MUFG and RBC Capital Markets as
joint bookrunning managers; Fifth Third The transactions were part of and involved inaugural ratings
Securities and Natixis as co-managers. the larger strategic initiative by opinions issued by Moody’s, S&P,
Term loan B: Morgan Stanley as lead-left Castlelake to establish Castlelake Fitch and Kroll.
bookrunner and arranger; Citigroup, BNP Aviation Limited. They also serve The formation of Castlelake
Paribas, MUFG, Goldman Sachs, RBC Capital as a marker of Castlelake’s Aviation builds on Castlelake’s
Markets and Barclays as joint lead arrangers graduation to unsecured financing. history of innovation in
and joint bookrunners; Fifth Third Bank and Castlelake Aviation obtained a aviation finance and follows its
Natixis as co-arrangers. Secured revolver: corporate rating on the successful establishment of an aviation
Citigroup as sole structuring agent and global consummation of these debut lending business in late 2020 and
coordinator; Citigroup and Morgan Stanley as transactions and acquisitions. its reopening of the aircraft ABS
mandated joint lead arranger In the past, Castlelake market in January 2021.
Law firms: Milbank acted as counsel to has utilised limited recourse The transaction marked
Castlelake Aviation Limited, its subsidiaries, warehouse facilities in three of Castlelake’s first issuance in the
Castlelake LP and its affiliates. Cahill Gordon five transactions in conjunction term loan and unsecured bond
and Clifford Chance were counsel to with the asset-backed securities markets.
investors and lenders. Walkers was counsel (ABS) market to finance its aircraft. This innovative transaction
to the issuer with respect to Cayman law, Moving forward, Castlelake required the simultaneous
A&L Goodbody counsel to the issuer with Aviation is expected to streamline execution of the issuance and
respect to Irish law, Morris James counsel to
Castlelake’s capital-raising regime funding of $420 million of high-
the issuer with respect to Delaware law
and become a primary vehicle yield bonds, the funding of a
Amount: RCF: $750 million (with $250 for bond issuances and other $1.2 billion term loan B facility,
million accordion). TLB: $1.2 billion. recourse financing activities, with the transfer of about 70 aircraft
Unsecured bond: $450 million. Air Asia TL the ultimate goal of tapping the and aircraft-secured loans with a
amendment: $246 million
investment-grade capital markets. value of about $2.4 billion and the
Date mandated: 7 July 2021 The portfolio included 71 execution of a secured revolving
Date closed: 22 October 2021 aircraft and secured aviation credit facility to fuel future growth
loans (including two aircraft under initiatives.

Cargo Deal of the Year: KKR/Altavair $300m four

A330-200 conversions and leases
will be made through aircraft leasing given the growing demand for cargo
Borrower/issuer: KKR/Altavair investment platform Altitude Aircraft operations, was an accretive way of
Structure: Operating lease Leasing, which was established by KKR’s extending the life of the A330-200,
credit and infrastructure funds in 2018 to while also upgrading the cargo fleet
Bank: BNP Paribas acquire aircraft serviced by Altavair. of customers. Given the fleet under
Following the transaction with Etihad management by Altavair, direct support
Assets: Four Airbus A330-200
Airways, Altavair was positioning and on engines for the lessees was
aircraft
preparing for the increase in demand structured into the transaction.
Servicer: Altavair for converted A330 freighters to replace The transaction also marked Altavair’s
older-generation aircraft. The Covid-19 first A330 conversions, creating
Amount: $300 million pandemic and surge in cargo demand momentum behind its longer-term
Date mandated: 15 April 2021 accelerated these plans. cargo conversion plans for the A330
Converting the aircraft into a freighter, programme.
Date closed: 16 June 2021
T his deal was special because it

represented the first converted
current-generation freighters operated
by the respective customers – Mas Air
in Mexico, which leased two Airbus
A330-200s, and Hongyuan in China
with two units.
KKR and Altavair Airfinance agreed
to purchase 38 A330 and Boeing 777
widebody aircraft from Etihad Airways
in early 2020. The $1 billion acquisition
Equity Deal of the Year: Cebu Air $840m capital raising

and liabilities reprofiling
Borrower/issuer: Cebu Air Pacific T his landmark comprehensive
transaction allowed Cebu Air Pacific
to address the impact of Covid-19 with
fund specialising in the aviation
sector. The convertible bonds leg of
the transaction was executed as an
Structure: Capital raising through the issuance of three tranches of capital M&A transaction with the financial
three instruments raising totalling $840 million and a advisers providing sell-side M&A
liabilities reprofiling exercise resulting in advisory services to Cebu;
Banks: BNP Paribas and BPI Capital
two new prestigious international equity • PHP12.5 billion ($260 million)
acted as joint financial advisers
investors coming on board. convertible preferred shares
Law firms: Latham & Watkins and Cebu’s comprehensive process issuance, under the form of a rights
Romulo Mabanta Buenaventura involved an operational transformation issue, fully underwritten by key
Sayoc & de los Angeles acted plan to reposition the business for the shareholder, CPAir Holdings (a JG
as Cebu’s international and local new normal; a renegotiation of existing Summit company), but eventually well
legal counsel, respectively, for debt and lease terms to improve its cash subscribed by the market; and
the convertible bonds, sale and runway; and a capital-raising exercise • PHP16 billion syndicated term
convertible preferred shares fully supported by its parent, JG Summit, loan facility provided by a group
issuance. Picazo Buyco Tan Fider domestic institutions and international of Philippine government financial
& Santos acted as lenders’ counsel investors. institutions and private sector
for the syndicated term loan facility. The funding reached about 1.5x commercial banks.
Clifford Chance acted as the legal of Cebu’s market capitalisation and
counsel for the convertible bond involved: The transaction had full support from
investors • $250 million convertible bonds sale existing and new creditors: successful
to International Finance Corporation, liability management, with existing
Amount: $840 million the International Finance Corporation banks and aircraft lessors; and a new
Emerging Asia Fund and Indigo large 10-year unsecured facility from
Date closed: 18 May 2021 Philippines, an affiliate of Indigo government-linked financial institutions
Partners, a US-based private equity and private sector commercial banks.
M&A Deal of the Year: Aercap/GECAS $34bn merger

Borrower/issuer: Aercap
Structure: Aercap acquired 100% of
T his mega-merger transaction had
everything: size, financing, involving
the two largest leasing companies
of GE Capital Aviation Services for 111.5
million shares, $23 billion cash and $1
billion Aercap notes; $21 billion senior
GE Capital Aviation Services for 111.5 bringing the balance sheet in at $76 unsecured notes; $2 billion senior
million shares, $23 billion cash and billion. It also marked Aercap’s second secured term loan B.
$1 billion Aercap notes; $21 billion large M&A transaction in seven years, Goldman Sachs served as joint lead
senior unsecured notes; $2 billion after the ILFC transaction in 2014. arranger and bookrunner on a $24
senior secured term loan B Aercap acquired $34 billion of assets, billion bridge facility to Aercap and
including the GECAS engine leasing and provided 50% of the total commitment,
Banks: Financial adviser to General Milestone helicopter leasing businesses, which is the joint-largest industrials
Electric: Goldman Sachs; joint lead transferred to Aercap, together with bridge commitment ever, the largest
arranger and structuring agent: more than 400 employees. As part of M&A transaction in 2021, the largest
Goldman Sachs and Citibank the deal, GECAS acquired an equity aviation/aircraft leasing M&A transaction
Law firms: A&L Goodbody acted stake in the combined Aercap entity. and the largest investment-grade bridge
as Irish counsel in connection with The deal saw Aercap acquiring 100% since the Covid pandemic.
the transaction. Paul, Weiss, Rifkind,
Wharton & Garrison advised General
Electric. Clifford Chance was asset
counsel advising General Electric.
Cravath, Swaine & Moore acted as
counsel advising Aercap. NautaDutilh
was Netherlands counsel advising
Aercap. McCann Fitzgerald was Irish
counsel advising Aercap
Date mandated: 29 January 2021
Date closed: 5 November 2021
Airline Restructuring Deal of the Year: Avianca restructuring

first to emerge from Chapter 11. operating lease with call options, private
Borrower/issuer: Avianca Holdings The transaction saw a restructuring of placements, bank loans, export credit
about $5 billion of liabilities, including agency-supported financings) into
Structure: Chapter 11 restructuring more than 150 aircraft financings and 100% operating leased fleet. Avianca
leases. also transformed its network and cost
Assets: Frequent-flyer programme It raised $2 billion in debtor-in- structure to compete with low-cost
(LifeMiles), aircraft assets, cargo possession financing, which was carriers in the region.
business, intellectual property refinanced during the case with This restructuring was impressive
$1.6 billion exit debt financing plus given the scope and nature of the fleet
Adviser: Seabury Securities, conversion of subordinated debt to restructuring achieved – more than
investment banker and financial equity and additional equity capital 150 aircraft restructured and aircraft-
adviser raise. related liabilities reduced by $2 billion.
The deal restructured multiple Avianca emerged after only 18 months
Law firms: Milbank acted as debtors’
aircraft financing structures (Japanese in Chapter 11 bankruptcy.
counsel, and Smith Gambrell &
Russell as debtors’ aviation counsel
Tenor: Seven-year exit debt package
Amount: $3.2 billion
Date mandated: 1 May 2021
Date closed: 1 December 2021
T his transaction represented the

first of the big three Latin American
Airlines to file Chapter 11 after the Covid-
related government shutdowns and the

Lessor Unsecured Bond Deal of the Year: Aercap/GECAS

merger $21bn unsecured notes
Bankers involved say there was more
Borrower/issuer: Aercap
than $70 billion in demand for the $21
Structure: Multi-tranche bonds with billion bond issuance.
different tenors, floating-rate senior The weighted average coupon was
notes 2.6% for a 7.3-year average term.
Aercap priced the offering of
Banks: Citigroup Global Markets and senior notes as follows: $1.75 billion in
Goldman Sachs acted as joint global aggregate principal amount due 2023 at
coordinators and joint bookrunning 1.15%; $3.25 billion due 2024 at 1.65%;
managers for the underwritten public $1 billion due 2024 at 1.75%; $3.75
offering. BofA Securities, Barclays, billion due 2026 at 2.45%; $3.75 billion
Credit Agricole-CIB, Deutsche Bank due 2028 at 3%; $4 billion due 2032
Securities, JP Morgan, Mizuho at 3.3%; $1.5 billion due 2033 at 3.40%;
Securities, Morgan Stanley, RBC and $1.5 billion due 2041 at 3.85%.
Capital Markets, Santander, BNP It also issued $500 million of floating-
Paribas, Credit Suisse, HSBC. TD rate senior notes due 2023.
Securities, Truist Securities, Wells The notes are fully and
Fargo Securities, MUFG, Societe unconditionally guaranteed on a senior
Generale and Fifth Third Securities unsecured basis by the company and number five BBB-rated deal of all time
were joint book-running managers certain other subsidiaries. and the number one aircraft lessor deal
Amount: $21 billion This transaction had significant with the longest tenor.
milestones: joint number one low-BBB/ On 1 November 2021, Aercap
BBB- issuance of all time, the ninth-best announced it had completed its
Investors flocked to the largest bond
in aviation history, issued by Aercap to
help finance its purchase of GE Capital
investment grade deal of all time, the
seventh-best M&A-linked investment-
acquisition of the GECAS business
from General Electric after receiving all
Aviation Services. grade bond offering of all time, the required regulatory approvals.
Airline Bond Deal of the Year/Overall Capital Markets Deal

of the Year: Hawaiian Airlines $1.2bn secured notes
Borrower/issuer: Hawaiian Airlines
Inc, Hawaiian Brand Intellectual
H awaiian Airlines issued the notes via
two newly formed special purpose
vehicles: Hawaiian Brand Intellectual
used the proceeds to repay federal
loans received under the Coronavirus
Aid Relief and Economic Security Act
Property, Hawaiian Miles Loyalty Property and Hawaiian Miles Loyalty. and to enhance its liquidity position
These special purpose vehicles are further.
Structure: Senior secured notes at wholly owned subsidiaries of Hawaiian
5.75% Airlines’ parent, Hawaiian Holdings.
This transaction was significant
Assets: Frequent-flyer programme because the loyalty programme
(LifeMiles), aircraft assets, cargo financing was an inaugural financing of
business, intellectual property this stature for the US carrier.
This transaction is also significant
Banks: Barclays, Goldman Sachs,
because the final $1.2 billion principal
BNP Paribas, Citigroup and Morgan
amount issued was an increase of $400
Stanley acted as bookrunners of the
million over the original $800 million
offering
principal amount.
Hawaiian secured the debt for this
Law firm: Milbank, Hughes Hubbard
transaction with a first-priority lien
& Reed acted as counsel for
on the core assets of the company’s
Hawaiian Airlines
Hawaiian Miles loyalty programme,
Tenor: Five years including the intellectual property
necessary to operate the programme,
Amount: $1.2 billion and all of the airline’s other brand
intellectual property.
Date closed: 4 February 2021 Finally, this was a significant
transaction for Hawaiian because it
ABS Deal of the Year: SALT 2021-1 $893m for 156 aircraft
Borrower/issuer: SALT 2021-1 Trust.
Affiliate of Bellinger Aviation Pte and SP
T he asset-backed securities (ABS)
winning deal was one of the
largest aviation-related transactions
The portfolio comprised of
116 loans across 26 facilities and
included a diversified base of strong
Novo Holdings I
in 2021 and was structured through borrowers and lessees, a complex
Structure: Asset-backed securities four classes of notes with high loan- structure to accommodate loans
Assets: Loans secured by 156 aircraft to-values. Stonepeak Infrastructure with borrowers from a broad number
Banks: Goldman Sachs & Co, Deutsche Partners achieved 92% loan-to-value of jurisdictions and a large array of
Bank Securities acted as arrangers. through Class D, with 84% loan-to- financing structures. The underlying
Citigroup and Mizuho Securities were value through the three IG-rated credit counterparties in the portfolio
the bookrunners in the transaction. tranches. include top-tier leasing companies and
Natixis acted as liquidity facility provider. It was also the first broadly airlines.
UMB Bank, National Association as syndicated aviation loan securitisation The transaction represented the
trustee and security trustee which combined bondholder successful refinancing of the first
Law firms: A&L Goodbody acted as Irish protections and covenants utilised by joint investment made by Stonepeak
counsel for the lenders. Allen & Overy both aircraft ABS and collateralised and Bellinger since the launch of
was UK counsel to Stonepeak. Milbank loan obligation (CLO) frameworks, the firms’ diversified, independent
was US counsel to the lenders, counsel and asset class expertise of aviation investment platform in May
to the initial purchasers. Allen & Overy alternative investment firm Stonepeak 2021.
was counsel to the sponsor and issuer. Infrastructure Partners and investment The firms said the transaction
Baker Botts acted as counsel to the management firm Bellinger Asset utilised a traditional aircraft ABS
managing agent. Smith Gambrell was Management. structure and rating methodology
counsel to the trustee SALT 2021-1 Trust issued $893.48 but adopted CLO technology to offer
Amount: $893.47 million million of notes backed by loans investors enhanced structural features
Date mandated: 16 September 2021 secured by 156 aircraft operated by and protections.
Date closed: 29 October 2021 45 airline operators located in 29 The offering was more than three
jurisdictions. times oversubscribed.
Sustainability Financing Deal of the Year: British Airways

$553m EETC for seven aircraft
Borrower/issuer: British Airways B ritish Airways issued a market-first
sustainability-linked enhanced
equipment trust certificates (EETC)
of 8.1% in this metric versus 2019
levels.
NBB acted as Japanese operating
Structure: Sustainability-linked
Japanese operating lease with call transaction for seven aircraft in June lease with call option equity arranger.
option and combined enhanced 2021. The EETC encompassed three
equipment trust certificates This transaction was the first EETC classes of aircraft: Airbus A320neos,
to use a sustainability-linked structure. A350-1000s and Boeing 787-10s.
Assets: Three Airbus A320neo, one
The equipment notes are subject to a It pegs the aggregate market
A350-1000 and three Boeing 787-10
key performance indicator in respect value of the seven aircraft at about
aircraft
of the flight fuel efficiency of British $742 million at the issuance date,
Banks: Citigroup acted as the Airways and its subsidiaries measured depreciating to $576 million in June
structuring lead in the transaction. by the average grammes of gross 2026, $443 million in June 2030 and
Bank of America Merrill Lynch, Credit carbon dioxide emitted per equivalent about $292 million six months before
Agricole-CIB, Credit Suisse, Mitsubishi passenger per kilometre (gCO2/ the final scheduled payment in March
UFJ Financial and SMBC Nikko Capital pkm) of flights during 2025. This was 2035.
Markets acted as joint bookrunners of a highly structured multi-tranche, The transaction was more than six
the transaction. A liquidity facility was multi-aircraft type transaction, which times oversubscribed, with a $461.42
provided by Credit Agricole-CIB, SMBC required considerable innovation to million senior tranche attracting $2.9
acted as depositary and Wilmington launch in Covid times. billion in bookings from investors.
Trust Company was the security trustee Moody’s noted the EETC transaction Initial price talk started at about 3.25%.
and pass through trustee features a sustainability mechanism The tranche priced at a 2.9% coupon.
Law firms: Allen & Overy advised British whereby if the average carbon The spread was treasury to 182 basis
Airways. Vedder Price advised the initial emissions per passenger kilometre points.
purchasers emitted by BA is not below a specified The $92.19 million B tranche
level for the financial year ending 31 attracted $450 million in bookings
Amount: $553.61 million
December 2025, interest rates on the from investors. Initial price talk started
Date mandated: 28 June 2021 certificates will increase by 25 basis at 4.125% area. The tranche priced at
Date closed: 20 July 2021 points. 3.9% coupon. The spread was treasury
The target contemplates a reduction to 310 basis points.

Environmental/ESG Leadership Deal of the Year: Air France

$111m A350-900 Balthazar-backed sustainability-linked
senior secured loan
sustainability performance targets (SPT), expertise of Societe Generale’s ESG
Borrower/issuer: Air France in respect of sustainability-linked key specialist team was key in assessing
Structure: Sustainability-linked performance indicators (KPI), are met. such ambition. The transaction is the
aircraft secured term loan The terms of the financing are first long-term sustainability-linked
linked to Air France achieving certain financing in the aviation industry, which
Assets: One Airbus A350-900 sustainability-linked performance reflects and confirms the long-term
targets. commitment of Air France to reduce its
Bank: Societe Generale acted
The KPIs selected for the transaction environmental footprint.
as sole arranger, sustainability
are focusing on the proportion of new- The transaction is the second Airbus
structurer, lender and agent
generation and fuel-efficient aircraft in A350-900 aircraft financing arranged by
Law firms: Norton Rose Fulbright Air France’s fleet and the future usage Societe Generale for Air France in less
acted as Societe Generale’s legal of sustainable aviation fuel as part of Air than two years. It was also supported by
counsel, Stephenson Harwood as Air France Group’s daily operations. a Balthazar non-payment insurance policy
France’s counsel and Clifford Chance The SPTs for each KPI were set at provided by a consortium of leading
as Balthazar Insurers’ counsel levels that reflect the ambition of Air private insurance companies through
France’s environmental strategy. The insurance broker Marsh France.
Guarantor: Balthazar structure
Tenor: 12 years
Amount: $111 million
Date mandated: 10 June 2021
Date closed: 17 December 2021
T his was the first sustainability-

linked aircraft secured term loan
transaction closed for an airline.
It supports Air France in its strategy
to implement a very ambitious
environment-linked strategy by
incorporating a margin adjustment
mechanism if mutually agreed
Best ESG Initiative of the Year: Aviation Working

Group’s Carbon Calculator (ACC)
W atson Farley & Williams (WFW)
advised the Aviation Working
Group (AWG) on the implementation
assumptions and methodology,
ensuring that it is both accurate and
directly comparable. All data, graphs
of the AWG’s wider environmental,
social and governance initiative, on
which WFW is one of two legal advisers
and build of the AWG carbon calculator and certificates are exportable, alongside Clifford Chance. Innovation
(ACC), which launched on 31 March enabling ACC users to include them users of the AWG carbon calculator can
2021. for internal committee meetings, provide aircraft-specific operational
The ACC has been developed corporate reporting, investor inputs, to generate accurate, reliable
to provide accurate, reliable and presentations and offering documents, and consistent carbon dioxide emissions
consistent aircraft carbon dioxide and as evidence of compliance in data for aircraft and aircraft portfolios,
emissions data to aviation industry green financing. with the data presented visually through
participants. Using original equipment The AWG is a not-for-profit legal various tabular and graphical outputs.
manufacturer source data provided by entity whose members comprise Default inputs for annual hours and
Airbus, ATR, Boeing and Embraer, the major aviation manufacturers, leasing cycles are also available as an option
ACC will generate and compare carbon companies and financial institutions for users.
dioxide emissions data for aircraft and that contribute to the development The AWG carbon calculator will
aircraft portfolios. of policies, laws and regulations to make it easy for its users to generate
The source data is determined by facilitate advanced international aviation and compare accurate, reliable and
and provided for operational aircraft financing and leasing. consistent carbon dioxide emissions
models under consistent standards, The launch of the ACC forms part data for aircraft and aircraft portfolios.
News Event of the Year: RISE programme

A irfinance Journal’s news event
of the year is the launch of
RISE (Revolutionary Innovation for
engine that could be available by the
mid-2030s.
A demonstrator engine is scheduled
efficiency while delivering the same
speed and cabin experience as current
single-aisle aircraft.
Sustainable Engines), a bold technology to begin testing at GE and Safran The programme will also use hybrid
development programme targeting facilities around the middle of this electric capability to optimise engine
more than 20% lower fuel consumption decade and flight test soon after. efficiency while enabling electrification
and CO₂ emissions compared with The programme goals include of many aircraft systems.
today’s engines. reducing fuel consumption and CO₂ The launch deserves Airfinance
The RISE engines will be developed emissions by more than 20% compared Journal’s news event of year award
in jet fuel/sustainable aviation fuel (SAF) with today’s most efficient engines, as because it is a vital step towards the
and hydrogen burning versions. well as ensuring 100% compatibility ambitious 2050 goals for lowered
General Electric Aviation and Safran with alternative energy sources such as emissions for air transport, and no
will fully develop this concept in sustainable aviation fuels and hydrogen. doubt will alter the way the entire
their CFM joint venture. The move is Central to the programme is aviation sector from the airlines to the
impressive coming from CFM, which is propulsive efficiency for the engine, maintenance, repair and overall shops,
the largest engine original equipment including developing open fan to the lessors to the type of capital
manufacturer around, both in terms of architecture. This is a key enabler to and investors we attract to fund this
delivered engines (more than 30,000) achieving significantly improved fuel industry.
and engine deliveries (several thousand
CFM56 and LEAP engines a year).
The CFM RISE programme will
demonstrate and mature a range of
new, disruptive technologies for future
engines that could enter service by the
mid-2030s.
The companies also signed an
agreement extending the CFM
International 50/50 partnership to the
year 2050, declaring their intent to lead
the way for more sustainable aviation in
line with the industry’s commitment to
halve CO₂ emissions by 2050.
Technologies matured as part of
the RISE programme will serve as the
foundation for the next-generation CFM
Editor’s Deal of the Year: Delta Air Lines Jol for

eight A220-100s
Borrower/issuer: Delta Air Lines A BL Aviation was first to bring the
Airbus A220 to the Japanese
market. It proved a huge success
with leases negotiated with the major
US airline to make a more sellable Jol
product in Japan during the process.
Structure: Japanese operating lease because all of the aircraft were sold very The deal helped to support the airline
quickly. and the industry’s sustainability agenda,
Assets: Eight Airbus A220-100s The A220-100 was a more challenging with the engine efficiency of the A220
asset to present to the Nin’i Kumiai having significantly lower carbon
(NK) investors than the A220-300. The emissions compared with other airlines.
Law firms: Hughes Hubbard &
confidence of the equity investors in These Jols are fully funded by equity
Reed acted for the lessee. Holland
the airline to survive such difficult times investors as access to capital markets
& Knight and Vedder Price were
was a fundamental obstacle faced by was limited because of the Covid-19
counsel for the seller
ABL Aviation; however, the Japanese pandemic. Completed against the
operating lease (Jol) structure and the backdrop of growing airline demand
Lessor: ABL Aviation (Ireland) long-term reputation of the airline helped for newer, more fuel-efficient regional/
Limited. Bank of Utah as owner and to overcome these concerns. narrowbody aircraft, the transaction
trustee ABL Aviation closed the acquisition highlights the resilience of ABL Aviation
of eight A220 aircraft on lease to Delta because the deal closed during a period
Date closed: 13 January 2021 Air Lines. It managed the lease transfer of widespread economic uncertainty and
processes with sellers and NK transfers, turbulence for the aviation industry.

Innovative Deal of the Year: American Airlines $70m

cargo receivables securitisation
collateral is made up of a pool of cargo attractive terms, even during the height
Borrower/issuer: American Airlines
receivables from seven jurisdictions and of the pandemic.
Structure: Receivables securitisation denominated in US dollars, euros and The transaction was highly complex.
facility the British pound. It involved underlying collateral
Discussions regarding the from several jurisdictions, in several
Assets: Air cargo receivables facility began during the height currencies, and cleared through IATA
denominated in USD, GBP and EUR of the pandemic, when American CASS, IATA CNS, and directly through
from seven distinct jurisdictions Airlines and BNP Paribas engaged American Airlines.
Bank: BNP Paribas as administrative in dialogue surrounding the most Additionally, the seamless integration
agent effective strategies for working between the American Airlines treasury,
capital monetisation. BNP Paribas cargo, IT, and accounting teams
Law firms: Latham & Watkins acted and American Airlines selected cargo provided the flexibility necessary to
as borrower’s counsel. Mayer Brown receivables from American’s current calibrate the transaction to the variability
was lender’s counsel assets as a cost-efficient securitisation in the receivables base.
method. This position was validated The transaction’s complexity led to
Amount: $70 million
in both the pick-up of cargo volumes, the development of a robust legal and
Tenor: One year rates and balance of cargo receivables risk framework. Given the geographical
throughout 2021. breadth of the receivables, BNP Paribas,
Date closed: 15 January 2021 The transaction is unique in the American Airlines and counsel undertook
market as the only extant cargo significant due diligence to guaranty the
T he American Airlines cargo

receivable securitisation is a $70
million securitisation whose underlying
receivable securitisation and
demonstrates unique ways that
lenders can offer airlines credit on very
perfection of first lien security interest
and true sale of cargo receivables in all
included jurisdictions.
Aviation Person of the Year: Aengus Kelly, CEO Aercap

A irfinance Journal’s aviation person
of the year is Aengus Kelly, the
chief executive officer of Aercap.
GECAS for 46% of pro-forma Aercap,
while adding $25 billion in cash.
Crucially, GE owns stock allowing it to
Not many chief executive officers participate in synergies and scale that
can claim two mega acquisitions in the the pro-forma company will bring.
aircraft leasing industry, especially in Speaking to Airfinance Journal, Kelly
less than eight years, but Aercap’s Kelly said that, while there have been other
can. platforms for sale over the past two
After years of sales talks and denials, years, the GECAS strategy was similar to
General Electric (GE) finally secured an Aercap’s on the portfolio side.
exit from aviation leasing on 9 March Kelly says the principal integration
2021. tasks – the processes, the IT systems,
Kelly led Aercap in its $30 billion the structure and the people – will occur
acquisition of GECAS and doubled the during 2022.
size of the aircraft leasing company. Like in 2014, the market expects
This marked the second major some asset sale activity from the
M&A transaction for Aercap in eight GECAS portfolio. Post the ILFC
years. In 2013, Aercap agreed to buy transaction, Aercap sold $2 billion-
International Lease Finance Corp (ILFC) worth of assets versus $1 billion initially
from American International Group (AIG) anticipated.
for $5 billion. The purchase of ILFC’s He tells Airfinance Journal that there
fleet gave Aercap just under 1,400 are certain assets Aercap wants to
aircraft, still well shy of GECAS’s 1,750 combined company. New-technology dispose of, but also insists this is part
units at the time. aircraft are expected to make up 75% of of the lessor’s business of recycling
However, the acquisition of GECAS the aircraft fleet by 2024. capital.
has created the world’s largest aircraft Aercap became a sort of goldilocks Kelly has been Aercap’s executive
lessor. Aercap now has a portfolio of buyer with the “just right” exit strategy director and chief executive officer
more than 2,000 aircraft, over 900 for GE by checking three key boxes: since May 2011. Previously, he served as
engines and more than 300 helicopters, certainty, confidentiality and the ability chief executive officer of Aercap’s US
as well as an orderbook of about 450 to take back public stock. operations from January 2008 to May
aircraft. The aircraft fleet represents The transaction allowed GE to 2011 and was Aercap’s group treasurer
about 90% of the assets of the exchange 100% of its ownership in from 2005 through December 2007.
Overall Deal of the Year: American Airlines AAdvantage

loyalty programme financing
Borrower/issuer: American Airlines T he American Airlines AAdvantage
programme was valued between
$19.5 billion and $31.5 billion, as of 2020.
money had used their aircraft, engines,
or their rights to certain slots, gates and
routes as collateral, because they never
Structure: Bond issuance and term
American Airlines raised $10 billion in had to raise money against cash flows
loan
aggregate debt facilities split across $6.5 from frequent-flyer loyalty programmes. It
Assets: American Airlines billion senior secured notes due 2026 and was a challenge that created thorny legal
AAdvantage loyalty programme 2029 and $3.5 billion senior secured term questions. For example, what happens
loan due 2028 backed by the intellectual if the airlines file for bankruptcy? What
Banks: Goldman Sachs acted as property and cash flows associated with were the loyalty programmes worth?
sole structuring agent. Citibank and the airline’s customer loyalty programme, What were the claims that creditors
Barclays as joint lead arrangers and AAdvantage Financing. would have against the bankrupt estate?
bookrunners The proceeds were used to pay back In the case of American Airlines, the
federal loans that Congress had passed Milbank team also had to create a new
Law firm: Milbank acted as counsel to help the struggling airline industry, company that could make the financing
to Goldman Sachs, Barclays and the other debt or other uses. efficient. To satisfy creditors, Milbank
other underwriters and lenders American Airlines used cash needed to develop a bankruptcy-proof
flows from its frequent-flyer loyalty financing structure – meaning that
Amount: $10 billion
programmes as collateral. even in a bankruptcy, the noteholders
Tenor: Five and eight years for senior As counsel to the investment banks and lenders would be paid in full.
secured notes. Seven years for serving as lead underwriters for the The Milbank team did that in part by
secured term loan transactions, Milbank was tasked with adding a provision that would make it
creating a structure that had never been uneconomical for the airlines to walk
Date closed: 3 August 2021 implemented in the airline industry. away from their obligations to the
Historically, airlines looking to raise lenders.
Aviation Finance House of the Year: Societe Generale-CIB

S ociete Generale Corporate &
Investment Banking spearheaded
the aeronautical finance market in 2021,
firsts in 2021 – in particular, Societe
Generale-CIB was at the forefront
of the shift towards sustainability in
pandemic, with CDB Aviation’s $660
million 13-aircraft portfolio financing.
both in quantitative (number and volume deal-making and has been a pioneer in Societe Generale-CIB also confirmed
of financings) and qualitative (innovation introducing key features such as: its first-class global asset-backed
and structuring track-record) terms. securities (ABS) franchise and
Despite the severe downturn that the • first AFIC-guaranteed financing on placement capabilities, having been
industry has been facing since last year, a Japanese operating lease for FPG joint bookrunner in four aviation ABS
and the aviation bank sector remaining Amentum’s Boeing 737 Max on lease issuances in 2021 (SLAM 2021-1 for Sky
globally in wait-and-see mode, to Flydubai; Leasing, BBIRD 2021-1 for Air Lease
Societe Generale-CIB demonstrated • first Italian lease with Aviation Capital Corp, NAVTR 2021-1 for PIMCO/DAE
its seamless, unwavering, timely and Group’s AFS-cover for Turkish Airlines; and AASET2021-1 for Carlyle Aviation
reliable financing support to the industry • first aircraft-secured UKEF Export Partners) for a total of $2.7 billion
throughout 2021. Development Guarantee financing for issuances representing about a third of
Societe Generale-CIB’s active Easyjet; the market share.
involvement in the aviation sector last • first Balthazar sustainability-linked Like many banks, it had a large
year was $143 billion. term loan for an airline (Air France); presence in the capital markets, but
Beyond the only quantitative • first jumbo-sized lessor secured Societe Generale-CIB secured and
dimension (Societe Generale-CIB portfolio financing in the Asia- unsecured pure bank debt participation
having been the most active bank in Pacific region since the onset of the was more than $44 billion.
the sector in 2021 in terms of number,
volume, diversity, market share and
sophistication of transactions closed),
the bank also illustrated its capacity
to accommodate client needs with
innovative and tailor-made solutions and
this in the most challenging environment
ever known by the aviation industry.
The bank’s unique innovation
capabilities and structuring skills in the
field of asset finance counted many

WITH OUR CLIENTS

WE IMAGINE THE AVIATION
OF TOMORROW
Societe Generale is committed to supporting
the aviation industry and its decarbonisation.
Société Générale, S.A. with a share capital of €1,046,405,540 - 552,120,222 RCS PARIS - Registered office: 29, bd Haussmann,www.airfinancejournal.com
75009 PARIS. © Shutterstock / Getty – June65
2022.
Lifetime Achievement: Colm Barrington

C olm Barrington has spent a lifetime
in aviation in a career spanning six
decades.
In that period, he has demonstrated
unique innovation and leadership in
both the leasing and airline sectors.
After gaining a Master’s degree in
economics from University College
Dublin in 1968, he joined the economic
planning division of Aer Lingus where
he worked in route and fleet planning
and corporate affairs.
Barrington later moved to Aer
Lingus’s diversification division with
the specific objective of establishing
a foothold in the hotel sector. This led
to the acquisition of a New England-
based hotel company that subsequently
became Omni Hotels Corporation.
Following this acquisition, Barrington
moved to the US where, as vice-
president of development, he oversaw
the growth of the company from 3,000
rooms to more than 13,000 in a six-year
period.
This growth was based on a strategy after six months to establish his own the airline was returned to significant
of acquisition, equity syndication and aircraft lease management company, profitability.
management contracts that was to which he subsequently merged into In 2015, Barrington oversaw the
serve him well in his later career in the Babcock & Brown. merger of Aer Lingus into IAG, resolving
aircraft leasing sector. With Babcock & Brown, his principle what had become a dysfunctional
In 1989, Barrington returned to activities involved the development of shareholding structure that included
Ireland to join Guinness Peat Aviation, the initial Japanese operating lease Ryanair, the Irish government,
as executive vice-president. After a with call options (Jolcos) with Nomura employees and Etihad Airways, leaving
few years marketing aircraft leases, he Babcock and Brown and the marketing only 30% of its shares in a free float.
established GPA’s aircraft and lease of this product globally. He also took After the IAG transaction, he was
sales division. As chief executive officer on management of two ABS portfolios, appointed vice-chair of Finnair, where he
(CEO) of GPA Capital, and along with so expanding Babcock & Brown’s has recently completed his five-year term.
colleagues including Patrick Blaney, aircraft management activities beyond Barrington has competed successfully
Garry Burke, Brian Foley, Ed Hansom Japanese operating leases and Jolcos. in sailing throughout the world,
and the late Mike Dolan, he established When Babcock & Brown Air including winning major events in
a global market for the sale of leased (subsequently renamed Fly Leasing) the US, UK and Europe. He has won
aircraft as financial assets. was launched on the New York Stock the Round Island Yacht Race on two
In a five-year period between 1987 Exchange in 2007, Barrington took on occasions, setting a course record in
and 1992, GPA Capital arranged the the role of CEO, a position he held for 1998, which stood for 12 years. He also
sale of more than $5 billion of leased 14 years until Fly Leasing was sold, in won the UK’s prestigious Britannia Cup
aircraft to investors in more than 30 August last year. Following this sale, he on two occasions.
jurisdictions. stepped down from a full-time executive In 2015, he established the Irish
These innovations included the role and now serves as a senior Sailing Foundation for the purpose of
establishment of Solitaire Capital, ambassador to BBAM Aviation Services. raising philanthropic funding to support
the first public company dedicated In addition to his leasing roles, Irish high performance and Olympic
to owning leased aircraft, and ALPS Barrington returned to Aer Lingus in sailors. He is first vice-president of the
92-1 Limited, the first aircraft asset- 2009 as non-executive chairman at a Olympic Federation of Ireland.
backed security (ABS). GPA Capital also time when the airline was hemorrhaging Many of Barrington’s boats have been
specialised in other innovative financing cash, had a major deficit in its pension named on the theme of Velvet Glove,
arrangements, including double-dip and was facing aggressive takeover representing his management style of
leases involving the US, Japan and bids from Ryanair. After management “an iron fist in a velvet glove” – being
Hong Kong SAR. changes, cost-reduction programmes, firm on principle and flexible on detail.
Following GPA’s acquisition by GECAS the development of a Europe/North His innovations, efforts and successes
in 1993, Barrington was appointed American hub at Dublin and staunch have truly merited Airfinance Journal’s
president of GECAS Ireland, but left rebuttals of Ryanair’s predatory bids, Lifetime Achievement Award.

Directory
2022/23
www.airfinancejournal.com
Directory
Argentina Bahrain
Aerolineas Argentinas Bank ABC
Activities: Airline Aeroparque Activities: Asset-backed, infrastructure, trade finance and
Address: Jorge Newbery Av. Rafael Obligado s/n Corporate advisory with a focus on MENA.
Building T4 - 4th Floor, Buenos Aires, Argentina Address: Bank ABC Tower PO Box 5698 Manama, Bahrain
Web: Aerolineas.com.ar Email: www.bank-abc.com
Contacts: Contacts:
Juan Echecopar Jeremy Dixon
Email: juan.echecopar@aerolineas.com.ar Email: jeremy.dixon@bank-abc.com
Title: E.V.P. Corporate Planning and Fleet Title: First Vice President, Group Specialized Finance
Tel: (54) 11 37239180 Tel: 973 1754 3637
Ignacio Mansilla Saber Ayadi

Email: ignacio.mansilla@aerolineas.com.ar Email: aber.ayadi@bank-abc.com
Title: V.P. Fleet Planning Title: First Vice President & Head, Group Specialized Finance
Tel: (54) 11 37239188 Tel: 973 1754 3316

Australia Brazil
Bellinger Aviation
De Luca, Derenusson, Schuttoff & Advogados (DDSA)
Activities: Aviation Investor and Lessor
Activities: Law Services
Address: Level 12 92 Pitt Street Sydney NSW 2000
Address: Rua Fidêncio Ramos 195, 10º andar - Vila Olímpia São
Australia
Paulo, SP I CEP: 04551-010, Brazil
Web: www.bellingeram.com
Web: www.ddsa.com.br
Contact:
Contact:
Rene Mansveld
Ana Luisa Derenusson
Email: rene.mansveld@bellingeram.com
Email: anaderenusson@ddsa.com.br
Title: Managing Partner
Title: Lawyer - Partner
Tel: 61 2 90259546
Tel: +5511 30404040 M. +5511 991917284

Deutsche Bank
Activities: Aircraft financing Nantes Mello Advogados
Address: Level 14, 126 Phillip Street Sydney NSW 2000 Activities: Law Practice
Australia Address: Av. Lavandisca, 777 - Indianópolis, São Paulo - SP,
Web: www.db.com 04515-011, Brazil
Email: https://en.nantesmello.com
Contact:
Richard Finlayson Contact:
Email: richard.finlayson@db.com Marcelo Mello
Title: Managing Director, Head of Transportation Finance Asia Email: mm@nantesmello.com
Tel: (61) 488 403888 Title: Partner, Head of Structured & Asset Finance
Tel: 55 11 995320302

K&L Gates Straits Law
Activities: Aviation Finance
Address: 31/1 O’Connell St Sydney NSW 2000 Australia
Web: www.klgates.com
Contact:
Brian Santos
Email: brian.santos@klgates.com
Title: Senior Associate
Tel: (61) 2 95132570

Directory
Canada ICBC Aviation Leasing

Activities: Aiviation Leasing
Address: Building of Bank of Beijing C17 JinRong Sreeet Xicheng
AirTrav District. P. R. China
Activities: Aviation advisory and transaction due diligence
Address: 181 Bay Street, PO 30025, Toronto, ON M5J 0A5 Contact:
Canada Jing Xu
Web: www.airtrav.com Email: xujing@icbcleasing.com
Title: Managing Director
Contact: Tel: 86 1 66105806
Robert Kokonis
Email: rkokonis@airtrav.com
Title: President & Managing Director JunHe
Tel: 1 289 346-0071 Activities: Banking & Finance, Aviation Finance, Aviation
Address: 22/F, China Resources Building, 8 Jianguomenbei
Avenue, Beijing 100005, P. R. China
Tama International Consult Web: www.junhe.com
Activities: consulting, remarketing
Contact:
Contact: Gavin Wang
Stephan Brecht Email: wangg@junhe.com
Email: stephan@tamaconsult.com Title: Partner
Title: Chief Executive Officer Tel: 86 10 85537676
Tel: 1 450 5122082

Skyco International Financial Leasing
Activities: Aviation leasing

China Address: 17th Floor, TeemTower, 208 Tianhe Road, Tianhe
District, Guangzhou, Guangdong, P. R. China
Aviation Capital Group

Contact:
Contact:
Olivier QIN
Laura Lu
Email: qinhuaiyu@skycoleasing.com
Email: laura.lu@aviationcapital.com
Title: Senior Manger of Commercial
Title: Vice President, Marketing
Tel: 86 185 15138969
Tel: 86 21 69760502

ST Aerospace
AVIC International Leasing Company
Contact:
Address: 18F, Catic Tower. 212 Jiangning Road, Shanghai, P. R.
Yifeng Zhou
China
Email: zhouyifeng@statcoxiamen.com
Title: Field Service Engineer
Contact:
Tel: 86 13950055625
Yuan Zhang
Email: zhangyuan@chinaleasing.net

Title: Senior Marketing and Procurement Manager
Taiping & Sinopec Financial Leasing
Tel: 86 21 22262649
Activities: Aircraft Leasing, Aircraft Financing
Address: 37F, No 488, Yincheng Middle Road, Pudong,
Shanghai, P. R. China
Bank of China Web: www.tpshleasing.com/
Contact: Dong Jing
Email: dongjing@bankofchina.com Contact:
Wang He
Email: hewang@tpshleasing.com
Title: Director, Financial Markets
Tel: 86 21 60253421
Directory
Colombia Shahid Law Firm

Activities: Legal Services
Address: Shahid Law Firm 20B Adly St. Downtown Cairo Cairo,
Parra Rodriguez Abogados 11511, Egypt
Activities: Law firm Web: www.shahidlaw.com
Address: Carrera 9 No. 74-08 office 504, Bogota,
Colombia Contact:
Web: www.pralaws.com/ Tarek Badawy
Email: tarek.badawy@shahidlaw.com
Contact: Title: Partner
Cesar Barajas Tel: 20 2 23935557
Email: cesar.barajas@pralaws.com
Title: Director
Tel: 57 1 3764200
Estonia

Croatia Estonian Aviation Academy
Activities: Aviation education
Address: Lennu 40 Kambja, Tartu, Estonia
Croatia Airlines Web: https://lennuakadeemia.ee/en
Activities: Airline
Address: Bani75b, Buzin, 10000 Zagreb, Croatia Contact:
Web: www.croatiaairlines.com Viktor Trasberg
Email: viktor.trasberg@eava.ee
Contact: Title: Associate Professor
Alenka Klemen Tel: 372 5168147
Email: alenka.klemen@croatiaairlines.hr
Title: Manager Strategy & Business development
Tel: 385 99 2563991
France
Dubai Airbus
Address: Toulouse, B3, 31300, France
Clyde & Co
Contact: Contact:
Michael Nelson Qin Hu
Email: michael.nelson@clydeco.ae Email: qin.hu@airbus.com
Title: Partner Title: Marketing Director
Tel: +971 4 384 4347
Air France
Egypt Activities: Airline

Address: CF. FT 45, Rue de Paris 95747 Roissy CDG Cedex
France
Egyptair Holding
Activities: Aviation services Contacts:
Address: Egyptair Administration building, South Build. F1, C1, Patrick Halluin
R12. Cairo Int. Airport, Cairo, Egypt Email: pahalluin@airfrance.fr
Web: www.egyptair.com Title: Vice President Fleet Transactions
Tel: 33 6 75626929
Contact:
Ehab Ghazy Thierry Barboille
Email: ighazy@egyptair.com Email: thbarboille@airfrance.fr
Title: Senior Consultant Title: Aircraft Leasing and Sales Senior Manager
Tel: 20 122 3924659 Tel: 33 644265874


Directory
Burnham Sterling Contact:

Activities: Investment banking Thierry Sarrailhe
Address: 2Bis avenue Junot 75018, Paris, France Email: thierry.sarrailhe@safrangroup.com
Title: Vice President Sales Leasing Market
Contact: Tel: 33 6 77004405
Laurence Mosse
Email: laurence.mosse@burnhamsterling.com
Title: Senior Consultant Vallair
Tel: 33 658477505 Activities: Trading & Leasing, Cargo Conversion
Address: Montpellier Méditerranée Airport Vallair Avenue
34130 Mauguio France
Hogan Lovells
Activities: Legal Services, Aviation Finance. Contact:
Address: Hogan Lovells (Paris) LLP 17, avenue Matignon CS Malcolm Chandler
30027 75378 Paris Cedex 08 France Email: malcolm@vallair.aero
Web: https://www.hoganlovells.com/ Title: Head of Commercial & Marketing
Tel: 33 430 63 41 00
Contact:
Alexander Premont
Email: alexander.premont@hoganlovells.com
Title: Partner Germany
Tel: 33 1 53 67 22 76
BayernLB
Activities: Aircraft Finance
Norton Rose Fulbright Address: Brienner Str 18 80333 Munich Germany
Activities: Aviation finance and leasing lawyers at the cutting Web: www.bayernlb.com/internet/en/blb/resp/customers/global_
edge of the development of innovative financing structures, corporates/expertise/mobility/overview_2/mobility.jsp
working with clients to develop new products as well as to
manage their legal requirements in relation to the sale, purchase Contact:
and financing of aviation assets. Oliver Geldner
Address: 40 Rue de Courcelles, Paris 75008, France Email: oliver.geldner@bayernlb.de
Web: www.nortonrosefulbright.com Title: Sector Head Aviation & Space
Tel: 49 89 217126226
Contact:
George Paterson
Email: george.paterson@nortonrosefulbright.com Freshfields
Title: Head of Paris
Tel: 33 1 56 59 53 15
Toulouse Business School

Activities: Toulouse Business School Center of Excellence in Activities: Freshfields Bruckhaus Deringer is a leading
Aeronautics international law firm offering clients dedicated and seamless
Address: 1 place Alfonse Jourdain 31000 Toulouse, France legal advice in all important economic regions. Amongst its over
Web: www.tbs-education.com 2,800 lawyers in 29 offices in 18 countries across Europe, Asia
and the US you will find a well-connected team of lawyers from
Contact: various legal sectors and jurisdictions who are well-experienced
Sylvain Bourjade in the aviation industry. As a firm, Freshfields Bruckhaus Deringer
Email: s.bourjade@tbs-education.fr looks back to more than four decades of legal advice to the
Title: Professor of Finance aviation industry.
Tel: 33 561294716
With aviation experts available globally, and strong corporate,
finance, capital markets, restructuring, regulatory, antitrust and
Safran Aircraft Engines litigation practices, Freshfields Bruckhaus Deringer can provide
Activities: Aircraft Engines the legal support and advice necessary to master strategic
Address: Safran Aircraft Engines Etablissement de Villaroche opportunities in the aviation sector on a global scale and can call
Rond Point Rene Ravaud - Reau 77550 Moissy-Cramayel France upon other specialists in the firm.
Email: www.safran-group.com/
Directory
Our aviation team frequently advises on a broad range of LBBW

matters in the aviation sector, including M&A (sell side and Activities: Transportation Finance
buy side, auctions, private sales, distressed sales), distressed Address: Am Hauptbahnhof 2 70173 Stuttgart Germany
situations (financial restructurings, advice to airlines in financial
distress, advice to creditors), insolvencies (insolvency filings, Contacts:
advice to officeholders, creditors), aircraft and engine sales, Patrick Wellnitz
leases and financings, capital market transactions and litigious Email: Patrick.Wellnitz@lbbw.de
matters. With a deep understanding of the industry, we have Title: Head of Aviation Finacne
been and are advising on a good number of international Tel: 49 711 12749743
landmark transactions.
Christian Eissmann
Learn more about our aviation practice and visit Email: Christian.Eissmann@lbbw.de
www.freshfields.com Title: Head of Transportation Finance
Tel: 49 711 12749759
Address: Bockenheimer Anlage 44, 60322 Frankfurt am Main,
Germany Bettina Barth
Web: www.freshfields.com Email: Bettina.Barth@lbbw.de
Title: Director
Contact: Tel: 49 711 12742755
Dr. Konrad Schott, Partner
Email: konrad.schott@freshfields.com Sylvia Kinne
Tel: (49) 69 2730 8103 Email: Sylvia.Kinne@lbbw.de
Title: Project Manager
Tel: 49 341 22039808
ING Bank Address: Humboldtstraße 18 04105 Leipzig Germany
Activities: Transport & Logistics - Aviation Finance
Address: Hamburger Allee 1 60486 Frankfurt am Main
Germany
Web: https://ingwb.de/en/home Greece
Contact: Marathon Airlines
Alexander Spannuth Activities: Executive and private flights
Email: alexander.spannuth@ing.de Web: www.flymarathon.aero
Title: Director
Tel: 49 151 16359944 Contact:
Thanos Pascalis
Email: tpascalis@flymarathon.aero
K&L Gates Title: COO
Activities: Aviation Finance Tel: 30 697 700007
Address: OpernTurm Bockenheimer Landstraße 2-4 60306
Frankfurt am Main Germany
Greenland
Contacts:
Frank Thomas Air Greenland
Emil: frank.thomas@klgates.com Activities: Scheduled and charter
Title: Partner Address: Box 1012, Nuuk, 3, Greenland
Tel: 49 69 945196270 Web: www.airgreenland.com
Anne Thummel-Barz Contact:

Email: thummel-barz@klgates.com Jacob Sørensen
Title: Senior Associate Email: nit@airgreenland.gl
Tel: 49 69 945196276 Title: CEO
Tel: 299 522310

Directory
Hong Kong SAR Katherine Ke

Email: katherine.ke@hk.kwm.com
Title: Partner
Clyde & Co Tel: 852 34438335
Contact:
Stuart Miller John Canning
Email: stuart.miller@clydeco.com Email: john.canning@au.kwm.com
Title: Partner Title: Partner
Tel: +852 2287 2717 Web: https://www.kwm.com/en/au
Activities: John advises on cross border structured finance
transactions, particularly in the asset and aviation sectors.
HFW John also has extensive experience in asset and trade finance
Activities: Shyamal has extensive experience of advising a transactions and has been involved with the design and
wide range of clients in the aviation industry including airlines, implementation of the Personal Property Securities Legislation
aircraft leasing companies, banks and financiers. He has
(PPS) with the Attorney General’s Department and Senate
acted for clients in relation to a broad range of aircraft finance
Inquiries. John is now advising clients on the impact of the PPS
transactions including pre-delivery financings, export credit
on their business and products.
backed financings, commercial debt financings, tax-based cross
Tel: 611 2 9296 2098
border financings, Islamic financings, repossession of distressed
Address: Level 61 Governor Phillip Tower 1 Farrer Place, Sydney
assets and restructurings.
NSW 2000 Australia
Shyamal also advised on numerous operating leasings, sale and

Feng Ma
lease-back transactions and in the sale and purchase of aircraft
Email: mafeng@cn.kwm.com
and other major assets, including aircraft and engine purchase
Title: Partner
contracts.
Web: https://www.kwm.com/en/cn
Activities: Ma Feng specialises in banking, project finance,
Address: 15th Floor, Tower One Lippo Centre 89 Queensway,
domestic and international lending, establishment projects
Admiralty Hong Kong SAR
for financial institutions, and aircraft and equipment financing.
He provides a full range services in financing and leasing of
Contact:
Justin Sun aircraft and related equipment, ships, large machinery and
Email: justin.sun@hfw.com equipment.
Title: Partner Tel: 86 10 5878 5588
Tel: 852 3983 7713 Address: 18th Floor, East Tower, World Financial Center 1
Dongsanhuan Zhonglu, Chaoyang District Beijing, 100020, PRC

King & Wood Mallesons
Activities: Ashley has a particular focus on asset finance and K&L Gates
aviation transactions. She has extensive experience in aircraft Activities: Aviation Finance
and engine leasing, aircraft sale and lease-back arrangements, Address: 44th Floor, Edinburgh Tower, The Landmark 15
new commercial aircraft and corporate jets acquisitions from Queen’s Road Central, Hong Kong SAR
original equipment manufacturers (OEMs), used aircraft and Web: www.klgates.com
engine acquisitions and disposals, aircraft portfolio acquisitions
and disposals, aircraft and pre-delivery payments financing, Contact:
airframe and engine maintenance, inventory technical Eugene Yeung
management and other commercial arrangements. Email: eugene.yeung@klgates.com
Title: Partner
Address: 13/F Gloucester Tower, The Landmark, 15 Queen’s Tel: 852 22303584
Road Central Central, Hong Kong SAR
Web: https://www.kwm.com/en/hk
Santander
Contacts: Address: 10/F, Two International Finance Centre 8 Finance
Ashley Wong Street, Central, Hong Kong SAR
Email: ashley.wong@hk.kwm.com Web: www.santander.com
Title: Partner
Tel: 852 3443 1062 Contact:
Ismael Gomez
Email: ismael.gomez@gruposantander.com
Title: Structured Finance Asia
Directory
Sato Aviation Capital and heavy checks, Line maintenance, Interior & exterior re-
finishing, Avionics upgrades, End-of-lease/ redelivery checks,
Maintenance training (CAR 147), and Asset Management services
to domestic and international clients.
Among heavy checks, Air Works offers base maintenance

services for ATR 42/72, A320 family and B737 NG and Max fleet
Activities: Aircraft leasing of aircraft from its EASA and DGCA-certified facilities at Mumbai,
Address: Unit 1, 32/F Hong Kong Plaza, 188 Connaught Road Delhi, Hosur and Kochi, supported by duly certified shops for
West, Hong Kong SAR sheet metal and composites, cabin interiors and refurbishments,
Web: www.dynam.aero heat exchangers, batteries, NDT testing, avionics upgrades as
well as aircraft painting.
Contacts:
Mr. Katsuhiko Ando, Chief Executive Officer Air Works also undertakes modification and assembly of
Email: katsuhiko.ando@dynam.aero rotary-wing aircraft and as a partner to several OEMs and
an Authorized Service Centre (ASC) for many, the Company
engages closely with Airbus, ATR, Boeing, CFM, Collins
Shuhei Sato, Director
Aerospace, Dassault Aviation, Embraer, Goodrich, Gulfstream,
Email: shuhei.sato@satoaviation.com
Honeywell, Leonardo Helicopters, Pratt & Whitney, Textron
Tel: (852) 9355 1220
Aviation, and, Williams International etc..
Mr. James McCarthy, Head of Trading and Origination

Activities: MRO (Airline, Defense and Business Aviation),
Email: james.mccarthy@dynam.aero
Avionics Upgrades, Cabin and Interior Solutions, Painting
and Livery, Line Maintenance, 3D Printing, CAMO, Asset
Management and Component Repairs.
India Address: Air Works India, Plot No 40, Sector 18, Gurugram,
122001 Haryana, India
Web: www.airworks.aero
Acumen Aviation
Address: Bangalore, 19, 560001, India
Contacts:
Contacts: D. Anand Bhaskar
Kumar Narayanaswami Title: Managing Director and Chief Executive Officer
Email: kumar1370@yahoo.in Email: anand.bhaskar@airworks.in
Title: Vice President - Commercial Tel: (91) 124 4642200

Naresh Arora Mangesh Karyakarte
Email: Narora@flynas.com Title: Chief Sales Officer – Airline and Defense MRO
Title: Director Aircraft Procurement Email: mangesh.karyakarte@airworks.in
Tel: 966 11 407 8281 Tel: (91) 124 4642200
Mukesh Bhatia
Air Works Title: Director – Business Aviation
Email: mukesh.bhatia@airworks.in
Tel: (91) 124 4642200

AT-TV
Activities: Technical services, risk advisory, transaction support
Address: 130 Uday Park, New Delhi, 110049, India
Web: https://at-tv.co
Air Works Group is India’s largest independent aviation services
provider with an unbeatable pan-India presence across 27 Contact:
cities. A preferred MRO partner to OEMs, aircraft owners/ Satyendra Pandey
operators (including Fixed Wing & Rotary Wing), lessors, Email: sp@at-tv.co
airlines and the Indian Defence Services, Air Works Group Title: Managing Partner
offers a highly diversified portfolio of services comprising MRO Tel: 91 9818280158

Directory
ICF Since then, the aviation team have handled over $16 billion
Activities: Aviation consulting, appraisals, asset management worth of transactions and have also carried out some of the
Address: New Delhi, 7, 110043, India most complex aircraft repossessions in the country. The Firm has
Web: icf.com also advised several international airlines in challenging market
access transactions. In 2019, the firm successfully paved the way
Contacts: for the first deregistration and export of an aircraft under India’s
Piyush Bansal new Cape Town Convention and Aircraft Protocol Regulations.
Email: piyush.bansal@icf.com
Title: Sr Manager Sarin & Co’s noteworthy clients include the world’s top aircraft
manufacturers, leasing companies, international airlines, and
Stuart Rubin banks.
Email: stuart.rubin@icf.com
Title: Vice President The Firm’s Managing Partner, Nitin Sarin is a dual qualified
Advocate in India and Solicitor in England and Wales.
Ben Chapman
Email: ben.chapman@icf.com Address:
Title: Sr Manager Chandigarh Office: 48, Sector 4, Chandigarh – 160001, India
Activities: appraisals New Delhi Office: 52/96, 2nd Floor, CR Park New Delhi – 110019,
India

Web: www.sarinlaw.com

Email: consult@sarinlaw.com
Jet Airways (India)
Tel: (91) 9814252145
Contact:
Gautam Acharya
Email: gacharya@jetairways.com

Title: Vice President
Ireland
AMCK Aviation
SA Air Works India PVT
Address: 28-29 Sir John Rogerson’s Quay Dublin, D02 EY80,
Activities: Component Repairs, Avionics Upgrades, System
Ireland
Integration, Consulting Services
Web: www.amck.aero
Address: Plot No. 40, Sector 18, Gurugram, Haryana, India
Web: www.saairworks.in Contacts:
Graham Cooley
Contact: Email: graham.cooley@amck.aero
Ajay Sharma, Title: Vice President Commercial
Title: Vice President Tel: 353 86 323082
Email: ajay.sharma@saairworks.in
Tel: (91) 22 26158908 Ronan Kelleher
Email: ronan.kelleher@amck.aero
Title: Chief Financial Officer
Sarin & Co Tel: 353 1 5170100

Apex IFS
Activities: Global Corporate Service Provider
Address: 2nd Floor, Block 5 Irish Life Centre, Abbey Street Lower,
Dublin D01 P767, Ireland
Web: www.theapexgroup.com
Contacts:
Sarin & Co. is one of India’s oldest law firms. Originally Roisin Dixon
established in the year 1932, the firm is based in Chandigarh and Email: roisin.dixon@apexfs.com
New Delhi. Title: Head of Business Development
Tel: 353 87 2115857
Sarin & Co. branched out into the field of aviation with the joining
of Mr Nitin Sarin in 2008. It is the only law firm in India to provide Fergal Molony
complete aviation law services to banks, aircraft lessors, financial Email: fergal.molony@apexfs.com
institutions, international airlines and Governments. Title: Managing Director
Tel: 353 86 8209989
Directory
Ciaran Connolly Azorra

Email: ciaran.connolly@apexfs.com Activities: Leasing / Finance
Title: Client Director & Business Relationship Manager Address: 77 Sir Rogerson’s Quay Block C Grans Canal
Tel: 353 87 1123085 Docklands Dublin 2 D02 VK60, Ireland

Marian Doherty Contact:
Email: marian.doherty@apexfs.com Claudia Ziemer
Title: Client Director & BD Manager Email: cziemer@azorra.com
Tel: 353 87 7218978 Title: Senior Director Finance
Tel: 353 87 9866758
ARI
Title: Aircraft Leasing CDB Aviation
Web: www.ariaerocom Activities: Leasing
Address: 1GQ George’s Quay Dublin 2 D02 Y098, Ireland
Contact: Web: www.cdbaviation.aero
John Leech
Email: john.leech@ariaero.com Contacts:
Title: Group Head of Trading, Used Aircraft Paul Thibeau
Tel: 353 87 9118142 Email: Paul.Thibeau@CDBAviation.aero
Title: Senior Vice President Communications
Tel: 353 567 7407
Arthur Cox John Leenane
Address: Ten Earlsfort Terrace Dublin 2 D02 T380 Ireland Email: john.leenane@cdbaviation.aero
Web: www.arthurcox.com Title: Head of Trading
Tel: 353 87 3678120
Contacts:
Caroline Devlin
Email: caroline.devlin@arthurcox.com Deloitte Ireland
Title: Partner, Aviation group Co-Chair
Tel: 353 1 920 1224
Rob Murphy
Email: rob.murphy@arthurcox.com Activities: Aircraft Leasing and Finance
Title: Aviation group Co-Chair
Tel: 353 1 9202044 Contacts:
Pieter Burger
Laura Cunningham Email: piburger@deloitte.ie
Email: laura.cunningham@arthurcox.com Title: Lead Tax Partner - Aircraft Leasing & Finance
Title: Partner Tel: 353 (0) 14 172446
Tel: 353 1 9202045
Matthew Dolan
Ruth Lillis Email: mdolan@deloitte.ie
Email: Ruth.Lillis@arthurcox.com Title: Tax Partner - Aircraft Leasing & Finance
Title: Partner Tel: 353 (0) 14 074765
Tel: 353 1 9201244
Brian O’Callaghan
Email: bocallaghan@deloitte.ie
Avolon Title: Lead Audit Partner - Aircraft Leasing & Finance
Activities: leasing, trading Tel: 353 (0) 14 172475
Address: One BB, Shelbourne Road, Ballsbridge, Dublin
Web: www.avolon.aero Phil Bolger
Email: ieaircraftleasing@deloitte.ie
Contact: Title: Strategic Advisor - Aircraft Leasing & Finance
Stephen Quinn
Email: squinn@avolon.aero Martin Reilly
Title: Vice President, Trading Email: mreilly@deloitte.ie
Tel: 353 86 8403383 Title: NSE Financial Advisory Services Lead
Tel: 353 (0) 14 172212
Sinead Moore

Directory
Email: simoore@deloitte.ie popular form of entertainment in Japan) and is listed on the main
Title: Audit and Assurance board of the Hong Kong Stock Exchange (6889:HK).
Tel: 353 (0) 14 172979 DYJH’s founder, the Sato family, established a second aircraft
leasing company in 2015 - Sato Aviation Capital - which is
Mark Degnan partnered with Dynam Aviation. The partnership currently owns
Email: madegnan@deloitte.ie a fleet of eight aircraft, including two aircraft delivered in Q1
Title: Financial Advisory and Q2 of 2020. The short-term plan over the next 2-3 years
Tel: 353 (0) 14 178813 is for the partnership to build a 30-aircraft portfolio (20-aircraft
for Dynam Aviation and 10-aircraft for Sato Aviation). Current
lessee’s include: Wizz Air, Indigo, Vueling Airlines, Air France-
Dentons KLM and Volaris. Dynam Aviation has a team of industry experts with
Activities: Legal over 50 years of combined experience in financing, origination and
Address: Joshua Dawson House Dawson St Dublin 2 D02 RY95 marketing. It is partnered with leading service providers including:
Ireland
FPG Amentum, Santos Dumont, KPMG and McCann FitzGerald.
Web: www.dentons.com
Address: 28-32 Pembroke Street Upper, Dublin2, D02 EK84,

Contact:
Ireland
Maireadh Dale
Web: www.dynam.aero
Email: maireadh.dale@dentons.com
Title: Partner
Contacts:
Tel: 353 158 28123
Mr.Katsuhiko Ando
Title: Chief Executive Officer
Email: katsuhiko.ando@dynam.aero
Direct Aero Services
Activities: 360° Aircraft Storage Solution, Aircraft Engine
James McCarthy
Borescope Inspections, Inspections, Transition management,
Email: james.mccarthy@dynam.aero
Maintenance oversight, Maintenance reserve reviews, CAMO
Title: Head of Trading & Origination
Address: Office Suite F6, Unit 2 Holywell Commercial Centre,
Swords, Co. Dublin, Ireland, K67 E7W6
Web: www.directaeroservices.com
Einn Volant Aircraft Leasing Holdings
Address: Crag Lodge, Cragataska Quin, Co. Clare V95 F5K2,
Contacts:
Ireland
Paul Hyland
Email: phyland@directaviation.aero
Contact:
Title: Director Technical
Daire O’Criodáin
Tel: 353 1 539 28 60
Email: ocrd01@yahoo.com

Title: Board Director
Paul Hyland
Tel: 353 87 8183715
Email: phyland@directaviation.aero
Title: Director Technical
Tel: 353 1 539 28 60 Elgin Executive Search
Activities: Aviation Finance Headhunter
Web: www.elginsearch.com
Dynam Aviation Ireland Limited
Contact:
Richard Pigott
Email: rpigott@elginsearch.com
Title: Director
Tel: 353 86 6089481

Dynam Aviation Ireland Limited (Dynam Aviation) is an Irish
based aircraft leasing company with a focus on young,
narrowbody aircraft.
Dynam Aviation was established in Dublin in 2019 and is

100% owned by Dynam Japan Holdings Co. Ltd. (DYJH). DYJH is
the leading operator and service provider of pachinko halls (a
Directory
EY GTLK Europe
Address: EY, Dublin, Ireland Activities: Leasing, trading, remarketing, asset management as
well as consulting on commercial aircraft and ship transactions
Contact: Address: 2 Hume Street Dublin 2, Ireland
Jiawei Hua Web: www.gtlkeurope.com
Email: huajiaw@foxmail.com
Title: auditor Contacts:
Tel: 353 833856265 Sasha Mian
Email: smian@gtlkeurope.com
Title: COO
Fexco Aviation Services Tel: 353-1 486-9500
Activities: Managing Agent
Malachy Quinn
Contacts:
Email: quinn@gtlkeurope.com
Gerry Hastings
Title: Chief Risk & Funding Officer
Email: ghastings@fexco.com
Title: CEO Fexco Aviation
Tel: 353 86 3635570
GKR Search and Selection
Activities: Recruitment
Tara Hedderman
Address: 26/27 Upper Pembroke Street, Dublin 2, Ireland
Email: thedderman@fexco.com
Web: www.gkr.ie
Title: Senior Financial Accountant
Tel: 353 61 953705
Contact:
Nathan Murray Garret Kearney
Email: nmurray@fexco.com Email: garret@gkr.ie
Title: Financial Accountant
Tel: 353 61 953707
Global AVX
Rebecca Hill Activities: Aviation Auction Platform
Email: rhill@fexco.com Address: 29 Fitzwilliam Street Upper Dublin 2, Ireland
Title: Financial Accountant Web: www.globalavx.com
Tel: 353 61 953708
Contact:
Robert Bourke
Flynn O’Driscoll Email: robert@globalavx.com
Address: No.1 Grant’s Row, Lower Mount Street, Dublin 2, Ireland Title: Chief Executive Officer
D02 HX96 Tel: 353 1 5677325
Web: www.Fod.ie
Contacts: Goshawk
James Duggan Activities: Aircraft Leasing
Email: jamesduggan@fod.ie Address: One Molesworth Street Dublin 2, Ireland
Tel: 353 1 6424252 Contact:
Stephen ODwyer
Claire McDermott Email: stephen.odwyer@goshawk.aero
Email: clairemcdermott@fod.ie Title: Airline Sales & Marketing EMEA
Title: Partner Tel: 353 87 934847
Tel: 353 1 6424259
Eoin Cunneen
ICBC Aviation Leasing
Email: eoincunneen@fod.ie
Title: Partner
Contact:
Tel: 353 1 6424287
Chao Wu
Email: chaowu@ie.icbcleasing.com
Julie Faverie
Title: VP Airline Marketing EMEA
Email: juliefaverie@fod.ie
Title: Associate
Tel: 353 1 6424284

Directory
KPMG Ryanair
Activities: Structure,Transfer Pricing, Modelling, Governance & Address: Airside Business Park Swords Dublin, Ireland
Controls, IT systems, Accounting
Address: KPMG, 1 Harbourmaster Place International Financial Contacts:
Services Centre Dublin 1, Ireland John Norton
Web: www.kpmg.ie Email: nortonj@ryanair.com
Title: Group Treasurer
Contact: Tel: 353 1 9450000
Patrick Murphy
Email: patrick.murphy@kpmg.ie Shane O’Toole
Title: Aviation Consultant Email: otooles@ryanair.com
Tel: 353 87 504179 Title: Deputy Treasurer
Tel: 353 1 9450000

Macquarie Airfinance
Address: First Floor, Connaught House 1 Burlington Road Dublin Santos Dumont
4, Ireland Activities: Asset Management and Technical Services
Web: www.macquarie.aero Address: 4th Floor, Grattan House 67-72 Lower Mount Street
Dublin 2, D02 H638, Ireland
Contact: Web: www.santosdumont.com
Eamonn Bane
Email: Eamonn.Bane@macquarie.aero Contacts:
Title: Executive Vice President, Chief Operating Officer Nancy Derby
Tel: 353 1 238 3215 Email: nancy.derby@santosdumont.com
Title: Commercial Director
Tel: 353 86 299122
Maples Group
Activities: Legal, Fiduciary, Accounting, Tax, Regulatory, Ronan Stewart
Compliance Services Email: ronan.stewart@santosdumont.com
Address: 32 Molesworth Street, Dublin 2 D02 Y512, Ireland Title: CEO
Web: https://maples.com/ Tel: 353 1 8080000
Contact:
Eoghan Madigan Mairéad Flynn
Email: eoghan.madigan@maples.com Email: mairead.flynn@santosdumont.com
Tel: 353 87 3833732 Title: Operations Director
Tel: 353 1 8080000

PricewaterhouseCoopers Kevin Coen
Address: Dundalk 19 A91 Email: kevin.coen@santosdumont.com
Tel: 353 87 2853017
Contacts: Title: Managing Director
Deirdre Clifford Tel: 353 1 6768891
Email: deirdre.clifford@pwc.com
Title: Director Louise Callanan
Email: louise@gkr.ie
Colum Carr Title: Director
Email: colum.carr@pwc.com Tel: 353 1 6768899
Title: AFAS Leader
Brian Leonard Sculptor Capital

Email: brian.a.leonard@pwc.com
Title: Tax Partner Contact:
Cathal Kilmartin
Bryson Monteleone Email: Cathal@ckilmartin.com
Email: bryson.monteleone@pwc.com Title: Consultant
Title: Senior Advisor Tel: 353 86 8206838

Directory
Seraph Aviation Group UMBF Trust and Agency Services (Ireland)

Activities: Seraph Aviation Group is a global leader in aviation Address: Newmount House 22-24 Lower Mount Street Dublin
asset management and investment. We offer a unique blend of D02 DX26, Ireland
Aircraft Management services and Capital Markets expertise
powered by proprietary state-of-the-art technology. Contact:
Address: Embassy House Second Floor Ballsbridge Dublin 4 Katherine O’Brien
Web: www.seraph.aero Email: katherine.obrien@umb.com
Contacts: Tel: 353 1 2641513
David Butler
Email: dbutler@seraph.aero
Title: Group Chief Executive Officer
Tel: 353 1607 7000 Italy

Eugene O’Reilly McKay-Aircraft.Expert Witness
Email: eorielly@seraph.aero Activities: Aircraft Appraisal, Search, Delivery, De/Registration,
Title: Chief Executive Officer Repossession
Tel: 353 1 607 7000 Web: www.kayway.aero
Aengus Whelan Contact:

Email: awhelan@seraph.aero Rachel McKay
Title: Chief Commercial Officer Email: rachel@mckay-aircraft.expert
Tel: 353 1 607 7000 Tel: 41 71 5087578

Stephen Coyle
Email: scoyle@seraph.aero SR Technics
Title: Chief Technical Officer Activities: Engine MRO
Tel: 353 1 607 7000 Web: www.srtechnics.com

Contact:
Standard Bank Olaf Christoph
Activities: Leasing and finance Email: olaf.christoph@srtechnics.com
Address: 32 Molesworth Street Dublin 2 Title: VP Europe Business Development
Web: www.SCB.com Tel: 41 76 332 50 62
Contact:
Sally Browne
Email: sallyabrowne@icloud.com Isle of Man
Title: Executive Director
Tel: 353 086 0214841 Ferry Contractors
Activities: Worldwide Aircraft Delivery & Flight Testing
Address: Aerofactor Ltd. River Lodge, Milntown, Lezayre Road,
TrueAero Ramsey Im8 2Tg, Isle of Man
Address: 25-28 North Wall Quay Dublin 1 Ireland
Web: www.trueaero.com Contact:
Gerrit de Man
Contact: Email: gdm@aerofactor.co.uk
Nicolas Silva Title: Founder
Email: nsilva@trueaero.com Tel: 31 620158004
Title: Senior Vice President of Marketing
Tel: 353 1 564 7680

Directory
Japan Tsuguhito Omagari

Email: tsuguhito.omagari@klgates.com
Title: Partner
Asahi Life Asset Management Tel: 81 3 62053623
Contact:
Takahiro Oashi
Tomohiro Kitada
Email: takahiro_ooashi@alamco.co.jp
Email: tomohiro.kitada@klgates.com
Title: Senior Fund Manager
Title: Counsel
Tel: 81 3 33236302
Tel: 81 3 62053618
Neil Campbell
All Nippon Airways
neil.campbell@klgates.com
Address: 3-5-4 Haneda Airport, Ota-ku, Tokyo, Japan
Title: Partner
Web: ana.co.jp
Tel: 81 3 62053607
Contact:

Naoshi Yamamoto
Tokyo Century Corporation
Email: n.yamamoto@ana.co.jp
Activities: Arrangement of JOLCO Tax Lease, Financing of
Title: Director
Aircraft, Engines and Aircraft Parts
Tel: 81 7048742921
Address: 3 Kanda Neribeicho Chiyoda-ku, Tokyo Japan 100-0022

Web: https://www.tokyocentury.co.jp/en/

Bank of America N.A.
Contact:
Address: Nihonbashi 1-chome Mitsui Building, 1-4-1 Nionbashi,
Takamasa Marito
Chuo-ku, Tokyo, 103-0027 Japan
Email: marito.t@tokyocentury.co.jp
Web: www.bankofamerica.com
Title: Joint General Manager
Tel: 81 3 52096399
Contact:

Yuka Ishiyama

Email: yuka.ishiyama@bofa.com
Wellington & Associates K.K.
Title: Vice President
Activities: Executive Search
Tel: (81) 3 67585139
Address: 1-3-1-1201 Park Axis Bld. Minami Aoyama, MInato-ku,
Japan
Web: www.wellingtonjp.com/
K&L Gates
Contact:
Address: Toranomon Hills Mori Tower 1 Chome-23-1 Toranomon
Andrew Lawson
Minato City Tokyo 105-6328 Japan
Email: alawson@wellingtonjp.com
Tel: 81 80-6666-5225
Contacts:

Robert Melson

Email: robert.melson@klgates.com
Tel: 81 3 62053602
Jordan

Sebastian Smith
Royal Jordanian Airlines
Email: sebastian.smith@klgates.com
Activities: Airline
Title: Partner
Address: Amman - Jordan Royal Jordanian Airlines Mohammad
Tel: 81 3 62053606
Ali Janah Street Building # 3
Eiko Grieger
Contacts:
Email: eiko.grieger@klgates.com
Mohammad
Title: Counsel
Email: Mohammad.maayta@rj.com
Tel: 81 3 62053608
Title: Head of Asset Management and Cost Control

Takahiro Kawaguchi
Zaher Hadeed
Email: takahiro.kawaguchi@klgates.com
Email: Zaher.Alhadeed@rj.com
Title: Partner
Title: Manager - Asset Management
Tel: 81 3 62053603
Tel: 962 (0)795663936
Directory
Korea, Republic of The Korea Development Bank

Activities: Bank
Address: 14 Eunhaeng-ro, Yeongdeungpo-gu, Seoul 07242,
Eugene Investment & Securities South Korea
Activities: Alternative Investment
Web: www.kdb.co.kr
Address: 3F, 24 Gukjegeumyungro, Yeongdeungpo-gu, Seoul,
South Korea, 07327
Contact:
Web: www.eugenefn.com
Sujin KIM
Email: sujin@kdb.co.kr
Contact:
Title: Deputy General Manager
Taeho Lee
Tel: 82 2 787-7167
Email: tlee049@naver.com
Title: Senior Manager
Tel: 82 10 3252-2859

Kuwait
KEB Hana Bank
Activities: Aviation, Shipping, Structured Finance, LBO Kuwait Airways
Address: 82 Uisadang-daero, Yeongdeungpo-Gu, Seoul 07321, Activities: Treasury & Aircraft financing and leasing
South Korea Address: PO Box. 394 Safat Postal Code 13004, Kuwait
Web: www.kebhana.com
Contact:
Contacts: Giridharan Sheshadri
James HS Kim Email: Giridharan.Sheshadri@Kuwaitairways.com
Email: hyungsookim@hanafn.com Title: Assistant Director - Treasury
Title: General Manager of Global IB Department Tel: 965 24734459
Tel: +82 2 729 8521

Matthew SH Kim
Email: kimseungho@hanafn.com
Title: Head of International Finance Team
Latvia
Tel: +82 2 729 8522
Success410.com
Activities: Legal and related strategic advisory services for the
Jehyeong Park
global aviation industry
Email: jehpark@hanafn.com
Address: 40 Brivibas Boulevard, Suite 29, Riga, LV1050, Latvia
Title: Manager
Web: www.success410.com
Tel: +82 2 729 8529

Contact:
Korea Advanced Institute of Science and Technology Ivars Mekons, Managing Partner
Activities: teaching strategies for entrepreneurs Email: ivars.mekons@success410.com
Address: Seoul, 11, South Korea Tel: +371 2618 4400
Web: kaist.ac.kr

Contact:
Jong Chul Kim Luxembourg
Email: jckimphd@kaist.ac.kr
Title: professor Bank of Communications (Luxembourg)
Tel: 82 42 350-6404 Address: 7 Rue de la Chapelle, Luxembourg

Contacts:
TRUST AerTech Julian Wu
Activities: Aviation Consulting Email: lwu@eu.bankcomm.com
Address: 403-2104, Hugokro 36, IlsanSeo-Gu, Gyunggi-Do, Title: Head of Corporate Coverage
10374 South Korea Tel: 352 2 8688868
Contact: Zhihua Ren

Oscar Kwon
Email: zren@eu.bankcomm.com
Email: oscar-kwon@naver.com
Title: Relationship Manager
Tel: 352 2 8688869
Tel: 82 10 5021-9940


Directory
Vallair
Activities: Trading & Leasing, Cargo Conversion, Monaco
Address: EBBC Bloc B, 6 Route de Treves Senningerberg
L-2633 Grand Duchy of Luxembourg Stratos
Activities: Aircraft Management, re-marketing, advisory and
Web: www.vallair.aero
financing
Address: 23 Boulevard Albert 1er Monaco 98000 Monaco
Contact:
Web: www.stratos-aero.com
Patrick Leopold
Email: patrick@vallair.aero
Contacts:
Title: Director of Trading & Leasing
Kristian Lindberg
Tel: 352 26 10 3962
Email: klindberg@stratos.aero
Title: Head of Finance
Tel: 33 7 69641358

Malaysia Camille Pousseur
Email: cpousseur@stratos.aero
Abdullah Chan & Co
Title: Marketing Director
Activities: Legal Services
Tel: 33 6 40613573
Address: 31st Floor, UBN Tower, 10, Jalan P. Ramlee, 50250
Kuala Lumpur
Brian Jeffery
Web: www.abdullahchan.my
Email: bjeffery@stratos.aero
Title: Chief Commercial Officer
Contact:
Shelina Razaly Wahi Tel: 66 8 4532653
Email: shelina@abddullahchan.my
Title: Partner Lourens Geldenhuys
Tel: 6 3 2300 0610 Email: lgeldenhuys@stratos.aero
Title: Corporate Finance Director
Tel: 44 792 1025474
SR Technics
Activities: Engine MRO
Web: www.srtechnics.com
Mongolia
Contact:
David Settergren MahoneyLiotta
Email: david.settergren@srtechnics.com Activities: Law Firm
VP APAC Business Development Address: 7th Floor, The Landmark Chinggis Avenue 13
Tel: 60 12 2039710 Ulaanbaatar, Mongolia
Web: www.mlmongolia.com
Swiss Aviation Consulting Contacts:

Activities: Aircraft Asset Management - Aviation Investment Daniel Mahoney
Management - Aircraft Acquisition and Sales - Risk Management Email: daniel.mahoney@mlmongolia.com
- Strategic and Operational Advisory - Setup new AOC Air Title: Managing Partner
Operator Certificates - Continuing Airworthiness Management Tel: 976 11 325344
Services (CAMO+) - Off lease technical and operational aircraft
management and ferry flight services Uuganbayar Otgondorj
Email: uuganbayar.otgondorj@mlmongolia.com
Address: Oasis Square, 2, Jalan PJU 1A/7A, Ara Damansara, Title: Senior Associate
Petaling Jaya, Selangor 47301 Malaysia Tel: 976 11 325344
Web: www.swic.aero
Contact:
Simon Diggelmann
Email: sd@swic.aero
Title: Vice President Asia & Asset Management
Tel: 41 79 6450605

Directory
MIAT Mongolian Airlines Jasper van den Boogaard

Activities: aircraft financing and leasing, fleet planning Email: info@apocaviation.com
Address: MIAT Building Buyant-Ukhaa 45, Ulaanbaatar 17120, Title: Vice President Airframe Acquisition & Trading
Mongolia Tel: 31 88 00 40 000
Web: www.miat.com
Karolis Jurkevicius
Contact: Email: info@apocaviation.com
Purevsuren Sukhbaatar Title: Vice President Landing Gear Trading & Leasing
Email: purevsuren_su@miat.com Tel: 31 88 00 40 000
Title: Financial and Foreign Negotiation Officer
Tel: 976 89112793
Embraer
Address: Jachthavenweg 109 1081 KM Amsterdam The Netherlands
Web: www.embraer.com
Nepal Contacts:
Pradhan & Associates Cesar Pereira
Activities: Commercial Law Firm Email: cesar.pereira@embraer.net.br
Address: Maitri Marg, Bakhundole - 3, Lalitpur 44700, Nepal Title: Vice President EMEA - Embraer Commercial Aviation
Web: www.pradhanlaw.com Tel: 31 6 82255436
Contacts: William Ast

Astha Poudel Email: william.ast@embraer.net.br
Email: apoudel@pradhanlaw.com Title: Sales Director
Title: Associate Tel: 31 623043489
Tel: 977 1 545 1900
Michal Nowak
Monika Chaudhary Email: michal.nowak@embraer.net.br
Email: mchaudhary@pradhanlaw.com Title: Marketing Director
Title: Trainee Associate Tel: 31 623 43207
Tel: 977 1 5451900
Matheus Piorino
Email: matheus.piorino@embraer.net.br
Title: Head of Customer Finance, EMEA
Netherlands Tel: 31 6 57508978

APOC Aviation
APOC is one of the world’s newest aircraft, engines and landing Rep Law
gears trading, leasing, teardown and part-out companies. As an Activities: International Aviation Financing and Leasing Law
asset, aviation components hold their value over time, delivering Address: J.E. Irausquin Boulevard 22, Suite 202 Oranjestad, The
low risk investment opportunities with high yields. Contact us to
Netherlands
discuss how investing in APOC can deliver reliable returns.

Contacts:
Address: Veilingweg 48 2651 BE Berkel en Rodenrijs,
Anna Blamansingel
The Netherlands
Address: 169 1102 SV Amsterdam The Netherlands
Web: www.apocaviation.com
Web: www.rep-law.com

Contacts:
Max Lutje Wooldrik Patrick Honnebier
Email: info@apocaviation.com Email: patrick.honnebier@rep-law.com
Title: Chief Executive Officer & Founder Title: Of Counsel/Aviation Finance and Lease Law Professor
Tel: 31 88 00 40 000 Tel: 31 631215502
Anca Mihalache Geert Rep

Email: info@apocaviation.com Email: geert@rep-law.com
Title: Vice President Engine Trading Title: Partner
Tel: 31 88 00 40 000 Tel: 297 588 1870


Directory
TrueNoord
Activities: TrueNoord is a specialist regional aircraft leasing Pakistan
company with offices in Amsterdam, Dublin, London, and
Singapore. It provides leasing and lease management services Mr Legal Inn (Advocates & Corporate Counsellors)

strengthened by extensive knowledge of aircraft finance to
operators and investors worldwide in the regional aircraft sector.
TrueNoord exclusively invests in latest technology turboprops
and regional jet aircraft, understanding the important role of
these lower seating capacity aircraft in linking remote locations
to larger conurbations, providing a feeder service to major hubs,
Activities: Aircraft Licensing, Aircraft Leasing, Aircraft Financing,
and fulfilling carriers’ lower demand off-peak services in a growing
Aircraft Operations, Aviation Litigation & Dispute Resolution,
global market. TrueNoord is supported by cornerstone investors
Aviation Joint Ventures
- Freshstream, BlackRock, Aberdeen Standard and others.
Address: Rana Tower, Jail Road, 15-B Shadman II, Lahore, 54000,
TrueNoord’s fleet of fifty new and young in-production aircraft
Pakistan
covers eight different models in the 50 – 150 seat class, including:
Web: http:www.mrlegalinn.com
Embraer, ATR, Airbus, MHI-RJ and De Havilland Canada.
Address: World Trade Center Schiphol Airport H-tower/5th Floor

Contact:
Schiphol Boulevard 381 1118 BJ Schiphol, The Netherlands
Mobeen Rana
Web: www.truenoord.com Email: mobeenrana@mrlegalinn.com
Contacts: Tel: 92 322 7373922
Anne-Bart Tieleman
Email: info@truenoord.com
Tel: 31 88 3031 777 Poland
Julien Millet LOT Polish Airlines
Email: info@truenoord.com Address: Komitetu Obrony Robotnikow 43 01-142 Warsaw,
Title: Chief Financial Officer Poland
Tel: 31 88 3031 777
Contact:
Richard Jacobs Maciej Dziudzik
Email: info@truenoord.com Email: m.dziudzik@lot.pl
Title: Chief Commercial Officer Title: Head of Fleet
Tel: 31 88 3031 777 Tel: 48 22 6069805
Angus von Schoenberg

Email: info@truenoord.com
Title: Industry Officer Portugal
Tel: 31 88 3031 777
Portugalia Airlines
Activities: Regional Airline
Address: Rua C - nº 10 Edificio Portugalia Airlines Aeroporto de
Norway Lisboa, Portugal

Kuehne + Nagel Contact:
Contact: Luiz Fernandes
Andreas Nyman Email: lfernandes@pga.pt
Email: andreas.nyman@kuehne-nagel.com Title: Contract Manager
Title: VP Aerospace Tel: 351 912182289
Tel: 47 48081654

Directory
Russian Federation Dragon Aviation Capital

Activities: Technical Advisory Services & Consultancy, Asset
Management
Malakut Insurance Brokers Address: 60 Paya Lebar Road, #08-24A, Paya Lebar Square,
Activites: Aviation insurance Singapore 409051
Address: Moscow, 48, 101769, Russia Web: www.dragonaviationcapital.com
Web: aero.malakut.com
Contacts:
Contact: Benedict Alcantra
Alexey Obyedkov Email: benedict.alcantra@dragonaviationcapital.com
Email: alexey.obyedkov@malakut.com Title: Vice-President
Title: Managing Director - Aviation Tel: 65 63868477
Tel: 44 20 71935485
Jefferson Ding
Email: jefferson.ding@dragonaviationcapital.com
Sber Leasing Title: Managing Director
Activities: Aircraft financing and leasing Tel: 65 63868477
Address: 3 Poklonnaya str., Moscow 121170 Russia
Web: www.sberleasing.ru
HFW
Contacts: Activities: Advising financiers, lessors and operators on aviation
Andrey Pakhomov finance and leasing transactions. He has experience in debt
Email: pahomov.av@sberleasing.ru finance, operating lease, sale and lease back and portfolio
Title: Director, Key Clients Department (Aviation) trading transactions, lease default management, including in
Tel: 7 800 5555556 relation to litigation and cross border solvent and insolvent
restructurings in a variety of jurisdictions.
Alexander Kukhanov
Email: kuhanov.av@sberleasing.ru Address: 18-01 Ocean Financial Centre, 10 Collyer Quay, 049315,
Title: Key Clients Director, Key Clients Department (Aviation) Singapore
Tel: 7 800 5555556 Web: www.hfw.com
Artem Tatarnikov Contact:

Email: tatarnikov.ao@sberleasing.ru David Brotherton
Tel: 7 800 5555556 Web: david.brotherton@hfw.com
Title: Partner
Artem Petrosov Tel: 65 6411 5360
Email: petrosov.av@sberleasing.ru
Tel: 7 800 5555556
K&L Gates Straits Law
Singapore Address: Republic Plaza 9 Raffles Place #32-00 Republic Plaza

Singapore 049315
Bellinger Aviation
Activities: Aviation Investor and Lessor
Contacts:
Address: 1 Raffles Place One Raffles Place Tower 2 #19-61
James Bradley
Singapore 048616
Email: james.bradley@klgates.com
Web: www.bellingeram.com
Title: Partner
Tel: 61 65078113
Contacts:
Nicolas De Freitas
Terry Chang
Email: nicolas.defreitas@bellingeram.com
Email: terry.chang@klgates.com
Title: Director
Tel: 65 68085696
Tel: 65 67130231

Adrian Smit

Email: adrian.smit@bellingeram.com
Title: Head of Asset Management
Tel: 65 68085696

Directory
Norton Rose Fulbright Kobus Swart

Activities: Aviation finance and leasing lawyers at the cutting Email: kobus.swart@absa.co.za
edge of the development of innovative financing structures, Title: Vice President
working with clients to develop new products as well as to Tel: 27 11 8955264
manage their legal requirements in relation to the sale, purchase
and financing of aviation assets. John Zama
Email: john.zama@absa.africa
Address: 9 Straits View Marina One West Tower#09-09, Title: Vice President
Singapore 018937 Tel: 27 11 8955244
Web: www.nortonrosefulbright.com
Contact: XYZ Aviation Consulting

Keith Sandilands Activities: XYZ Consulting provides business consulting services
Email: keith.sandilands@nortonrosefulbright.com to the logistics, transport, airline, airport and travel industries.
Title: Partner XYZ Consulting has a vast amount of experience on the ground
in many parts of Africa and Asia. With our team of expert
Tel: 65 6309 5371
associates and partnerships with global aviation consulting
companies, we provide the latest industry knowledge and
strategic initiatives to identify and implement profitable business
On Point Loyalty
opportunities.
Activities: Airline Loyalty Finance
Web: www.xyzconsulting.biz
Address: 20 Maxwell Road, Maxwell House 09-17 069113 Singapore

Web: www.onpointloyalty.com
Contact:

Kendy Phohleli
Contact:
Email: kendy@xyzconsulting.biz
Evert de Boer
Email: evert.deboer@onpointloyalty.com
Tel: 27 11 110837180
Tel: 65 96523065
Watson Farley & Williams Spain

Activities: Legal services
Address: 6 Battery Road #28-00 Singapore 049909
Santander
Address: Calle Juan Ignacio Luca de Tena 9 y 11, Edif. Magdalena
Web: www.wfw.com
planta 1 Madrid 28027, Spain
Web: www.santander.com
Contact:
Charles Viggers
Contact:
Email: cviggers@wfw.com
Alvaro Baillo
Title: Partner
Email: abaillo@gruposantander.com
Tel: 66 65 32 5335
Title: Head of Asset Finance

Teresa Mañas
South Africa Email: tmanas@gruposantander.com
Address: Calle Juan Ignacio Luca de Tena 9 y 11, Edif. Magdalena

planta 1 Madrid 28027, Spain
Absa Bank
Activities: Aviation financing
Address: 15 Alice Lane Sandown South Africa 2196
Web: www.absa.co.za Sigrun Partners
Activities: Finance
Contacts: Address: Serrano 16 Floor 5 28006 Madrid, Spain
Morne Visagie Web: www.sigrunpartners.com
Email: morne.visagie@absa.africa
Head Structured Asset Finance Contact:
Tel: 27 11 8955254 Eduardo Sansigre
Email: egsansigre@sigrunpartners.com
Title: Senior Advisor
Tel: 34 609440321
Directory
Sri Lanka Contact:

Hande Soyler
Email: hbacak@thy.com
Fits Air Title: General Finance Manager
Activities: Cargo Airline, Passenger Airline Tel: 90 212 463 63 63 (Ext:11613)
Address: 9 Abdul Gafoor Mawatha, Sri Lanka
Web: www.fitsair.com
Contact:
Ammar Kassim
United Arab Emirates
Email: ammar.kassim@fitsair.com
Dubai Aerospace Enterprise
Title: Director
Activities: Investor Relations, Sustainability, Capital Markets
Tel: 94 77 2266275
Address: Level 3, Building 4 Gate Precinct DIFC, Dubai , UAE
Web: www.dubaiaerospace.com
Switzerland Contact:
Deion McCarthy
Elevate Advisory Email: deion.mccarthy@dubaiaerospace.com
Activities: Aviation & Transportation Consulting Title: Director, Fixed Income Investor Relations and Sustainability
Address: Scheitzelstrasse 28 CH-8500 Frauenfeld Tel: 971 56 2161835
Web: www.elevateadvisory.ch

Contact: Emirates Airline
Bjoern Maul Address: Dar al jood building. Flat num 503. Al Nahda 2, Dubai,
Email: bjoern.maul@elevate-advisory.net UAE
Title: Managing Director Web: Emirates.com
Tel: 41 79 2540614
Contact:
Karthik Nukul Sureshbabu

Thailand Email: Karthik.sureshbabu@emirates.com
Title: Aircraft Engineer
Tel: 971 55 5876848
Focus.Aero ApS
Activities: Aircraft maintenance test & delivery flights

Web: www.focus.aero
First Abu Dhabi Bank
Activities: Banking
Contact:
Address: FAB Building, Sheikh Zayed Road, between 3rd and
Alvin Tong
4th interchange, Dubai, UAE
Email: adb@aerofactor.co.uk
Web: https://www.bankfab.com
Tel: 66 92 6254526
Contact:
Sarah Pirzada Usmani
Email: sarah.usmani@bankfab.com
Turkey Title: Managing Director - Head of Sustainable, Asset & Project
Finance
GA Telesis Tel: 971 56 5033853
Contact:
Hakan Fedai
Email: hakanfedai@hakanfedai.com Flydubai
Title: Finance Director Activities: Air Transportation
Tel: 90 532 6092200 Address: flydubai campus, PO box 353, 8th Floor Finance
Department Dubai, UAE
Web: www.flydubai.com
Turkish Airlines
Activities: Aircraft Finance, Financial Leasing Contact:
Address: Turk Hava Yollari Genel Yonetim Binasi, Yesilkoy Mh. Arbind Kumar
Havaalani Cd. No:3/1 Bakirkoy Istanbul, Turkey Email: arbind.kumar@flydubai.com
Web: www.turkishairlines.com Title: SVP - Finance
Tel: 971 50 6538429

Directory
Flying Solutions Ellen Artist

Activities: Consulting, lease management Email: eartist@seaburysecurities.com
Address: PO BOX 712189 Dubai, UAE Title: Managing Director
Contact:
Marc Bourgade TAHG MEA
Email: ceo@flyingsolutionsdwc.com Activities: Aviation and Aerospace Asset Investments
Title: Chief Executive Officer Address: 110, Level 14, Al Khatem Tower, Abu Dhabi Global
Tel: 971 52 1668477 Market Square, Al Maryah Island, Abu Dhabi, United Arab
Emirates.
HFW Contact:
Activities: Advising financiers, lessors and operators on aviation Jaweed Abdullah
finance and leasing transactions. He has experience in debt Email: jabdullah@tahg.aero
finance, operating lease, sale and lease back and portfolio Title: CEO
trading transactions, lease default management, including in Tel: 971 50 8136546
relation to litigation and cross border solvent and insolvent
restructurings in a variety of jurisdictions.
Turbine Asset Holdings Group MEA
Address: Level 8, Building 6 Emaar Square, Sheikh Zayed Road Activities: Aviation Asset Investors
PO Box 53934 Dubai, UAE Address: ADGM Square, Al Khatem Tower, Al Maryah Island, Abu
Dhabi, UAE
Contact:
Shyamal Jeewoolall Contact:
Email: shyamal.jeewoolall@hfw.com Jaweed Abdullah
Title: Partner Email: jabdullah@tahg.aero
Tel: 971 56 808 4027 Title: Managing Director
Tel: 971 50 8136546

HSBC Bank Middle East
Address: HSBC Tower, Downtown, P.O. Box 66, Dubai, UAE Watson Farley & Williams
Contact: Address: Unit 1, Level 25 - Tower 2 Al Fattan Currency House PO
Xavier Million Box 506896 Dubai, UAE
Email: xavier.million@gmail.com Web: www.wfw.com
Title: Director, Aviation Finance
Tel: 971 44 237000 Contact:
Dhruv Paul
Email: dpaul@wfw.com
Seabury Securities Title: Partner
Activities: Investment Banking
Tel: 971 4 278 2300
Address: Apt 2304, Banyan Tree Residences, JLT, Dubai, UAE

Web: Seaburycapital.com

Contacts:
Alexis Fekete
United Kingdom
Email: afekete@seaburysecurities.com
AerMoon
Activities: Commercial aircraft trading and leasing, asset
Tel: 44 7867426030
management, advisory
Web: www.aermoon.com
Mike Cox
Email: mcox@seaburysecurities.com
Contact:
Title: Senior Managing Director
James Moon
Email: jmoon@aermoon.com
Thodoris Kitsanelis
Email: tkitsanelis@seaburysecurities.com
Directory
AFIC Jean Semiramoth

Activities: supported aircraft financing Email: jean.semiramoth@altea-aero.com
Address: The St. Botolph Building 138 Houndsditch London, Title: Founding Partner
EC3A 7AW, UK Tel: 44 20 8995 3207
Web: www.marsh.com/uk/industries/aviation-aerospace/afic-
supporting-aircraft-financing.html Robin Dunlop
Email: robin.dunlop@altea-areo.com
Contacts: Title: Founding Partner
Leslie Kurshan Tel: 44 20 8995 3207
Email: leslie.kurshan@marsh.com
Title: Managing Director, Global AFIC Credit Specialties and
Product Development Leader Avia Solutions
Tel: 44 207 3571365 Activities: Aviation Consultant
Address: Avia Solutions Ltd Links Business Centre, Old Woking
Karen Ko Road Old Woking Surrey GU22 8BF, UK
Email: karen.ko@marsh.com Web: www.aviasolutions.com
Title: Senior Vice President, AFIC Team, Credit Specialties
Tel: 44 207 3573916 Contacts:
Jolyon Kingham
Email: jolyon.kingham@aviasolutions.com
AFL Aircraft Finance Lease Title: Analyst
Activities: Leasing Tel: 44 1483 227080
Address: 3rd Floor, 86-90 Paul Street, London EC2A 4NE, UK
Web: afl-aero.com John Carter
Email: john.carter@aviasolutions.com
Contact: Title: Director
Deepak Sharma Tel: 44 1483 227080
Email: ceo@afl-aero.com
Tel: 44 203 9742 477 AXON Aviation Group
Activities: Aircraft Sales, Acquisition, Lease and
Investments
ALTEA Address: 55 Park Lane London W1K 2DR, UK
Activities: ALTEA is retained by those who want fresh thinking Web: www.axonaviation.com
secured by experience in asset management; procurement and
sales; financial solutions and design. Specialising in business Contact:
jets, regional aircraft and helicopters, our expert team interprets Niki Rokni
knowledge and insight to achieve extraordinary results. From Email: niki@axonaviation.com
concept to completion, our authoritative approach and meticulous Title: Partner & Head of Aircraft Sales
attention to detail protects your interests. The team’s collective Tel: 44 20 70780210
experience spans 140 years, comprising the acquisition, sale
or lease of aircraft worth $1.1 billion, 415+ aircraft inspections &
valuations, 50+ aircraft repossessions, $120m equity and >$200m Bryan Cave Leighton Paisner
debt raised for airlines and lessors, 27 VIP completions projects, Activities: Global law firm
70+ industry reports and benchmarking studies. Address: Governor’s House 5 Laurence Pountney Hill London,
EC4R 0BR, UK
Address: 114 Power Road London W4 5PY, UK Web: www.bclplaw.com
Web: www.altea-aero.com
Contacts:
Contacts: Rebecca Quayle
Andrew Butler Email: rebecca.quayle@bclplaw.com
Email: andrew.butler@altea-aero.com Title: Partner
Title: Founding Partner Tel: 44 20 3400 4006
Tel: 44 20 8995 3207
Anton Chambers
Angus Von Schoenberg Email: anton.chambers@bclplaw.com
Email: angus.schoenberg@altea-aero.com Title: Partner
Title: Founding Partner Tel: 44 2 3400 4366
Tel: 44 20 8995 3207

Directory
Centrus Aviation Partners Mike Sein

Activities: Aircraft and Engine Leasing, Finance, Trading and Email: msein@deloitte.co.uk
Remarketing Title: Commercial manager – Aviation
Address: Senator House, 85 Queen Victoria Place, London Tel: +44 115 936 3912
EC4V 1AB, UK
Web: www.centrusaviation.com
Dentons
Contact: Activities: Legal
Bill Cumberlidge Address: One Fleet Place London EC4M 7WS, UK
Email: bill.cumberlidge@centrusaviation.com Web: www.dentons.com
Tel: 44 (0)203 9460362 Contacts:
Nick Chandler
Email: nick.chandler@dentons.com
Clyde & Co Title: Partner
Address: The St Botolph Building 138 Houndsditch London Tel: 44 20 72467059
EC3A 7AR, UK
Web: www.clydeco.com Serge Sergiou
Email: serge.sergiou@dentons.com
Title: Partner
Contacts:
Tel: 44 20 72467216
Mark Bisset
Email: mark.bisset@clydeco.com
Sarah Dyke
Title: Partner Email: sarah.dyke@dentons.com
Tel: 44 207 876 5000 Title: Partner
Tel: 44 20 73205457
Norman Fraser
Email: norman.fraser@clydeco.com
Title: Partner Deucalion Aviation
Tel: +44 20 7876 4727 Activities: Aircraft acquisition, asset management, financing and
investment services
Address: Tower 42, Level 32 25 Old Broad Street London EC2N
Deloitte 1HQ, UK
Web: deucalion.com
Contacts:
Stephan Sayre
Email: stephan.sayre@deucalion.com
Contacts:
Title: Co-Chief Executive Officer & CIO
Mike Rhead Tel: 44 7887706167
Email: mrhead@deloitte.co.uk
Title: Legal Director – Aviation Jon Skirrow
Tel: +44 (0)7903009941 Email: jon.skirrow@deucalion.com
Title: Co-Chief Executive Officer & COO
Mark Costa Tel: 44 7889063026
Email: markcosta@deloitte.co.uk
Title: Tax Director – Aviation Toby Iles
Tel: +44 (0)7775 900110 Email: Toby.Iles@deucalion.com
Title: Head of Commercial & Portfolio Management
Aimee Perry Tel: 44 7889063027
Email: aaperry@deloitte.co.uk
Title: Commercial manager – Aviation Les Walsh
Email: Les.Walsh@deucalion.com
Tel: +44 121 695 5634
Title: Chief Technical Officer
Tel: 44 7799656542
Alistair Pritchard

Email: ajpritchard@deloitte.co.uk
Title: Partner - Travel & Aviation
Tel: +44 7710 326724
Directory
eCube Solutions Contact:

Activities: Aircraft disassembly, aircraft parking/storage care and Zohar Zik
maintenance, engine removal and storage Email: zohar.zik@hfw.com
Address: Dragon Way, Bro Tathan, Cardiff, CF313XR, UK Title: Partner
Web: www.ECube.aero Tel: 44 (0) 20 7264 8251
Contact:
Steven Taylor Hogan Lovells
Email: steven.taylor@ecube.aero Activities: Legal Services, Aviation Finance.
Title: SVP Sales and Marketing Address: Atlantic House Holborn Viaduct London EC1A 2FG, UK
Tel: 44 7761154369
Web: www.hoganlovells.com
Mike Corne
Contacts:
Email: mike.corne@ecube.aero
Robert Fugard
Title: Chief Commercial Officer
Email: robert.fugard@hoganlovells.com
Tel: 44 07919 305280
Title: Partner
Tel: 44 20 7296 2015
Floreat
Activities: Investor
Address: 33 Grosvenor Street London W1K 4QU, UK Richard Goss
Web: www.floreat.com Email: richard.goss@hoganlovells.com

Tel: 44 20 7296 5730
Contacts:
Phillip Griffiths
Email: phillip.griffiths@floreat.com
ICF (SH&E)
Activities: Valuation, asset management, aviation sustainability,
Mark Rogers Aviation market analysis.
Email: mark.rogers@floreat.com Address: 10 Queen Street Place, London, EC4R 1BE, UK
Title: Managing Director Web: www.icf.com/work/transportation/aviation
Contact:
FIS Benjmain Chapman
Address: Walbrook, 6th Floor, London EC4N 8AF, UK
Email: ben.chapman@icf.com
Title: Senior Manager - Aircraft Consulting & Services
Contact:
Tel: 44 7748283044
Jane Golding
Email: jane.golding@fisglobal.com
Title: Senior Credit Analyst
K&L Gates
Halaby Aero Address: One New Change London EC4M 9AF, UK
Address: 17b Gilston Road London SW10 9SJ, UK Web: www.klgates.com
Contact:
Contacts:
Michael Halaby
Sidanth Rajagopal
Email: michael@halaby.aero
Email: sidanth.rajagopal@klgates.com
Title: Principal
Tel: 44 7711 298408 Title: Partner
Tel: 44 207 3608189
HFW Philip Perrotta

Activities: Zohar is a Partner in our aviation department with Email: philip.perrotta@klgates.com
particular expertise in finance and leasing transactions, complex Title: Partner
commercial contracts and regulatory matters. He has advised
Tel: 44 207 3608205
extensively on fleet management issues, such as aircraft
procurement, purchase and disposal, operating leasing, sub-
Manuela Krach
leasing, lease novations and amendments and end of lease returns.
Email: manuela.krach@klgates.com
His aviation finance experience includes sale and leaseback
transactions, debt financing, hire purchase and conditional sale Title: Special Counsel
agreements, receivables financing and securitisation. Tel: 44 207 3608271
Address: Friary Court 65 Crutched Friars London EC3N 2AE, UK

Directory
KV Aviation/Pulsar Aero Global Qatar Reinsurance

Activities: Lessor, Asset Manager (Aircraft/Engines) Activities: Aircraft Residual Value Insurance
Address: 15 Bishopsgate, London, UK Address: 21 Lime St. London EC3M 7HB, UK
Web: www.qatarreinsurance.com
Contact:
Karine Brunet Contact:
Email: karine.brunet@kvaviation.com Nick Hester
Title: sales, marketing and origination Email: nhester@qicglobal.com
Tel: 44 7557194936 Title: Senior Underwriter, RVI
Tel: 44 7733 126605

MUFG Bank
Address: Ropemaker Place, 25 Ropemaker Street London, Skytra
EC2Y 9AN, UK Activities: Financial Services
Web: www.mufg.jp/english Web: www.skytra.com
Contact: Contact:
Mi Zhou Elise Weber
Email: mi.zhou@uk.mufg.jp Email: elise.weber@skytra.com
Title: Vice President - Origination Title: Co-founder / Chief Sales and Marketing Officer
Tel: 44 0 7436 588413 Tel: 44 20 8059 7700
Matthew Tringham
Macquarie Airfinance Email: matthew.tringham@skytra.com
Address: Ropemaker Place, Level 11 28 Ropemaker Street Title: Co-founder / Chief Product and Strategy Officer
London EC2Y 9HD, UK Tel: 44 20 80597700
Web: www.macquarie.aero
Mark Howarth
Contact: Email: mark.howarth@skytra.com
Liam Kavanagh Title: Chief Executive Officer
Tel: 44 20 80597700
Email: Liam.Kavanagh@macquarie.aero
Title: Executive Vice President, Chief Commercial Officer

Tel: 44 20 3037 2780
Stephenson Harwood
Activities: Aviation Finance and Structured Finance
Address: Stephenson Harwood LLP 1 Finsbury Circus London
Norton Rose Fulbright
EC2M 7SH, UK
Activities: Aviation finance and leasing lawyers at the

cuttingedge of the development of innovative financing
Contact:
structures, working with clients to develop new products as well
Rebecca Garner
as to manage their legal requirements in relation to the sale,
Email: rebecca.garner@shlegal.com
purchase and financing of aviation assets.
Title: Partner
Tel: 44 207 8092125
Address: Norton Rose Fulbright LLP, 3 More London Riverside,
London, SE1 2AQ, UK
Strikitsa Consulting
Contact: Activities: Global connections for people and business online
Duncan Batchelor Web: www.strikitsaconsulting.co.uk
Email: duncan.batchelor@nortonrosefulbright.com
Title: Global Head of Aviation Contact:
Tel: 44 20 7444 2650 Regina Wojciechowska
Email: regina@strikitsaconsulting.co.uk
Title: Global Connections Manager

Directory
The Aircraft Value Analysis Watson Farley & Williams

Activities: Appraisals, Market Analysis Activities: Legal services
Address: Buckland House, Haydons Close, Chipping Campden. Address: 15 Appold Street London EC2A 2HB, UK
GL55 6JN. UK Web: www.wfw.com
Web: www.aircraftvalues.net
Contact:
Contact: Jim Bell
Paul Leighton Email: jbell@wfw.com
Email: pleighton@aircraftvalues.net Title: Partner
Title: Managing Director Tel: 44 20 7814 8000
Tel: 44 203 4685594
UK Export Finance United States

Activities: Export Credit Agency
Address: UK Export Finance, 1 Horse Guards Road, London, Affinity Capital Exchange
SW1A 2HQ, UK
Web: www.gov.uk/government/organisations/uk-export-finance
Contact:
Will Cooper
Email: will.cooper@ukexportfinance.gov.uk
Title: Business Manager - Aerospace Activities: Affinity Capital Exchange is the operator of the world’s
Tel: 44 20 3922 0277 first capital market for institutional loyalty-backed financial
instruments. Тhe permissioned marketplace is exclusively
available to global airlines, their commercial partners and
Volofin Capital Management qualified institutional investors.
Activities: Financier
Address: One King William Street London EC4N 7AR, UK ACE delivers enhanced loyalty monetization for airlines by
Web: www.volofin.com lowering financing costs and providing access to fresh capital.
To institutional buyers and investors globally, ACE offers pure-
Contact: play exposure to attractive Loyalty fundamentals. Institutional
Jan Bockelmann investors receive direct trading access via standard capital
Email: jan.bockelmann@volofin.com market interfaces to digital asset instruments, exclusive market
Title: Director data and analytics to execute a variety of trading, portfolio and
Tel: 44 7470 909315 risk management strategies. For more information, please email
airfin@afcx.co

Winston & Strawn Address: 40 Exchange Pl Suite 1302 New York, NY 10005, USA
Activities: Full-service aviation finance and leasing law firm. Web: www.afcx.co
Address: CityPoint One Ropemaker Street London EC2Y 9AW,
UK Contacts:
Web: www.winston.com Atanas Christov
Email: achristov@afcx.co
Contacts: Title: CEO & President
Mark Moody Tel: 1 646 8011221
Email: MBMoody@winston.com
Title: Partner Samarth Sanghavi
Tel: 44 20 7011 8714 Email: ssanghavi@afcx.co
Title: Chief Product Officer
Alison Weal Tel: 917 859 4529
Email: AWeal@winston.com
Title: Partner Irina Sadayo
Tel: 44 20 7011 8806 Email: isadayo@afcx.co
Title: Executive Vice President
Tel: 1 646 4551230


Directory
AFIC (Aircraft Finance Insurance Consortium) Advisory Amber International

& Operations Activities: Aircraft and aviation infrastructure financing
Activities: supported aircraft financing transaction advice and execution.
Address: Washington Square 1050 Connecticut Avenue, NW Address: 2255 Glades Road Suite 205-E Boca Raton, Florida
Suite 700 Washington, DC 20036, USA 33431, USA
Web: www.marsh.com/uk/industries/aviation-aerospace/afic- Web: airfinance.com
supporting-aircraft-financing.html
Contact:
Contacts: Arthur Bernstein
Bob Morin Email: bernstein@airfinance.com
Email: robert.morin@marsh.com Title: Managing Director
Ttile: Managing Director, Transaction and Business Development Tel: 1 561 994 5522
Leader
Tel: 1 202 341 7653
American Airlines
Address: 1 Skyview Drive Fort Worth, TX 76155, USA
Gabriel Okolski
Email: gabriel.okolski@marsh.com
Contact:
Title: Senior Vice President, Credit and Financial Analyst
Meghan Montana
Tel: 1 202 320-9193
Email: meghan.montana@aa.com
Title: Vice President, Treasurer
Tel: 1 682 2780406
Aircastle
Address: 201 Tresser Blvd, Suite 400 Stamford, CT, 06901, USA
Apple Bank
Contact: Activities: Aviation finance
Randal Nightingale Address: 122 E. 42nd Street, 9th Floor New York, NY 10168, USA
Email: Rnightingale@aircastle.com
Title: EVP, Analytics and Investments Contact:
Tel: 1 646 637 7996 Dana MacKinnon
Email: dmackinnon@applebank.com
Title: SVP
Allegiant Tel: 212-224-6530
Activities: Airline, low cost, US
Address: 1201 N. Town Center Drive Las Vegas, NV 89144, USA
Web: www.allegiant.com Atlas Air Worldwide
Address: 2000 Westchester Avenue Purchase, NY 10577, USA
Contact: Web: www.atlasairworldwide.com
Robert Neal
Email: robert.neal@allegiantair.com Contacts:
Title: SVP & Treasurer Emidio Carrico
Tel: 1 702 4196630 Email: emidio.carrico@atlasair.com
Title: Staff Vice President & Assistant Treasurer
Tel: 1 914 701 8789
Alton Aviation Consultancy
Address: 110 West 40th Street, Suite 505 New York, New York Ed McGarvey
10018, USA Email: ed.mcgarvey@atlasair.com
Web: www.altonaviation.com Title: SVP & Treasurer
Tel: 11 914 7017084
Contact:
John Mowry
Email: john.mowry@altonaviation.com
Tel: 1 212 2568477
Directory
AVITAS BlueArc Special Situations Credit Management

Activities: Valuation, Technical, and Consulting services Activities: Aircraft Leasing, Distressed Investments, Joint-
Address: 14520 Avion Parkway, Suite 300 Chantilly, VA 20151, Ventures
USA Address: Charlottesville, VA, USA
Email: www.avitas.com
Contact:
Contacts: Peter Sheeran
Doug Kelly Email: psheeran@bluearccapital.com
Email: doug.kelly@avitas.com Title: Chief Investment Officer
Title: Senior Vice President - Asset Valuation Tel: 1 646 4910914
Tel: 1 703 4762498

John Vitale BNP Paribas
Email: john.vitale@avitas.com Contact: Ahsan Avais
Title: President and Chief Executive Officer Email: ahsan.avais@us.bnpparibas.com
Tel: 1 703 4762300 Title: Vice President
Adam Pilarski
Email: adam.pilarski@avitas.com Castlelake
Title: Senior Vice President - Consulting Address: 90 South Seventh Street 4600 Wells Fargo Center
Tel: 1 703 4762300 Minneapolis, MN 55402, USA
Web: https://www.castlelake.com/
Tim Scott
Email: tim.scott@avitas.com Contact:
Title: Senior Vice President - Technical Stuart MacGregor
Tel: 1 703 4762300 Email: stuart.macgregor@castlelake.com
Title: VP Trading
Tel: 1 619 916 7077
Azorra
Activities: Aircraft Leasing
Address: 350 SW 34th Street Fort Lauderdale, Florida, 33315, CDB Aviation
USA Activity: Full-service Lessor
Web: https://azorra.com Web: www.cdbaviation.aero
Contacts: Contact:
Alan Stanford Paul Thibeau
Email: astanford@azorra.com Email: Paul.Thibeau@CDBAviation.aero
Title: Chief Financial Officer Title: Senior Vice President Communications
Tel: 1 954 6460300
John Evans Cowen

Email: jevans@azorra.com Activities: Trading of Airline and Aircraft Debt and Equity and
Title: Chief Executive Officer Analytics
Tel: 1 954 6468059 Address: 962 Harbor Drive Stamford, Ct 06902, USA
Web: www.cowen.com
Ron Baur
Email: rbaur@azorra.com Contact:
Title: President Chris Reddy
Tel: 1 281 6862067 Email: chris.reddy@cowen.com
Title: Global Head of Aerospace Analytics
Michael Davis Tel: 646 616 3042
Email: mdavis@azorra.com
Title: Chief Marketing Officer
Tel: 1 954 6094689

Directory
Cross Ocean Partners Escadra Aviation

Address: 20 Horseneck Lane, Greenwich, CT 06830, USA Activities: aircraft financing, leasing & acquisitions
Web: www.crossoceanpartners.com Address: 3789 Oak Ridge Lane Weston, FL 33331, USA
Contact: Contacts:
Bryan Lange Greg Alberts
Email: bl@crossoceanpartners.com Email: gregalberts@escadra-aviation.com
Title: Vice President, Aviation Origination & Trading Title: Chief Executive Officer
Tel: 1 203 5544338 Tel: 1 954 2608266

Vincent Menot
Email: vincent@escadra-aviation.com
Cusco Aviation

Activities: Aircraft and engine leasing and financing
Web: www.Cuscoaviation.com
Fafinski Mark & Johnson
Activities: Law Firm
Contact:
Address: 775 Prairie Center Drive, Suite 400 Eden Prairie, MN
Manuel Cordero
55344, USA
Email: ceo@cuscoaviation.com
Web: www.fmjlaw.com
Tel: 1 925 3229205
Contacts:

Robert Fafinski

Email: robert.fafinski@fmjlaw.com
DelMorgan & Co
Title: CEO & Shareholder
Address: Investment Banking - Capital Raise, M&A, Strategic Advisor
Tel: 1 952 995 9500
Address: 100 Wilshire Boulevard Suite 750 Santa Monica, CA
90401, USA
Kevin Johnson
Web: https://delmorganco.com/
Email: kevin.johnson@fmjlaw.com
Title: Shareholder
Contact:
Tel: 1 952 995 9500
Vahan Callan
Email: vc@delmorganco.com
James Gladen
Title: Managing Director - Head of Aviation Finance
Email: james.gladen@fmjlaw.com
Tel: 1 310 319 2000
Title: Shareholder

Tel: 1 952 995 9500

Deloitte
Garrett Caffee
Email: garrett.caffee@fmjlaw.com
Title: Shareholder
Email: www.fmjlaw.com
Tel: 1 952 995 9500
Contacts:
Bryan Terry
Email: bryanterry@deloitte.com Flushing Bank
Title: Global Aviation Leader Activities: Equipment Finance
Tel: 1 678 431 4676 Address: 99 Park Avenue, Suite 820 New York, NY 10016, USA
Anthony Jackson Contact:

Email: antjackson@deloitte.com Charles Moran
Title: Financial Advisory - Aviation Email: cmoran@flushingbank.com
Tel: 1 214 632 6658 Title: VP Equipment Finance BDO
Tel: 1 212 477 9424 x 0658
Directory
Global AirFinance Services ING Capital

Activities: Consulting Activities: Structured Finance, Risk-Mitigated Aircraft Financing
Address: 19 Edgewood Ave N West Orange, NJ 07052, USA Solutions (ECA, AFIC, iFLI, Balthazar)
Address: 1133 Ave of the Americas New York, NY 10036, USA
Contact: Web: https://www.ing.com/Home.htm
Evan Wallach
Web: ewallach@globalairfinance.com Contacts:
Title: President & CEO David Jaquet
Tel: 11 516 6987968 Email: david.jaquet@ing.com
Title: Director, Structured Export Finance Americas
Tel: 1 646 4246736
Global AVX
Activities: Global AVX is ushering in the future of aviation Gemma Bae
transactions with an innovative new digital auction / trading Email: gemma.bae@ing.com
platform designed to deliver global exposure to maximize the Title: Managing Director, Head of Structured Export Finance
return on your assets (Aircraft/Engines). We specialize in managing Americas
aviation assets that are: Distressed or End-of-Life, Coming Off Tel: 1 646 4246737
Lease Without Placement, Too Costly to Profitably Operate, or In
Long-Term Storage, in-other-words, those assets that are having
a negative impact on the financial and ESG commitments you’ve Interdevelopment
made to your shareholders. Additional services include: Global
Activities: International management consulting with several
Asset Retrieval, Conversion/Mods, MRO, Short/Long-term Storage
practice areas, one covers pre-owned helicopters
and Preservation, Maximizing Re-Marketing Value through Global
Address: 1629 K Street, NW., # 300 Washington, DC 20006, USA
Competitive Bidding Auctions, and Optimized end-of-life solutions
Web: www.interdevelopment.com
to enhance the value of your out-of-service assets. More than
another full-service claim, Global AVX in collaboration with best-in-
Contact:
class industry providers, can take the dead-weight assets off your
Margareta Faris
balance sheets allowing you to focus on your core business and
Eamil: comm@interdevelopment.com
customers which is your strategic path to higher profitability.
Tel: 202 508 1459
Web: www.globalavx.com

Contact:
Steven Haro
ISTAT Appraisers Program
Web: www.istat.org
Email: steve@globalavx.com
Title: Chairman
Contact:
Tel: 1 253 7661958
Jeff Straebler
Email: jstraebler@istat.org
GoJet Airlines
Address: 11495 Navaid Rd Bridgeton, MO 63044, USA
Inglesino, Webster, Wyciskala & Taylor

Contact:
Gerald Wigmore
Address: 600 Parsippany Rd, Ste 204 Parsippany, NJ 07054, USA
Email: gerry.wigmore@tshstl.com
Web: iwwt.law
Title: SVP / CFO
Tel: 1 314 4979825 Contact:
Justin Marchetta
Email: jmarchetta@jetlawnj.com
Hogan Lovells Title: Partner
Activities: Legal Services, Aviation Finance. Tel: 1 973 947 7111
Address: Hogan Lovells US LLP 390 Madison Avenue New York,
NY 10017, USA
Web: www.hoganlovells.com JCB Consultants
Activities: Advisory
Contact: Address: 340 East 57th Street, NY 10022, USA
Mehtap Cevher Conti
Email: mehtap.cevherconti@hoganlovells.com Contact:
Title: Partner Hogan Lovells Jonathan Byron
Tel: 1 212 918 3617 Email: jbyron333@aol.com
Title: CEO
Tel: 1 10022 9173993313

Directory
Kellstrom Aerospace Marie-Pierre Grondin

Email: Marie-Pierre.Grondin@klgates.com
Title: Partner
Tel: 1 305 5393303
Address: 200 South Biscayne Blvd. Suite 3900 Miami, Fl. 33131,
USA
Milos (Misha) Kovacevic

Email: misha.kovacevic@klgates.com
Title: Counsel
Tel: 1 206 3707635
Address: 925 4th Ave Suite 2900 Seattle, WA 98104, USA
Kellstrom Aerospace specializes in Aviation Asset Management
solutions, primarily focused on mid to mature aircraft, providing
aircraft and engine lease, sale and exchange through to end of LA5 Group
life supply chain. We support a diverse customer base of OEMs, Activities: Trading, Leasing, Part 135, MRO, Infrastructure.
airlines, leasing companies, financial institutions, air transport Address: 7900 SW 128th Street Miami, Florida. 33156, USA
operators and MRO’s worldwide. Differentiated by its operational Web: www.LA5group.com
heritage, green-time lease portfolio and in-house technical
expertise through Kellstrom Aerospace Technical Services (KATS). Contact:
Kellstrom Aerospace offers an unparalleled level of cost-effective Luis Ayala
aftermarket solutions, including Green time aircraft/engine asset Web: luis@la5group.com
leasing and trading, engine exchanges, OEM parts distribution and Title: Managing Director
Tel: 1 305 4917675
OEM services, pre-owned parts distribution, technical consultancy
services, consignment management, ,and fleet provisioning
programs based on real world experience. Kellstrom Aerospace
Macquarie AirFinance
provides 24/7/365 AOG and JIT support covering all service
Address: Two Embarcadero Center, Suite 200 San Francisco, CA
offerings. For more information on Kellstrom Aerospace. 94111, USA
Web: www.macquarie.aero
Activities: Asset Management / Leasing and Trading / Technical
Consultancy / Fleet Management / Technical Records / Parts Contacts:
Distribution John Willingham
Address: 3430 Davie Rd., Suite 302, Davie, Florida, USA Email: John.Willingham@macquarie.aero
Web: www.kellstromaerospace.com Title: Chief Executive Officer
Tel: 1 415 829 6600
Contact:
Michael Garcia Michael Sims
Title: VP of Commercial Email: Michael.Sims@macquarie.aero
Email: Michael.garcia@kellstromaerospace.com Title: Head of Corporate Finance
Tel: (1) 833-247-7278 Web: www.macquarie.aero
Tel: 1 415 829 6600
K&L Gates
Mayer Brown
Address: 1221 Avenue of the Americas New York, NY 10020, USA
Address: 134 Meeting Street Suite 500 Charleston, SC 29401, Contact:
USA George Miller
Web: www.klgates.com Email: gmiller@mayerbrown.com
Title: Partner
Contacts: Tel: 1 212 5062590
Amanda Darling
Email: amanda.darling@klgates.com
Title: Partner Natixis
Tel: 1 843 5795670 Address: 1251 Avenue of the Americas New York City, NY 10020,
USA
Elizabeth Evans Web: www.natixis.com
Email: elizabeth.evans@klgates.com
Contacts:
Title: Partner
Benoist de Vimal
Tel: 1 212 536-3958
Email: benoist.devimal@natixis.com
Address: 599 Lexington Ave New York, NY 10022, USA
Tel: 1 917 2443076
Directory
Northwestern Mutual Investment Management PTS Aviation

Address: 720 East Wisconsin Avenue, Milwaukee, USA Activities: Engine Purchasing/Selling/Leasing/Trading
Web: https://www.northwesternmutual.com/ Address: 1129 Templemore Dr Keller, TX 76248, USA
Web: www.pts-aviation.com
Contact:
Jing Xie Contact:
Email: jingxie@northwesternmutual.com David Blackburn
Title: Director Email: dblackburn@pts-aviation.com
Tel: 1 414 6656649 Title: Partner
Tel: 1 817 233-9755

Northern Trust
Activity: Private Banking, Asset management, Aircraft Finance Raymond James
Address: 11301 US Highway One North Palm Beach, FL 33458, USA Activities: Investment Banking; Capital Raise, M&A,
Web: www.northerntrust.com Restructuring
Address: 27502 Guthrie Ridge Lane Katy, TX 77494, USA
Contact: Web: www.raymondjames.com
Jeffrey White
Email: jw132@ntrs.com Contact:
Title: Senior Banking Officer David Fowkes
Tel: 1 561 803 7538 Email: dwfowkes@verizon.net
Tel: 1 908 768 1797
Norton Rose Fulbright
Activities: Aviation finance and leasing lawyers at the cutting
edge of the development of innovative financing structures, Simulator Equipment Financing
working with clients to develop new products as well as to Activities: Full Flight Simulator - Finance, Brokerage, Appraisal
manage their legal requirements in relation to the sale, purchase Address: 1320 S. Priest Dr STE 101 Tempe, AZ 85281, USA
and financing of aviation assets.
Web: www.nortonrosefulbright.com Contacts:
Address: 1301 Avenue of the Americas, New York, NY 10019- Richard Johnson
6022, USA Email: Rick@Simulatorfinancing.com
Title: Managing Member
Contact: Tel: 1 480 736 8808
Alyssa Marie Vazquez
Email: alyssa.vazquez@nortonrosefulbright.com Ryan Grogger
Title: Head of Aviation, United States Email: Ryan@SimulatorFinancing.com
Tel: 1 212 318 3433 Vice President Brokerage
Tel: 1 480 736 8800
Odgers Berndtson
Activities: Executive Search, Leadership Development & Human SkyWorks Holdings
Capital Consulting Activities: Aviation investment banking, advisory, leasing, and
Address: 1100 Connecticut Avenue, NW Suite 800 Washington, asset management
DC 20036, USA Address: 283 Greenwich Avenue, 4th Floor Greenwich, CT
Web: www.odgersberndtson.com 06930, USA
Web: www.skyworks.aero
Contact:
Tim McNamara Contacts:
Email: tim.mcnamara@odgersberndtson.com Steven Gaal
Title: Vice Chair & Partner Email: sgaal@skyworks.aero
Tel: 1 202 536.5168 Title: Managing Partner
Tel: 1 203 983 6688
Jeff Craine
Email: jcraine@skyworks.aero
Title: Partner & Head of Investment Banking
Tel: 1 203 983-6686

Directory
Anders Hebrand Split Rock Aviation

Email: ahebrand@skyworks.aero Activities: Finance, lease advisory, consulting
Title: Partner & Head of Asset Management Web: www.splitrockaviation.com
Tel: 1 203 983 6683
Contact:
Matthew Landess Steve Welo
Email: mlandess@skyworks.aero Email: stevew@splitrockaviation.com
Title: Partner & Head of Commercial Title: Partner
Tel: 1 303 663-6330 Tel: 1 612 770 9356

Skye Aviation Capital SR Technics
Activities: Restructuring and capital raising advisory Activities: Engine MRO
Address: 3963 Springleaf Lane Boulder, CO 80304 Web: www.srtechnics.com
Web: www.skyeaviation.com
Contacts:
Contact: Caroline Vandedrinck
James Clarke Email: caroline.vandedrinck@srtechnics.com
Email: jclarke@skyeaviation.com Title: SVP Business Development
Title: Managing Director & Founder Tel: 1 954 8500499
Tel: 1 310 614 0440
Jay Aiken
Email: jay.aiken@srtechnics.com
Smith, Gambrell & Russell Title: Vice President Americas Business Development
Address: 500 West 2nd Street Suite 1900 Austin, TX 78701, USA
Web: www.sgrlaw.com Tel: 1 770 6159444
Contacts:
Peter Barlow TrueAero
Email: pbarlow@sgrlaw.com Address: 2401 E. Randol Mill Rd Suite 500 Arlington, TX 76011,
Title: Partner and Head of the Global Transport Practice USA
Tel: 212 907 9714 Web: www.trueaero.com

Marc Latman Contacts:
Email: mlatman@sgrlaw.com Karl Drusch
Title: Partner Email: kdrusch@trueaero.com
Tel: 212 907 9787 Title: Chief Executive Officer
Address: 1301 Avenue of the Americas 21st Floor New York, NY Tel: 1 682 247 3961
10019, USA
Stratton Borchers
Joshua Gentner Email: sborchers@trueaero.com
Email: jgentner@sgrlaw.com Title: President
Title: Partner Tel: 1 682 247 3955
Tel: 212 907 9778
Chris Luke
Jeffrey Tenen Email: cluke@trueaero.com
Email: jtenen@sgrlaw.com Title: Senior Vice President of Leasing
Title: Partner Tel: 1 772 783-2300
Tel: 786 522 2539 Address: 6020 99th Street Sebastian, FL 32958
Address: One Biscayne Tower 2 South Biscayne Blvd, Suite
3000 Miami, FL 33131
Directory
UMB Bank, N.A. Contact:

Activities: Trustee and Agency Services in the US and Susanne Burstein
Ireland Email: sburstein@wfw.com
Address: 6440 S. Millrock Drive, Suite 400 Salt Lake City, UT Title: Partner
84121 Salt Lake City, UT 84121, USA Tel: 1 212 922 2200
Web: umb.com
Contact: Winston & Strawn

Scott Rosevear Activities: Full-service aviation finance and leasing law firm.
Email: scott.rosevear@umb.com Address: 200 Park Avenue New York NY 10166-4193, USA
Title: Senior Vice President Web: www.winston.com
Tel: 1 385 7153009
Contacts:
Pete Morgan
Universal Asset Management Email: PMorgan@winston.com
Activities: Aircraft Trading, Acquisitions, Component Sales, Title: Partner
Leasing Web: www.winston.com
Address: 5350 Poplar Avenue Suite 150 Memphis, TN 38119, Tel: 1 212 294 6860
USA
Web: www.uaminc.com David Neier
Email: dneier@winston.com
Contacts: Title: Partner
Goutham Ramdas Tel: 1 212 294 5318
Email: goutham@uaminc.com
Title: Director - Aircraft Trading
Tel: 1 901 6824064 Zeevo Group
Activities: Zeevo Group’s extensive team of aviation and ‘big
Richard Spaulding four’ consulting experienced professionals advise lessors,
Email: rspaulding@uaminc.com manufacturers, and airlines on a range of finance transformation,
Title: President business intelligence, and technology integration initiatives
Tel: 1 901 6824064 that enable their organizations to better leverage capabilities,
optimize operations, and mitigate business risks.
Address: 701 Fifth Avenue; Floor 42, Seattle, WA 98104, USA
Valkyrie BTO Aviation Web: zeevogroup.com
Address: 345 Park Avenue New York, NY 10154, USA
Web: valkyriebto.com Contacts:
Joey Johnsen
Contacts: Email: jjohnsen@zeevogroup.com
Dean Gerber Tel: (1) 760 933 8607
Email: dean.gerber@valkyriebto.com
Title: Executive Vice President and General Counsel John McCartney
Email: jmccartney@zeevogroup.com
Greg May Tel: (1) 760 933 8607
Email: greg.may@valkyriebto.com
Title: Chief Executive Officer Scott Kopacz
Email: skopacz@zeevogroup.com
Marijn Kappen Tel: (1) 760 933 8607
Email: marijn.kappen@valkyriebto.com
Title: Chief Commercial Officer Brook Garberding
Email: bgarberding@zeevogroup.com
Sarah May Tel: (1) 760 933 8607
Email: sarah.may@valkyriebto.com
Sophie McAuley
Email: smcauley@zeevogroup.com
Watson Farley & Williams Tel: (1) 760 933 8607
Address: 250 West 55th Street New York New York 10019, USA
Web: www.wfw.com

Directory
airbus.com
PIONEERING
S U S TA I N A B L E
A E R O S PA C E
FOR
SAFE AND
UNITED WORLD
Through an unwavering commitment towards decarbonisation, Airbus is

paving the way for sustainable aerospace. Today, our technological
developments are already helping to safeguard our planet. Discover more
about how we’re leading the journey and shaping a brighter future for
generations to come.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
OBJECTIVE.
COLLABORATIVE.
GLOBAL .
Clients rely on Alton to provide data-driven guidance and insight to better inform their business
strategies, allocate capital, and manage risk. Our aircraft-related advisory services include:
• Market research and analysis • Aircraft fleet selection and sourcing

• Investment strategy and business planning • Commercial and technical due diligence
• Financial investment analysis • Asset management and technical services
• Cash flow forecasting • Appraisals and valuations
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AVIATION FINANCE | AIRLINE | AVIATION & AEROSPACE INVESTMENT | BUSINESS & GENERAL AVIATION
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Airfinance

leasing@willislease.com | +1 561.349.8950 | www.willislease.com

2 Airfinance Annual • 2022/23

Darker clouds gather

T he International Air Transport Association (IATA) latest

Deloitte: International tax reform: new

6 Alton Aviation Consultancy: Route to recovery delayed

Airfinance Journal Analysis: Engine Poll

32 Airfinance Journal Analysis: Engine Poll 2022

36 Airfinance Journal Analysis: Aircraft Investor Poll 2022

42 Airfinance Journal Analysis: Legal Survey 2022

4 Airfinance Annual • 2022/23

Caroline Devlin Rob Murphy

Laura Cunningham Ruth Lillis

Arthur Cox LLP

T he aviation industry has cautiously

challenges are emerging that throw the Global Financial

increases likely to affect market and -40% OPEC Crisis

continued, while increasing tensions

6 Airfinance Annual • 2022/23

travel restrictions. Key international

CHANGE% VS. SAME MONTH IN 2019

accelerated in regions with large -60%

contributed to operational challenges 0%

From a fleet perspective, recovery

stronger compared with widebody 1,000

markets to recover faster than long-

weather long-term impacts of the

cover both fixed and variable costs, $20

PROFIT MARGIN (%)

Governments had provided ($100) -30%

intangible assets such as airport slots Asia Pacific

8 Airfinance Annual • 2022/23

Improving fleet dynamics

the steady growth of air travel market 20,000

widebody aircraft represent about 16% 10,000

share of other fleet types. 16,000

declined in 2020 because of Covid 2,000

since the second quarter 2021 as the

of an aircraft. Covid-19’s impact on

period, conversions for younger

have been seen because of value

P2F CONVERSIONS FLEET COUNT

freighter. Blackrock was reported 60

Effects of Russia’s invasion of

10 Airfinance Annual • 2022/23

fastest northern route between Europe

On 25 February 2022, the EU

LESSORS’ FLEET EXPOSURE IN RUSSIA

(MEASURED BY FLEET COUNT)

various aircraft-related services into $3,176

deliveries from original equipment $1.5

manufacturers (OEMs) and the leasing $1.0

BOC Financial Leasing

restrictions on aircraft parts imports

had seen their ratings moving back

AIRLINE NET PROFIT (US$ IN BILLION)

PRICE PER BARREL (US$)

billion, but that process is likely to be -150 -120

insurance is unprecedented and will

longer than initially anticipated. The

see a significant hardening of the

12 Airfinance Annual • 2022/23