Sukhoi Civil Aircraft (Hall 2a B198) and Russia’s Ilyushin Finance Company (IFC) signed a so-called heads of agreement outlining the terms of delivery of 20 Sukhoi SSJ100s here at the Paris Air Show on Monday. IFC envisions leasing 15 of the airplanes in basic configuration for Southeast Asian and Middle Eastern customers. IFC also plans to buy five other long-range versions of the jet, designated the SSJ100-95LR. The Parties agreed that the deliveries would start in 2015.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
BOC Aviation (Hall 5, Stand D262) has grown from just another player in the aircraft leasing business to a prominent brand, and the world’s fifth largest aircraft lessor. Started in 1993 as Singapore Aircraft Leasing (Sale), it was acquired by Bank of China in December 2006 for $3.25 billion. In July 2007, its name was changed to BOC Aviation.
Airbus’s A380 yesterday received a highly welcome boost from Doric Lease, which placed a memorandum of understanding (MoU) for the purchase of 20 of the superjumbos at the Paris Air Show.
There has hardly been a better time to be a buyer of aviation insurance, as all signs point to a buyer’s market. Several factors are driving lower rates in this insurance segment, including fewer airline accidents, lower overall insurance claims, the economy, more underwriters entering the market, increased adoption of safety management systems and more sophisticated aircraft. AIN talked to David McKay, president and CEO of insurer USAIG, to get a better sense of this market. USAIG and McKay are here at the Paris Air Show supporting long-time customer Bombardier.
Ilyushin Finance Company (IFC) has won the approval of its shareholders and governmental bodies for recently signed deals on 50 Irkut МС-21s, 32 Bombardier CSeries and 20 Sukhoi Superjet 100s. “All three programs have been approved,” IFC general manager and co-owner Alexander Roubtsov told AIN.
The Aircraft Owners and Pilots Association (AOPA) launched a new brokerage venture yesterday aimed at matching its members who require aircraft financing with lenders. It will also help facilitate member loans for avionics updates, either through straight loans using the aircraft as collateral when it is fully owned, or through refinancing of the aircraft while it is still being paid off.
Created in 2012 by industry veterans Cass Anderson and Jeff Habib, Intercontinental Aircraft Group (IAG) is a New York City-based consultancy service that provides third-party advice for business jet acquisitions and operations. IAG can provide aircraft needs assessment, mission-profile analysis, financial comparison and optimization, aircraft technical comparison, market analysis, aircraft valuation and contract negotiation.
Amstat (Booth 931) is demonstrating the latest version of its online resource tools for business aviation fleet and operator information. For its Premier Online product, the U.S. company says it has designed a “simple and elegant solution” via two menu options. Users also can now share notes and edits with their colleagues, customize result lists, save and schedule reports, add their own data fields (for territory assignment, for example) and customize printouts–even adding their company logos.
If you see Michal Dvorak here at EBACE wearing a big smile, congratulate him on his new appointment. He was just named chief financial officer of ABS Jets (Booth 2052), with operational bases in Prague and Bratislava. Dvorak has always had a keen interest in both aviation and finance, and his new job will enable him to leverage his expertise in both areas.
Airlines are benefitting from growing capital market support for new aircraft financing, with this source of funding expected to account for as much as 15 percent of all transactions this year, according to Boeing Capital. A few years ago, capital markets accounted for barely 2 to 3 percent of aircraft financing.