Airlines will continue to enjoy ready access to financing for new aircraft acquisitions, as funding sources such as bonds grow in importance as options for financial support, according to Boeing’s seventh annual aircraft finance market forecast. The report, released in London on December 10, said that while export credit agency funding will decline in significance in the coming years, the industry will see a more even balance among carriers’ use of bonds, leases and loans from banks and capital markets.
American International Group has agreed to sell its 100-percent stake in International Lease Finance Corporation (ILFC) to Netherlands-based aircraft leasing firm AerCap Holdings, the companies announced Monday.
With 36 A380 aircraft in the fleet as of late September and a further 104 now on order, the aviation community is trying to calculate what will happen to Emirates’ superjumbo fleet when the time comes to retire the type, at around halfway through its lifetime. Some analysts believe that, given a lifespan of 25 years, a proxy for the useful life of a modern widebody aircraft, the A380 will face problems in the secondary market when major leases come to an end after the standard 12-year term.
As next-generation airliners approach their commercial launch dates, airlines, leasing companies and other asset owners face the “pressing” question of what to do with their aging aircraft. The dilemma lies in the fact that sometimes none of the main options–restoration, conversion or simply scrapping the equipment–presents an attractive path.
A new report published by Lithuania’s AviaAM Leasing offers advice on how to avoid missing what it calls the point of no return, when aircraft become no longer worth maintaining or refurbishing.
Peter Bull, an aviation industry veteran and risk and asset management expert, has joined the advisory board at helicopter leasing firm Milestone Aviation Group. Milestone chairman and CEO Richard Santulli said Bull’s input will strengthen and enhance the company, since asset and risk management are the “backbone of our business and central to what we do.” Bull has held a range of senior positions in aircraft maintenance, leasing, asset management, risk consulting and continuing airworthiness.
Three separate contracts executed by Sukhoi Civil Aircraft (SCAC) over the past two days at the Moscow Air Show (MAKS) have added as many as 31 aircraft to the manufacturer’s Superjet 100 backlog and expanded its coverage among leasing companies.
Helicopter leasing firm Milestone Aviation Group announced today that it has attracted new financing worth between $600- and $750 million to fund “growth initiatives and acquisitions.” Since its founding by Richard Santulli three years ago, Milestone has acquired more than 100 aircraft worth $1.5 billion, placed orders and taken options for more new aircraft worth $2.2 billion and closed leases with 22 operators in 20 countries. Most of Milestone’s clients service the growing offshore oil and gas sector. The new financing comes from a consortium of global financial institutions.
Milestone Aviation Group, the helicopter leasing firm headed by NetJets founder Richard Santulli, closed a new $300 million credit facility yesterday. The company will use these proceeds to acquire and lease helicopters–including Sikorsky S-92s, Eurocopter EC225s and AgustaWestland AW189s and AW139s–valued at $400 million to affiliates of Bristow Group. The credit facility is the largest ever for a helicopter lessor, the company said.
The Equipment Leasing & Financing Foundation has released the results of a survey of financing experts, “to reveal and analyze the collective thinking of business aircraft lenders, lessors and investors (financiers) about the future of their industry in 2013 through 2016.” In general, “Financiers think the worst effects of the recession and financial crisis in 2008 are behind them and that business is picking up.” The report concludes, “business aircraft will gain altitude in 2013 through 2016 and ultimately ascend to an active (if not robust) transactions market during th
Macquarie Group has launched a new helicopter leasing company, Macquarie Rotorcraft Leasing, headquartered in San Francisco. The new company is headed by CEO Jeffrey Pino, formerly president of Sikorsky Aircraft. James Clarke, most recently CFO at Air Lease, is COO of Macquarie Rotorcraft Leasing. The leadership team also includes chief marketing officer Steve Estill and chief technical officer Greg A’slinger, former owner of Uniflight. The new company specializes in supplying helicopters for oil and gas, medical transport, search-and-rescue and executive transport.