11 Sep 2017

Irish Aircraft Leasing Newsletter 11 September

Avolon Receives Credit Rating from Kroll Avolon announced 15 September that the Kroll Bond Rating Agency has today issued an investment grade issuer credit rating on Avolon Holdings Limited of BBB+ with a stable outlook. Avolon Sees Clear Winners, Losers In 737 Max Lineup Orders for Boeing’s 737 Max 8 and Max 10 will predominate among the company’s Max narrowbody family, while the Max 7 fills a niche and the Max 9 finds itself all but squeezed out, a recent analysis from lessor Avolon concludes. The conclusions fit with macro trends favoring higher-capacity aircraft, signifying that OEMs will fight for future narrowbody orders at the upper end of the respective aircraft families. “Comparing the mix of the smaller variants of the current 737 NG and A320ceo family fleets with their re-engined successors, it is apparent that demand has shifted; the smaller variants of both families have all but disappeared from the order books,” said Avolon, which counted 136 Max jets and 159 neos in its 921-aircraft portfolio as of June 30. “Whilst the 737-700 and A319ceo hold a combined 17 percent of the current fleet, the Max 7 and A319neo account for a mere 1 percent of family orders.” AerCap Delivers First of Four New Airbus A350 Aircraft to Hong Kong Airlines AerCap announced 1^st September the delivery of a new Airbus A350-900 to Hong Kong Airlines, the first of four new A350 aircraft deliveries on long-term lease from AerCap’s order book with Airbus. A second A350-900 aircraft is scheduled for delivery to Hong Kong Airlines in November 2017. @AerCap Delivers First of Four New @Airbus #A350 Aircraft to @HK_Airlines AerCap has one of the largest Airbus A350-900 portfolios with a total of twenty-six owned and on order, delivering through 2019. AerCap President and Chief Commercial Officer Philip Scruggs said, “AerCap is proud to deliver the first of four new A350 aircraft to Hong Kong Airlines. The aircraft will form the main pillar of Hong Kong Airlines’ growth plans into the next decade, enabling the airline to provide a level of service and fly to markets that were not possible prior to today. We wish our friends and partners at Hong Kong Airlines every success as they continue to grow their business.” GIC to Invest in BBAM Through Acquisition of Significant Minority Interest GIC, Singapore's sovereign wealth fund, announced 5^th September it has, through its affiliates, agreed to acquire a c. 30% interest in BBAM, the world's largest manager of investments in leased commercial jet aircraft. The transaction is expected to close by September 30, 2017, subject to certain conditions and approvals. GIC will acquire its interest in BBAM through partial sales by the company's two existing shareholders, BBAM's management team and the Onex Group. Following the transaction, all three parties will assume minority joint ownership of the company. The investment follows a commitment by GIC earlier in 2017 to Incline Aviation the aircraft leasing industry's largest institutional fund, managed by BBAM. GOL announces transactions for 12 Boeing 737 aircraft with GECAS GOL Linhas Aéreas Inteligentes S.A announced 5^th September the sale and leaseback transactions with GE Capital Aviation Services for seven aircraft, including five Boeing 737 MAX 8 aircraft and two Boeing 737-800 Next Generation (NG) aircraft. Additionally, the Company signed the direct operating lease of five additional 737 MAX 8 aircraft. Peter Barrett interview: SMBC five years on SMBC Aviation Capital has gone from strength to strength since its acquisition five years ago. Its most recent annual report showed that last year was a great year for the lessor: profit before EBITDA jumped 48%, it completed 111 aircraft transactions and sold 24 aircraft, and issued its first bond. Peter Barrett (pictured), SMBC’s CEO, is keen to drive on. Aircraft Investor sat down with him to talk about the last five years and the company’s plans for the future. Acumen Aviation © 11 September All Rights Reserved.