19 Nov 2018

Irish Aircraft Leasing Newsletter 19 November

ALI Chair addresses Airfinance Conference in Hong Kong On 1^st November 2018, ALI Chair, David Swan addressed the Airfinance Conference in Hong Kong about the merits of Ireland as a location for aircraft leasing. David Swan explained that Ireland has been the leading centre for aircraft leasing globally for many decades, however the need for a representative body like ALI to provide a coordinated voice for the sector was long overdue. He emphasized this was not about Ireland versus Hong Kong but Ireland and Hong Kong. “This is a growing industry, it is a big pie with lots of opportunity which needs multiple centres to service our customers but in every industry, there is always a main hub, and that hub is Ireland. However our overriding message is that we must work together with the Irish government to remain the most attractive location for lessors.” Avolon Places 15 Airbus A320neo Aircraft with Vistara Avolon announced 15 November the placement of fifteen Airbus A320neo aircraft with Vistara. The delivery of the aircraft will commence in June 2019 and continue up to August 2021. These are the first aircraft Avolon will have on lease to Vistara. Avolon Repays Remaining Emerald Aviation Finance Securitisation Debt of US$407 Million Avolon announced 15 November the repayment by Emerald Aviation Finance Ltd of the outstanding US$407 million of its Class A-1 Fixed Rate Asset Backed Notes and Class B-1 Fixed Rate Asset Backed Notes associated with its aircraft securitization. Following repayment, the Notes will be de-listed from Euronext Dublin (formerly the Irish Stock Exchange). Launched in 2013, Emerald was Avolon’s inaugural aircraft securitization. CDB Aviation Takes Delivery of Its 100th A320 Family Aircraft from Airbus CDB Aviation, a wholly owned Irish subsidiary of China Development Bank Financial Leasing Co., Limited announced 12 November the delivery of its 100th Airbus A320 Family aircraft. The A320neo aircraft, which will be operated by India’s low-cost carrier Go Airlines Ltd, is part of a purchase and leaseback agreement signed with the carrier earlier in 2018. The delivery marks the overall 125th Airbus aircraft to join the lessor’s fleet. “We are thrilled to mark this major milestone by adding the 100th A320 Family aircraft to our rapidly expanding fleet,” said CDB Aviation President and Chief Executive Officer, Peter Chang. “At the same time, this overall 125th Airbus aircraft to join our fleet demonstrates the increasing strength and robust capabilities of our global operation.” FPG Amentum and FPG arrange the acquisition of an A320-200 on lease to ANA Holdings Financial Products Group Co., Ltd and FPG Amentum announced 12 November the acquisition of an Airbus A320-200. The aircraft was acquired from another lessor at delivery from Airbus and is on lease to ANA Holdings Inc. Gulf Air Completes Sale and Leaseback of 6 Airbus A320neo Aircraft with SMBC Aviation Capital Gulf Air and SMBC Aviation Capital announced 15 November a six-aircraft agreement for the purchase and leaseback of six Airbus A320neo aircraft. This is SMBC Aviation Capital’s first deal with Gulf Air and follows a competitive tender process. Peter Barrett, CEO, SMBC Aviation Capital added, “We are very pleased to partner with Gulf Air to assist with the airline’s ambitious fleet expansion plans. The A320neo incorporates the latest in aviation technology to provide our airline customers with a more modern, fuel efficient aircraft. As a new customer and our first entry into the Kingdom of Bahrain, we look forward to working alongside Gulf Air for the coming years.” Moody's upgrades Avolon Holding's corporate family rating to Ba1 from Ba2, stable outlook Moody's Investors Service upgraded the corporate family rating of Avolon Holdings Limited (Avolon) to Ba1 from Ba2 and the senior unsecured ratings of its subsidiaries Avolon Holdings Funding Limited and Park Aerospace Holdings Limited to Ba2 from Ba3. The outlook was revised to stable from ratings under review. This follows the November 5 announcement that Avolon's parent Bohai Capital Holding Co., Ltd. (Bohai) has sold a 30% interest in Avolon to ORIX Corporation (A3 stable) for $2.2 billion (based on net asset value at March 2018). This rating action concludes the review for upgrade that was initiated on August 8. NAC delivered one new ATR 72-600, MSN 1471, to Far Eastern Air Transport Corporation (FAT) on lease. This is the first aircraft to deliver as part of a four aircraft lease agreement Nordic Aviation Capital (NAC) announced 14 November the delivery of one ATR 72-600, MSN 1471, to Far Eastern Air Transport Corporation (FAT) on lease. ORIX Aviation Announces Key Leadership Changes ORIX Aviation announced 13 November that James Meyler will succeed David Power as the CEO of the ORIX Aviation Group. ORIX Aviation last week successfully concluded its acquisition of a 30% stake in Avolon. James is currently CEO of ORIX Aviation Hong Kong and Group Deputy CEO & CCO. He joined ORIX Aviation in 2003 and has held previous positions as Executive Assistant to Tony Ryan along with roles at Aergo Capital and KBC Aerospace. He holds a Bachelor of Commerce Degree from University College Dublin and is Chairman of the Wings Club Foundation European Chapter and a Board member of the International Society of Transport Aircraft Trading (ISTAT) organization. David Power has stepped down as leader of the aircraft leasing company to become Chairman of ORIX Aviation Hong Kong and has moved to Hong Kong to take up the new role. David will also join the Board of Avolon in which ORIX Aviation has recently acquired a 30 percent stake. David joined ORIX Aviation in 1992 as General Counsel and was appointed CEO from 2004 until assuming his new roles this month. SMBC Aviation Capital delivers Airbus A320-200 neo aircraft to Sky Airline S.A SMBC Aviation Capital announced 9 November the delivery of one Airbus A320-200 NEO aircraft (MSN 8523) equipped with CFMI Leap engines to Chilean Airline, Sky Airlines. The aircraft was delivered on November 8 at the Airbus facility in Hamburg, Germany. This delivery is the third part of a five aircraft deal. The first two aircraft (MSN 8497 and 8521) delivered on 16 and 19 October 2018. The remaining two aircraft are scheduled for delivery in the first quarter of 2019. Acumen Aviation © 19 November 2018 All Rights Reserved.