Engine Leasing, Trading and Finance Americas 2022

Page 1

JANUARY 26, 2022 JW MARRIOTT TURNBERRY MIAMI, FL, USA

Co-located with

JANUARY 27-28, 2022

EVENT GUIDE

aeroenginesusa.com

Partner Sponsors

1 | #AEUSA

#AEUSA

|

Official Publication


THE MOST FLEXIBLE ENGINE LEASE IN THE MARKET

To find your tailored engine solution, please contact info@aerocapitalsolutions.com www.aerocapitalsolutions.com

2 | #AEUSA


Welcome

Dear Attendee, On behalf of Aviation Week Network, it’s my pleasure to welcome you to our inaugural Engine Leasing, Trading & Finance Americas conference! This is an event which has run for many years in Europe, and we are excited to be bringing it across the Atlantic and to be co-locating with our established Aero-Engines Americas meeting. At this event we’re pleased to offer you access to the latest trends, viewpoints and networking opportunities. As we enter 2022, there is a renewed opportunity to review the lessons of the past year and to take stock of the challenges that the engine leasing market faces moving forwards. We are pleased to welcome an expert line-up of industry leading speakers to lend their perspectives on issues ranging from green time engine strategies, innovations in leasing arrangements and the investment and appraisals landscape. We really encourage all attendees to engage with the discussions, to ask questions and take part in live polling. Across the event, we will be using the Slido platform, which can be accessed by visiting www.slido.com on any device and entering the code ‘#AEUSA’.

CONNECT WITH ME n

tom.broughton@aviationweek.co.uk

n

+44 (0) 7919 534218

n

linkedin.com/in/twbroughton

n

@AvWeekTom

We would like to take this opportunity to remind all conference attendees to sign into the Brella event platform. This is where you can see event attendees and set up meetings to reconnect with friends and peers, and to make new connections. Please don’t forget to check and respond to any pending meeting requests. We would like to thank our partner sponsors for their support of this event. Thank you to Aero Capital Solutions, Engine Lease Finance and Magellan Aviation Group for your backing. To our speakers, thank you for your dedication to providing thought leadership to the industry. Finally, to our attendees, thank you for your time this week and for your support of this launch event. We’re excited to have you with us and I hope you enjoy the conference,

Tom Broughton Conference Producer Aviation Week Network

aeroenginesusa.com | 3


Agenda Wednesday, January 26 9:00am

Sponsored by Setna iO

Registration Opens

9:00am

Breakfast Networking Time

10:20am Opening Remarks Tom Broughton, Conference Producer, Aviation Week Network 10:30am Americas Macro-Economic Forecast

What is the economic picture across The Americas? Does a US domestic flight recovery inspire confidence for the wider region? Assessing revenue passenger kilometres across the region; what is the current picture? Taking stock of ‘the new normal,’ what level of confidence and travel will we see in 2022? John Mowry, Managing Director, Alton Aviation Consultancy 11:05am Leaders’ Panel: Breaking down

the recovery & lessons learned from the crisis

Looking back at previous exogenous shocks of 9/11 and the 2007/8 financial crisis, what did the leasing community learn this time around? Were there any mistakes repeated and what innovative solutions emerged to aid the recovery? What lessons should we take forward? Looking further ahead, what will the impact of this crisis be on future agreements? Can industry expect to see more aggressive contracts? Moderator: Mike Stengel, Senior Associate, AeroDynamic Advisory Reid Antonacchio, Director, Sales Banks and Lessors, Americas, Lufthansa Technik George Ferguson, Senior Aerospace, Defense and Airline Analyst, Bloomberg Intelligence David Lee, Managing Director, Economic & Market Research, Airlines for America Marjan Riggi, Senior Managing Director, Aviation, Transportation, and Commercial Finance, Kroll Bond Rating Agency 11:55am Fireside Chat: Investor’s Perspective

on Engine Leasing

Lee Ann Shay, Executive Editor, MRO & Business Aviation, Aviation Week Network Al Wood, CEO, Aquila Air Capital 12:15pm Networking Lunch

4 | #AEUSA

1:30pm Panel Discussion: Green time

Engine Strategies

What green time engine strategies can we expect to see from operators in the coming months? Which engines will be in demand? Which parts and engines are anticipated to be in short supply? What do the airlines need? Can partners provide support by offering more flexible and tailored solutions, how can industry go about that conversation? Moderator: Derek Costanza, Partner, Oliver Wyman Carl Glover, VP Sales & Marketing, Americas, AAR Aviation Services Group Tommy Hughes, President & CEO, VAS Aero Services Mark Yerger, SVP Technical Operations, FedEx Express 2:15pm

Panel Discussion: Lease Structures & Innovative Leasing Agreements

Breaking down the key lease structures, what are the driving forces behind the different arrangements? How can operators better understand this side of the business, to encourage better transactions and more flexibility? Does the post-covid recovery provide an opportunity to revisit more innovative and boutique leasing arrangements? Moderator: Richard Furey, Partner, Holand & Knight LLP Geoffrey Alexander, Managing Partner, Flight Lease Les Cronin, VP Marketing & Sales, USA, MTU Maintenance Danilo Horninck, Engine Fleet Manager, Azul Brazilian Airlines Chris Luke, SVP of Leasing, TrueAero 3:00pm

Afternoon Coffee Break

3:40pm

Panel Discussion: Investor confidence and appraisers’ perspective of the Aero-Engines market

With the 50% leasing barrier set to be broken in the coming years, what steps must lessors take to meet these funding requirements? Will there be increased reliance on capital markets? How do appraisers see the current climate and what is their perspective on potentially inflated asset values? Looking more specifically, what is the future role of the asset-backed securities (ABS) market for engines? Moderator: Ginger Hughes, Managing Director & Partner, Seabury Securities Ronald J. Epstein, Managing Director, A&D, BofA Global Research Bryson Monteleone, Senior Advisor, Aviation Finance Advisory Services, PwC Nicholas Pastushan, Executive Director, Riveron Stuart Rubin, VP & Managing Director, ICF


4:30pm

Panel Discussion: Relationship building between lessors & operators

Reviewing transactions during the last 18 months, what kinds of mid-lease negotiations have had to take place? What lessons have been learned from these discussions? Candidly, what would each party wish could have happened differently? What are the challenges faced with discrepancies between inspections? Understanding what steps can be taken to build a more efficient process throughout. Moderator: Kevin VanDenBerg, SVP Asset Management, Aero Capital Solutions Colin Donohoe, Director, Heavy Maintenance and Business Partner Relations, JetBlue Ken Newton, SCM Engine & Lease Management Director, Alaska Airlines Chris Nye, Director of Business Development, Americas, GA Telesis Sonny Stern, VP, Sales, Marketing & Contracts, Delta TechOps Services Group 5:15pm Closing Remarks Tom Broughton, Conference Producer, Aviation Week Network 5:20pm

Close of Conference

5:30pm – Welcome Reception 7:30pm Sponsored by iAeroThrust

General Information Mobile/Cell Phones Please ensure all mobile/cell phones are turned off or put onto silent when in the conference area. Photography & Filming Please be aware that photos will be taken by the press, the organisers and delegates in attendance. Please note that by attending, you consent to your voice and likeness being used without compensation in programmes, films, tapes and print for exploitation in any and all media, whether now known or hereafter devised. Furthermore, MRO Exhibitions Ltd, its successors, assigns and licenses are relieved from any liability, on account of such usage. Security The hotel has general security in place, however please note that personal possessions are left in the conference area at your own risk.

aeroenginesusa.com | 5


Speakers

Derek Costanza

Les Cronin

Colin Donohoe

VP Marketing & Sales, USA, MTU Maintenance

Director Heavy Maintenance and Business Partner Relations, JetBlue

George Ferguson

Richard Furey

Carl Glover

Danilo Horninck

Tommy Hughes

David Lee

Chris Luke

Bryson Monteleone

Geoffrey Alexander

Reid Antonacchio

Managing Partner, Flight Lease

Director, Sales Banks & Lessors, Americas, Lufthansa Technik

Ronald Epstein

Ginger Hughes

Managing Director, A&D, BofA Global Research

Senior Aerospace, Defense, and Airline Analyst, Bloomberg Intelligence

Partner, Oliver Wyman

Partner, Holland & Knight LLP

Managing Director & Partner, Seabury Securities

President and CEO, VAS Aero Services

Managing Director, Economic & Market Research, Airlines for America

John Mowry

Ken Newton

Chris Nye

Managing Director, Alton Aviation Consultancy

6 | #AEUSA

SCM Engine & Lease Mgmt Director, Alaska Airlines

Director of Business Development, Americas, GA Telesis, LLC

VP Sales & Marketing, Americas, AAR Aviation Services Group

SVP of Leasing, TrueAero

Nicholas Pastushan

Executive Director, Riveron

Engine Fleet Manager, Azul Brazilian Airlines

Senior Advisor, Aviation Finance Advisory Services, PwC

Marjan Riggi

Senior Managing Director, Aviation, Transportation, and Commercial Finance, Kroll Bond Rating Agency


Stuart Rubin

Lee Ann Shay

Al Wood

Mark Yerger

VP and Managing Director, Aviation, ICF

CEO, Aquila Air Capital

Executive Editor, MRO & Business Aviation, Aviation Week Network

Mike Stengel

Senior Associate, AeroDynamic Advisory

Sonny Stern

VP, Sales, Marketing & Contracts, Delta TechOps Services Group

Kevin VanDenBerg SVP, Asset Management, Aero Capital Solutions

SVP Technical Operations, FedEx Express

aeroenginesusa.com | 7


Using the Brella App Brella is a platform designed to enhance networking at events through its matchmaking algorithm. Easy to use via both desktop and mobile device, registered delegates can browse the attendees, sponsors and exhibitors prior to attending to get the most out of their time at the event.

Here is a breakdown of how to make the most of the platform:

Step 1

Step 2

Log in/create an account

Build your profile

Access via mobile device – Go to the Apple App Store or Google Play Store and search for ‘Brella’. Download the Brella app and use join code AEA22 to activate Aero-Engines Americas 2022 on the app.

Once you’ve created an account and logged in, click ‘Start Networking’ and go through the steps to build your profile. You will be prompted to choose the industry and type of product/ service you are looking for and choose the geographical regions you are interested in.

Access via desktop – Go to next.brella.io/join/AEA22 to access the app via desktop. If you have used Brella before, you can login using your existing email address that you used to create your Brella account. If this is your first time using Brella, you need to create an account either using your LinkedIn, Facebook or Google login credentials or you can manually input an email address and password.

Based on the information you give, Brella will ‘match’ you with other attendees that suit your requirements the most. The more information you provide, the more helpful the app will be in choosing the right attendees. Once completed, your profile is set up and you are ready to start networking and request meetings!

If you have any questions about the app, don’t hesitate to ask the staff We have a dedicated area in the Royal Ballroom for meetings to take place

Step 3 Explore the app Chatting and requesting meetings – if you find an attendee you would like to connect with, click ‘Chat/Suggest meeting’, then you can start a chat with and/or select a time to have a meeting. The other person can choose whether to accept or politely decline your meeting. If it is accepted, you can discuss a meeting place within the conference venue. Conference agenda – The ‘Schedule’ section combines the conference agenda with any meetings you have confirmed. Click on each session to view more information. You can also use filters to only show the conference sessions, or just your meetings with other attendees. Speakers – Click on the ‘Speakers’ tab to view the list. You can click on each one to see which session they are speaking on and at what time. Sponsors and showcase exhibitors – In the ‘Sponsors/Exhibitors’ section, you can see a list of sponsors and showcase exhibitors taking part in the event. If you click on each company, you can view their website and find out more about them prior to meeting them! Slido – You can also access Slido, our live Q&A and Polling platform, via the Brella app! Just go to the ‘More’ tab and click on the Slido link.

8 | #AEUSA


aeroenginesusa.com | 9


Partner Sponsors Aero Capital Solutions Inc. Aero Capital Solutions (ACS) is a leading mid-life aircraft and engine leasing platform. Since its founding in 2010, it has deployed more than USD $2.5 billion on aircraft and engine assets. Having executed more than 300 unique aircraft and engine transactions since 2017 alone, ACS has built a portfolio of over 180 assets with 35 lessees in 24 countries. ACS is proud to maintain one of the largest freestanding engine inventories in the industry. Recognising its customers’ fundamental objective of minimizing their engine maintenance costs, ACS offers a comprehensive suite of solutions specifically tailored to their needs and budgets. These offerings include: • Engine Green Time Leasing – whether bridging surges in maintenance activity or serving a preference to leasing versus ownership, ACS’ green time lease offerings are structured to meet the customer’s specific needs with tailored return conditions. • Engine Exchanges – ACS offers a “Plug-in and Play” engine in exchange for a customer’s runout engine, delivering them replacement thrust for less than their repair cost, while reducing their administrative burden and eliminating the costs of the associated maintenance. • Engine Program Support – ACS’ thrust programs provide “always on” engine support through prepositioned engines for scheduled maintenance events and on-site spares for unscheduled removals. ACS’ lease and investment expertise is derived from a team of professionals with an average of over 20 years industry experience. This includes the leadership of major engine and airframe MROs, engine lessors, and consultancies. Its proven track record in quickly evaluating assets and successfully executing transactions has led ACS to become the preferred partner of airlines and lessors across the globe. ACS provides the expertise and solutions that they value, including dedicated engine leasing support, the acquisition of aircraft with leases attached, portfolio management, and maintenance avoidance options. For more information on the engine and aircraft leasing solutions that ACS offers, please visit aerocapitalsolutions.com

Kevin VanDenBerg Senior Vice President – Asset Management kvandenberg@aerocapitalsolutions.com +1 737 717 0610 www.aerocapitalsolutions.com

10 | #AEUSA


EXTENDING THE LIFE CYCLE

Engine Sales & Leasing Solutions • PW121 • PW123 • PW150A • CF34-8C • CF34-8E • CFM56-5B/P • CFM56-7B/E • PW4000 • V2500-A5

Magellan Aviation Group provides a full range of custom-tailored engine lease solutions to meet your fleet requirements. Whether you’re in need of a short or long term lease, our professional team is experienced in developing innovative, flexible options to optimize your fleet management expenses and long term goals. magellangroup.net aeroenginesusa.com | 11


Partner Sponsors Engine Lease Finance Engine Lease Finance (ELF) is the world’s largest independent spare engine financing and leasing company, specialising in the provision of flexible, short to long-term spare engine support packages for the airline industry. Headquartered in Shannon, Ireland, ELF is owned by Mitsubishi HC Capital (MHC) based in Tokyo. The ownership structure provides ELF with the underlying financing strength and stability required to satisfy the long-term financing needs of airlines and to meet the commercial challenges presented by today’s rapidly changing world markets. ELF provides extensive funding at favourable rates, therefore ensuring low cost flexible financing for the airline. This strength is most recently demonstrated by the addition of more than one hundred and thirty engines from sale and leaseback and portfolio purchases worth more than $1.3 billion since the beginning of 2011. ELF was founded in 1989 by Jon Sharp, with the purpose of satisfying the industry’s demand for a quality, truly independent, engine leasing company providing operating leases for modern aircraft engines to airlines world-wide. After over thirty successive years of profits and portfolio growth the company now owns and/or, manages approximately 300 engines worth around $2.5bn. The current customer base includes more than 80 airlines and MRO organizations worldwide. ELF has served over 140 customers since its inception. Our portfolio of spare engines consists of types from the following OEM’s: CFM, IAE, GE Aviation, Pratt & Whitney and Rolls-Royce, enabling us to support our customers’ Regional, Narrow-Body & Wide Body aircraft fleets, including E190, A320CEO, B737NG, A320NEO, B737MAX, A330, A340, B767, B787, B777 and B747. ELF offers a comprehensive range of individually tailored financing and leasing-based products and services including: • Spare Engine Purchase & Lease Back

• AOG Spare Engine Support

• Medium & Long Term Operating Leases

• Engine Acquisitions & Dispositions

• Short Term Engine SV Cover

• Engine & Portfolio Management Services

In addition to its Shannon headquarters, ELF has Sales & Marketing representatives based in London, Dublin, Madrid, Singapore, Boston and Sao Paulo.

Justin Phelan VP Marketing justin.phelan@elfc.com +353 61 363 555 www.elfc.com

12 | #AEUSA


Aviation Week Network’s Aero-Engines Event Series • Market leading events dedicated to the aero engine industry • Senior engine delegates from airlines, OEMs, MROs, lessors and suppliers • Global footprint, with regional programmes for the Americas, Europe & Asia-Pacific

September 7-8, 2022 Clayton Hotel Burlington Road Dublin, Ireland

June 7-8, 2022 Park Plaza Victoria London, UK Host Sponsor

Host Sponsor

Early 2023 Texas, USA

September 21-22, 2022 Singapore Co-located with

Co-located with

To sponsor or exhibit, please contact your account representative: ALL AMERICAS/CANADA Beth Eddy betheddy@aviationexhibits.com Mimi Smith mimismith@aviationexhibits.com Alyssa Bernkrant abernkrant@aviationexhibits.com

+1.561.279.4646 +1.561.279.4646 +1.561.279.4646

REST OF WORLD Clive Richardson Alison Weller Defne Alpay

+44 (0) 7501 185257 +44 (0) 7501 185255 +44 (0) 7712 829859

clive@accessgroup.aero alison@accessgroup.aero defne@accessgroup.aero

Learn more: www.events.aviationweek.com aeroenginesusa.com | 13


Partner Sponsors Magellan Aviation Group For over 20 years, our employees have demonstrated a trusted and proven track record of providing innovative aviation support services. Our comprehensive experience includes ownership and management of aircraft, engines, and spare part portfolios. Magellan currently has headquarters operating out of North Carolina, Florida, Ireland, and Singapore. We have strategically placed satellite offices and sales representatives located all over the world. Our goal is to provide timely and economical solutions for our customers and partners within the industry. We strive to achieve positive results and provide integrated aviation support services to the global airline industry. Magellan Aviation Group maintains one of the world’s largest inventories of commercial and regional aircraft parts. We provide our customers with high-quality components at competitive rates. Our experienced team works to plan and develop flexible inventory programs that best meet our customers’ needs. Our services include quality airframe & engine parts sales, engine & APU sales & leasing, as well as inventory management and consignment programs. Visit magellangroup.net to learn more.

Bradley Hogan Manager, Records & Leasing bradley.hogan@magellangroup.net +1 704 504 9204 x7120 www.magellangroup.net

14 | #AEUSA


Who Will You Connect With? Attendees by Industry 5% OEM/Manufacturer MRO 25% (Maintenance, Repair, Overhaul)

5% Components/Rotables 5% Consulting Services 4% Finance/Bank 4% Other

Lessor 15%

3% IT Systems/Software 2% Logistics/Freight Forwarding 2% Supply Chain 1% Chemicals/Fuels/Lubricants

Airline Operator 13% Parts Distributor/ Supplier 12%

1% Disassembly/Recycling/Teardown 1% Ground Support Equipment 1% QA/Safety/Emergency Equipment 1% Raw Materials

Attendees by Job Function Sales 26% 4% Finance 4% Purchasing/Procurement Executive Management 18%

4% Other 3% Supply Chain 2% Broker/Dealer 2% Fleet Planning 2% Marketing

Business Development 16%

2% Product Development 1% Logistics

Engineering & Maintenance 9% Leasing 7%

aeroenginesusa.com | 15


To sponsor or exhibit at any of our events, please contact your account representative:

All Americas/Canada

Beth Eddy Director, Exhibit Sales +1 (561) 279 4646 betheddy@aviationexhibits.com

Mimi Smith Manager, Exhibit Sales +1 (561) 279 4646 mimismith@aviationexhibits.com

Alyssa Bernkrant Manager, Exhibit Sales +1 (561) 279 4646 abernkrant@aviationexhibits.com

Mike Elmes Managing Director, Aerospace Media +44 (0) 1206 321639 mike.elmes@aerospacemedia.co.uk

Matt Elmes Sales Assistant +44 (0) 1206 321639 matthew.elmes@aerospacemedia.co.uk

Rest of the World

Clive Richardson Director, Exhibit Sales +44 (0) 7501 185257 clive@accessgroup.aero

Defne Alpay Manager, Exhibit Sales +44 (0) 7712 829859 defne@accessgroup.aero

16 | #AEUSA


MRO Latin America February 9-10, 2022 Mexico City, Mexico

MRO Middle East Februay 22-23, 2022 Dubai, UAE MRO Americas April 26-28, 2022 Dallas, TX

Military Aviation Logistics & Maintenance Symposium April 27-28, 2022 Dallas, TX

Upcoming MRO Events We look forward to seeing you at an upcoming MRO/Engine Event! Learn more at events.aviationweek.com

MRO BEER

Baltics, Eastern Europe & Russia

Aero-Engines Europe September 7-8, 2022 Dublin, Ireland

June 15-16, 2022 Istanbul, Turkey

Engine Leasing, Trading & Finance Europe June 7-8, 2022 London, UK

MRO Asia-Pacific September 20-22, 2022 Singapore Aero-Engines Asia-Pacific September 21-22, 2022 Singapore

MRO Europe October 18-20, 2022 London, UK

aeroenginesusa.com | 17


The Annual Publication for the Aero-Engine Professional The Engine Yearbook is the reference book of choice for airlines, engine OEMs and engine aftermarket companies. All aspects of engine development, overhaul, leasing, and specialist repairs is examined by our expert team of journalists and analysts. What’s inside the 2022 Engine Yearbook: ● ● ● ● ● ● ● ● ●

Global engine maintenance demand 2022-2031 Trends of recovery — the next 10 years Global engine deliveries 2022-2026 Engine washing and biocides OEMs after the crisis The state of engine leasing Uncontained engine failures Engine and APU overhaul directory Specialist engine repairs directory

Plus! A comprehensive directory listings of the world’s leading engine/APU overhaul shops and specialist engine repair companies.

Order your copy of the 2022 Engine Yearbook today! Visit us at aviationweek.com/MROENGYB22 or scan the QR code to order your copy.

18 | #AEUSA


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.