INSIDE: ASCEND: RETENTION AND VOLATILITY OF AIRCRAFT VALUES VEDDER PRICE: US EX-IM’S RESPONSE TO THE DOWNTURN IBA GROUP: UNDERSTANDING ENGINES AS ASSETS BOEING: THE CHANGING FACE OF AIRCRAFT FINANCING
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2011 Edition
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EDITOR Mary-Anne Baldwin mary-anne.baldwin@ubmaviation.com
STAFF WRITERS Daniella Horwitz daniella.horwitz@ubmaviation.com Alex Derber aderber@ubmaviation.com
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2 GENERAL MARKET OVERVIEW: THE DOWNTURN AND ITS EFFECT ON AVIATION The recent economic crisis shook the foundations of aviation, yet its lessors escaped their much feared demise. Douglas Kelly of Avitas provides analysis of the leasing market as it emerges from the downturn.
10 HISTORY REPEATS: RETENTION AND VOLATILITY OF AIRCRAFT VALUES Paul Sheridan of Ascend walks us through the fluctuating market values of leading commercial aircraft.
16 WEIGHED AND MEASURED: ASSESSING
CIRCULATION MANAGER & E-EDITOR
AIRCRAFT LESSORS
Paul Canessa paul.canessa@ubmaviation.com
Analysing the success of the world’s leasing community, Mary-Anne Baldwin speaks to leading aircraft lessors about how they navigated through the downturn.
INTERNATIONAL MEDIA SALES MANAGER Alan Samuel alan.samuel@ubmaviation.com
PUBLISHER & SALES DIRECTOR Simon Barker simon.barker@ubmaviation.com
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AIRCRAFT FINANCE GUIDE 2011 The Aircraft Finance Guide (Print) ISSN 2044-8015 (Online) ISSN 2044-8023 is published annually in September by UBM Aviation Publications Ltd. Airline Fleet Management (Print) ISSN 1757-8833 (Online) ISSN 1757-8841. (USPS 022-324) is published bi-monthly, in January, March, May, July, September and November by UBM Aviation Publications Ltd. Distributed in the USA by SPP c/o 95, Aberdeen Road, Emigsville, PA 17318-0437, USA. Periodicals postage paid at Emigsville, PA, USA. POSTMASTER: send address changes to: Airline Fleet Management (AFM) c/o SPP P.O. Box 437 Emigsville, PA 17318, USA. AFM UK annual subscription cost is £150.00 GBP. AFM Overseas annual subscription cost is £170.00 GBP or $300 USD. AFM single copy cost is £25.00 GBP (UK) or $50.00 USD (Overseas). Aircraft Finance Guide single copy cost is £55.00 GBP (UK) or $110.00 USD (Overseas) All subscription records are maintained at: UBM Aviation Publications Ltd. 7th Floor, Ludgate House, 245 Blackfriars Road, London, SE1 9UY, UK. All subscriptions enquiries to: Paul Canessa: paul.canessa@ubmaviation.com Tel: +44 (0) 207 579 4873 Fax: +44 (0) 207 579 4848 Website: www.ubmaviationnews.com Front cover sponsored by: DVB Bank Printed in England by: Wyndeham Grange Distribution/Mailing: Flostream UK The Aircraft Finance Guides and AFM magazine, part of UBM Aviation Publications Ltd, have used its best efforts in collecting and preparing material for inclusion in these publications but cannot and does not warrant that the information contained within these publications are complete or accurate, and does not assume and hereby disclaims, liability to any person for any loss or damage caused by errors or omissions in either the Aircraft Finance Guide or in AFM, whether such errors or omissions result from negligence, accident or any other cause. This publication may not be reproduced or copied in whole or in part by any means without the express permission of UBM Aviation Publications Ltd. Airline Fleet Management™ is a licensed trademark of UBM Aviation Publications Ltd. All trademarks used under license from UBM Aviation Publications Ltd. © 1999 – 2010, UBM Aviation Publications Ltd. All rights reserved.
AIRCRAFT FINANCE GUIDE 2011
21 LESSOR RANKING DATA Aircraft lessors’ managed portfolios ranked by estimated value.
24 THE DOUGHNUT HOLE: WILL A GENERATION OF AIRCRAFT BE LEFT BEHIND? As the market makes its recovery, is it possible that a generation of aircraft will be left behind? Br yson Monteleone of Tailwind Capital investigates the potential.
28 FINANCING THE 737NG FAMILY Simon Finn of DVB Bank provides financial analysis of one of the most successful commercial aircraft programmes from the uniquely independent perspective of an asset-based lender.
36 FINANCING THE A320 FAMILY In the second part of our guide to financing aircraft, Bert van Leeuwen of DVB bank discusses the pros and cons of financing the A320 Family aircraft.
44 US EX-IM BANK’S RESPONSE TO THE FINANCIAL CRISIS As the liquidity in bank-supported aircraft finance shut down, aircraft financing became an increasingly hard task. Joshua Gentner of Vedder Price explains the US Ex-Im Bank’s reaction to these struggles and how it continued to facilitate aircraft financing.
50 THE CHANGING FACE OF AIRCRAFT FINANCING Kostya Zolotusky of Boeing Capital Corporation speaks to Daniella Horwitz about why the 2009 slump was not as bad for the aircraft financing markets as feared and what amuses him about industry pundits.
56 OUTLOOK CLEAR: AIRBUS’ ANDY SHANKLAND PREDICTS THE MARKET Alex Derber sat down with Airbus’ Andy Shankland to discuss the company’s orderbook, production rates, the next stage in narrowbody development, and why he’s so sure the recession is “definitely over”.
61 UNDERSTANDING ENGINES AS ASSETS Stuart Hatcher of IBA Group advises how new entrants and experienced players can better understand engines as an asset class.
66 A FRESH LOOK AT SPARE ENGINE SUPPORT There are significant opportunities for making savings to your spare engine support costs if you treat the scheduled and unscheduled spares demand separately. Dave Tegeler of Engine and Aircraft Strategies takes us through the process.
70 AIRCRAFT REPOSSESSION: IS IT WORTH IT? Mary-Anne Baldwin considers the timely quandary – is it worth repossessing an aircraft from a defaulting airline? Specialists in the field of aircraft repossession offer their advice on the best and most cost effective strategy to reclaim an aircraft.
76 TIME TO RE-THINK THE FLIGHT PLAN: RIGHT-SIZING AND THE CASM PARADIGM Six years after Embraer delivered its first E170 to LOT Polish Airlines, airlines are still discovering the potential of 70 to 120-seat aircraft. Mauro Kern of Embraer discusses the CASM paradigm.
82 NEW KID IN TOWN: A320 AND A321 CONVERTED FREIGHTERS Michael Fuerst at Airbus Freighter conversion takes a look at the market for the A320 and A321 passenger to freighter (P2F) aircraft.
86 WHO WILL PAY FOR THE BIG BAD ASH CLOUD? The volcanic ash cloud added fur ther injur y to an already battered industry. Marjorie Holmes of Reed Smith examines the cost of the air space closure as well as the legalities and likelihood of European airlines receiving financial reimbursement.
90 EXPLORING TAX LEASE STRUCTURES Tax-based leasing in the aviation industry has been in decline, largely due to the changing attitude of tax authorities to what they perceive as tax avoidance schemes. Matthew Hodkin, Laurence Toxé and Igsaan Varachia of Norton Rose discuss the issues surrounding tax lease structures.
95 THE BENEFITS OF COVERED BONDS IN THE AVIATION MARKET Covered bonds have blossomed into a highly successful form of security that is being used in increasingly diverse ways. Rex Rosales and Simon Greer of Reed Smith examine the benefits.
100 MAINTENANCE EFFICIENCY: WARRANTY AND GUARANTEE CONSIDERATIONS The administration of warranties and guarantees is complex and often beyond the capabilities of smaller airline operators. Harish Shah of Aviation Warranty Solutions looks at some of the main considerations when managing such agreements.
104 EUROCONTROL, EASA, AND THE EU Donal Hanley of Aviation Capital Group examines the evolving relationship between Eurocontrol and the European Community, in particular, the European Commission, and its specialised aviation safety agency, EASA.
108 AIRCRAFT TRANSACTIONS: Full listing of transactions for Boeing and Airbus passenger aircraft, 1H 2010
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AIRCRAFT FINANCE GUIDE
General market overview: The economic downturn and its impact on aviation The recent economic crisis shook the foundations of the aviation leasing industry, yet it has escaped the much feared demise of aircraft leasing companies. Indeed, there now exists a healthy mix of new and existing lessors that have increasing access to finance. Douglas Kelly, VP of asset valuation at Avitas provides analysis of the leasing market as it emerges from the downturn.
2
T
HE ROOTS OF THE CURRENT economic downturn largely
steady the financial market to stimulus programmes. The US
originated in the financial sector and housing market of the
government approved the $787bn American Recovery and
US economy but rapidly spilled across industries and national
Reinvestment Act of 2009, which combined various spending
borders throughout 2008 and 2009. In order to stabilise the
measures and tax cuts. Despite these legislative measures, the
financial markets, governments in the US, UK, and several other
economic downturn in the US became the most significant
European countries approved bail-out plans in order to stave-off
downturn in terms of length, job losses, and general economic
further economic damage. A co-ordinated plan was launched
disruption since the end of WWII.
in late 2008 by seven central banks including the US Federal
The European Union approved a €200bn stimulus plan
Reserve, the Bank of England, the European Central Bank, and
in November 2008, which in addition to increasing social
the People’s Bank of China, to lower interest rates in an attempt
welfare programmes and infrastructure investments, allowed
to spur economic growth and further stabilise financial markets.
member countries to deviate from short-term deficit and
However, by the end of 2008 to early 2009 it was clear that
longer-term national debt goals. In China, the government
a significant economic slowdown was underway in the major
announced a RMB4tn ($580bn) infrastructure and social
world economies and attention shifted from the attempt to
welfare programme. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE Figure 1
programmes, Airbus continued to slowly ramp-up production of the A380 from a reported 14 units in 2008 to 20 in 2009. For Boeing, both of the company’s new widebody programmes have achieved first flight; the 787 in December 2009 and the 747-8F in February 2010.
OIL, TRAFFIC, AND AIRLINE PROFITABILITY The price per barrel (pb) reached a peak of $147 in July 2008; however, the worldwide recession caused prices to fall as low as $40pb by spring, 2009. With the Chinese economy surging and a gradual strengthening of other major economies, oil prices are edging up again, which has lead the International Air
Tr a n s p o r t
Source: US Bureau of Economic Analysis and US Department of Labour Statistics
Association (IATA)
While these various stimulus plans likely added several
to raise its estimates
points to GDP growth in the larger world economies, recovery
of 2010 average oil
is still spotty. In April 2010, the National Bureau of Economic
price to $87 from a
Research (NBER), the group tasked with determining the start
forecast of $75 given
and end dates of the US business cycles, declined to date the
in late 2009. Prices are
end of the current recession despite GDP growth turning
currently in the range
positive in the 3Q of 2009. Many European countries are
of $80 to $95pb. The
exhibiting slight economic growth at best and the problems
following chart (Figure
in Greece (stemming from a debt-burdened government and
2) illustrates the trend
wages that are too high for the country to compete effectively
in the price of crude oil
in the Eurozone) may spill into the other so-called PIIGS
since 1986.
(Portugal, Ireland, Italy and Spain). China, on the other hand, is
According to the
experiencing such rapid growth that many observers anticipate
International Civil
the country’s central bank will soon take steps to ward-off
Aviation Organization
inflationary pressures.
(ICAO), worldwide
The impact of the downturn on the aircraft leasing business
passenger traffic,
has been significant. Two large lessors, AerCap and Genesis
measured by revenue
Lease, merged in September 2009 and the CIT Group, parent
passenger kilometres
company of CIT Aerospace, filed for Chapter 11 bankruptcy
(RPKs) declined by
protection in November 2009 emerging in the following month.
2.9 per cent in 2009
Depending on market developments especially in relation to
after exhibiting only
liquidity, portfolios will almost certainly be changing hands,
modest growth in 2008.
either as single units or in smaller packages such as the deal for
Due to the improving
53 aircraft sold by ILFC to the Macquarie Group in April 2010.
economic conditions,
At which time ILFC founder, Steven Udvar-Hazy announced
traffic volumes are
the formation of a new lessor, Air Lease Corporation.
once again rising. The
Figure 2
Source: US Department of Energy, May 2010.
Figure 3
Source: ICAO and AVITAS forecasts
The downturn has had significant implications for the
following chart (Figure 3) displays the year-on-year traffic
manufacturers as well; their net orders increased only slightly
growth by major world region for both 2008 and 2009 and
in 2009. For the year, Airbus booked 271 net orders, in
AVITAS’ forecast for 2010.
comparison to 900 in the prior year. Boeing booked only 142
Despite the traffic declines, load factors are at record highs
net orders in 2009. The backlog for the manufacturers was
due to aircraft retirements, an increase in the number of aircraft
also impacted by cancellations, reflected in the low net order
stored, and lower aircraft utilisation. According to IATA,
numbers presented above, and by deferrals as some airlines
widebody aircraft utilisation measured approximately 10.8
opted to reschedule deliveries rather than incur the financial
hours per day at the end of 2009, down from a peak of nearly
penalties that come with cancellations.
11.6 hours per day in early 2008. For narrowbodies, utilisation
Despite these indications of weakness, the two largest manufacturers delivered more aircraft in 2009 than in 2008;
has rebounded from a low of about eight hours per day in early 2009, to 8.4 hours per day by the end of the year.
Airbus delivered 498 aircraft in 2009 versus 483 the prior year,
According to estimates by IATA, losses incurred by the world
while Boeing delivered 481, up from 375 in 2008. Due to the
airline industry amounted to $15.9bn in 2008 and a further
challenging operating environment, the export banks in the US,
$9.4bn in 2009. As shown in the following chart (Figure 4),
the EU, Canada and Brazil have all supported new deliveries
the current downturn is unfortunately notable not only for the
by the manufacturers by providing financing. So far, in 2010
level of losses, but also for its global impact. While the post 9/11
both manufacturers have indicated a willingness to increase
downturn was primarily felt by US and other North American
production of their narrowbody aircraft. For the widebody
airlines, the current downturn has had a more global reach.
AIRCRAFT FINANCE GUIDE 2011
3
AIRCRAFT FINANCE GUIDE
“Pressure is growing on both Airbus and Boeing to focus on designs to succeed the A320 and 737NG families respectively. Operators of older fleets are becoming increasingly anxious that their needs will not be met, although it is likely neither manufacturer will have a new aircraft available earlier than 2020.” Figure 4
MANUFACTURER AND OPERATOR TRENDS The industry has experienced three successive years of record orders for new aircraft, but the turnaround in profitability has created much more challenging operating circumstances. A number of airlines were liquidated, including Aloha Airlines, ATA, Zoom Airlines and Skybus, while Sun Country Airlines and Mesa Air are among those that filed for Chapter 11 bankruptcy protection. Frontier Airlines emerged from Chapter 11 in October 2009 after being taken over by Republic Airways Holdings. In Europe, XL Airways, LTE International, Sterling Airlines, Central Wings, Flyglobespan and Futura International have all ceased operations. And in January 2010, Japan Airlines filed for bankruptcy in one of the country’s
Source: ATA, ICAO, IATA.
biggest corporate failures and began a restructuring process
While there have been some positive indications of a
that will see the loss of almost 16,000 jobs and cuts to its
nascent recovery, especially in terms of traffic growth and the
4
massive debts.
aforementioned record high load factors, IATA is forecasting
A primary concern is that the worldwide aviation industry
continuing losses for 2010. The organisation’s March 2010
has passed through the upturn in the cycle without the
forecast is for industry-wide losses of $2.8bn for the current
magnitude of profitability that had previously been
year, which is a marked improvement from its December 2009
experienced. The overall level of debt is also high and there
forecast of $5.6bn for 2010.
are worries that some operators will not have enough of
Another current concern for the industry is the potential
a financial cushion or access to credit to cope with a much
impact from the eruption of Iceland’s Eyjafjallajökull volcano
weaker market. Added to this is the further problem of a
that temporarily closed most major northern European airports
general lack of liquidity in the financial markets. This has
to travel in mid-April 2010. IATA forecast that airlines would
already translated into downward pressure on aircraft values
forfeit nearly $200m in revenue each day during the length of
and lease rates with many popular aircraft types being
the slowdown in traffic.
negatively affected. AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
In the US, the aviation industry has undoubtedly entered
withdrew more than 160 737-300/500s by the end of 2009, a
a period of widespread change and consolidation. Delta Air
decision that has had significant negative consequences for
Lines and Northwest Airlines merged in 2009, retaining
values. Another very vulnerable type is the MD-80 and the
the Delta brand name, while in May 2010, United Airlines
accelerated withdrawal of aircraft by American Airlines and
and Continental Airlines announced plans to combine their
Midwest Airlines will inflict further damage to values.
operations and become the world’s largest carrier, using the United name and Continental globe logo.
Pressure is growing on both Airbus and Boeing to focus on designs to succeed the A320 and 737NG families respectively.
In an effort to reduce capacity and cut costs, United Airlines,
Operators of older fleets are becoming increasingly anxious
Continental Airlines, American Airlines, JetBlue Airways,
that their needs will not be met, although it is likely neither
Southwest Airlines and Midwest Airlines all either grounded
manufacturer will have a new aircraft available earlier than
sizeable portions of their narrowbody fleets or delayed the
2020. In the meantime, Airbus announced that it would
delivery of new aircraft. As of January 2010, the backlog
enhance its A320 line by offering aerodynamic improvements,
of orders for new jet aircraft stood at around 7,700 units
upgraded engines and a revamped passenger cabin. In July
(comprising narrowbodies, widebodies and regional jets).
2008, Airbus Freighter Conversions received a launch order
Further serious concerns are the issues now faced in areas of the world that had previously experienced large-scale
from AerCap for the reconfiguration of 30 A320 and A321 aircraft between 2011 and 2015.
expansion. Since deregulation in India, commercial aviation
Looking forward to the next generation of narrowbodies,
has grown at a rapid pace, but a combination of factors has
the manufacturers will also be expected to produce more
created serious problems during 2008, which could result in
environmentally friendly designs that are better adapted to a
some consolidation. Apart from higher fuel costs, these include
stricter, more eco-sensitive operating landscape.
over-capacity, congestion, and lower traffic volumes. China has experienced lower growth, but its market is still more protected
Figure 5
from newcomers and low-cost airlines than others. Elsewhere, major orders for new aircraft have been placed by operators such as Lion Air, Tiger Airways, AirAsia and Malaysia Airlines. However, some are concerned that these orders were part of a spate of over-ordering that included fast-expanding carriers in the Middle East such as Emirates, Qatar Airways and Etihad Airways. There is a fear that too rapid a rate of expansion in some regions could make extensive order cancellations and delivery deferrals a central feature of this recession. The market for narrowbody aircraft, most especially for older aircraft, is softening considerably. United, Continental and American have already confirmed major cutbacks in their mainline fleets. Between them, United and Continental 6
Source: OAG Aviation
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE The highest profile aircraft development programmes for Boeing and Airbus are for widebodies. The 787 was rolled out for the first time in July 2007 and after a delay of approximately two years, it successfully completed its maiden flight in December 2009. The flight test programme is now underway and the launch customer ANA, should take first delivery of the aircraft by the end of 2010. Meanwhile, Boeing has forged ahead with the 747-8, the successor to the 747-400, offered in passenger and freighter variants. Orders have been placed at a relatively slow pace to
“The market for the 50-seat regional jet has undergone an almost complete reversal of fortune. Since the mid to late 1990s, demand for aircraft in this size class led to a boom in sales… however, that surge has long passed and the backlog has been reduced to zero.”
date with the freighter version so far proving the more popular choice. This programme has also suffered delays and the first flight of the 747-8F took place in February 2010 with the
in the market are
passenger model due to follow by the end of the year. The first
already established.
delivery of the 747-8F is now due to take place in late 2010.
The outlook for their
Of major concern to the 747-400 fleet is the bankruptcy of
larger siblings, in the
Japan Airlines (JAL) in January 2010. The carrier signaled its
70- to 90- seat range, is
intention to permanently withdraw its fleet of 37 of the aircraft
much more positive.
as part of a massive reorganisation. This will further exacerbate
Bombardier
an already serious situation with regard to surplus aircraft.
Embraer hold an order
Figure 7
and
Airbus saw the A380 enter commercial service in October
backlog for more than
2007, around two years behind schedule, and new orders
600 units between
have been relatively slow following an initial flurry around its
them and more than
launch. The manufacturer’s direct competitor to the 787, the
800 CRJ700/900s and
A350XWB, lags well behind its Boeing counterpart in terms of
E170, E175, E190 and
sales and is due to enter service, according to Airbus, in 2013.
E195s are already in
On the cargo side, Boeing delivered the first 777F (based on the
commercial service. Bombardier formally launched the CSeries
777-200LR) in early 2009 while the first A330-200F flew for the
programme with a letter of intent (LoI) from Lufthansa in July
first time in late 2009 and will be delivered to Etihad Airways
2008. The trend in regional jet orders and deliveries is shown in
in mid-2010.
the next chart (Figure 7).
Source: OAG Aviation
The recession in the aircraft market was initially more marked in the narrowbody market, yet there is evidence that
AIRCRAFT AVAILABILITY
the widebody market is now softening, and is expected to be
The peak in availability occurred in 2003 for both widebody
longer-lasting.
and narrowbody aircraft but, by the end of 2006, this dropped
Figure 6
by almost half. However, a significant proportion of these were inefficient, older technology types such as the 727-200, 737200, DC-9 and BAe 146. These aircraft are likely to remain inactive given the current climate and many will be scrapped. The current trend is affecting aircraft types a generation ahead, such as the MD-80 and 737 Classics. Around 3,000 commercial jet aircraft were recently reported by ACAS as being held in storage – a rise of almost 30 per cent compared to the year before. The decisions by United and Continental to reduce capacity will see more than 100 737-300s and 50 737-500s withdrawn from service between now and the end of next year. Fleet reductions by carriers such as American and Midwest will also lead to a spike in availability for the MD-
Source: OAG Aviation
80. It is also expected that more early vintage A320-200s will
The market for the 50-seat regional jet has undergone an
be retired with many of them eventually becoming candidates
almost complete reversal of fortune. Since the mid to late
for freighter conversion now that programmes are being
1990s, demand for aircraft in this size class led to a boom
developed.
in sales and a transformation in the way regional airlines
For newer narrowbodies such as the A320-family and the
operated. However, that surge has long passed and the
737NG, rentals have weakened, although availability for both
backlog has been reduced to zero. There are now almost 1,800
remains relatively low considering the size of the world fleets.
CRJ100/200s and ERJ140/145s in service worldwide (the vast
A 19-year-old 747-400 was parted out in mid-2009 and value
majority concentrated in North America and Europe), with
and lease rates for this and other widebodies have come under
many of them due to come off lease over the next several
strong pressure. With poor performances in the cargo sector,
years. Concerns regarding their future and an expected glut
there is virtually zero interest in freighter conversion.
AIRCRAFT FINANCE GUIDE 2011
7
AIRCRAFT FINANCE GUIDE Figure 9
Source: OAG Aviation
The world’s major economies continue to struggle and airlines still feel the effect on revenue and depressed traffic. Operators are striving to maintain their business positions by cutting capacity, introducing new revenue enhancement measures, raising fares and, wherever possible, carefully conserving their cash. Load factors improved during 2009, but at the expense of yields and this, coupled with the capacity cuts, has had a very negative impact on operating revenues. The first half of 2010 will once again prove to be an extremely difficult period for airlines as prospects for both traffic and revenue appear to be poor. The biggest challenge may be securing new credit in an environment The number of surplus CRJ100/200 aircraft grew since the lull in demand for 50-seat jets driven in part by high profile Figure 8
existing debt and financial commitments.
bankruptcies such
Even the low-cost operators have reacted to this new reality.
as Independence Air
Ryanair is withdrawing aircraft and temporarily closing some
however, availability
of its bases. Air Berlin is largely abandoning its plans to enter
has recently improved.
long-haul markets and easyJet is also reducing services from the
Looking forward,
UK. In the US, Southwest Airlines has restructured the delivery
h o w e v e r, m a r k e t
schedule for new aircraft while both it and JetBlue are keeping
conditions seem likely
capacity growth at zero.
to worsen significantly
Although the industry now faces many challenges and
and we can expect to
uncertainties, the drive to cut costs has led to greater efficiency.
see greater numbers
Advances in information technology and the use of the internet
o f p a rk e d a i rc ra f t
have cut distribution costs, giving rise to more transparency
of all types over the
and a wider choice for the passenger. IATA has estimated that
months ahead. The
non-fuel unit costs have fallen by 18 per cent since 2001 and
following chart (Figure
– earlier this year – the organisation announced that world
8) illustrates the trend in availability for narrowbodies and
air travel had now become 100 per cent reliant on electronic
widebodies since 1990.
ticketing. While airlines have seen tangible benefits to their
Source: OAG Aviation
8
still blighted by the liquidity crisis and simultaneously managing
The peak in annual widebody retirements occurred in 2002
bottom lines, this has often been to the detriment of passenger
and for narrowbodies in 2006. During the last recession, a
service. Most notably in the US economy passengers receive
number of aircraft types ended their career after several years
(and expect) much less in terms of on-board amenities and now
during which demand for lift postponed their withdrawal.
often have to pay fuel surcharges and checked baggage fees in
Aircraft such as the 727-200, 737-200, DC-9, A300, DC-10 and
addition to the fare.
L-1011 – market support for which had been prolonged during
If the current recession plays out similarly to past cycles,
the boom of the late 1990s – were grounded in significant
the next market peak is likely to fall during 2017-2018.
numbers. Such was the depth of the crisis; some newer
The downturn has been characterised by a spike in aircraft
generation aircraft such as the 737-300/400, 757-200 and A320-
availability, especially of older narrowbodies such as the
200 were permanently scrapped. We should expect this to also
MD-80 and 737-300/400, widespread capacity cutbacks by
be the case during the current downturn – the MD-80s and,
operators, order cancellations and delivery deferrals. However,
to a lesser extent, 737-300/400/500s being most at risk. Yet in
there are now strong signs that the freight market is steadily
the case of the 737 Classics, this will create a pool of cheaper
improving – normally a precursor to an upswing in the
aircraft available for cargo conversion or for use by start-up
passenger traffic cycle – and AVITAS expects market recovery
carriers. Figure 9 shows the trend in retirements since 1990.
to continue in 2011. Q AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
History repeats: Retention and volatility of aircraft values Aviation finance in its current form has been around long enough that people can talk about the lessons of history with a straight face. The effects of a downturn no longer surprise us and we understand the factors that impact upon aircraft value retention. The past 10 years, and in particular the downturns of 2001 and 2009, have provided a large amount of data on aircraft value volatility. Paul Sheridan, head of risk advisory EMEA at Ascend walks us through some of the findings.
E ARE AT, IF NOT near the end of another downturn
To illustrate the efficacy of the market value to base value ratio
in aviation but we are also at an unusual point in the
the chart in figure 1 shows the percentage difference between
manufacturing cycle. Every seat size, from turboprop to super
market value and base value over time for the A320-200 for all
jumbo, are being delivered or are at a late stage of manufacture.
years of build.
W
The key question for anybody with an interest in aircraft values is ‘What effect will this have on current aircraft values?’ It is here that history has much to impart.
Market to Base Value Ratio: A320-200, 1998-2009 YOB
MEASURING VOLATILITY IN AIRCRAFT VALUES A good metric used to analyse volatility in market values is the ratio of market value to base value. This metric gives an easyto-read surmise of the market; a ratio of less than one signifies a downturn while a ratio above one indicates an upturn. The metric is especially valuable because it is comparable across different ages of aircraft. It also reduces the overall model risk as it is not dependent on the absolute accuracy of market value or of base value.
Fig. 1 Historical market value to base value ratio over time for the A320-200
“Market value has been below base value for longer than it has been above it, indicating that investors should be more eager to sell at the highs than to buy at the lows.”
The chart shows clearly the market cycles, notably the downturns coinciding with the Gulf War, 9/11 and financial crisises. Also apparent is the increasing affect of aircraft age on market values. In the early years of the A320-200 production cycle, all vintages were considered equal. However as more aircraft were delivered the variance between those of different ages became more apparent.
10
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
THE EFFECT OF THE DOWNTURN ON THE A320-200 The effect of aircraft age on market value is also illustrated in figure 2. In this chart the market value to base value ratio is shown by the age of A320-200s. As an example, a five-year-old A320 has at some point had a low market value to base value ratio of 81 per cent and a high ratio of 113 per cent. The current value for a 2005-built aircraft is 86 per cent.
Fig. 2 Market value to base value by aircraft age for the A320-200
THE IMPACT OF NEW TECHNOLOGY
The chart clearly shows the difference between aircraft above
At Ascend, the base value methodology assumes that competing
and below 16 years of age. This is because older aircraft have
technology will be developed 15 years after the first delivery of
less efficient A1 engines. Storage rates for the A320-200 are
an aircraft. Therefore, in most cases a new aircraft will not have a
also concentrated in this aircraft group and this has a strong
large impact on an older aircraft’s predicted base value. However,
affect on market values. As the aviation market develops and
aircraft reaching the end of their production line have historically
recovers, the dots in this chart should move up along the
had a shorter economic life than the first aircraft off the line.
bars towards their historical highs (or indeed they can create
Also, aircraft that are no longer in production are more exposed
new highs) and so a chart such as this can serve as a valuable
to downturns as their vulnerabilities have over time, had a harsh
market tracker for different aircraft.
light shone upon them.
For comparison, figure 3 (below) shows the A320 market
A good example of this is the 737-300. The aircraft was
value to base value ratio in mid-2008 when the market was at
massively successful for Boeing, but being out of production
its peak.
since 1999, is now difficult to finance and the number of partouts is rising as it becomes harder to find lessees. The chart in figure 4 shows the aircraft’s rich history. Market values have been much more volatile than with the A320, rising as high as 124 per cent and as low as 55 per cent for some vintages.
Fig. 3 Market value to base value by aircraft age for the A320-200 in mid-2008 One significant attribute of previous downturns was that aircraft values took a long time (three to five years) to rise above base value, but dropped below the base rapidly (18 months) once the downturn struck. The market value of most aircraft moves above and below the base value by similar percentages.
Fig. 4 Market value to base value by aircraft age for the 737-300
However, market value has been below base value for longer
In 2008 the 737-300 market value to base value ratio was as in
than it has been above it, indicating that investors should be
figure 5 highlighting the larger value falls witnessed in the 737-
more eager to sell at the highs than to buy at the lows.
300 compared with the A320.
AIRCRAFT FINANCE GUIDE 2011
11
AIRCRAFT FINANCE GUIDE
The graph in figure 6 reflects the market’s similar response to the various vintages of the 737-300, which are all at or close to a scrap value of 20-25 per cent of their original market value. An 11-year-old aircraft is worth only 25 per cent of its market value when new, which is a dramatic loss. Yet newer builds at 11-years-old were once worth 75 per cent of their original market value; this is because aircraft that come off the production line later lose their value faster than earlier vintages. The 737-300 encountered its first downturn in 2001 as an out of production aircraft and its value never fully recovered. The market value retention for mid-2003 is shown in figure 7 (below) and is shown alongside the graph for 1999 for Fig. 5 Market value to base value by aircraft age for the 737-300
comparison.
as in mid-2008 The various vintages of both the 737-300 and A320-200 show important dissimilarities. The current market value to base market ratio is different for all ages, i.e. much higher for the younger vintages. There are two main reasons for this: storage rates for -300s over 20-years-old are higher than those for younger aircraft and younger vintages have lost most of their value. To see what is really happening with the 737300, we need to look at it from another angle. The graph in figure 6 shows the market values of aircraft of various ages as a percentage of their market value when new, again showing the historical highs and lows and their current value.
Fig. 6 Market value retention for the 737-300 12
Fig. 7 Market value retention for the 737-200 in 1999 and 2003 AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
Some of the substantial loss in value was regained between
or two downturns and the successful delivery of a replacement
2003 and 2008 but later disappeared again. Lessons should be
aircraft) such value depreciation.
learnt. The market value retention graph for the 737-800 is in figure 8.
While the factors that affect market value performance are all qualitatively well known in the market, by using the market value to base value ratio as a guide to this performance it is possible to put real measurement around value volatilities. In doing so it becomes possible to demonstrate how aircraft value risk can be measured as well as managed. As we start another cycle in the aviation market we have the opportunity to take stock of previous cycles. We have a rich data set from the 2001 and 2009 downturns and given that banks and lessors have held similar strategies over the past 10 years, we should expect a parallel performance from aircraft in the future. Not all aircraft will see their history repeated however, and it is important to add that when analysing volatility through the use of historical data, attention should be paid to factors that are not contained in the data – such
Fig. 8 Market value retention for the 737-800
as exposure to economic shocks, a rapid rise in oil prices or
Were this graph overlaid on that of the 737-300 it would match
certain airline defaults. These vulnerabilities can be inferred
well, and it looks remarkably similar to the graph relating to
from having a good overview of the market rather than from
the 737-300 in 1999. This illustrates that aircraft made later
pure data analysis and are as important as the analysis in
in the production cycle are hit by sharper declines in market
assessing a risk strategy. However, history can be a good tutor
values. The 737-300 represents the future of the -800. However,
and we should look to the past in order to make long-term
it is important to note that this aircraft is still some way off (one
predictions for current technology aircraft. Q
“In most cases a new aircraft will not have a large impact on an older aircraft’s predicted base value. However, aircraft reaching the end of their production line have historically had a shorter economic life than the first aircraft off the line.” 14
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Weighed and measured: Assessing aircraft lessors During 2009 airlines sold aircraft, cancelled orders, and rescheduling deliveries amid high levels of debt and low levels of financing. The upshot was feared to be grave yet although scraped and knocked, most leasing companies survived. Mary-Anne Baldwin talks to the leading lessors.
A
FLAILING ECONOMY HAS SHATTERED the foundations
fail, RBS wasn’t sold, CIT wasn’t sold and there was a single
of the leasing industry, culminating in bankruptcy
distressed sale last year… that was a very positive element
protection, mergers, and large-scale aircraft divestment. In
because it provided a lot of confidence in the market that
November 2009, following US state investment of $2.3bn, CIT
aircraft values had indeed not plummeted because there were
Group, the parent of CIT Aerospace, filed for Chapter 11 and
no sellers and no buyers.”
throughout last year a number of leasing companies have been
Other major changes to the market included the merger
made available for sale; few of which gained much interest from
of AerCap (the largest lessor without a parent company)
the market.
Frank Pray, CEO, AWAS
16
with Genesis Lease and ILFC’s discount sale of 53 aircraft
But lessors such as CIT Aerospace, ILFC,
to Macquarie Bank (the jets were sold for $1.2bn but had an
RBS Aviation Capital and Babcock & Brown –
aggregate net book value of almost double). It is expected that
all of which were at least rumoured to be for
portfolios and single aircraft will continue to pass from one
sale, suffered due to the financial troubles of
leasing company to another as problems with liquidity persist.
their parent companies, not their own. It was a
ILFC selected a portfolio of aircraft younger than lessors
general problem of liquidity, not of individual
would usually choose to divest, but says Philip Scruggs, chief
profitability.
marketing officer at ILFC: “We were in a unique situation
It was a tough year but as Frank Pray, CEO of
because of the difficulties with AIG,” referring to its parent
AWAS, highlights: “Nobody failed. ILFC didn’t
company which was, like CIT, forced to lean on state aid for AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
survival. “Normally we would not be selling aircraft as young
THE WAX AND WANE OF LEASE RATES
as the Macquarie fleet but they were chosen because they are
According to ACAS the number of parked commercial aircraft
more easily financed and the purpose of the deal was to prove
is around 3,000 and has risen almost 30 per cent on last year.
liquidity to the debt market.”
Yet a number of the younger aircraft are returning to use as
Paul Sheridan, head of risk advisory EMEA at Ascend,
airlines slowly increase their number of flights and introduce
which provides specialist analysis on the industry, says that
previous or new routes. Older aircraft types such as the MD-80
in previous downturns aircraft market values took around
are likely to slip from storage into retirement. Those that are
three to five years to rise above base value but sunk below
not retired will incur lower values and lease rates as it is likely
base value rapidly after the start of the downturn (within 18
that the market for aircraft such as the 737-300, 737-500 and
months). However, during this recession market values have
early A320-200 will remain soft.
stayed below base values, indicating that investors should
Indeed values and lease rates for all aircraft have dropped
look to divest their aircraft during peaks and avoid purchasing
but the newer narrowbodies and widebodies are likely to
additional aircraft, even during lows in their market value.
recover most of their former wealth due to their technological
“Normally we would buy in the downturn and invest in the
advancements and relatively low availability.
upturn; buy low, sell high,” says Scruggs. “But the Macquarie
AWAS’ Pray believes that lease rates were affected earlier
deal was done to pull a ‘leverable’ liquidity during the financial
this year on the news that Boeing and Airbus may produce re-
crisis.” He explains that since April ILFC has gained secured
engining programmes. “Airlines were clearly evaluating the
and unsecured lending worth over $4bn and that the deals,
long-term impact of making a commitment now for aircraft that
together with the Macquarie sale, “show our access to cash”.
might possibly be obsolete in five years,” he says. However he
The company retained its 2009 position of second place on
believes this has now changed as AWAS has placed 30 to 35 per
Ascend’s table, which ranks lessors by their estimated managed
cent of its new aircraft backlog, most of which are on eight to 10
fleet value, (see page 21) though its total estimated aircraft
year leases.
values fell from $36.14m in 2009 to $33.4m 2010. According
Scruggs of ILFC confirms that all aircraft lease rates fell
to Scruggs, ILFC has $45bn in assets and backlog orders of over
during the downturn; “Last fall they were stabilising.
$13bn with Boeing and Airbus (as of December 31, 2009). He
They’ve remained stable and we’re even seeing some modest
assures; “We’ve passed the nadir of the cycle.” The market is
improvement now… Certainly younger 737-800s and A320s
settling and ILFC, which was up for sale, is now off the market,
are the first to recover followed by 777s, A330-200s and the last
indeed it’s newly hired CEO, Henri Courpron, was quoted in
to recover, I would expect, will be out-of-production narrow
the press as saying that he joined ILFC to “take care of business,
and widebody aircraft.”
not to be a care taker”. AIRCRAFT FINANCE GUIDE 2011
“Aircraft are more exposed to downturns when they are out17
AIRCRAFT FINANCE GUIDE
of-production as the vulnerabilities that have built up in the
dropped two places to 13th; Macquarie, which dropped two
aircraft have a harsh light shone upon them,” notes Sheridan.
places to 15th and Doric, which climbed two places to 14th.
He uses the example of the 737-800, which has been out of
The top six lessors stayed in the same positions but on the
production since 1999 and is now hard to finance. According
basis of estimated aircraft values (for both stored and in-
to Sheridan an 11-year-old 737-300 is now worth 25 per cent
service aircraft), the top ranking lessor, GECAS, decreased
of its market value compared to when it was new. “The first
its estimated value from $37.4m in 2009 to $35m in 2010,
downturn that the 737-300 encountered as an out of production
although Liu clarifies that the company made just over $1bn
aircraft was in 2001 and this led to a drop in value that was
in net income last year. He says its total assets rose from $46bn
never fully recovered,” he explains.
to $48.5 at the end of 2009 and should rise by another $2bn by
Norman Liu, CEO of GECAS, gives a rough
Norman Liu, CEO, GECAS
the end of this year.
estimate for lease rates on the 737 Classic as
In line with depreciating values, analysis of Ascend’s data
having dropped around 30 per cent from 150
shows GECAS has sold many of its older and lower seat-
to 100, but agrees that lease rates bottomed out
ranging aircraft (falling from 72 aircraft in 2009 to 50 in 2010),
a while ago and are now starting to recover. He
building its fleet of newer commercial aircraft with 26 in-
says lease contract terms have stayed consistent
service 737NGs and taking eight of the aircraft out of ‘storage’
at four to eight years, however for newer aircraft
(a term that for Ascend means parked aircraft as well as those
there are tighter maintenance terms. However
between leases and under maintenance). GECAS invested
Frost & Sullivan, the financial services
$6.5bn in its fleet last year, says Liu. “Certainly our general
company, claims that lessors have formed an
philosophy is to invest when the terms are better during the
‘initiative’ to raise the security deposit and
down cycle,” adding that the company will this year invest
maintenance reserves on aircraft deals so they can limit the
$7.5bn with assets rising to $2bn (due to depreciation and loan
downside in case of bankruptcies.
amortisation).
Looking at the regional aircraft sector the market for the
Ascend’s data shows ILFC has a number of older aircraft on its
50-seat regional jet has sunk considerably and the backlog
books, but says Scruggs: “We’ve been selling our 737 Classics
depleted. Accordingly, lessors have been divesting regional
progressively for years, we still have a number on our books but
aircraft. For GECAS the number of in-service aircraft listed in
have sold the vast majority.” The company has also retained all
Ascend’s ‘other’ category (that is aircraft such as BAe, Beech,
but one of its MD-80 aircraft and now has 12 in total. Scruggs
Cessna, Fokker, and DCs fell from 72 in 2009 to 50 in 2010.
explains the company manages some MD-80s for Triton
On a wider level many existing regional jets are due to come
Aviation and purchased 12 MD-82s through a residual value
off lease over the next few years and demand is instead growing
guarantee, but these were for their parts and “were never going
for 70- to 90- seat range aircraft which is likely to push lease
to fly again”.
rates for the 50-seat regional even lower.
Although lessors prefer to purchase on the downturn when
“This market has been struggling,” confirms Liu. “Rents have
market values are low, most chose to divest aircraft last year,
probably fallen about 30 per cent or more,” He adds: “Directly
indeed AWAS was a “net seller,” divesting four 757s (that were
after 9/11 when no-one was flying, 50-seaters did well. In
contracted to sell almost four years ago); three 767s; four MD-
today’s market where you have 80 per cent load factors you
80s and one A300 (contracted for sale about five years ago). The
would do better with the larger aircraft.”
company did purchase five new A330s last year, two of which were immediately sold, but most were forward contracts.
FLEET FLUCTUATIONS
18
“We’ve actually not seen any significant buying opportunities
According to Ascend’s data, approximately half of the top 20
over the last year. Nobody’s been willing to sell at a discount,”
lessors took losses to their estimated fleet value, although a
explains Pray. We have been scouring – everybody has – for
few companies recorded gains. BOC Aviation increased from
opportunities to look for distressed sales of attractively priced
$4.7m in 2009 to $5.5m in 2010. Pembroke, which climbed
sale and leaseback opportunities but we have found ourselves
four places to11th, raised its value from $2.5m in 2009 to
competing with a lot of other companies currently looking for
$2.9m in 2010. Other lessors that raised their estimated value
the same investment opportunities on the market, notably some
include Doric Asset Finance, Amentum Capital and Orix.
of the new players. A lessor today is also competing against an
Comparing the data against that of 2009, nine lessors changed
airline’s ability to tap export credit finance… From a competitive
position in the ranking, including: AWAS, which dropped
perspective it’s quite tough to make sense of a lot of new business
two places to ninth place; Aviation Capital Group, which rose
right now. That’s why so far this year we haven’t underwritten
one place to eighth; Boeing Capital Corporation (BCC), which
any new business over and above of what we’ve contracted”. AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
AerCap, which rose one place to seventh position,
recovery and it is logical to increase production: “I know as a
increased its value by $874m from $4.46m in 2009 to $5.34m
leasing company it’s within our interest to down talk others’
in 2010, according to Ascend. However Klaus Heinemann,
supply but I tend to call it how I look at it.”
AerCap CEO, says the value of its owned portfolio increased
Pray adds that it is safe to increase production as, unlike
from $4.2bn at the end of 2008 to $5.2bn at the end of 2009
previous downturns, OEMs did not over produce. During
and to $7.2bn as of March 31, 2010 and calculates the
this downturn the manufacturers have had large backlogs
current market value of its owned portfolio as of March 31,
and had over-booked their commitment to customers:
2010 at $8.7bn.
“As the backlog melted away through defaults and airline
The company says it purchased 41 aircraft in 2009 and
restructurings they were basically able to accommodate the
20 aircraft during the 1Q of 2010, most of which were
existing demand with the existing production schedule. In
part of an existing order of A320-family and A330 aircraft
effect they’ve both now increased production to meet the
with Airbus. It added a further 54 aircraft in the 1Q 2010
backlog over the next two years.”
through its merger with Genesis Lease and has an extra
As of January 2010, the backlog of orders for new aircraft
39 aircraft on order with Airbus, all of which are already
(narrowbodies, widebodies and regional jets) stood at around
placed on lease.
7,700 units. But the question remains: will there even be finance to fund these?
RAMP UP AND ROLL OUT
Pray, who believes there was no funding gap last year, but
and lease rates, Boeing and Airbus delivered more aircraft in
rather a passenger gap. “Virtually every single aircraft that was
2009 than in 2008 (Boeing delivered 481 and Airbus 498, this is
tendered for delivery by Boeing and Airbus was delivered and
up from 375 and 483 respectively) and the industry has placed
was financed, either by export credit support, bank lending,
a record number of aircraft orders for the past three years. Some
or people paid cash for it… I feel we will see the export credit
believe that it is a worrying imbalance that will further toy with
agencies retreating in terms of their role on delivery financing,
lease values and the leasing industry as a whole.
the capital markets coming back to provide alternative
“I would prefer to see our overall market stabilise and
financing and bank lending return.”
strengthen further before Boeing and Airbus increased
After much anxiety, confidence in the market is returning and
production rates,” says Scruggs. “Are we a market maker or
figures are starting to provide some reassurance. According to
a market taker right now? The answer is that we have a very
Frost & Sullivan, it never really was all that bleak – a report
dynamic used aircraft market right now and I think that there
by the company shows airlines raised $4.8bn in equity funds
is a fair amount of capacity out there in the market place so
and $25.7bn in debt between January 2008 and October 2009
we’re not able to demand the premiums that we would like to
and the lessors’ collective fleet rose 7.34 per cent to 6,180
see in the aircraft leasing market. We won’t be able to do that
aircraft. “We see ample demand on the leasing of new aircraft,”
until additional capacity is either removed from the market or
concludes Pray. “We have multiple bids on delivery positions
absorbed due to increasing demand from airlines.”
virtually every day. That is a much stronger market than we saw
However Liu of GECAS believes that we are now reaching a 20
“People will continue to talk about the funding gap” says
Against increasing aircraft availability and low aircraft values
last year.” Q AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
Aircraft Operating Lessor: A-Cha
Combined value of inservice and stored aircraft ($m)
737 (CFMI)
AAR Aircraft Sales & Leasing
237.45
IS22 S0
ACL Aircraft Trading
14.6
Aelis Air Service
0.85
AerCap
5336.6
IS36 S8
AerGlobe
33.5
IS3 S3
Aergo Capital
409.4
IS12 S6
Aerolease International
87.85
Aeron Aviation
0.1
Aerospace Management Capital
123.95
African Airlines Investments
3
Air Transport Leasing
4.45
Airbus Asset Management
295.2
Aircastle Advisor
3037.9
Aircraft Asset Management
277.85
Aircraft Financing and Trading
29.55
Aircraft Leasing & Management
213.2
Airfleet Credit
154.1
Airline Capital Leasing
6.05
ALAFCO & Novus Aviation
287.2
IS1
IS1
ALAFCO
1191.1
IS11
IS3
Alandia Air AB
8.4
IS1 S11
Aldus Aviation
345.8
Alpstream
372.35
Amentum Capital .
2216.65
Apollo Aviation Group
151.2
IS15 S5
Aurora Aviation Group
13.55
IS3
Automatic
36.35
Avation
20.9
Avequis
418.7
Avia Asset Management
48.5
Aviaco Traders International
3.5
Aviation Capital Group
4915.45
Aviation Leasing Group
43.2
Avico
18.15
IS1 S2
Avion Aircraft Trading
219
IS5
Avline
7
Avmax International
331.6
AWAS
4156.45
IS53 S6
IS30 S1
IS7 S0
IS6 S1
IS19 S4
IS1 S0
Babcock & Brown
6027.45
IS38 S18
IS89 S0
IS4 S1
IS23 S5
IS3 S0
IS6 S0
BAE SYSTEMS Regional Asset Mgmt
542.8
Banc of America Leasing & Capital
659.75
IS7
Banc One Capital
706.8
IS0 S1
Bank of Communications Finance Leasing
61
Bavaria Int’l Aircraft Leasing
381.4
IS0 S3
BCI Aircraft Leasing
504.8
IS16 S3
Bluepoint Aviation Pty
5.7
IS1
BOC Aviation
5466.2
IS1
IS49
IS1
Boeing Capital
2761.5
IS19 S3
IS5S0
IS1 S0
Bombardier Capital Leasing
10.05
Brihar Corporation
8.45
Capital Aircraft
0.58
Capital Lease Aviation
19.45
Cara Capital
2.5
Cargo Aircraft Management
334.85
CDB Leasing
1487.75
IS9
Changjiang Leasing
166.85
IS4
737 (NG)
747
757
767
IS1 S0
IS1 S0
IS2 S0
777
A300
A310
A320 family
A330/40
IS2 S0
A380
CRJs
ERJs
IS1 S0
MDs
Others
IS0 S1
IS0 S1
IS1 S0 IS1
IS20 S1
IS12 S0
IS6 S2
IS1 S0
IS122 S12
IS15 S0
IS5 S0
IS8 S0
S1
IS12 S21
IS43 S13
S7 IS1 IS2 S0
IS0 S1 IS 1 S1
IS1
IS1 IS8 S2
IS18 S4
IS27 S0
IS9 S2
IS10 S2
IS12 S0
IS1 S0
IS4 S3 IS29 S1
IS12 S0
IS1 S0 IS3 S4
IS15 S1 IS6 S4
IS3 S0
IS2 S0
IS3 S4
IS0 S5
IS0 S3
IS16 S0
IS1 S0
IS2 S2 IS3 IS1
IS3
IS1
IS19 IS8 IS16 IS4 S10
IS7 S0
IS2 S0
IS1 S0
IS5 S0 IS1 S0
IS1 S0
IS10 S0
IS3 S5
IS7
IS5
IS77 S6
IS2 S1
IS1 S0
IS4 S0
IS2 S1
IS1 S1 IS%
IS8
IS1 IS1
IS41 S7
IS70 S0
IS4 S2
IS8 S0
IS8 S6 IS0 S2
IS8 S0 IS2 S2
IS2 IS21 S5
IS0 S1
IS44 S2
IS12 S0
IS10 S4
IS77 S5
IS7 S0
IS8 S1
IS3 S0
IS125 S45 IS3
IS5 IS1 S1
IS2
IS3
IS7
IS10
IS1 S0
IS1 S0
IS2 S0
IS2 IS10 S0
IS0 S2 IS4 S0
IS17 IS34 S2
IS5 S0
IS4 S0
IS2 S0
IS55
IS8
IS8 S0
IS5 S0
IS2 S1
IS0 S1
IS24 S9
IS19 S11 IS3
IS1
IS1
IS3 S0 IS5 S3
IS6 S0
IS2 S0
IS16 S7 IS3
IS19 S4 IS6
IS11
IS2 S0
IS1 IS1
Source: Ascend, May 2010
AIRCRAFT FINANCE GUIDE 2011
21
AIRCRAFT FINANCE GUIDE
Aircraft Operating Lessor: Chi-MC
Combined value of inservice and stored aircraft ($m)
China Aircraft Leasing
71.5
CIT Aerospace
6272.35
IS12 S2
Compass Capital
34.4
IS1 S1
Corporate Aircraft Leasing
5.95
CSDS Aircraft Sales & Leasing
9.1
DAE Capital
1854.7
DEFAG Leasing
78.4
IS1
Deutsche Bank Equipment Leasing
35
IS7 S1
Deutsche Structured Finance
98.7
IS4
737 (CFMI)
737 (NG)
747
757
767
777
A300
A310
A320 family
A330/40
A380
CRJs
ERJs
MDs
Others
IS2 S0
IS0 S1
IS6 S0
IS2 IS64 S0
IS11 S1
IS8 S0
IS1 S0
IS1 S0
IS112 S2
IS17 S0
IS2 S0
IS1 IS0 S1
IS1 S0 IS10 S0
IS4 S0
IS15 S0
IS0 S3
IS10 S1
IS3 IS0 S1 IS2
Doric Asset Finance & Verwaltungs 2350.35
IS1 IS6
IS6
IS3
IS7
Dornier Aviation Marketing Support
9.5
IS2 S5
IS2 S5
ECC Leasing
247.22
IS6 S2
Erik Thun
108.35
IS14 S1
European Capital Corporation
0.6
FGL Aircraft Ireland
487.6
IS5 S0
IS14 S0
IS3 S1
IS1 S0
IS3 S2
First Greenwich Kahala
128.45
IS5 S1
IS1 S0
IS1 S1
IS5 S0
IS10 S0
Fortis Aircraft Management Services
3.1
GA Finance Services
13.95
GECAS
34950.21
GK MDT Services
25.65
Global Aircraft Leasing Partners
0.75
IS11 S5
IS23 S1 IS2 S2
IS1 IS1 IS244 S31
IS325 S1
IS26 S1
Global Aviation Leasing
4.5
IS1 S0
Global Knafaim Leasing
189.45
GMT Global Republic Aviation
543
GOAL German Operating Aircraft Leasing
675.7
Guggenheim Aviation Partners
911.65
IS6 S1
IS0S2
IS5 S0
HKAC
2332
IS8 S0
IS10 S0
IS5 S0
Hong Kong International Aviation Leasing
163.5
Hwa-Hsia Leasing
79.75
ICBC Leasing
526.55
Icelandic Aircraft Management
6.7
IS2 S0
Icelease
41.05
IS3
ILFC
33350.9
IS81 S4
Intrepid Aviation Group
25.9
Investec Global Aircraft Fund
444
ITC-Leasing
0.65
ITOCHU AeroTech Corporation
307.35
Jet Trading And Leasing
42.7
JetFleet Management
95.9
Jetlease
6.9
IS2
Jetran International
20.5
IS0 S1
Jetscape
365.6
IS7 S1
JT Power
21.95
KAL Aviation
2.75
KG Aircraft Leasing
8.7 40.75 763.4
Lionhart Aviation
117
M1 Commercial Jets
209.3
Macquarie AirFinance
2487.75
Magellan Air
249.3
Mass Jet Lease
75.6
MC Aviation Partners/Mitsubishi
2605.9
IS76 S3
IS35 S0
IS0 S3
IS3 S1
IS446 S4
IS26 S0
IS256 S28
IS1 IS71 S3
IS35 S5
IS134 S10
IS3 IS1
KJ Aviation Services
IS22 S9
IS4
Global Aviation Asset Management 1238.3 Pty
Lease Corporation International
IS11 S3
IS17
IS23
IS3
IS2S2
IS1
IS8 S2
IS15 S1
IS6 IS1 S1
IS2
IS2
IS4
IS4
IS1 IS16 S1
IS3
IS5
IS11
IS3 S3
IS1 S0
IS4 S2
IS4 S0
IS2 S1
IS2 S0
IS28 S0
IS12 S0
IS6 S3
IS5
IS22
IS8 S0 IS6
IS2
IS3 IS5
IS2
IS4
IS1
IS3
IS3
IS0 S5
IS3 IS3
IS218 S3
IS17 S2
IS2 S0
IS0 S3
IS64 S6
IS52 S3
IS74 S1
IS6 S0
IS6 S1
IS390 S18
IS117 S5
IS2 S0
IS2 S0
IS11 S1
IS3 IS1 S0
IS3 IS8
IS1
IS1 S1
IS3
IS1 S4 IS231 S7 IS1
IS0 S1
IS3 S1
IS1 S4
IS0 S10
IS1 S4
IS0 S1
IS10 S0
IS0 S1 IS11 S4
IS1 IS5 IS2
IS1
IS1
IS1
IS6
IS4 IS9 IS14 S3
IS34 S0
IS2 S0
IS5 S3
IS1 S0
IS1 S0
IS42 S6
IS8 S0
IS1 S0
IS4 S0 IS23 S9 IS12 S9
IS5 S0
IS10 S0
IS7 S0
IS17 S1
IS2 S0
IS19 S1
IS8 S0
IS9 S0 Source: Ascend, May 2010
22
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
Aircraft Operating Lessor: MCC-Z
Combined value of inservice and stored aircraft ($m)
MCC Financial
1.8
MDT
18.1
Midair
2.3
Mitsui Bussan Aerospace
303.45
MK Aviation
14.1
Nordic Aviation Capital
726.05
Northern Lights Leasing
7.5
Novus Aviation
377.95
Ofer Aviation
186.35
Omega Air
0.15
ORIX Aviation Systems
1753.7
Oryx Leasing
534.5
Pacific AirFinance
69.55
IS2
Pacific Coast Group
0.85
IS0 S2
Palm Aviation
14
Pembroke Group
2887.55
Pembroke Group & Aircraft Financing and Trading
23.55
Pembroke Group & Deutsche Structured Finance
7.7
IS1
Pembroke Group & GOAL
13.6
IS2
Penerbangan Malaysia Berhad
1155
IS16 S1
Phoenix Aircraft Leasing
38.05
Pinnacle Aircraft Leasing
4
Power Aircraft Services
8.55
Prewitt Leasing
0.25
Q Aviation
244.1
RAK Leasing
0.5
Raytheon Aircraft Credit
150.3
RBS Aviation Capital
6650.9
Regional One
14.5
Rockton Management
5.4
RPK Capital Management Group
18.55
Runway Asset Management
4.45
IS4 S0
Saab Aircraft Leasing
268.6
IS107 S21
737 (CFMI)
737 (NG)
747
757
767
777
A300
A310
A320 family
A330/40
A380
CRJs
ERJs
MDs
Others IS2 IS2
S1 IS1
IS3
IS3
IS1
IS5
IS11
IS2 S0
IS0 S1
IS10 S0
IS1 S0
IS4 S0
IS2 S0
IS103 S8
IS2 IS3 S0
IS1 S0
IS1 S0
IS3 S0
IS1 S0
IS1 S0
IS4
IS4 S0
IS0 S2
IS2 S1
IS23 S7
IS14 S0
IS3 S0
IS7 S1
IS5 S0
IS1 S0
IS34 S1
IS5 S0
IS5 S1
IS8 IS9 IS3 IS2 S5 IS5 S0
IS12 S0
IS2 S0
IS7 S0
IS42 S0
IS5 S0
IS12 S0
IS1 S0
IS4 S8 IS5 S1
IS12 S0
IS4 S0
IS1 S0
IS9 S0 IS1 S0
IS1 S8
IS3 S0
IS1 IS0 S1
IS1 S1 S1
IS2 S1
IS2 S0
IS3 S0
IS4 S0
IS1 S1
S1 IS52 S29 IS91 S3
IS117 S1
IS2 S0
IS3 S0
IS5 S0
IS9 S0 IS2 S6 IS1
IS3
IS3
Sahaab Leasing
320.8
Santos Dumont Aircraft Mgmt
268.85
IS10
Sean Ho Aircraft Leasing Corporation
45
Sigma Aircraft Management
32
IS4
Sky Holding
647.05
IS4 S3
Skytech-AIC
199.75
SkyWorks Leasing
1523.3
SMFL Aircraft Capital Corporation
1625.05
IS2 S0
IS26 S1
Sojitz Aircraft Leasing
449.2
IS7 S1
IS13 S0
IS1 S0
Sumitomo Mitsui Finance & Leasing
439.7
IS2
IS10
Ten Forty
4
The Essence Group
5.4
The Flightstar Group
1
Tiger Aircraft Trading
66.6
Unconfirmed Operating Lessor
597.55
IS2
Universal Asset Management
122.55
IS1 S1
VEB-Leasing
29.9
Veling
268.15
Volito Aviation Services
593.55
IS9 S1
VTB-Leasing
589.55
IS10 S1
Vx Capital Partners
209.8
Waha Leasing
484.6
IS2 S2
World Star Aviation
115.55
IS14 S1
IS4 S1
IS6 S0
IS1 S0
IS3 S0
IS2
IS2 S0
IS1 S0
IS17 S3
IS5 S1
IS0 S2 IS6 S0
IS4 S0
IS1 S0
IS7 S2
IS12 S7
IS2 S0 IS32 S1
IS5 S4
IS4 S17 IS5 S0
IS15 S0
IS19 S0
IS1 S0
IS23 S1
IS5 S19
IS32 S0
IS4 S0
IS1
IS2
IS4 IS2 IS4
IS1 S1 IS2 IS6
S18
IS1 IS0 S1
IS10
IS1
IS22 S3
IS2 S0
IS1
IS4 S0 IS2 IS2 S0
IS5 S0
IS2 S0 IS3 S0 IS0 S4
IS5 S0
IS3 S0
IS12 S0
IS1 S0
IS2 S0
IS9 S0
IS2 S0
IS2 S0 IS2 S0
IS1 S1
IS3 S1
IS3 S0 IS1 S1
IS9 S0 IS4 S0
IS3 S0
IS1 S6 IS2 S18
* IS = Inservice / S = Stored Source: Ascend, May 2010
AIRCRAFT FINANCE GUIDE 2011
23
AIRCRAFT FINANCE GUIDE
The Doughnut Hole: Will a generation of aircraft be left behind? As aviation’s financial market makes its recovery and heads towards the next up-turn, is it possible that a generation of aircraft will be left behind? Bryson Monteleone, ISTAT certified appraiser and director of Tailwind Capital investigates the potential.
M
ANY IN THE MARKET REMAIN optimistic that the
The year 2010 started with the anticipated infusion of new
top credits with new, high quality assets will continue
equity into the market. These new players, many employing
to see the benefit of available funding at reasonable pricing.
those once working with major leasing companies, have fistfuls
However, if an operator is not a top credit and is in need of
of cash and are ready to spend. However, as many of these
an aircraft that is perhaps seven to 10 years or older, will it
‘newcos’ approach airlines to offer financing opportunities they
be able to access a similar pool of funds, and if so, will it be at
are realising that everyone else is doing the same. Now airlines,
reasonable costs and terms?
once the victim, are the beneficiary of the leasing companies trying to deploy their orderbook and new entrants trying to
“Now airlines, once the victim, are the beneficiary of the leasing companies trying to deploy their orderbook and new entrant lessors trying to compete.”
compete. It is estimated that there will be over $3bn of equity available this year and it won’t be coming from ILFC, GECAS or ACG. New names such as Avolon and Air Lease Corporation are leading the charge, with modestly capitalised ventures like Greenstone, RPK and KV only a few steps behind. The catch is that their money is not cheap. Internal rates of return are
24
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
expected to hover close to 20 per cent, which is tough for an industry that receives around 15 per cent on a good day. Back leveraging will help, but could cause more headaches down the
“Leasing companies are now arranging ECA supported facilities to assist with their aircraft purchases – once a backstop reserved for airlines. Though these Export Credit facilities do come with strings.”
line. This moderate hurdle will be a tough sell for top credits like Lufthansa who command ‘investment grade’ financing packages.
puzzle is the asset. Ironically, airlines, banks, leasing companies
Another piece of the puzzle is debt. Those looking to lower
and other owners are doing what their advisors have always
their hurdles with large amounts of ‘cheap’ debt are finding
told them to do, which is to ‘hold their assets’ if they can,
that the historic leverage ratios of five to six times are now
except in the highest pressure circumstances there are very few
more like two to three times, which considerably reduces their
distressed or high-yield deals to be seen. Owners are standing
available funds. Ironically, with the demise of AIG, and the
their ground and are not marking their asset values down
higher cost of capital for parent companies and banks, everyone
unless they absolutely must, which makes the true distressed
including ILFC, appears to be on a more even playing field.
purchase even more elusive. Many asset owners that were once
Leasing companies are now arranging ECA supported facilities
in dire straits have pushed their debt obligations giving them
to assist with their aircraft purchases, once a backstop reserved
more breathing room and fewer requirements for liquidity. The
for airlines. These Export Credit facilities do come with strings;
large leasing companies such as CIT and AWAS are beginning
they can only support airlines that are not considered part of
to see the market with more clarity and have not placed all
the consortium of home countries that manufacture aircraft.
their bets on divesting aircraft. The banking community seems
However, after the termination of the first lease, these aircraft
to have only tepid interest in lessors’ stories and have closed
can be remarketed to any jurisdiction. Some might assert that if
funding facilities giving them either a cash infusion or an
these companies need to access ECA financing for ‘cheap’ debt,
extension on current facilities. The recently restructured lessors
they should not have an investment-grade rating.
will find it harder to access buyers due to internal constraints
With lots of equity and some debt in place, the last piece of the AIRCRAFT FINANCE GUIDE 2011
and recalculated debt levels. It is fair to say that without a 25
AIRCRAFT FINANCE GUIDE
Early-built A320s can be found in abundance but unfortunately in most cases are priced too highly for their current maintenance status.
complete surge in market values some aircraft might never be
had the upper hand, in addition to any subsequent escalation.
traded. Moreover, if one can attract investor or bank interest it
It is very possible to have a brand new A319 on the books
will come with a price.
ago. The one-size-fits-all valuation scheme does not always
revolver by delaying its expiration for a year, however, the
compute, which makes it very tough for buyers, sellers,
facility was changed from unsecured to secured and cost an
owners and especially lessors. However, with new aircraft,
additional 150 basis points. ILFC has also closed a transaction
particularly those with the greatest market strength, there is still
with Macquarie for the sale of 53 aircraft for $2bn; a deal that
a significant amount of flexibility. Contracts for new aircraft can
the US Federal Government, ILFC’s final decision maker, was
mitigate current pressures with step-up/step-down rental rates,
on-board with. Even after this sale ILFC remains one of the
length of lease, and miss-matched amortisation schedules.
largest aircraft lessors, however they might be required to sell
Those terms among others can help airlines, especially those
more of their portfolio in order to recover cash for their ultimate
with better credit, with their financial conundrums.
shareholder, the US Taxpayer.
26
commanding a premium of $45m if it was ordered five years
The ‘mega-lessor’, ILFC, was able to amend its $2.5bn credit
Similarly, the case is not as simple for used aircraft, especially
This does not mean there are not readily available aircraft on
as the credits tend to be tougher and the remaining life is
the market. It is not hard to find older 737 Classics or early-built
dramatically shorter. In some cases for the new equity players,
A320s, indeed both can be found in abundance. Unfortunately,
the used aircraft market should be the perfect fit — if they can
some of these aircraft have already been on the market for over
make the numbers work. On one hand you have an airline
15 months and in most cases are priced too highly for their
looking to lease a used aircraft of roughly five- to seven-years-
current maintenance status.
old, and you have a new lessor that needs to hit an internal
While there have been some transactions, current market
investment target of 20 per cent or more. As previously
expectations remain miss-matched. Buyers and sellers are
mentioned, many would agree that one would be lucky to
not seeing eye-to-eye, which leaves many in a quandary as to
get 12-15 per cent in commercial aviation. The ambitious
who will budge first. Those actively looking to buy must start
investment returns that exceeded 30 per cent are not likely
to close deals soon or risk losing their funding. Sellers, on the
to return soon. In the current situation airline credit is rated
other hand, are betting on desperate buyers in anticipation of
second-tier so to expect a higher rate of return is reasonable —
recovering, if not exceeding, their current book values.
as much as the airline would beg to differ.
Unfortunately, pricing for new aircraft it is not any easier.
However, can a ‘newco’ get internal credit committee approval
While there are operators that would not mind selling their
for such a hairy transaction? Will it not be undercut by the
delivery positions or very new aircraft, every new delivery is
established leasing firms that can push out older aircraft on
precedent upon an order date from a period when the OEMs
very compelling lease terms? The second hurdle is pricing. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
“Book values for a used aircraft of five- to seven-years-old are likely be higher than the appraisal community will attribute to them, which makes any transaction that requires debt much more complex.” Will the recent downturn see a generation of aircraft abandoned?
Book values for this generation of aircraft are likely to be higher
There are airlines that need them and many financiers happy to
than the appraisal community will attribute to them, which
finance them at the customary rates of return. It is also evident
makes any transaction that requires debt much more complex.
that it will be relatively easy to find homes for older aircraft
It appears that aircraft of 10 years of age or above remain
with those that can handle the tougher technical challenges of
relatively liquid when they are priced appropriately, albeit
this asset class. This still leaves moderately attractive aircraft
not at any notable premium. In most cases, the value has fully
that are too expensive to purchase as their book values are still
depreciated, perhaps with some mark-up for maintenance, or
too high for many and they are too young to be parted out. The
the owner is no longer in a position to deal with the technical
pressure for much needed capacity will eventually force lease
difficulties that linger on the horizon. These assets tend to
rates higher as younger aircraft are sought due to jurisdictional
move on a cash basis and are purchased by those that offer a
age restrictions and demand for quality assets — lessors will
level of technical expertise or vertically integrated capabilities
be forced to pay more for these aircraft and will try to pass the
for tear-down and/or consignment. Assets can be moved in one-
premium to their customers with gradual success. As cheaper
off scenarios but for the best economics they are purchased or
available capacity diminishes, lease rates will ultimately be
sold in-bulk.
forced up however, in the meantime good quality younger used
In the ‘old days’ used aircraft were considerably more liquid
assets will have a hard time finding a home.
and malleable, but they were in a different kind of market. Large
As with previous cycles, there has always been a modest
leasing companies could securitise a pool of assets (similar
amount of distressed transactions that have ‘primed the pump’
to the sub-prime transactions that brought the United States
for future deals and allowed an increase in financing velocity
economy to its knees) by selling investment-grade bonds that
— in turn allowing the market to return to equilibrium. This
place the residual exposure on someone else’s balance sheet.
does not appear to be the case yet. Those that would and should
Many of those deals were sold on the cash flow of the leases.
be selling are not. This lack of transaction velocity could lead
Rating agencies sold the argument that everything that flies must
to market irrationality as equity pledges and opportunities
be liquid, and so everyone was supposed to win. As with the
begin to dry up, spurning deals that otherwise should not
sub-prime market, so went aviation’s asset backed securities
have occurred. Q
(ABS) sector. Many large portfolios with the oldest aircraft took a turn for the worse. The perfect storm had come and defaults became exponential. The older aircraft were permanently grounded and in most cases now cease to exist. Some of these older ABS deals continue to trade but at a fraction of their original value. The ABS market is expected to return, but not for some time. Undoubtedly, the rating agencies will take a harder look at these structures and the advantages that previously existed will be less attainable or will require higher leverage. New aircraft will be financed mainly because they have to be. AIRCRAFT FINANCE GUIDE 2011
27
AIRCRAFT FINANCE GUIDE
Financing the 737NG Family
28
‘W
HO WILL BANKS LEND MONEY to? Those that can
Developing this philosophy, DVB has performed wide
prove they don’t need it.’ ‘How do you tell if a company
research and examination of aircraft and aero-engines from
is solvent? Its’ boss doesn’t wear a suit when he asks for a loan.’
which it has developed a scoring system known internally as
These are just some of the jibes circulating in response to the
the Aircraft Equipment Rating Overview (AERO). With inputs
financial malaise -- but if you are looking to finance an aircraft, it
relating to aircraft liquidity and residual value, this system
is not likely to be a laughing matter.
helps DVB to identify which aircraft types are most suitable
For many financial institutions, credit quality dominates the
for asset-based lending. As may be expected, some members of
decision of whether to offer finance. However, once a default
the 737NG Family are among the highest scoring commercial
has occurred, asset quality determines the ability to recover
aircraft in the system. However, AERO does not pretend to tell
the outstanding loan. Credit-related factors including legal
the full story. Understanding the assets and their markets still
issues or those concerning registration, maintenance quality,
requires human analysis.
operating environment and fleet remain important, but as an
Asset-based lenders often focus on the ease with which the
asset-based lender, asset quality is the guiding criterion in
aircraft can be converted to cash and the value this process may
DVB’s financing activity.
release. Both are heavily reliant on an aircraft’s characteristics AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE competitiveness; the selection of powerful, quiet, high-bypass CFM56-3 engines was a decisive element for Classic 737s and one that won the battle for market share against the MD-80. Later, selecting the CFM56-7 engine would ensure that 737NGs were competitive against the A320 Family. As air traffic grew, airlines have demanded larger aircraft with greater range and efficiency. Besides more powerful and efficient engines to boost takeoff performance, other significant 737 improvements included larger wings with more fuel capacity and aerodynamic enhancements that increased speed and range but reduced drag. However, the dimensions of the 737 fuselage cross-section were so well-chosen that they have formed the basis of passenger cabins for every single-aisle Boeing airliner produced since the 707s of the 1950s. The dimensions may not have changed but the 737 fuselage now benefits from a wider incorporation of weightsaving materials in the construction. This cross-section permits the six-abreast layout preferred by most airlines.
FAMILY VALUES The result is the 737NG Family we know today — launched in 1993 and comprising four series (737-600, -700, -800 and -900) and their variants (-700QC, -700ER, -900ER) with optional winglets. Targeting the 737NG aircraft type at one of the largest market segments (by volume of aircraft) ensured strong sales and enduring manufacturer support. In today’s market, around 970 operators’ fleets comprise nearly 16,900 narrowbody westernbuilt jets in airline service or on order (over twice the volume of wide-bodied aircraft). Production of in-service types such as the Douglas DC-9, MD-80 and earlier 737s is complete while 737NG production has several years remaining. Even so, 737NGs cover approximately 30 per cent of the narrowbody market in-service and on order and Boeing has over 170 737NG and the nature of its market. Twin-aisle aircraft operator bases
customers.
tend to feature better airline credit quality but single-aisles are easily deployed, more affordable and have larger markets.
SEATS AND RANGE – BOEING 737 NEXT GENERATION FAMILY -600
-700
-700ER
-800
-900
-900ER
to feature expensive cabin interiors, unique to each operator
Seats (max)
132
149
149
189
189
215
that may require changing before a new sale can be concluded.
Seats (2-class)
110
126
126
162
177
180
Another important consideration is that twin-aisle aircraft tend
The corresponding transition costs for single-aisle aircraft are
Range (basic)
1,265nmi
1,530nmi
n/a
1,950nmi
2,030nmi
1,795nmi
usually much lower.
Range (option)
3,135nmi
3,350nmi
5,510nmi
3,060nmi
2,745nmi
3,175nmi
The original 737 was designed as a short-range jet to
In pax mode, the -700 Quick Change shares the -700’s payload range attributes.
complement the mid-range 727 and long-range 707. Lower operating costs compared to the competing DC-9 drew in the
Incremental changes to economic efficiency occur frequently
airlines and operational competitiveness has been fundamental
and are used to modify the production standards of existing
to 737 development ever since. Subsequent design changes
aircraft types. In general, these incremental improvements do
have adapted the 737 and ensured that it retained a healthy
not reduce the attractiveness of the aircraft type to the overall
market share. Engine choice has been particularly vital to
market. However, step-changes in the economic efficiency,
AIRCRAFT FINANCE GUIDE 2011
29
AIRCRAFT FINANCE GUIDE
often based primarily on engine development, create a clear and
Until late last year, neither Airbus nor Boeing was publicly
sizeable division between the economic attractiveness of aircraft
discussing anything other than an all-new design as the
produced before and after the introduction of the technology.
probable successor to their A320 and 737 aircraft families.
All-new aircraft types usually offer a step-change in economic
Boeing spoke of a replacement date sometime in “the latter half
efficiency and the combination of existing (but perhaps
of the next decade” while Airbus would only say “post-2020”.
modified) airframe designs with new engines is another tried and
Some major Boeing and Airbus customers have demanded
tested method of achieving a step-change in efficiency.
a new technology narrowbody sooner, citing pressure on the
Another level of technology infusion is the ‘game-changer’ — a more radical concept that when executed produces an
economics of air travel from rising fuel prices and the prospect of environmental taxes.
exceptional increase in market growth. The introduction of the
Boeing believes that the airlines’ target of a 20 per cent
turbofan unleashed such a change, as did the introduction of
improvement in operating economics requires technology
widebodied commercial aircraft for long-range air travel yet real
breakthroughs that will take time to develop. Engine
game-changers are few and far-between.
manufacturers General Electric and Pratt & Whitney offer new powerplants from as early as 2016 but currently neither Airbus nor Boeing appears keen to adopt the initial LEAP-X or Geared Turbofan (GTF) technologies, as once installed, neither seems likely to produce the 20 per cent improvement demanded. General Electric’s LEAP-X concept could result in a second
“Despite the moderate health warning on potential availability and assuming a sensible advance, DVB considers the 737-800 to be highly suitable for asset-based finance and as close to a ‘no brainer’ decision on the asset side of the financing equation as it is currently possible to achieve.”
phase open-rotor development that will suffice but the new technology is not without risk and could require an all new installation solution with further potential compromises to the economics. One of two potential outcomes for the 737 replacement therefore seems likely. Either airlines will demand an interim 15 per cent solution or the airframers will make the market wait until they can deliver the full 20 per cent solution. There is a slim possibility that orders may go to alternatives such as Bombardier’s CSeries, China’s C-919 or Russia’s MC-21 but it looks unlikely that 737NG demand will weaken sufficiently in
30
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE the near-term to accelerate Boeing’s 737 replacement aircraft
MARKET INDICATORS - BOEING 737 NEXT GENERATION FAMILY
type. The 15 per cent solution could enter service by around
-600
-700
-700ER
-800
-900
-900ER
In service
68
1,035
2
1,949
52
75
have large order backlogs for their current narrowbody types
Stored
0
2
0
9
0
0
and recent order activity at the Farnborough Air Show has
Current
68
1,037
2
1,958
52
75
shown that the new aircraft have not yet prevented the market
On order
0
507
0
1,376
0
181
from re-ordering existing technology. Engineering resources
Grand total
68
1,544
2
3,334
52
256
are largely committed to the A400M, A350, 747-8 and 787
# operators
8
84
1
146
6
13
Fleet average age
9
7
4
5
8
2
2018 but the open rotor concept would probably take longer. Confirming such speculation is harder. Both Airbus and Boeing
programmes and finances are under huge pressure due to recent delays. Add to that the risks associated with technology breakthroughs necessary for the new aircraft and it seems as
Fleet data gathered using Axcend online fleet data, August 3, 2010
though an early and definitive announcement is unlikely. The
costs at Europe’s environmentally sensitive airports. Early
penalty for choosing the wrong solution would be devastating
operator experience with DAC engines was unfavourable
to the manufacturers. Consequently, it seems improbable today
as high fuel burn, poor durability and turbine blade failures
that 737NG production will end before 2018 at the earliest.
penalised the values of DAC-engined 737NGs. CFMI worked
Multi-source engine supplier arrangements can impair
hard to solve the technical issues but subsequent single annular
aircraft remarketing as airlines operating one engine-maker’s
combustor (SAC) designs achieved comparable emissions
products do not wish to incur the additional costs associated
without such problems, pushing the DAC firmly toward
with operating a second manufacturer’s engine within the same
obsolescence. SAS and Lauda Air (merged into Austrian
aircraft family. By selecting CFM International (CFMI) as the
Airways) were widely reported as customers for DAC-engined
sole source for the 737NG Family’s CFM56-7B engines, Boeing
737-600, -700 and -800 aircraft. Financing unpopular DAC-
has avoided the aforementioned reduction of remarketing
engined aircraft may produce lower advances and balloons
potential. A double annular combustor (DAC) version of the
than for the SAC-engined 737NG majority.
CFM56-7B was designed to reduce harmful engine emissions,
The asset-based lender’s appetite for financing depends
thus making for a “greener” aircraft that was popular with
largely on each 737NG Family member’s market. Market
airlines in Northern Europe. Airlines operating DAC-engined
reaction has varied according to the characteristics of each
737NGs could demonstrate their green credentials and reduce
aircraft version.
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AIRCRAFT FINANCE GUIDE
THE SERIES
Airline fleet concentrations at SAS and Westjet have potentially
The -600 Series features similar
severe value consequences if either decides to abandon their
seating capacity to the early 737-
-600 fleet. With only seven other commercial airline operators,
200. However, airlines increasingly
remarketing options are limited, as values of -600s demonstrate.
selected larger or lighter aircrafts.
The retirement of an 11-year old 737-600 in June, highlights
Competitors include the A318,
that values have now sunk low enough that dismantling for the
CRJ1000 and CS100, E-190/195,
value of the components is now considered viable. Advertised
Superjet 100 and ARJ21. Some are
available for sale at the time of writing were two 737-600s but all
optimised to serve the 100-seat
68 of the current -600 Series aircraft remain gainfully employed
market more efficiently and the -600
and none are stored. The absence of order backlog and the first
has suffered poor market penetration.
retirement clearly indicates a lack of underlying demand. The -700 Series and preceding 737-300 Series are identically sized but while trends suggest a stretch would have been desirable, the economics remain compelling for many airlines and the -700 is one of Boeing’s best-selling aircraft. Over 1,500
“Currently, the risks associated with financing the -600, -900 and -900ER require strong mitigation but, such restrictions may yet ease for the -900ER depending on future developments. However, the 737-700 and more particularly the -800 are very well suited to pure asset-based finance.”
have been sold since the early 1990s. Its archrival, the A319, has also generated almost 1,500 sales in a similar timeframe or the -700 would have sold even more. Financiers have confidence in the -700’s value and liquidity thanks to the broad operator base. Fleet concentrations are a worry to financiers, as the failure of one large operator could cause values of the wider fleet to become depressed. While fleet concentrations are also a credit-related risk, aircraft with operator bases featuring such concentrations may suffer greater value volatility from the disproportionate influence on trading that such operators may bring to bear. Southwest has an enormous -700 fleet of
32
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE 346 in service and another 110 on order. However, its business model and reputation are both well regarded, making failure unlikely. The airline has had a big influence on values of the -700, benefitting from discounts appropriate for a customer of such importance. Airtran, WestJet, Continental, China Southern, China Eastern, GOL and Aeromexico also have large fleets. Southwest executed sale and lease back agreements with BOC Aviation for 17 737-700s in early 2009. More recently, the used market has included sales to Mitsubishi Lease & Finance, Macquarie Aerospace, and Aercap. In the last 12 months, trading has been relatively thin in keeping with the market downturn and problems associated with the debt crisis. Other well-known operators include Delta, All Nippon, SAS, airBerlin and Alaska Airlines. Less well-known names include Yakutia, Andalou Jet and Lucky Air. Seventy one airlines is an impressive breadth of market, indicating good market acceptance but inevitably, operator quality varies considerably. Aircraft manufacturers encourage the market to view Lessor
Recently, we have all been wooed by the marketing activities
participation as an endorsement of an aircraft’s future. The
of Pratt & Whitney and Bombardier as they seek to establish
underlying economic value trend for the -700 appears strong
the CSeries in the market. The CS300 is a direct competitor
but, lessor ownership or management can also cause greater
(in terms of seating capacity) to the -700. The range of views
value volatility around the mean, due to increased trading
vary from ‘it’s a game-changer’ to ‘it’s nothing to worry about’.
volumes. Leasing companies such as Aviation Capital Group,
Truthfully, it is too early to pass judgement on the CS300
BOC Aviation, CIT and DAE Capital hold over 25 per cent of the
and its effect on the -700 market. It has the potential to make
509 -700s on order backlog. Independent data suggests that just
a significant difference to patterns of demand for this size of
over one per cent of the 737-700 fleet (that is 12 of 986) is stored
aircraft but to date, this potential remains largely unfulfilled
at present and only five are currently advertised available for
and there is little evidence that demand for the -700 has been
sale or lease.
negatively affected by this new competitor.
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Sometimes, a modest investment by the manufacturer creates
there were 35 fewer 737-800 operators making it statistically
a variant that produces incremental sales. Developments like
less vulnerable than the A320. Today the 737-800 has 149
the 737-700C (convertible between passenger and freight
operators and as such should be considered more vulnerable
roles) and the -700ER can please key customers but may lack
to default than it was previously. The same wide operator base
a sufficiently broad market acceptance to please financiers.
also gives market confidence that the oversupply (if it ever
Traditionally, convertibles have had greater revenue potential
occurs) will be only temporary. Even so, values would be more
and have survived longer than passenger aircraft. Unless
affected than in the past.
through cost-effective modification, the aircraft can be made
Ryanair has the largest 737-800 fleet but fortunately also
acceptable to a wider market, niche variants are generally not
has one of the more robust business models. Boeing’s home
ideal for asset-based finance. These particular 737-700 variants
market has produced big fleets at American, Continental,
have limited market appeal and this may undermine values,
Delta and Alaska while other large concentrations include
although the operational flexibility of the -700C might prove
those at Gol, Air China, China Southern, Hainan and
useful in the longer term, if demand for small freighters persists
Turkish. In all, around 15 airlines have fleets large enough
after the demand for passenger fleet has declined.
to affect values in the event of their individual bankruptcy,
The -800 Series has become one of the most popular
but perhaps only two or three operators of smaller (but
commercial airliners of all time. Rather than produce an
still significant) fleets might be considered at near-term
identically-sized 737-400 replacement, Boeing cleverly
risk and in general, the risk is reducing as the airline traffic
stretched the fuselage until it could accommodate nine to 12
(and hopefully yields) recover. Bankruptcy may be more
more passengers than the rival A320-200. The intention was to
likely among smaller operators but the limited size of their
achieve seat-mile economics at least as good as, or better than
fleets naturally limits downside risk to values of the overall
the A320’s. Airlines quickly realised that most of their routes
-800 fleet. AWAS, RBS Aviation Capital and GECAS are the
supported the additional seats and the 737-800’s reliability,
operating lessors with the most significant number of -800s on
relative economics and performance have helped it become by
order. DVB found 37 737-800s advertised for sale or lease and
far the most successful series of the 737NG Family.
only 12 stored.
Boeing has received over 3,300 737-800 orders. A staggering
Despite the moderate health warning on potential availability
total of over 2,000 aircraft in service will be reached this year
and assuming a sensible advance, DVB considers the 737-800
and long-term underlying demand is clearly strong, as there are
to be highly suitable for asset-based finance and as close to a ‘no
1,386 still on order backlog. Airbus has amassed over 4,000 A320
brainer’ decision on the asset side of the financing equation as it
orders but it should be remembered that the first A320 order was
is currently possible to achieve.
placed around 10 years before that of the first 737-800.
34
The -900 Series was not launched until 1997 and with 757
After 9/11, several A320 operators entered bankruptcy and
demand falling, appeared to be an attempt to prevent sales
availability reduced A320 values. Some observers pointed out
being lost to the A321. Unfortunately for Boeing, the aircraft
that 737-800s had not been similarly affected but, at the time
fell short in two key respects — those of payload and range. AIRCRAFT FINANCE GUIDE 2011
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Without additional exit doors, the FAA could not increase
THRIVING, NOT JUST SURVIVING
the maximum number of passengers from the 189 allowed
737NGs exist today because Boeing elected to develop its early
for the smaller 737-800. Also, the range of around 2,700nmi
737 design according to the philosophy of ‘adapt and survive’.
was insufficient for some US transcontinental routes. Just six
This approach has been so successful that the type does not just
airlines operate 52 737-900s. The largest operator, Korean,
survive — it positively thrives. Values of almost all aircraft types
operates 16 while Continental and Alaska operate 12 each.
are suffering in the currently challenging economy but while a
Although none are stored, there are also none on order. The
certain amount of shuffling has been evident for the near-term
lack of market acceptance and operator concentration makes
deliveries, underlying demand for the 737NG Family remains
the -900 a type that is not really compatible with pure asset-
strong. The Family has been driven largely by market reaction
based finance.
to the -700 and particularly the -800. The market’s verdict on
Boeing was not about to give up on the 900 Series and
the -600 and -900 is clear, but the jury is still out on the -900ER,
announced the new -900ER variant in July 2005, with an order
which must overcome the hurdles of a late service-entry and
from Lion Air. Two optional fuel tanks in the lower hold solved
unfavourable comparisons with the 757’s payload/range if
the transcontinental range deficit. Additional exits increased
liquidity and value retention are to improve.
passenger capacity to 215, improving the -900ER’s seat-mile
While technology is the means of extending the 737NG Family’s
economics. Lion Air and Continental make up almost 85 per
competitiveness, it is also one of the greatest threats to the family’s
cent of the -900ER sales to date. Lion Air alone is responsible
future. At some point airlines will opt to replace their 737NGs and
for a massive 182 of the total 241 sales currently booked. Unlike
flame of production will flicker and die as the oxygen of orders
the -700 and -800, the -900ER’s operator base is not mature,
evaporates. Anticipating the advent of this change before it is
so the near-term risk posed to values by fleet concentration is
due, risks missing business opportunities. Equally, recognising
much greater given the smaller quantity of airlines available
the approach of this time is vital for financiers deciding the
to soak up any potential excess supply. Despite Boeing’s
appropriate terms for asset-based finance as no amount of liquidity
improvements and the lack of any larger Boeing single-aisle
or residual value retention is likely to make up for over-ambitious
aircraft in production, other airlines seem reluctant to order
advance levels or an unrealistically high balloon position.
the -900ER. At present, it looks as if developing the 737-900ER
Currently, the risks associated with financing the -600, -900
market is quite a challenge however, there remains the potential
and -900ER require strong mitigation but, such restrictions may
to expand the operator base as the market recovers. It is not
yet ease for the -900ER depending on future developments.
obvious why the -900ER rate of sales is so much lower than the
However, the 737-700 and more particularly the -800 are very
-800. It has been speculated that aircraft field performance may
well suited to pure asset-based finance. Whether the finance
play a part in this and that some of the -900ER orders booked
solutions are credit or asset-based, the 737NG Family looks
may be switchable to other versions of the 737NG. Whatever
set to fulfil a large proportion of the demand for new aircraft
the cause of the -900ER’s disappointing rate of sales, both the
through the course of the coming recovery cycle. So in keeping
order activity and the granularity of the -900ER operator base
with our opening quips about the loan-seeker’s dress-code,
will have to get better if this variant’s popularity with the
DVB is pleased to conclude that financing the 737NG makes it
finance community is to improve.
less likely you’ll be losing your shirt. Q
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AIRCRAFT FINANCE GUIDE
Financing the A320 Family
36
HE A320 WAS LAUNCHED OVER 20 years ago in 1984
T
HISTORY
and made its first flight in 1987. Today, there are over 4000
For the European Airbus consortium, the A320 was the
aircraft in the global fleet and over 2300 more on order. Flying
first product in the short- to- medium haul single aisle jet
for over 300 operators, the A320 family possesses most of the
market. While Europe had already entered the market with
characteristics believed to make an aircraft ideal for asset based
Mercure, Caravelle, Trident, and BAC One-Eleven, the US had
financing purposes; versatility, great market liquidity and a
dominated with the JT8D powered Douglas DC-9 and 727 and
stable, long value history. Although the majority of A320 family
737 Families. In the early 1980s McDonnell Douglas was the
aircraft have proven well suited to asset based transactions as
first to adapt the DC-9 to the higher fuel cost environment and
with any family, there are a few black sheep among the group.
the upcoming Stage III noise-regulations by stretching the DC-9 AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
and re-engining this DC-9 Super 80 (later renamed
revolutionary fly-by-wire technology, side-stick
MD-80) with an improved version of the JT8D
controllers and containerised belly cargo space.
engine; the Series -200. Boeing responded with a
Initially only powered by the -5A derivative of
stretched and modernised version of the 737-200,
the CFM56 engine, the first Airbus narrowbody,
called the -300. The 737-300 was the first of the
designated A320 made its first flight in early 1987.
737 generation now known as the Classics (-300,
While some of the European flag carriers
-400 and -500). One of the major contributing
where ‘natural’ launch customers for the A320,
factors to the success of the 737 Classic was its
it took more effort to find customers outside
new, clean, quiet, and fuel-efficient GE/SNECMA
of Europe and with the bankruptcies of early
CFM56-3 engine. While the 737 Classic was
North American A320 customers (including Pan
slowly gaining market share compared to the MD-
American and Braniff) a number of early A320s
80, Airbus planned an attack on the American
were parked in the Arizona desert.
manufacturers dominating the single aisle market.
Eventually North America and the rest of the
These plans eventually took the form of a truly
world warmed to the A320 and Boeing was forced
high tech aircraft featuring among other things;
to modernise its narrowbody offering. Sticking
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AIRCRAFT FINANCE GUIDE
to the familiar 737 designation and other typical Boeing
well as strategic and political reasons, final assembly of the
narrowbody characteristics, in 1997 Boeing introduced the 737
A320 Family was expanded from the traditional factories in
Next Generation (NG).
Toulouse and Hamburg to a third line in Tianjin (China). The
Although both manufacturers had victories in the battle for
Tianjin factory is reportedly a copy of the Hamburg plant
market share, one win for Airbus proved a breakthrough in
and Airbus has assured all interested parties there will be no
an increasingly important market segment. In 1999, JetBlue
difference between Europe- and Asia- produced aircraft, hence
introduced the low-cost carrier (LCC) market to the A320 – a
there should not be any difference in the ability to finance
market segment that was traditionally dominated by Boeing’s
these aircraft.
737, largely because Southwest Airlines (the role model for all LCC’s) was a dedicated 737 operator.
38
After the 737NG was launched to match the A320 the 150-seater narrowbody market enjoyed a balanced duopoly
Today, the A320 family aircraft can be found on all
– neither of the types were able to claim a decisive market
continents, flown by operators with business models from
advantage over the other. For financiers as well as investors,
corporate Jet to LCC, and from leisure charter to scheduled
this stability has provided a strong stimulus to commit funds
network. With the new order intake almost exploding
as, until recently it looked like the obsolescence risk for the
just before the outbreak of the downturn, Airbus claimed
A320 and the 737NG was very low. However, things may
production capacity was their main challenge. For this, as
change. AIRCRAFT FINANCE GUIDE 2011
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the A320 family aircraft under the same type rating. Cross crew qualification allows A320 pilots to fly the in-production Airbus widebody models as well. Although they are not always a perfect match in terms of capacity, each A320 family member is effectively competing head-on with a matching member of the 737NG within roughly the 100-200 seat market segment. In addition, most A320 versions face competition from some outsiders. However, neither Airbus nor Boeing can claim complete superiority in the narrowbody market. Both families have their own problem children (the 100-seaters), and both have their superstars (the A320 and 737-800). Despite attempts from Toulouse and Seattle to demonstrate technical or commercial superiority, most asset based financiers are equally happy to finance the mainstream Airbus and Boeing products, but it certainly requires a more in-depth analysis to distinguish between the more and the less suitable variants of both families.
Since the first A320-100 Airbus has refined and expanded its original single-aisle design. Shortly after the launch of the A320-100, the A320-200 was proposed. The short range A320-100 featured a low MTOW, wing fuel tanks only and
A320 FAMILY MEMBERS AND THEIR OPPONENTS
no wingtip fences. All 21 A320-100s built are equipped with
The basic 150-seater A320-100 made its first flight in
A320-100s received 20 orders — only seven of which remain
February 1987 but this version was quickly superseded by
in operation. The type has never been seen as suitable for asset
the more capable high maximum take-off weight (MTOW)
based financing.
CFM56-5A1 engines. A marginal aircraft from the start, the
-200 version. In 1993, a 185 seat, 6.93 m. stretched version
This can not be said for the A320-200, which from an asset
called the A321-100 made its first flight. In 1997, the -100 was
based finance view point is close to perfection. However,
effectively superseded by the more capable A321-200. and in
within the 2250 A320-200’s flying today, there are a few niche
June 1995, the A320 and A321 was given a sister in the form
versions that differ enough from the popular mainstream
of the 124 seat A319-100, featuring a 3.73 m. shorter fuselage
aircraft to affect their suitability for financing.
compared to the A320. In 2002, the fourth and final family
Firstly, the A320-200 has a wider choice of engines compared
member made its first flight; the 107 seat A318-100 ‘double
to the 737NG. While Boeing elected to offer only CFM56-7B
shrink’. The A318 was aimed at operators with a small
engines (at different thrust levels), Airbus offered a choice
requirement for 100-seat aircraft but a desire to maintain
between the International Aero Engines (P&W/RR/MTU/JAEC)
fleet commonality. Cockpit commonality has always been
V2500-A1/A5 series and the CFM International (GE/Snecma)
a major strength of the A320 family and a pilot can fly all
CFM56-5A/5B series, both at different thrust levels. From a
AIRCRAFT FINANCE GUIDE 2011
39
AIRCRAFT FINANCE GUIDE
STEP CHANGES IN TECHNOLOGY Engine technology has evolved since the A320-200’s first flight over 23 ago. While there is a clear difference between the 737 Classic and the 737NG, there is no sharp distinction between early and late A320s. One differentiator that is used by financiers is to call CFM56-5A powered aircraft ‘A320 Classics’, contrasting them from the more modern -5B powered aircraft. There is a trend that increasingly discriminates the older -5A powered aircraft as less desirable for financing. Both CFMI and IAE continue to improve their products. The first generation CFM56-5A was succeeded by the -5B and later the -5B was improved with a new 3D Aero package. In mid2007, CFMI introduced a tech insert upgrade, which includes changes to the high-pressure (HP) compressor, combustor, HP turbine, and low-pressure turbine nozzle. These have been designed to improve fuel burn and durability, increase time on wing, and give the engine more margin over CAEP 6 emissions levels. New tech insert components can be installed at engine overhaul except for the combustor and tech insertion has
40
financing perspective, it can be argued that the split of the A320
now become the production standard. The CFM-56-5B/P is
fleet into CFMI and IAE powered aircraft is a negative factor.
available at various thrust settings, ranging from 21.6 Klb (B8)
Although the competition between the two engine consortia
to 33 Klb (B3). A ‘bump’ version for ‘hot and high’ airports is
may result in a little more initial discounting, for remarketing
also available.
purposes the A320 fleet is effectively divided into two.
In response, IAE also introduced an engine upgrade for their
Fortunately, both engines each enjoy a substantial market base,
V2500-A5, dubbed SelectOne. The upgrade includes high and
hence the negative impact of the split is not too severe.
low-pressure turbine improvements, an upgraded compressor,
Staying with the engine selection, a few versions seem less
a new variable stator vane system, and new engine control
preferable. The well-publicised problems with the initial
software. IAE claims up to one per cent lower fuel burn and 20
IAE V2500-A1 negatively stigmatised this version despite
per cent longer time on wing from the upgrade. On October 1,
successful attempts by IAE to improve the performance of the
2008, the V2500 SelectOne upgraded new engine entered into
-A1 with the so-called Phoenix kit. With the -A1 fleet largely
commercial service with its launch customer. The V2500-A5 is
concentrated by two big operators in India and Mexico, the
available at various thrust settings, also ranging from the 22.0
future of the -A1 powered fleet is at best uncertain. While the
Klb V2522-A5 to the 33 Klb V2533-A5. A bump version for hot
V2500-A5 has been performing well in general, recently a small
and high airports is also offered on specific V2500 versions.
sub-fleet of this engine type encountered a problem. It seems
Financiers generally prefer aircraft with higher thrust engines
a number of A5’s operated by airlines in India have started
as the cost of an engine thrust upgrade during remarketing
to developed stress-cracks in a section of the high pressure
can be avoided and lower thrust settings do not require
compressor, most likely because of the interaction of certain
additional cash. For the same reasons, financiers prefer higher
chemicals in the local environment with certain metallic parts
MTOW variants. It should be noted that extreme thrust levels
in the engines. IAE has worked out a structural solution –
or MTOW’s (needed for a few market niches only) do not
the replacement of some parts. For those engines that do not
add much additional value. The A320-200 is available with
have any cracks, a special cleaning action is required. Once
MTOW’s ranging from 66,000 to 78,000 kg., with the basic
implemented it should not have any long-term impact on the
MTOW 73,500 kg. Extra range can be obtained by adding one or
value or ability to finance the aircraft.
two additional centre tanks (ACT) of 3000 litres each.
While IAE had its -A1, CFMI had its double annular
While most of the niche aircraft are so-called because of
combustor (DAC) as its somewhat stigmatised engine. The DAC
engine-related issues, for a small group of A320s it is because
was CFMI’s answer to the request from some Northern and
of the airframe. This group consists of a sub-fleet of A320s
Central European carriers for an ultra-clean engine to reduce
operated in India – the so-called ‘double bogies’. To lower the
environmental charges imposed by the local governments.
runway loads, these aircraft are equipped with four-wheeled
While the DAC clearly met that requirement, it came at the
main landing gears as opposed to the standard two-wheel main
expense of slightly higher operational costs. Bankruptcies of
gear bogies. It is thought unlikely that these aircraft will ever
the original operators released a number of DAC to the market
leave the Indian register.
and financiers were confronted with negative reactions from
More recent A320s feature product improvements such as
potential new operators, either for real reasons or as leverage
LCD instead of CRT monitors in the cockpit, upgraded and
in the negotiations. This experience created a bad name for
lighter interiors as well as aerodynamic improvements (new
the DAC. The DAC can be converted to normal single annular
pylon shape, redesigned belly fairing etc.). None of these
combustor (SAC) status by swapping the engine core however,
improvements has yet seriously affected the acceptability of the
this requires a significant investment.
previous designs regarding financing. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE Like the A320, asset based financiers prefer the more
for the PW6000 delayed introduction of that engine
range-capable A321-200 to the A321-100 (of which only
substantially and the CFM56 became the preferred engine
81 were produced). The A321-200 features structural
for the A318. Currently, the PW6000 is only operated by one
reinforcements, a higher weight schedule, and provisions for
airline, which makes the combination rather unique but at the
additional center tanks. While initially there was a structural
same time, unsuitable for asset-based financing. Recent market
difference between the A321-100 and the A321-200, it is our
experience has proven that, at least for as long as the current
understanding that as of the manufacturer’s serial number
downturn lasts, even a relatively young CFM56 powered A318
(MSN) 633, all -100 aircraft are effectively low MTOW -200’s
could not be sold for prices that exceed the break-up value
and a (paper) upgrade to -200 levels is possible. The original
of the aircraft, or rather the value of its engines. From that
-100’s lacked the range for US coast-to-coast operations. While
perspective, the CFM powered aircraft at least have another
the A321-100 has all characteristics of a niche aircraft, the
edge over the unfortunate PW6000. With new technology
-200 (although not as remarketable as the A320-200) enjoys
geared turbo fan (GTF) replacement technology on the horizon,
a sizeable market base. From that viewpoint, it can still
it remains to be seen if the PW6000 story will ever have a happy
claim superiority over its (much younger) opponent, the 737-
ending. For the time being our conclusion has to be that the
900/900ER. The A321-200 is offered with MTOW’s ranging
A318 does not make a popular asset from a financier’s point
from 89.000 to 93.500 kg., with the basic MTOW 89.000 kg
of view. The A318CJ corporate jet version does have a certain
although some airlines are known to operate lower MTOW
popularity in the corporate jet market.
to benefit from reduced landing and navigation charges. Up to two ACT’s are optional. There are also a small number of DAC-powered A320s. The second most popular member of the family is a simple shrink from the baseline A320. The operator base is split between CFM56 and V2500-A5 operators. Apart from some DAC powered planes, the A319 has relatively few problem variants. A wide range of operators, from traditional network carriers to LCC’s and even corporate and private jet operators use the type. The A319 is well-suited to asset based finance, albeit some of the older -5A powered aircraft may be ending up at second or third tier airlines as result of the current market downturn. For transactions involving well-maintained, standard specification A320s there seem to be few things that can go wrong — as long as realistic valuations and value projections are assumed. The A319-100 is available with MTOW’s ranging from 64.000 to 75.500 kg. and up to two ACT’s are optional.
VALUES AND RISKS
Last and least is the A318. The double-shrink A318 is the
With its production history spanning over 20 years, the
problem child of the A320 family in terms of market acceptance
A320 is an ideal aircraft to track long-term aircraft value
and the ability to remarket. With 100-110 seats, the A318 is
dynamics. Interestingly enough, since the first A320-200s
effectively a competitor to the big regional jets, such as the
were delivered in 1988, the ‘historic’ current market values
E190 and E195 and to a lesser degree the CRJ900 and 1000.
(as reported by appraisal firm Ascend) have largely fluctuated
As always, a shrink version and especially a double-shrink
with the ups-and-downs of the market, without much of a
version suffers from an over-dimensioned heavy structure,
clear upward or downward trend. This is indicated by the
which seldom results in an efficient aircraft. The 737-600
almost horizontal trend-line in the value graph above. While
suffers from the same problem. The A318-100’s MTOW ranges
these appraised value figures are not the same as the net
from 56.000 to 68.000 kg. While not as efficient as the stretched
flyaway prices paid by Airbus’ airline and lessor customers
super-regionals, the main advantage the A318 had to offer was
(a carefully kept secret), they should give a good indication
its commonality with the other family members. While the
about the price dynamics of a new A320-200. So, while
engines powering larger members of the family are obviously
Airbus and the engine OEM’s have improved their products
too heavy for the little A318, offering a more optimised engine
significantly over the last two decades, the price has stayed
type would jeopardise the important commonality benefit.
fairly flat with fluctuations largely driven by the condition
Airbus decided to offer both options: Airlines that already
of the market. For an asset based financier this is important
operated CFM-powered aircraft and preferred the commonality
to keep in mind. It must be said that the A320 was launched
element could select a CFM56-5B8/9 powered A318, while
some years after the era of hyperinflation. Should inflation
airlines preferring an optimised power-plant could select the
increase significantly in the coming year as a result of the
Pratt & Whitney PW6000 engine developed uniquely for the
billions of dollars injected in the global economy, this could
A318. Unfortunately, no commonality could be offered with
result in an upward trend for new aircraft prices as well.
V2500 powered aircraft.
It should be taken into account that the above is not to be
With the A318 already a slow seller, development problems AIRCRAFT FINANCE GUIDE 2011
confused with the so-called escalation clauses in airline 41
AIRCRAFT FINANCE GUIDE purchase contracts. These escalation clauses do increase the
THE FUTURE
net flyaway price of the aircraft between the date of signing
Based on statements from both Airbus and Boeing, it seems
the contract and the date of delivery. This mechanism can in
that production of the A320 and 737NG could continue
some cases result in delivery prices, significantly exceeding
until the end of the next decade. Both manufacturers have
the spot market, especially in case of long lead times.
indicated that current technology, in particular engine
Historically, used A320 values have fluctuated slightly more
technology, will not bring the required gains in operational
than 737NG values. While Airbus is occasionally accused
cost for a new generation of mainline 150-seater aircraft
of a more aggressive pricing policy, allegedly resulting in
required to justify the launch of a successor. Will this mean
significant discounts, it is unlikely to be an explanation for the
that technological improvements to the A320 will only be
higher volatility. Because the A320 was launched long before
evolutionary? Airbus already introduced the CFM-56 Tech
the 737NG the A320 has lived through more downturns. As a
Insert and V2500 SelectOne engines, improved aerodynamics,
coincidence, a number of A320 operators defaulted during the
and will soon add a redesigned upper-belly fairing. At the time
post 9/11 crisis while most of the 737NG operators survived.
of writing, another potential aerodynamic improvement was
Consequently, a higher number of A320s faced distressed
being tested — a set of larger NG-style winglets. For existing
market circumstances compared to the rival 737NG. While
A320 operators, it will be important to learn which of these
asset base financing is focused on the aircraft, the quality and
improvements can be retrofitted, especially given the upward
concentration of the operator base does play a role. As history
trend in fuel prices.
has proven, a high fleet concentration with one or more weaker
The prospect of a more or less radical mid-life update is causing much speculation. The main feature of the assumed update would essentially comprise the re-engining of the existing airframe. While none of the incumbent airframe and engine OEM’s in the 150-seat market have a real incentive to push this, Pratt & Whitney has much to gain and has developed the GTF with the clear intention to regain lost ground in the market. P&W’s GTF, now called the PurePower PW1000G , is already on board the smaller CSeries, the Russian MS-21, and the MRJ. It seems the Chinese narrowbody programme, the C919 will select the CFMI LEAP-X. .Both Airbus and Boeing have announced they are studying programmes to equip their existing airframes with the new CFMI and/or PurePower engines. While no immediate impact on the existing A320 fleet is expected, should a significantly more efficient GTF or LEAP-X powered A320 or 737 become a reality, it will probably have consequences for future values of existing aircraft, and late-built A320s and 737s in particular. Asset based financiers will find this development worth watching as despite protestations to the contrary from interested parties, the potential damage to future values of existing portfolios is significant. Previously similar stepchanges in engine technology were applied to create the 737NG from the 737 Classic aircraft family and so the market is not unfamiliar with the practice. With respect to the eventual successor for the A320
airlines increases vulnerability of the type.
42
(frequently referred to as a ‘game-changer’), very little seems
There are a number of significant fleet concentrations,
clear except that we are unlikely to see this aircraft in the air
both for the individual types and the collective family.
before 2020. Current thinking is in terms of a greener, more fuel
A thorough analysis of the default probability of any of
efficient, quieter aircraft with lower maintenance costs. Radical
the major operators should be a part of due diligence,
designs like a small twin-aisle, a lifting blended-wing body and
even for an asset-based financier.
open rotor engine technology also cannot be excluded.
The current surplus of A320 Family aircraft (as
Less in the realm of science fiction is the future of the A320
represented by the fleet percentage ‘in storage’) is relatively
and A321 as a cargo aircraft. Airbus Freighter Conversion
modest – as is to be expected for a modern, liquid single aisle
GmbH, a JV between EADS-EFW and UAC-Irkut, is developing
aircraft. While a little over 11 per cent of the entire Western-
a passenger-to-freighter (P2F) modification programme for
built jet fleet is in storage, the highest storage of any series
the A320 and A321. Certification of the cargo conversion
within the A320 Family is for the A320 with only 3.8 per cent
is expected by the end of 2011 for the A320 and end of 2012
(according to Ascend online, August 2) — not bad for a type
for the A321. The project found a launch customer at the
that has been in production for over 20 years. The storage
Farnborough Air Show in 2008 when Aercap announced
percentages for the A319 and the A321 are also negligible.
an order for 30 conversions for its own portfolio of A320s. AIRCRAFT FINANCE GUIDE 2011
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Unfortunately, the development of the project coincided with one of the worst downturns in the cargo market and cargo operators seem more focused on survival than on fleet renewal, let alone expansion. Competing in a market used to Boeing narrowbody freighters, the A320 will have a tough job establishing itself. Clearly, the A320 will offer more modern technology as well as a larger fuselage cross section plus significant belly cargo volume. As a side effect of the current crisis, feedstock passenger A320s and A321s may become affordable for conversion sooner than anticipated. From a financier’s point of view the availability of an afterlife in the cargo market is without any doubt a strong positive element when analysing a commercial jet..Such programmes have
engine segment can be viewed negatively compared to the
traditionally improved re-marketability and had a positive
competing 737NG, the absolute size of both segments is such
effect on residual values. Many investors have come to view the
that the impact on financing is minimal. The value history
availability of a cargo conversion project as an insurance policy
of the A320 confirms its suitability for financing. The main
for early-build aircraft.
uncertainty for the A320 Family seems to be the timing of
The majority of A320 Family members are among the most
the service-entry of any successor models. While Airbus has
liquid commercial jets in the current market. From an asset
implied this will be post-2020, the possibility of a new engine
based financier’s point of view, the A319, A320 and A321 are
option (NEO) for the A320 Family remains the subject of much
among the most attractive aircraft types. The A318 clearly falls
speculation.
outside of this category. Despite this, a number of ‘odd ball’
Whatever final decision materialises, a radical open-rotor
A320 members will generally be avoided by financiers or will
powered lifting body or a simple conventional re-engining,
only be considered under very conservative terms. In addition,
it will be a challenge for Airbus to create an aircraft that can
early-built A320 Classics no longer command the confidence of
exceed the attractiveness of the A320 for the air finance
most financiers.
community. It will take a long time before that aircraft will also
While the division of the A320 fleet into a CFM and an IAE AIRCRAFT FINANCE GUIDE 2011
be referred to as a ‘no-brainer’. Q 43
AIRCRAFT FINANCE GUIDE
US Ex-Im Bank’s response to the financial crisis Airlines and lessors have suffered limited access to the capital markets and as the liquidity in bank-supported aircraft finance shut down, aircraft financing became an increasingly hard task. Joshua Gentner, Shareholder of Vedder Price explains the United States’ Export-Import Bank’s reaction to these recent struggles and how it continued to facilitate aircraft financing.
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T
HE RECENT WORLD LIQUIDITY CRISIS had a major affect
EFFECTS OF THE FINANCIAL CRISIS
on the aircraft finance industry. With extremely limited
In order to better understand Ex-Im Bank’s responses, we must
access to the capital markets, most airlines and operating lessors
understand the affect the financial crisis had on the aircraft
looked to the bank market and export credit agencies (ECAs) to
finance market. By the end of 2008, some of the banks that
provide financing for the purchase of aircraft. Unfortunately,
were traditionally involved in aircraft finance had gone out
due to limited liquidity in the aircraft finance bank market,
of business; others had made the decision to use their limited
including banks involved in the ECA guaranteed financing
capital on ‘core’ areas of business. In the latter case, this meant
market, the ability to find a willing lender became increasingly
that either the bank’s limited capital was not allocated to the
difficult. Even if an airline or operating lessor was lucky enough
bank’s aircraft group or, in some cases the bank eliminated its
to find a bank willing and able to provide financing, they soon
aircraft lending group entirely. Additionally, some European
found that credit margins had increased dramatically from pre-
banks that had received government support during the financial
2008 margins.
crisis restricted the use of their capital to support local clients.
The Export-Import Bank of the United States (Ex-Im Bank)
In sum, the aircraft finance market was left with fewer banks
recognised the issues facing banks, airlines and operating
with those still trading having limited or restricted capital. As
lessors in the market and sought to address those issues in a
a result, the margins on Ex-Im Bank-guaranteed loans rose as
manner that would help support the banks involved in the
high as 130 basis points over LIBOR, compared to margins of 25
aircraft finance market and facilitate the financing of aircraft. In
basis points over LIBOR in 2007 and LIBOR flat in 2006.
order to assist banks with existing commitments, Ex-Im Bank created a market disruption clause, the effect of which was that Ex-Im Bank would guarantee the lender on its cost of funds in the event that there was a disruption in the London inter bank offer rate (LIBOR) market. To address the lack of liquidity in the market, Ex-Im Bank developed a take-out option to entice banks into (or back into) the market. Additionally, Ex-Im Bank developed a capital markets product to provide airlines and operating lessors with access to an alternative funding source. As a last resort, Ex-Im Bank provided direct loans to finance
“In order to assist banks with existing commitments, Ex-Im Bank created a market disruption clause, the effect of which was that Ex-Im Bank would guarantee the lender on its cost of funds in the event that there was a disruption in the LIBOR market.”
aircraft where no alternative source of financing was available. AIRCRAFT FINANCE GUIDE 2011
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A more dramatic effect of the limited liquidity was that some banks that had signed term sheets were unable to move forward with transactions, leaving borrowers without financing and little time to find any alternatives. Higher credit airlines and
“In early 2009, Ex-Im Bank began work with a number of financial institutions to structure a transaction whereby the airline or operating lessor could issue Ex-Im Bank-guaranteed notes into the capital markets. This would allow airlines and lessors access to a different source of capital at rates that were expected to be substantially lower than those offered by the banks.”
operating lessors were able to obtain financing but at drastically increased margins while the rest of the industry was facing a large financing gap.
MARKET DISRUPTION CLAUSE At the height (or bottom) of the financial crisis, the ability of banks to borrow in the interbank market was extremely limited or non-existent. Those that still had the ability to borrow funds could only do so at dramatically increased costs however, this increase was not reflected in the quoted LIBOR rate. Accordingly, the banks that had signed term sheets faced the possibility of entering into transactions where the agreed margins could result in reduced or non-existent returns. In order to address this disconnect, banks asked their
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Fred Hochberg chairman and president of US Ex-Im Bank (third from left) joins Bank and Boeing officials on a tour of Boeing’s factory in Everett, Washington.
recognised that banks would either be unwilling to grant loans using LIBOR if it was not a reasonable approximation of their cost of funds, or they would need to increase their margins to cover the market disruption risk. Ex-Im Bank was willing to extend its guarantee coverage to include a bank’s cost of funds if the discrepancy between the bank’s cost of funds and LIBOR was due to a true market disruption, not the bank’s credit. The resulting issue was how to determine between the two. Due to concerns over self-interest, Ex-Im Bank was not able to accept a certificate from the bank as evidence that the discrepancy was a result of a market disruption. Neither the banks nor Ex-Im Bank were willing to request evidence of a market disruption from other banks. As Ex-Im Bank has exposure to a large number of banks, Ex-Im Bank is in the unique position to know if other banks are making similar claims, which would be an indication of a market disruption. Accordingly, by late 2008, Ex-Im Bank began including a market disruption clause in its standard borrowers to pay the difference between the bank’s cost of
aircraft financing documents that its guarantee would cover
funds and the quoted LIBOR rate. The banks requested that
the differential between the bank’s cost of funds and LIBOR to
Ex-Im Bank treat the indemnity as an increase in the interest
the extent approved by Ex-Im Bank. With a market disruption
rate on the Ex-Im Bank guaranteed loan, thereby providing
clause in place, banks with existing commitments were able
the banks with Ex-Im Bank’s guarantee coverage for such
to close transactions with the comfort that a disruption in the
amounts. Without the benefit of the guarantee, a bank would
market would not cut into its margins.
be reluctant to proceed as its approvals were based on its implicit funding costs being included in the debt rate and
TAKE-OUT OPTION AND CAPITAL MARKETS
covered under Ex-Im Bank’s guarantee.
In early 2009, Ex-Im Bank took additional steps to address
While this type of market disruption clause was not unusual
the funding liquidity issue facing banks. Using a newly
for commercial financing, it was not previously included in any
developed agreement, called the ‘take-out option agreement’,
aircraft transactions supported by Ex-Im Bank and it was their
Ex-Im Bank agreed, for a fee, to give a lending bank the
first exposure to the issues presented by the financial crisis.
option to put its floating rate Ex-Im Bank-guaranteed loans
Ex-Im Bank agreed to the inclusion of a market disruption
to Ex-Im Bank at par if any one of six specified trigger events
clause that required the borrower to indemnify the banks, to
occurred. These would primarily relate to the bank’s financial
the extent borrowers agreed to include such a clause. However,
condition and funding costs, such as if the bank’s credit
the request to cover a bank’s cost of funds under the Ex-Im
default swap rate increases by more than 33 per cent. The
Bank guarantee presented a difficult issue for Ex-Im Bank. It
purpose of the take-out option was to allow banks to put their
AIRCRAFT FINANCE GUIDE 2011
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loans at par to Ex-Im Bank to free up the banks’ capital when
paper into the capital markets. In the early 2000’s, Ex-Im Bank
times are difficult. It was Ex-Im Bank’s expectation that this
completed several transactions that provided for Ex-Im Bank-
flexibility would entice banks to bring their capital back to
supported notes to be issued into the capital markets, however,
Ex-Im Bank-financed transactions and increase liquidity and
at that time, the appetite for that paper was limited to short-
competition. By early 2010, four banks closed 12 transactions
term securities with maturities from three months to four
that included a take-out option agreement.
years. In order to provide the benefit of full 12 year financing to
While the take-out option agreement increased liquidity in
airlines, those transactions had to contemplate the re-financing
the bank market there was still high demand for financing and
of short-term notes and set up backstop financing in the case
limited bank capital. In early 2009, Ex-Im Bank began work
where notes could not be refinanced in the capital markets.
with a number of financial institutions to structure a transaction
With the frequent rollovers and requirements for backstop
whereby the airline or operating lessor could issue Ex-Im Bank-
financing, these transactions tended to be very complex, costly
guaranteed notes into the capital markets. This would allow
and somewhat cumbersome. Accordingly, as margins on bank
airlines and lessors access to a different source of capital at rates
transactions began to decrease in the early to mid 2000’s, these
that were expected to be substantially lower than those offered
capital markets structures fell out of favour.
by the banks.
In 2008 and 2009, the appetite for government-backed paper
This was not the first time Ex-Im Bank had structured
had changed and there was a market for longer-term fixed rate
transactions involving the issuance of Ex-Im Bank-backed
US Government paper. This, together with increasing bank margins, created the ideal circumstances to create a capital markets financing structure using Ex-Im Bank guaranteed notes as a viable alternative to bank financing – without the roll-over
“When bank liquidity reached its lowest, some airlines could not find a bank willing to provide an Ex-Im Bank guaranteed loan. In these circumstances, the bank provided financing in the form of a direct loan.”
and back-stop financing issues prevalent in the earlier Ex-Im Bank capital markets transactions. As the capital markets transaction structure developed, Ex-Im Bank used the mantra of “simple, consistent and seamless” as its guiding principle. Ex-Im Bank wanted the capital markets structure to be easy for issuers and investors to understand. The structure also had to be consistent from transaction to transaction so that investors would be able to invest in any
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AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE transaction with the knowledge that each was substantively similar. Finally, the transition from a traditional Ex-Im Bank guaranteed loan transaction to a capital markets transaction had to be seamless and efficient. The goal was for a product that airlines and lessors could transition to easily and with a minimal increase in cost. The capital markets structure developed by Ex-Im Bank uses a bank loan to finance each delivery on its delivery date. With the potential for issues or delays with delivery dates for aircraft, all of the parties wanted to create a structure that would avoid the possibility of pricing a transaction in the capital markets and having to unwind the transaction due to a delay in delivery. While using bank loans to initially finance aircraft still subjects issuers to a break funding indemnity if the delivery is delayed, the parties avoid having to unwind a capital markets transaction. An additional benefit of funding deliveries using a bank loan was that the issuers could finance a number of aircraft using bank loans and thereafter pool them to create an
banks loans in a very short period. This assumption was backed
issuance in an amount that is optimal for the capital markets.
by economic incentive as the margins on the bank loans were as
By using the guaranteed loan structure as the base for the
high as 100 basis points over LIBOR while margins on capital
capital markets structure it was very easy and cost efficient for
markets paper was roughly 50 basis points over mid-swaps (or
airlines and lessors that had financed aircraft using Ex-Im Bank
roughly the equivalent of 35 basis points over LIBOR). Some
guaranteed loans to transition to the capital markets structure.
banks offered rates that were held at a lower margin for a period
Once the airline or operating lessor had financed a critical
(usually up to one year following the delivery of the aircraft),
mass of aircraft using bank loans it was the airline’s or
after which the rate exploded, thereby incentivising the
lessor’s option to elect to enter into the capital markets. Once
borrower to enter into the capital markets prior to the increase
the airline or operating lessor notifies the bank that holds
in the margin. While the banks still had to use their limited
the relevant bank notes of its intention to go to the capital
capital, they had the benefit of earning the fees for making its
markets, the bank is required to sell the notes it holds at
loans with the reasonable reassurance that its loans would be
par to the initial purchasers. The initial purchasers then re-
refinanced in very short order.
sell interests in the notes to investors in the capital markets.
With a cost-efficient alternative to bank financing, many
The ‘seamless’ portion of Ex-Im Bank’s mantra was to make
airlines and operating lessors elected to use the Ex-Im Bank
sure the transition from the guaranteed loan financing to the
capital markets structure. As of the end of May 2010, more than
capital markets was not document intensive and could be
10 transactions had closed using the capital markets structure
quickly and efficiently accomplished. Ex-Im Bank simplified
and there had been 11 issuances into the capital markets.
Robert Morin, VP of US transportation division at US Ex-Im Bank.
the mechanics of the process by having all notes held by an indenture trustee. Accordingly, no notes physically change
DIRECT LOANS
hands as the indenture trustee holds the initial notes on
When bank liquidity reached its lowest, some airlines could
behalf of the bank and capital markets notes on behalf of the
not find a bank willing to provide an Ex-Im Bank guaranteed
investors (through DTC). Regarding documents, an offering
loan. In these circumstances, the bank provided financing in
memorandum must be prepared and certain certificates and
the form of a direct loan. In 2008-2009, Ex-Im Bank made five
opinions must be provided to the parties in connection with
direct loans to three different airlines to finance the purchase
the transition to the capital markets. Due to the ‘consistent’
of aircraft. Ex-Im Bank uses the same finance lease structure for
aspect of Ex-Im Bank’s mantra, the memorandums for
its direct loans as it requires when providing a guarantee. An
each transaction are substantially similar. The procedure
Ex-Im Bank direct loan is not an alternative to a bank providing
for transitioning to the capital markets is very simple and
an Ex-Im Bank guaranteed loan. Ex-Im Bank’s mission is to
similar to the procedure used to convert floating rate Ex-Im
provide financing where it is not available or uneconomic and
Bank guaranteed bank debt to fixed rate. With simplified
it does not compete with private markets. Direct loans are a last
mechanics, limited requirements for documents and a
resort and Ex-Im Bank only makes this option available when
familiar procedure, the transition from a guaranteed loan to
commercial bank financing or other financing is not available.
the capital markets has been seamless and efficient.
The financial crisis left banks with limited capital and airlines
While the purpose of developing the capital markets structure
and operating lessors with limited financing options. Ex-Im
was to provide an alternative funding source, as discussed
Bank quickly reacted to these issues and took action to assist
above, the structure still contained a bank-funded component.
banks with existing commitments to help increase liquidity in
Notwithstanding the limited liquidity in the bank market,
the bank market and to fill the financing gap. If Ex-Im Bank had
banks were willing to provide this financing as the banks
not taken the steps it did to fill the financing gap, it is likely
assumed that the borrower would eventually exercise its right
that a number of airlines and operating lessors would have been
to issue the notes into the capital markets and would repay the
unable to meet their existing commitments. Q
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Kostya Zolotusky, MD of capital markets development, Boeing Capital Corporation.
The changing face of aircraft financing Kostya Zolotusky, MD of capital markets development at Boeing Capital Corporation, speaks to Daniella Horwitz about why the 2009 slump was not as bad for the aircraft financing markets as feared, where we can expect to source funding in 2010 and what amuses him about industry pundits. OEING PREDICTED 2009 WOULD BE a difficult but
B
manageable year, and although this made it an outlier in
the marketplace, Kostya Zolotusky, MD of capital markets developments at Boeing Capital, believes the forecast was bang
“Today European banks are struggling with the consequences of the current financial crisis. The struggle has little to do with the performance of aircraft portfolios, and everything to do with what their parents did in other areas of financing.”
on the nail. Despite the world economic crisis, what gave him confidence in the Boeing analysis was the fact that aircraft portfolios and lease rates, adjusted for London inter bank offer rate(LIBOR) spread, were performing reasonably well. The Chicago-based airframer was also counting on the fact that the majority of 2009 deliveries were committed before the worst of the financial tsunami hit. “We were facing a lot of unknown unknowns… But as we went through the year things worked out in macro as we had anticipated”, recalls Zolotusky.
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Dreamliner In Flight -- Boeing’s first 787 began flight testing in December 2009.
Hard to believe, but 2009 did contain some pleasant surprises — one of them was the return of the capital markets — many thought they would be absent for the entire year, but the EETC markets re-emerged this summer and have continued to grow. As Boeing entered the 2Q of 2009, many “doom-sayers” said the company had skirted the issue and that funding problems would simply move into 2010. Zolotusky’s rebuttal is that many 2010 deliveries have been funded, and will continue to be funded, by the growing capital markets, offsetting any decline in other funding categories. “So we lose a little bit here and gain a little there,” he says. “All in all, it looks like heading into 2010 we are feeling that the difficulties and challenges will be similar to 09. However, the environment that we are in is a lot more predictable.” Boeing predicts that the requirement for delivery financing for large and regional jets (Boeing/Airbus/Bombardier/Embraer) throughout 2010 will be less — $62bn as opposed to the $68bn
“Export credit was a major source of funding in 2009. In the US, Ex-Im bank doubled its volume relative to past years. At the same time, Zolotusky says it facilitated the evolution of new capital markets liquidity, brought new banks into the export credit arena, created new structures to address commercial banks’ long-term funding cost concerns and greatly expanded its business with lessors.”
of 2009. Boeing Capital concluded that any potential shortfall in OEM financing in 2009 would be $0 — $5bn. The reality was that manufacturers had to finance less than $2.5bn in
be under $2.5bn. “The reason we are leaving the window that
deliveries, with almost no white-tails. Boeing’s new aircraft
wide is that we anticipate there probably will be surprises as
financing was predicted at around $1bn and it closed the
the year unfolds, even though the market is not as volatile.
year at a fraction of that — about $760m for aircraft and other
There is a likelihood that we end up closer to zero, rather than
volume. Boeing predicts the OEM funding gap in 2010 will
the upper end of the range,” notes Zolotusky.
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DIVERSE FUNDING According to Boeing Capital there will be four primary sources of funding — commercial bank debt, export credit, lessors and capital markets. The volume of commercial bank debt will be somewhat smaller — in 2009 it funded about $18bn of the total delivery financing requirement for large and regional jet manufacturers, while Boeing predicts that it will finance about $16bn of the total requirement in 2010. It has widely been reported that the ability of European commercial banks to lend has been drastically curtailed. But Zolotusky points out that various banking sectors have dominated aircraft finance throughout history. In the 70s, North American banks and some Canadian banks were dominant. These banks then slowly exited the business becoming more investmentbanking driven. In the 80s, Japanese banks were the primary providers of commercial bank debt. In the 90s, when the Japanese economy slowed down, European banks came onto the market. Zolotusky says: “That was not by accident — they were initially directed by their governments to help Airbus and saw this as a pretty good business”. He adds that when they diversified their portfolios they acquire Airbus and Boeing aircraft, and “that really accelerated their dominance.” Today European banks are struggling with the consequences of the current financial crisis. The struggle has little to do with the performance of aircraft portfolios, and everything to do with what their parents did in other areas of financing. Mechanics at work on a new 777 in Boeing’s factory, Everett, Washington.
Independent of that, Zolotusky predicts that the balance sheets of European banks will be smaller and their global aircraft finance base will be less, but these banks will still be an important source of funding. At the same time, Chinese banks have
“As the lessors’ can no longer rely on their parents’ credit rating, much of the lessor capital structures will now be achieved by using aircraft as collateral. Lessors will now approach the same sources of capital that the airlines pursue; putting additional pressure on debt in the aircraft market.”
shifted from predominantly Chinese finance to global deals. Middle Eastern banks have also started looking more globally, reflected by some of the aircraft finance partnerships they have with western banks. Australian banks are also starting to play an important role in Asia-Pacific and global markets. The commercial bank debt of the future will be much more diversified, rather than specific to a single region.
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AIRCRAFT FINANCE GUIDE
On way to first flight — Boeing’s first 747-8 Freighter is seen emerging from the paint hangar in 2009.
ECAS FILL THE GAP, LESSORS TAKE A BACKSEAT
achieved by using aircraft as collateral. Lessors will now
Export credit was a major source of funding in 2009. In the US,
putting additional pressure on debt in the aircraft market. “We
Ex-Im bank doubled its volume relative to past years. At the
are mindful of that, but we continue to believe that the situation
same time, Zolotusky says it facilitated the evolution of new
is manageable,” declares Zolotusky.
capital markets liquidity, brought new banks into the export
As mentioned, few anticipated the strong recovery of the US
credit arena, created new structures to address commercial
capital markets, the primary vehicle for funding deliveries to
banks’ long-term funding cost concerns and greatly expanded
US carriers. Boeing predicts that capital markets this year will
its business with lessors. In 2010 Boeing forecasts that export
be relatively small. They will only fund about $1.5bn, mainly
credit agencies will provide the bulk of financing, supplying
because US airlines are receiving a modest amount of the total
$20bn, relative to the $21bn of 2009. “In 2010 we believe
deliveries. “However, the reason we treat US capital markets
export credit overall will continue to play a major role of being
as one of the big four is that with the advance of the Cape
a needed industry supplement during commercial market
Town treaty and some of the new concepts being explored for
disruptions,” says Zolotusky.
lessor financing, we believe capital markets will be a much
Zolotusky believes that overall, lessors will have a smaller
bigger source of liquidity in the future.” Indeed, they have
footprint in 2010, contributing $6.5bn in financing, relative
played a large role before — in the late 90s capital markets
to the $9bn of 2009. That reflects the restructuring that is
provided about a third of US aircraft finance because so many
occurring among lessors that are self-funding. Zolotusky
aircraft were being delivered to US airlines.
expands: “By self-funding I mean lessors such as ILFC,
In these difficult times, Zolotusky’s advice to airlines is to
RBS and CIT Aerospace that essentially obtained debt
diversify sources of finance. He says that during the liquid days
directly from their parent. These lessors, which have
of the market many airlines were single-mindedly focused on
borrowed unsecured, will in aggregate have a smaller
the last several basis points and that led them to risk everything
presence, but continue to be a very important source of
on one endeavor. However, some airlines kept perspective and
finance going forward”.
found diverse ways to fund their deliveries, from a diverse
As the lessors’ can no longer rely on their parents’ credit rating, much of the lessor capital structures will now be 54
approach the same sources of capital that the airlines pursue;
number of suppliers, and that has placed them in a better position than their competitors. AIRCRAFT FINANCE GUIDE 2011
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777 Freighter in test along Boeing’s flight line in Everett, Washington.
THREE SIGNIFICANT DYNAMICS Looking at the cycle as a whole, Zolotusky says: “What amuses us about pundits making gloomy predictions is that they continue to miss some of the important fundamentals that are affecting this cycle.” He explains that there are three dynamics stabilising and giving the industry strength during the downturn: the variety of airline business models, diversity of global demand and higher oil prices. This will be the first cycle where diversity of airline business models will be material, because the low-cost carriers (LCCs) account for 16-18 per cent of demand. Zolotusky says it is important to remember that when the International Air Transport Association (IATA) reports on airline losses, LCCs are not included in that analysis because they are not members. He reminds us: “The only part of the industry that was doing well and growing during the downturn is often not counted against the doom and gloom numbers. And that is helping to sustain the current demand.” In the past, aircraft demand stemmed predominantly from the US or Europe. Today it is more geographically balanced. The economies that are recovering the fastest are the emerging markets and that is where most of the growth is occurring,
777 Freighter awaits takeoff at Paine Field in Everett, Washington.
while the majority of the US and European demand is replacement — “that helps a lot with the demand equation.”
air traffic. Boeing made the decision to cut the 777 production
Finally, oil has moved to a significantly higher plateau and
rate from seven aircraft a month to five (from mid-2010), yet
that will have two important ramifications. One is that it
Zolotusky says that now “the kind of conversations the airlines
will accelerate replacement. Relatively low oil prices meant
are having with us now are really encouraging.”
many airlines, particularly in the US and Europe, postponed
The general market consensus is that aircraft deliveries
replacing their fleets. Going forward, airlines will update their
will be down in 2010 — the overall value of aircraft to be
fleets at an earlier age because there is a greater value to fuel
delivered by manufacturers is forecast to be 10 per cent less
efficiency at higher oil prices. “The three dynamics are the
than in 2009, with the total financing requirement dropping
reason why we are probably in the biggest economic crisis of
by $6bn. However Zolotusky remains confident that the
our lifetime and aircraft demand is continuing to be extremely
variety of aircraft financing markets can fulfill 2010’s delivery
robust,” concludes Zolotusky.
requirements. He concludes that Boeing is “extremely gratified”
Readers will recall that last year most airframers cut their production rates to cope with the unprecedented drop in global AIRCRAFT FINANCE GUIDE 2011
to see demand strengthening and he expects 2011 to be entirely driven by demand. Q 55
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A re-engined A320 with Airbus’ drag-reducing wing-tip devices the Sharklet would provide about a 15 per cent fuel burn saving versus today’s aircraft.
Outlook clear: Airbus’ Andy Shankland predicts the market On the back of another strong showing at Farnborough, Airbus has revised its order outlook for the year. The manufacturer has also raised its A320 production rate and given its clearest indication yet on the next stage in narrowbody development. Alex Derber sat down with Airbus’ VP of marketing, Andy Shankland, to discuss these and a host of other issues, including why he’s so sure that the recession is “definitely over”.
Andy Shankland, VP of marketing, Airbus
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Airbus has raised its full-year
the recovery is quite different in
What are your reflections
order forecast from 300 to roughly
the emerging economies than in
on Airbus’ performance at
400 aircraft. Has the company been
Western Europe and the USA. In
Farnborough?
surprised at the strength of the
the emerging economies, passenger
We went into Farnborough feeling
recovery in the market and what
traffic never stopped growing even
cautiously optimistic about the
do you put it down to?
during the recession and now the
future. We had a total of 255
During the dark days of late 2008
rate of growth there is about four
aircraft commitments during the
and early 2009 we were one of
times that in the developed parts
week of which 133 were firm
the few companies predicting a
of the world, where the rate varies
orders. At the end of June we had
turnaround; however, we’ve also
from around 2.5 to four per cent per
131 firm orders for 2010 and by the
been pleasantly surprised by the
year. So, I would say the emerging
end of July, due to a combination of
rate of that turnaround. It is a
economies are the engine driving
Farnborough and additional order
two-speed world and the rate of
the recovery.
activity the week afterwards, we AIRCRAFT FINANCE GUIDE 2011
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had more than doubled that to 286. That’s the reason why
manufacturers would have to lower their production rates
we’ve changed our own forecast for sales for the year from
very significantly, by 30-40 per cent, and that’s clearly not
around 300 to around 400 aircraft.
been the case.
Is there some truth to the claim that Airbus takes order
How do you judge airlines to have coped with the recession
announcements at the show more seriously than Boeing, or
and how well are they adjusting to the recovery?
are order comparisons solely a preoccupation of the media?
The fundamental difference between this recession and the
Certainly we take air shows quite seriously. Before
problems of the industry following 9/11 was that airlines
Farnborough this year I believe Boeing were quoted as
could see this one coming and could plan appropriately,
saying they didn’t focus their order announcements
which meant they implemented prudent capacity cuts.
around air shows – however, if you look at the detail of
What’s encouraging now is that we’re seeing airlines
what Boeing chose to announce at the air show, it seems
beginning to focus on the future, whereas in 2009 it was
a rather significant portion was actually orders they had
all about surviving the next quarter. Obviously, airlines are
booked over the last 24 months as unannounced orders,
not typically in aircraft buying mode when their planning
so perhaps both companies take air shows quite seriously.
horizons are so short. But now we’re beginning to feel the
Airbus had 255 aircraft commitments during the week at Farnborough Air Show, of which 133 were firm orders.
upturn they are focusing on the longer term and that’s John Leahy has declared the recession to be definitely over
very good news for us. Revenue per available seat mile is
and Airbus has upped its A320 production. Is the company
up 15 per cent versus the same period in 2009 in the US,
as bullish on recovery as it makes out, or are you more
and that’s another positive development because it gives an
circumspect with regard to regions like Europe and the US,
indication that there is a rebound occurring in the premium
where fears persist over a double-dip recession?
cabin. That was the remaining question after airlines started
We don’t see the double dip ahead of us and, as John
to see economy traffic rebound: would premium traffic also
says, it certainly seems we have turned a corner and that
recover?
the recession is definitely behind us. Looking at the A320 family – which forms the majority of our deliveries – from
Dubai is clearly important to Airbus, and vital to the A380
the beginning of the recession to this point in time, its
programme. But, as Dubai Aerospace Enterprise starts
production rates went from 36 per month down to 34, back
cancelling orders with both Airbus and Boeing, are you
to 36 – and now we’ve announced an increase to 38 and
worried that the region has over-reached itself?
then to 40 aircraft per month. So the impact of the recession
In terms of the Middle East region we do not have that fear
on deliveries has been very minor. I say that in contrast to
because the long-term growth trend there is forecast to be
what a lot of people in the industry, though not from the
the highest of any region. It is also ideally located: from
manufacturing side, were saying 12 to 18 months ago – that
Dubai an A380 can reach over 90 per cent of the world’s
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Airbus is “on target” to double its A380 deliveries in 2010 compared to 2009 and expects to deliver 20 by the end of the year.
population non-stop. So, from a geographical standpoint
predict that to continue in 2010. In short, I wouldn’t say
Dubai is in good shape, and from the way the airlines are
financing today is easy, but it’s a little easier and there’s a
operating their hubs, and with the strategies they employ,
little more liquidity in the market than there was in 2009.
things are going very well indeed. We would predict that to continue.
Airbus has said customers will drive the A320 re-engine decision, but different customers, notably airlines and
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How much of a stumbling block was lack of financing to your
lessors, want different things. Where does the project stand
sales and delivery efforts during the recession and has that
at present?
situation improved?
We’ve pretty much got to the end of the technical evaluation
If we go back to early 2009, some very intelligent people were
phase now so the next phase is to examine the business case
saying they anticipated a $10bn funding gap. However, the
and therefore look seriously at the first potential customers.
way things panned out, that clearly wasn’t the case: in 2009
We have two engine offerings on the table – one from Pratt
we achieved a record of 498 total deliveries. Moreover, if we
& Whitney with the geared turbofan and one from CFMI
look at the means of financing to get those planes delivered,
[CFM International] with the Leap X. After a very thorough
only a very small proportion was assisted by Airbus. Rather,
technical evaluation of those proposals, the second stage is
export credit agencies (ECAs) were a tremendous help,
to see how those proposals could be accommodated on the
accounting for about a third of our deliveries in 2009. We
A320 family. Our objective if we go ahead with re-engining is AIRCRAFT FINANCE GUIDE 2011
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If a re-engined A320 does go ahead, when would we see the result and how far would that push back the A30X, the allto have a minimum change aircraft – in other words to give
new single-aisle replacement?
people the lowest fuel burn we can, while not making any
It looks as if a re-engined A320 could come out around 2015.
other significant changes. This protects commonality, which
After that, 2025-onwards is when we could expect to achieve
is pretty important if you’re an operator with 100 A320s in
30-35 per cent fuel savings versus today’s aircraft – so the
service already.
A30X is realistically at least 15 years away.
You mentioned engine offerings from CFMI and Pratt &
[drag-reducing large wing-tip devices] would provide about
Whitney. Can we now entirely discount the possibility of IAE
a 15 per cent fuel burn saving versus today’s aircraft. Next,
being involved on a re-engined A320?
one would want a dramatic improvement on that 15 per
I would hate to rule IAE out. We’ve been clear from day one
cent. However, such a game-changing aircraft would, in all
that we would prefer to have an IAE offering rather than to
likelihood, not be a traditional turbofan. Perhaps it would
have an individual Pratt & Whitney or a Rolls-Royce offering.
use open rotors and maybe it wouldn’t feature conventional
But at the moment it looks as if – assuming we’re going to go
aircraft architecture. Any such technologies probably won’t
with two engine types – it will be with CFMI and Pratt. We
be mature until at least 2025 or even beyond. And I think
would never want to close the door on IAE, because it is a
we’ve seen some examples recently where it is one thing
very well-respected engine supplier and has a network in the
to have technology, but quite another to ensure that it is
marketplace today.
sufficiently mature at entry into service.
Let me explain. A re-engined A320 with our new Sharklets
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“The interesting thing we see with the A380, now it’s been flying on routes for some time, is that not only does it increase capacity and passenger traffic, but in almost all cases it also increases the passenger load factor, which is a little counter-intuitive.”
If we look at the 777-200, for example, large US airlines operating them have done so for a long time. In the rest of the world, many operators with 777-200s subsequently upgraded
Louis Gallois has talked about the A380 programme not
to the 777-300. Yet not many US airlines have done that.
creating more cost than expected, while Airbus’ CFO has
This is perhaps a symptom of their reluctance to buy into the
talked about break-even on a ‘per-year’ basis from the middle
benefits one derives from very large aircraft. However, as more
of the decade. Is cost minimisation rather than profit now the
A380s fly into North America, it’s inevitable that US carriers
goal for Airbus with this programme?
will take a very close look at the aircraft, and rethink their
I’m not permitted to talk about programme profitability. The
strategy on aircraft sizing.
critical thing with the A380 has been getting to the point where we’re putting more aircraft into the marketplace. We’re now on
With the news that Airbus has soaked up the A350-1000
target to double our A380 deliveries in 2010 versus 2009, and
margin to concentrate on the -900, has the company
are on track to deliver 20 by the end of the year. The interesting
exhausted all possible buffers to keep the programme on
thing we see with the A380, now it’s been flying on routes
schedule?
for some time, is that not only does it increase capacity and
The A350-900 is the lead aircraft version to be produced from
passenger traffic, but in almost all cases it also increases the
the A350 family so, the first priority is to get it out on time in
passenger load factor, which is a little counter-intuitive.
the middle of 2013. The programme is on schedule, but we have eaten into some of the buffers inherent in it. For instance,
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Does consolidation among US majors affect your marketing
we’ve decided to change what was a somewhat generous
ambitions for the A380 across the Atlantic?
15-month flight test schedule into a more realistic 12-month
We will continue to market the A380 in North America as
schedule. As a result the programme is on time with the A350-
we do everywhere else, but it’s been a tough market as US
900 entering service in 2013, the smaller -800 in 2014 and the
passenger airlines typically don’t like to fly large equipment.
larger -1000 in 2015. Q AIRCRAFT FINANCE GUIDE 2011
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Understanding engines as assets Most financiers and lessors are familiar with the concept of reserves or compensation but many do not understand the hazards associated with engine management. Stuart Hatcher, head of valuations and modelling at IBA Group, advises how new entrants and experienced players can better understand engines as an asset class. FTER A DISMAL COUPLE OF years, it would seem that the appetite for aircraft finance
A
is back. Operators and lessors have started to prepare for returning demand with highly
publicised orders at the Berlin and Farnborough air shows. Aircraft lease rates for highdemand narrowbodies have started to firm-up, and values are expected to follow suit. Every recession and following recovery brings new entrants ready to buy low and sell at the top of the market. While it is true recessions make us wiser, the same mistakes and high-risk oversights repeatedly occur, and not more so than when it comes to understanding engines. We continually see shortcomings in aircraft leases during the writing of return conditions and compensation clauses. In many cases, the reserves are inadequate and return conditions fall short of protecting the financing and leasing AIRCRAFT FINANCE GUIDE 2011
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communities during a future downturn. With margins narrowing, the need to ensure that engines are adequately compensated for becomes the difference between
from aircraft leasing? A frequent misconception is that engine leasing is simpler than aircraft leasing as
making a profit and losing a
fewer components are involved.
fortune.
In reality, engine leasing possibly
To the uninitiated, engines are
poses the greater risk due to
expensive machines that are
the volatility of market values,
delivered with the aircraft. With
especially when maintenance
on-wing times now reaching many years what occurs during the majority of the lease remains a mystery for many – including many owners. As long as the lessee covers any shortfall in reserves and the engine is
conditions are considered. Here it is greater (with respect to the half-life value) than you would expect for an aircraft. For example, an engine with a half-life market value of $5m
returned as it was delivered, everything is deemed well. But
may be worth 50 per cent more if it is full-life or 50 per cent less
what a recession teaches us is that things can go awry. If you
if it has ‘run-out’. A 10-year-old narrowbody would probably
have a large portfolio, a default could occur at a time when
only vary by around 20 to 25 per cent around the half-life point.
there are not the necessary financial reserves to compensate for
Financiers, bankers and lessors looking to secure an engine
the life used on the aircraft and engines.
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So how does engine leasing differ
deal should consider six key factors:
While aircraft leasing remains one of the more glamorous
s 4HE MARKET 4HE MAIN FACTORS THAT SHOULD BE ASSESSED
and publicised sides of the industry, engine lessors have
include market share versus the competing engine models;
been less vocal on how their industry has been affected by
the geographic location; size and strength of the current
the credit crisis. In many ways this is how engine lessors and
and future operator base in relation to the rest of the market;
manufacturers prefer it and even though many new entrants
the size, strength and timing of the current backlog; the
have joined the engine leasing community over recent years, it
transferability of the engine to other airframe platforms; and
remains a tight-knit and tight-lipped group.
market value performance analysis. AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
s 4ECHNICAL CONSIDERATIONS 0ROBABLY ONE OF THE AREAS MOST
s 4ECHNOLOGICAL OBSOLESCENCE 4ECHNOLOGICAL OBSOLESCENCE IS
but a basic understanding of the technical risks will lead
an industry certainty that everyone must live with. Advances
to a better understanding of the commercial risks too. All
in material science and engine design are announced
successful aircraft and engine lessors have a dedicated
regularly and typically released through a mix of gradual
technical department or have a technical asset manager to
improvements and milestone jumps. What investors fear is
perform this analysis. Assuming that the current condition
to what extent ageing technology can be upgraded, and the
has been addressed, the main factors to be considered include: expected utilisation and derate, shop visit drivers,
residual value effect on the current eet. s $ISPOSAL OPTIONS )F YOU ARE LOOKING AT A CONTINGENCY PLAN
typical shop visit workscope patterns and costs, life-limited
for an aircraft lease, then one disposal option is to sell the
part (LLP) costs and replacement practices, thrust change
engines and part-out the airframe or, part-out the engines
options and costs, the availability of manufacturer support
as well. In many cases, the value of the sum of the parts is
agreements, important service bulletin and airworthiness
greater than the value of the aircraft and therefore reasonable
directives, parts commonality and upgradeability.
prices can still be achieved provided there is a market to
s 0ERFORMANCE 4HIS COVERS SUCH AREAS AS RELIABILITY FUEL
absorb it. For a commercial team performing the analysis, it
burn, and CO2, NOx and noise emissions. These topics are
may be prudent to analyse the historical secondary market
often overlooked but should be reviewed as they are key
activity for engines and components so a worst-case scenario
drivers influencing new technology, upgradeability, and
can be planned.
technological obsolescence.
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of the operator) to allow the deal to progress.
overlooked by commercial teams is technical considerations
To illustrate some of these key points it would be useful to
s #OMPENSATION MECHANISMS 4HIS IS PROBABLY THE MOST
use a current popular analogy. A good example is the CFM56-
analysed and most misinterpreted area for a commercial
5B4 engine that principally powers the A320-200 aircraft.
team. All parties are aware that assigning the correct
This engine has evolved both technically and commercially
intervals and costs will establish the correct engine reserve
into one of the most popular engines built. It has a strong
or compensation rates but it is surprising just how many use
competitor in the form of the V2527-A5 engine and has had
the wrong information. This factor is also the most contested
several upgrades, which has led to the design of the CFM56-
clause within a lease and is typically re-negotiated (in favour
5B4/3 engine as it is today. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE environment, and shop visit workscopes. By deducing these factors, a realistic expected shop visit cost and interval should be possible. Negligence through this process can lead to a compounded issue that could leave you unprotected at the end of the lease period. The diagram below illustrates the reserve shortfall if environment and derate is ignored. In this example, there is a $500,000 shortfall at the first shop visit. If the lease should end between shop visits, then the lessor is always confronted with a shortfall. The overall market position relative to the direct competition is shown in the graph above
From a technical perspective, the CFM56-5B4/3 engine is the latest version in a long line of CFM56-5B engines and therefore exhibits all of the usual traits of an upgraded product. Depending on the specific thrust variant, derate and utilisation used, the first shop visit can now reach LLP expiry. Of course by reaching these outer limits there is a risk that the cost of maintenance will be considerably higher because more parts will need replacing. The manufacturer may recommend that the first shop visit (performance restoration) may be in the order
When it comes to funding LLPs, there is no excuse for
of $1.8 to $2m (excluding LLPs), if the operator was to keep the
a shortfall. All LLPs should be funded in line with the
engine on-wing for 18,000 cycles from new, then an overhaul
manufacturer’s list price with an additional buffer to allow
would be needed at a cost of $2.5 to $2.8m as all of the turbine
for stub life. Escalation should be in line with that used by
blades would probably need scraping.
the manufacturer. Historically, engine manufacturers have
This technical intelligence is fundamental when determining
escalated their LLPs prices in the five to 10 per cent per annum
the correct compensation mechanism. What one attempts to
range so choosing a specific rate will never be correct. It is now
achieve during this phase is fundamentally simple; the reserve
also common practice to accrue LLP compensation by module
rate is the cost divided by the interval, adjusted by inflation.
to prevent reserves set aside for parts that have not been
The process is however, very complex due to the number of
replaced, funding those that have.
variables involved. It is therefore wise to speak to the lessee
The CFM56-5B engine (along with the V2500-A5 and
about their experience with the engine and deduce how they
CFM56-7B engines) is central to the issue of technological
intend to use it. It is advisable to be aware of practices in the
obsolescence after the concept of re-engining, which was
markets, but if a particular lessee uses the engine differently, the
announced earlier this year. With a possible entry-into-service
rates will not produce the correct compensation.
date of around 2015 and a limited production of just 10 years, lessors and financiers are naturally worried about the residual value performance of the current fleet. It is expected that residual values will fundamentally alter at a point when the new technology powers a sizable fleet and in line with a sudden drop in demand for the general aircraft type. In truth, no one except the operators wants an interim engine option. The manufacturers want to protect the residuals and backlog of their current fleet and not incur non-recurring development costs, while lessors and banks do not want residuals affected. While all parties know that a full replacement is probably likely in 2020-2025, the very concept of an interim aircraft that most banks and lessors would not want to invest in,
The derate/sector length graph displayed above is a broad example of how costs can be distorted
Assuming a utilisation of 1.7 FH:FC and 10 per cent derate, you can deduce that the severity factor is approximately one.
strikes fear into all but the operator. What happens will depend on the manufacturers. If one launches an interim product, the other will follow with a counter-product or a new aircraft design.
If the operator should operate the engine on one hour sectors
Whether you are financing a spare engine or the whole aircraft,
using five per cent derate, the rate would be about 1.35 times
engine procurement begs some of the hardest questions. At this
the basic rate. Over a prolonged period, this will lead to a
delicate stage, precise intelligence could mean the difference
reserve short-fall of around 25 per cent. Environmental factors
between success and failure. So in simple terms, understand
can compound this even more.
what the lessee wants to do, use a knowledgeable powerplant
Knowing your lessee will enable you to set an appropriate rate that is dependent upon thrust, derate, sector length, AIRCRAFT FINANCE GUIDE 2011
technical expert and speak to a commercial powerplant analyst or appraiser; there are no excuses. Q 65
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M
engine support costs and still retain a 97 per cent
coverage confidence policy by changing their spare engine strategy. This can be achieved through a combined use of intermediate-term financing, spot market leasing and ownership or long-term financing. Manufacturers recommend that operators retain a certain number of spare engines; this quantity is usually based on a ratio — such as 10 per cent of your portfolio — or is defined by the Poisson distribution (statistical analysis that charts patterns in unscheduled or rare events). It’s on these recommendations that most airlines hold a fixed number of spares throughout the life of a programme, creating inefficient utilisation and no significant improvement to coverage risk. Airlines should consider carrying out an audit to determine if their processes are aligned to reduce spare engine support costs. Due to the cyclical nature of spare engine demand, an airline may either over or under estimate the quantity of spares needed. Furthermore, attention must be given to what is driving the demand and whether it is truly statistically random or whether it is a statistical bias created by scheduled events.
TREATING SCHEDULED REMOVAL DEMAND The scheduled visit demand (SVD) falls in groupings that commence between 60 and 72 months from the initial delivery. The following sine wave (Chart 1) is notional in nature but
A fresh look at spare engine support There are significant opportunities for making savings to your spare engine support costs if you treat the scheduled and unscheduled spares demand separately. These savings can be realised through a sophisticated strategy of ownership, leasing, spot market or pooling. Dave Tegeler, president of Engine and Aircraft Strategies takes us through the process.
suggests that SVD, based on the large dead band between two peaks, should be treated with intermediate-term leases.
Typical Cycle for Heavy Scheduled Visits
The dead inventory period (Chart 1) produces substantial inefficiency unless managed carefully. Pre-arranging a combination of intermediate-term leases at 0.9 per cent and either spot market or pool leases at one per cent should provide a good solution to cover only the demand bubble (mountain). Chart 2 is also notional but highlights that for larger fleets, planning for the purchase of spares needs to consider the shape of the predicted maintenance bubble, the operator should tailor
“Airlines should consider carrying out an audit to determine if their processes are aligned to reduce spare engine support costs. Due to the cyclical nature of spare engine demand, an airline may either over or under estimate the quantity of spares needed.”
the financing (or more typically the leasing) to the utilisation within the bubble. For a 36-month intermediate-term lease the first five engines would be used 67 per cent of the time. While these engines may be leased at a better-than-spot-market rate, the airline may find the 33 per cent dead inventory time still acceptable. This is because the financing may be more favourable than risking spot market leases. A typical approach to satisfy demand above five spares (which has a 33 per cent expected utilisation over the 36-month interval) would be to
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AIRCRAFT FINANCE GUIDE choose spot market leases or pool leases. With this approach the operator would obtain an estimated 90 per cent to 100 per cent utilisation efficiency.
50 Aircraft Fleet Scheduled visit Mountain
Chart 3 demonstrates the power of working together with other airlines to take advantage of dove-tailing fleet maturity. It is a series of sine waves, 24-months apart, each representing the scheduled demand of four fleets of 10 aircraft. Individually, each fleet would require two spares — thus four fleets would require eight spares. However, if the demand is properly scheduled, the chart shows that this group would require only four spares. The result is a 50 per cent saving. This clearly shows the tremendous power of working together in a defined pool.
Four shop visit cycles with peak deliveries staged 24 months apart. Notional Example
“A typical approach to satisfy demand above five spares would be to choose spot market leases or pool leases. With this approach the operator would obtain an estimated 90 per cent to 100 per cent utilisation efficiency.” In order to benefit from any of these charts, one must recognise that scheduled visits are not random events and are not treatable by statistical means, such as the Poisson distribution.
TREATING UNSCHEDULED REMOVAL DEMAND Chart four shows the average spares usage of 37.5 per cent, which is an inefficient utilisation of a very expensive asset. Clearly this chart demonstrates that you have to look beyond the average spares utilisation to develop an ownership and leasing strategy. Most modern turbofans are very reliable. The unscheduled demand ranges between 0.015 to 0.025 removals per 1000 engine hours. This can be handled by the Poisson prediction method; however purchasing spares to cover the entire risk produces inefficiency. With a typical fleet of 15 to 20 aircraft, focusing on spares utilisation efficiency, you can justify one spare, which would be used 60 per cent of the time. Depending on the prevailing unscheduled rate, two spares may be required AIRCRAFT FINANCE GUIDE 2011
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“As an airline CFO or member of a treasury, once you have come to terms with the prospect of not owning or financing all the spare engines that your planners or the engine OEMs tell you are necessary, you are on the road to managing your spare utilisation effectively.”
DON’T UNDERESTIMATE HUMAN FACTORS While this new approach gives airlines the mechanics to improve their spare engine utilisation without sacrificing their coverage confidence, carriers can and have faced roadblocks.
for 97 per cent coverage. This example suggests one spare
But as an airline CFO or member of a treasury, once you have
should be owned or leased long-term. It also suggests that the
come to terms with the prospect of not owning or financing all
second spare would be used less than 15 per cent of the time
the spare engines that your planners or the engine OEMs tell
and should be spot market leased or drawn from a pool.
you are necessary, you are on the road to managing your spare utilisation effectively.
Spares Efficiency vs Fleet Size Unscheduled SVR = .02
In the last 15 years I’ve visited many of the world’s airlines in addition to helping the CFM56-7B operators in North America form a pool of 700 aircraft. The members of this pool run the gamut from two aircraft operations to hundreds of aircraft with legacy to low-cost operating formats. Ten years ago, the cost of spare engines was a problem but it was one that was tolerated at the highest levels in each company because there did not seem to be a way of containing it. The existence of a pool caused the airlines to ask the fundamental question: ‘how many spares should I own, and how many should I plan to draw from the pool?’ Once this question is asked, many others flood in and answering these questions may involve massive restructuring of existing spare engine schemes.
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“Ten years ago, the cost of spare engines was a problem but it was one that was tolerated at the highest levels in each company because there did not seem to be a way of containing it. The existence of a pool caused the airlines to ask the fundamental question: ‘how many spares should I own, and how many should I plan to draw from the pool?’.”
In addition, airlines may face oppositions from engine
non-scheduled visit profiles, which created a new picture of
OEMs when they tell them that they are not going to buy the
demand. The purchasing and planning teams were then tasked
recommended quantity of spares but rather use either a pool or
with developing intermediate-term lease commitments and
spot market to obtain spares support. For example, a company
making pre-arrangements with the prominent engine lessors
in the pool mentioned above, opted to own two thirds of their
for spot market support on short-term notice to cover the newly
predicted peak requirement and was told by the OEM that it
created demand profiles.
would remove the guaranteed support of their engines under
Now the planner’s are graded on how well spare utilisation
warranty. However the airline responded that it would find
matches the demand profiles they predicted. Spot market
support elsewhere and still save millions.
leases are no longer scorned and are now viewed as a desirable
In the case above, before the decision to hold fewer spares
and active management process to achieve improved utilisation
was made, the company’s planning department was charged
efficiency. Spot market leases previously generated unbudgeted
with the responsibility to ensure there were sufficient spares
cost overruns, now they are pre-budgeted, based on a mean
— indeed their job performance was graded on this coverage.
unscheduled shop visit rate and excess is carried over as a
Having to gain spot market engines on lease was considered a
reserve for the following years. Management bonuses are now
planning mistake and unsurprisingly, the airline always bought
given for achieving spare engine utilisation efficiency above
too many spares.
targets while maintaining operational support.
The planning and engineering departments were tasked with
Often employee performance needs to be redefined and new
obtaining shop visit information (as outlined in the previous
budgets and new organisational performance measurements
charts), in some cases legacy computer programmes could not
need to be developed. Dealing with human factors and
provide the necessary data in the correct format and so new
organisational change is never easy, but the high cost of engines
computer analysis was created to define the scheduled and
makes this sort of change worthwhile. Q
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Photo courtesy of AAR
Aircraft Repossession: Is it worth it? 70
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ECLAIMING YOUR AIRCRAFT CAN BE very costly and
R
calculations show that collectively, the typical cost to repossess
unless owners have a disposable budget they may wish to
a 2005-built A320 is around $1.48m and this could stretch
reconsider whether repossession is the best option; after all, it
to $4.47m in the worst-case scenario. To repossess a 737-
is unlikely that a defaulting airline will return any legal costs.
800 would cost around $1.55m on average and could go up
According to Aoife O’Sullivan, a partner at the legal firm Gates & Partners, aircraft repossessors may be forced to pay other
to $4.45m. Repossession of a 777-300ER is likely to cost on average $3.31m and a 767-300ER around $2.33m
parties that have liens (a legal hold) over the aircraft that has
The loss of rental income, C-checks and engine shop visits
been taken as collateral against monies owed. MRO providers,
are likely to take a substantial chunk of those costs, says IBA.
financial institutions, employees or even passengers might be
Looking at the A320 and 737-800, parking and storage is likely
owed money from the defaulting airline and as such they may
to cost just under $30,000; legal fees, liens, refueling and
have the legal entitlement to repossess the aircraft or insist on
registration transfer about $630,000; technical costs including
financial remuneration from the party that chooses to do so.
ferrying, engineers and crew is calculated to cost about $18,000
It is also wise to consider hidden costs such as outstanding customs and excise fees and Eurocontrol navigational
and $53,000 respectively and seat reconfiguration if needed, could cost about $500,000.
charges may be charged when the repossessor ferries the
Good management of the procedure can reduce costs. Philip
aircraft back. It is important to note that a repossessor may be
Seymour, COO of IBA urges: “If you’re faced as a financier with
obliged to pay any such fees incurred by the airline – not just
a particular situation where repossession may be likely at some
those attributed to that particular aircraft – but any in the
point, then call in your technical advisors, call in your lawyers
operator’s fleet. O’Sullivan says that to evade such costs some
and have a contingency plan well ahead of the game – planning
may prefer to ferry the aircraft through alternative routes,
is everything.” However the most cost-effective option may
however pre-planning will be needed to identify which routes
be to discount the repossession altogether. Given some time
should be avoided.
the defaulting airline may return to financial stability; we
The outlay does not end there. According to Owen Geach,
have recently seen numerous airlines saved at the eleventh
commercial director of IBA, the independent aviation
hour by restructurings, investor or government bail-outs and
consulting firm, the typical cost to repossess a narrowbody
revised debt repayment structures. If the airline does recover
aircraft is $1.41m, and this may climb higher if the airframe
it is unlikely to reward its lessor’s unbending and aggressive
or engine is in need of MRO work or if liens are held. IBA’s
approach with continued custom.
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Aoife O’Sullivan, partner, Gates & Partners
Owen Greach, commercial director, IBA
Philip Seymour, COO, IBA
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PLAN TO PERFECTION Geach advises that media reports and discussion forums such as Professional Pilots’ Rumour Network (PPRuNe) can provide aircraft owners with “early warning signs” as to which airlines are most likely to default on payments. Although most airlines will be legally obliged to report their finances on a regular basis, this ‘heads-up’ can win lessors and financiers additional time to help them plan their next step. According to Geach such sources are even being referred to in court by lawyers who have used them as investigative tools. Once a lessor has discovered that the operating airline has defaulted and decided to repossess the aircraft, it must then plan with meticulous accuracy the reclamation of the asset. O’Sullivan says that banks and lessors must deduce war-like tactics, moving swiftly and silently to give opponent operators little chance to evade the attack. “Don’t let them see you coming,” she says. Timing is crucial in the repossession of an aircraft as lessors may have to carefully manage when and where to take back the property. It is crucial to track the aircraft’s movements in order to seize the aircraft once it is grounded. This is likely to be during or after a maintenance check, such as a C or D-check. The benefit is that not only will the lessor know where its aircraft is in order to capture it, it can retrieve it with the knowledge that it is well maintained and safe to fly. Another advantage to repossessing the aircraft during its downtime is that you are less likely to cause major disruption to those passengers due to fly on its next scheduled flight. “There’s a reputational risk to that,” says Mark Byrne, director of ICM; “You probably don’t want the publicity of having 150 people stranded in Malaga, or wherever.” It is also vital to remember that the MRO provider may have liens on the aircraft and is likely to be owed for the maintenance work it has carried out. By repossessing the aircraft the lessor is letting the MRO know, if they did not already, that the airline is defaulting on payment and is unlikely to pay them for their services, as such they will seek payment and may hold the aircraft as collateral. Indeed
Mark Byrne, director of ICM
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According to Seymour, known as ‘repo-man’ and ‘undertaker
the MRO may be owed monies for a number of maintenance
of the industry’, relations between airlines and leasing
checks on numerous aircraft, however if banks and lessors
companies are deteriorating. Although it may be tempting
are open and honest about their intention to reclaim the
for lessors and financiers to grapple back their money from
aircraft there is better likelihood that they will be able to meet
a defaulting airline, they may find that the soft approach
harmoniously on a deal to cover payment.
proves to be a sound and amicable long-term investment.
No two repossessions are the same, sometimes it pays to
Most lessors are unanimous that payment restructuring and a
be covert yet other times it is best to be transparent. While
period of forgiveness, which includes a payment ‘holiday’, is
O’Sullivan urges army-like stealth in most cases, she believes
often the wisest route. However sometimes repossession will
that sometimes this can be the fall of your operation. “Typically
become necessary. Norman Liu, CEO of GECAS, commented:
in the bizjet world for instance the MROs have very strong
“We understand it’s a tough market and so case-by-case we
relationships with the operators.” A heavy surprise and
are making an evaluation on what to do. If folks are open and
conquer approach is likely to result in a phone call from the
they’ve got a viable franchise then we’re open to helping within
MRO to the operator – even if you have offered to cover
reason, but we generally don’t take kindly to self help and if the
outstanding MRO fees. “Tipping them [the operator] off before
franchise doesn’t add up we’ll look at repo-ing.”
you are ready is possibly the worse thing you can do,” she says. AIRCRAFT FINANCE GUIDE 2011
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PADLOCK YOUR RECORDS Geach advises that banks and lessors maintain “back to birth traceability” – keeping records which cover in full, the life of the aircraft from its ‘birth’. He can recall numerous instances of airlines ‘loosing’ copies of these records, without which the later sale or lease of the aircraft is made much harder, if not impossible. Of course there’s nothing like repossession-fuelled animosity to disappear critical documents. Geach warns that without these records aircraft may be rendered as “valuable as a pile of empty coke cans” worth as much as when it is sold for scrap. He urges that owners scan and keep both paper and electronic copies of all necessary paperwork such as historical checks; component overhaul certificates; airworthiness directives; service bulletins and APU history. According to Godfrey Ryan, director of sales and marketing at Waviatech, which provides a digital record solution to airlines, lessors and MROs; “Some leasing companies are more prudent than others and some will only take the decision to scan records when a repossession is going to happen or when there’s a credit risk.” Ryan advises that companies take a “business as usual” approach to scanning records and recollects the pitfalls faced by one Egyptian carrier that claimed bankruptcy some years ago. According to the anecdote, the airline’s staff had not been paid for a number of months and on hearing that the airline was soon to liquidate, the staff entered the airline’s record archive and each seized a box of critical aircraft records to barter for payment. The lessor was forced to visit the employees “with a pocketful of US dollars” to pay the staff and retrieve the documents. AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE repossession, especially for those in the UK, is the tax sanctuary that is the Isle of Man. Banks and lessors can ferry their aircraft to this tax-neutral environment where they can sidestep corporation tax, stamp duty and withholding tax. Byrne says that about a year ago the Isle of Man was not known for being able to offer much to airlines but believes it can now offer a “safe haven in what is a hostile world”. He adds: “Last year commercial airlines wouldn’t have been welcomed on the island’s aircraft register; it was there specifically for business aircraft.” However the island currently recruits seven commercial aircraft to its registry each month and there are just under 200 there now. The
WHAT HAPPENS NOW?
island is fast becoming a centre for commercial aircraft
The aircraft owner must then consider what they will do with
registry, the speed of which is no doubt attributable to the
the aircraft once it has been reclaimed. If the repossession
many repossessions which have occurred of late. “You’ll
occurs during reasonable economic stability then it is likely
not find a place anywhere in the world that can register your
the aircraft can return to utilisation but during an economic
aircraft as fast as the Isle of Man,” claims Byrne.
dip such as we now face, owners must evaluate whether the market will allow for the aircraft to be re-leased. There is no guarantee when the owner will see a financial
are alike. As such there is no finite rule to stipulate the ‘right’
return on its aircraft. According to IBA, lessors can wait
or ‘wrong’ time for repossession. This will rely much on the
between one week to one year to place an aircraft with another
finances of the airline, the likelihood of it continuing operations
operator. Naturally there will be an increased number of
and the relationship between the owner and the operator. One
repossessions during a recession as the dip will render more
fully accepted rule is that planning it crucial. “From experience
airlines unable to make payments, however it is at these times
not everything runs smoothly,” says Geach. He petitions:
that lessors will struggle to find a new operator. Owners may be
“Planning is everything; I wholeheartedly endorse that.”
more inclined to keep an aircraft with the defaulting airline if it
This means evaluating all eventualities and costs in order to
feels it is unlikely to find a new operator, or indeed may regret
establish the best option. Legal and technical advice is essential
the action if it chooses to do otherwise.
for a smooth operation but lessors must also plan ahead of time
An increasingly popular choice for owners post-
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These specialists agree that the many variables and considerations involved in aircraft repossession mean no two
to secure your the best strategy. Q
AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
Time to re-think the flight plan: Right-sizing and the CASM paradigm Six years ago, Embraer delivered its first E170 to LOT Polish Airlines. That aircraft represented a shift in traditional thinking by introducing a new capacity option. But after delivering more than 600 E-Jets to some 50 carriers around the world, airlines are still discovering the potential of 70 to 120-seat aircraft. Mauro Kern, EVP new programmes for the airline markets at Embraer, discusses the CASM paradigm.
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I
N HIS PROVOCATIVE CONSUMER TREND analysis Aaagh!
empowered with unprecedented knowledge are forcing
A Deep Recession Changes Everything, Young & Rubicam’s
companies to redefine conventional approaches to business.
Simon Silvester suggests that “recessions act as a broom,
Airlines, too, need to adapt to the changing demands of the
brushing out the old and making space for new ideas in the
market in order to remain competitive and prosperous. And
world. Nothing returns to normal afterwards. And the biggest
that includes re-evaluating their approach to aircraft capacity.
mistake most companies make is not in failing to cut costs fast
Six years ago, Embraer delivered its first E170 to LOT Polish
enough. It is to assume that after a recession, it’s going to be
Airlines. That aircraft and the entire E-Jets family represented a
business as usual.”
shift in traditional thinking by introducing a new capacity option
As our industry pulls itself up from the bottom of a deep
with mainline comfort and performance standards in a segment
downward cycle, I believe airlines have a window of
that wasn’t well understood. Even after delivering more than
opportunity to re-examine how they do business. The old
600 E-Jets to some 50 carriers around the world, airlines are still
way may not necessarily be the best way anymore. Consumers
discovering the potential of 70 to 120-seat aircraft. AIRCRAFT FINANCE GUIDE 2011
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Embraer’s E170, E175 and E190 aircraft. The smallest aircraft in the EJet family
“Manufacturer backlogs suggest, most carriers continue to order large-capacity jets. However, those airlines that have rejected traditional thinking and embraced the smaller aircraft philosophy are reinventing their businesses.” DOING THE MATHS
operating on the route, the 300 passengers could be served
As we were defining our E-Jets strategy, our early analysis
by three 150-seat jets, for example, filling 67 per cent of their
revealed some rather startling statistics about the traffic
seats. As you go down the demand spectrum, the viability
volumes on US domestic city pairs. Back then, as it is today,
of those three large jets becomes less attractive to the point
more than 75 per cent of routes could be classified as low-
where frequency would need to be cut to offset the reduction
to mid- density with demand of between 50 and 300 daily
in passenger volume, or discounted fares would need to be
passengers each-way. (Figure 1) At the top end of the demand range, assuming just one airline
introduced in the hope of stimulating additional traffic to fill empty seats. Neither option is really optimal. Having fewer
Backlog Evolution - US$ billion.
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“Every airline still wants to fly 150-seat jets because that’s what they have been conditioned to believe works best.” America that figure is an astounding 18 per cent. Further analysis of the 2009 US domestic market showed more evidence of the capacity-demand imbalance. On routes that were flown just once or twice a day by jets with more than 120 seats, 18 per cent of the flights carried between 60 and 105 passengers. In one year, that’s about 610,000 departures with loads more suited to smaller-capacity jets. (Figure 2) Notwithstanding operational, scheduling and pilot scope clause considerations, the mats suggests there are a lot of big aircrafts flying on routes that are too small to fill all the available seats. Nevertheless, as manufacturer backlogs suggest, most carriers continue to order large-capacity jets. However, those airlines
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Fig. 2 Revenue per region
that have rejected traditional thinking and embraced the
frequencies opens the door to competition and lower fares
smaller aircraft philosophy are reinventing their businesses. Jet
depress average yield.
Blue Airways’ founder, David Neeleman raised more than a few
It isn’t just a US story. Our review of the demand profiles in
industry eyebrows when he added a second aircraft type to the
China, Latin America, Asia-Pacific and other regions showed
airline’s A320 fleet. Jet Blue tapped into a completely new layer
an overwhelming majority of routes sustaining fewer than 300
of lower market volumes with a combination of frequency,
daily passengers. In China, just one quarter of the domestic city
capacity, and profitability that larger jets simply could not
pairs can sustain at least three daily 150-seat flights. In Latin
match. Both Flybe in the UK and Austria’s NIKI Airlines AIRCRAFT FINANCE GUIDE 2011
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broke from the low-cost carrier (LCC) single fleet-type mindset
link a series of low- and mid- demand markets, consolidating
in Europe.
passengers over several multi-stop legs because there was
After saturating a city pair with frequency and capacity, where
insufficient traffic to warrant high-frequency nonstop flights.
is a low-cost airline (or any carrier for that matter) to go with its
In January of last year, Azul Airlines changed all that. Not only
fleet of large jets when there are no more high-volume markets
did it establish a base away from São Paulo’s most congested
on its radar? And if it chooses to serve smaller cities, are the
airports, it introduced a non-stop service to those markets
assets really maximising their financial contribution?
that were accustomed to milk-run schedules. And it chose a combination of smaller-capacity E-Jets rather than the same
PULLING OUT THE STOPS
large single-aisle aircraft operated by its competitors.
Supplementing larger equipment with smaller aircrafts is
Azul has become the darling of a whole group of Brazilian
one strategy. Another is to structure your business model
consumers that have been patiently waiting for a company to
exclusively on low- and mid- demand routes. In my own
offer an affordable, high-frequency, quality product timed to go
backyard, I’ve seen how one airline, a start-up no less,
when they want to go, not when an airline tells them they can.
recognised the hidden potential of that segment and answered
I see similar opportunities in other parts of the world. Just like
the door when opportunity knocked holding a family of 70 to
Brazil in the past, service in western Africa is characterised by
120-seat aircraft.
infrequent, multi-stop flights with large-capacity jets. What
For years, if you wanted to fly from the south to the far north
makes that region so attractive for smaller aircraft is the age of
of Brazil, you were forced to endure a multitude of en-route
the current fleet. Carriers there have a unique opportunity to
stops before arriving weary and hungry. It was a mind and
correct an inefficient, archaic, operationally-oriented business
body-numbing experience, but there weren’t many choices.
model by choosing not to replace their old, large jets with new,
With few exceptions, airlines scheduled their large jets to
large jets. It’s an ideal time to change the flight plan.
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Embraer’s order book, by product, in the Commercial Aviation segment, on June 30, 2010
Fig. 3.
Revisions to onerous regulations governing aviation fuel tax
seize new opportunities made possible by deregulation and the
for small aircraft in India have finally made access to low- and
arrival of RJs. Airlines in the rest of the world, however, never
mid- demand markets more viable in that country. In India’s
had the same regional aircraft history. To them, a 150-seater is
intensely competitive domestic network, secondary markets
considered an entry-level jet.
are not as well-developed as the high-volume metro routes flown with large equipment. Every airline still wants to fly
THE CASM PARADIGM
150-seat jets because that’s what they have been conditioned
Despite the lesson airline managers keep learning about how
to believe works best. Yet, collectively, Indian airlines reported
excess capacity can destabilise yield and limit the potential
losses of epic proportions in 2009. Like Brazil, I suspect there is
for return on an asset, many still regard seat-mile cost as the
a whole group of Indian consumers patiently waiting for a high-
defining measure to evaluate an aircraft’s operating economics.
quality airline to recognise the market potential beyond New
Indeed, cost per available seat mile (CASM) is a fair
Delhi, Mumbai, Chennai and Bangalore.
benchmark, but only if the quantity of seats is compatible with
It’s understandable why airlines in many regions of the world still only consider large aircraft as the starting point for their
the market volume and frequency in which the aircraft will be deployed. Cost is only 50 per cent of the profit equation.
capacity requirements. The regional jet revolution of the mid-
Our approach involves a slightly different paradigm to
1990s was centered in North America and Europe. Carriers in
assess the overall earning potential of an aircraft. Rather than
those markets were quick to adapt their business models to
exclusively measuring CASM, it’s important to consider the hidden cost of carrying additional passengers to fill empty seats and the effect it has on net contribution. From a pure business
“It’s important to consider the hidden cost of carrying additional passengers to fill empty seats. What’s more critical – maximising load factors, preserving passenger yields, or contribution to the bottom line? What if you could have it all?”
perspective, what’s more critical – maximising load factors, preserving passenger yields, or contribution to the bottom line? What if you could have it all? If airlines are to tap into under-served low- and mid- demand markets where there is often little competition and good opportunities for growth, how should they determine the right-size aircraft to operate on those routes? Competitive positioning, market share and frequency are all important. But is an aircraft’s CASM always the best indicator?
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Assuming a $100 fare is charged on an 800-mile city pair, a 140-seat jet needs about 20 more passengers than a 100-seater to break even. (Figure 3) If there are 68 passengers on each aircraft, for example, the smaller jet will make a positive contribution while the larger will be negative. Adding, say, another 15 farepaying passengers for a total of 83 on each aircraft, generates a contribution that is eight times higher for the 100-seater. If a 170-seater is flying the same sector there will be an even higher disadvantage compared to the 100-seater. Even when all seats on the 100-seater are sold, and accounting for spill and opportunity revenue, its contribution is still 60 per cent higher than the larger jet. The classic response would be for the larger jet operator to lower fares, hoping to stimulate new demand and fill the empty seats. A consequence is, however, that a portion of the original traffic may buy the lower fares. Therefore, the game begins to preserve overall yield integrity. Smaller-capacity aircraft generally command higher yields since there are fewer surplus seats that necessitate fare discounting. With so many lower-density markets that can be more profitably served with smaller aircrafts, why is more than 80
those same types, the better. Large leasing companies have been instrumental in adding fuel to the fire.
per cent of the current single-aisle backlog comprised of jets
It often takes a crisis to make companies re-think how they
with more than 120 seats? (Figure 4) If so many of these aircraft
do business so that they can be better prepared for the next
are to be delivered in the coming years, what will happen to the
downturn. But from adversity often comes opportunity. Right-
market and the value of those assets?
capacity aircrafts have helped airlines prosper during difficult
I think this imbalance has been caused by three things; Inertia:
times and many have emerged stronger after the up-turn.
It’s only natural that airlines, having been supported by the
Today’s 70 to 120-seat jets are no longer limited to traditional
same OEMs for the past 20 or 40 years, tend to renew their
regional applications. Carriers in countries that never had
fleets or plan for growth by buying more of the same. Secondly,
experience with smaller aircrafts may be surprised to know that
LCC pressure on legacy carriers: LCCs have established
our E-Jets are flying on routes in excess of five hours; that they
themselves in high-density markets and have taken significant
are equipped with in-seat audio and video-on-demand; have
share from legacy carriers with lower fares made possible by
premium-class cabins and are scheduled on the same routes as
leaner operating structures and lower unit costs. Competitors
larger, single-aisle aircraft.
responded by aggressively lowering their own unit costs, which
We continue to challenge traditional thinking and check
included adding higher-capacity aircraft. And lastly, leasing
our flight plan to ensure we recognise future opportunities
companies: Today, about one third of commercial aircraft are
that benefit our customers and the industry. Indeed, timing is
flying under operating leases and this is expected to grow to 50
everything. But after enduring the severe market contractions
per cent in the coming years. I think leasing companies care less
precipitated by the events of 9/11 and the recent global
about passenger convenience, market densities and frequency
financial crisis, I would qualify that by saying that in the airline
and more about asset liquidity and residual value. To them,
business these days, capacity and the approach to managing it
the more aircrafts of the same type and the more airlines flying
are just as important. Q
Fig. 4. Aircraft deliveries: evolution by year
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New kid in town: A320 and A321 converted freighters Michael Fuerst, VP of marketing and sales at Airbus Freighter conversion, takes a look at the market for the A320 and A321 passenger to freighter (P2F) aircraft.
T
HE A320 FAMILY IS THE most popular aircraft family
up to 2,100nm respectively. The A320 P2F can carry 10 ULDS
worldwide, currently more than 4,200 have been delivered
(88x125) plus one-half pallet (61.5x88) in the main and seven
and almost 2,300 are still on order. As the first of these aircraft
ULDs (LD3, 60.4x61.5) in the lower decks, while the A321 P2F
are now 20-years-old, it is time to enrich the family with new
carries 13 plus one half pallet in the main, plus 10 in the lower
members – the A320 and A321 passenger to freighter (P2F)
decks. With bulk in the lower decks, the A320 P2F reaches a
converted aircraft. Entry into service and the start of serial
total capacity of 5,900 ft³, the A321 P2F a total of 7,700 ft³ in
production will fall in 2012 when many of the world’s current
loadable volume. This means the A320 and A321 P2F bridge
single-aisle freighters will be up to 40-years-old.
the gap between the 737 and 757, also making them good
Will the A320 P2F converted family be a successful freighter
replacement candidates for the aging 727F fleet.
programme? It offers virtually unlimited feedstock in conversion candidates, it provides availability of global MRO services and full
FUTURE MARKETS
OEM support for decades to come, and it meets market needs for
A good reason to convert passenger aircraft into small jet
more modern and efficient freighter aircraft.
freighters rather than developing a new freighter is cost. The
The programme is designed to deliver environmentally
small jet freighter business offers lower profit margins than
friendly, fuel saving, efficient operations; and with more than
the long-range segment due to the small amount of cargo that
4,000 potential conversions in the next 20 years success is
can be carried in this segment (only 8.6 per cent of worldwide
certainly an expectation.
cargo), so it is necessary to offer low-priced freighters. A P2F
The A320 P2F Family is designed to meet modern needs, providing increased revenue opportunities, as it is suitable both for
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converted aircraft will provide a cheaper solution as new aircraft are inherently more expensive.
express and general freight. It also offers increased cargo revenue
But in order to offer a profitable conversion solution further
by being the only small jet freighter with containerised freight
requirements must be met: a market must be available for
capability in the lower deck, ensuring fast turn-around times.
the converted aircraft, conversion must be viable, and there
Payload varies from up to 21 tonnes (t) for the A320 P2F and
must be a reasonable feedstock of passenger aircraft in good
up to 28t for the A321 P2F, with a range of up to 2,000nm and
condition and at an acceptable price. The A320 Family AIRCRAFT FINANCE GUIDE 2011
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provides a large amount of in-service aircraft of the right size to
costs for the A320 P2F Family will be much lower than those of
become a feeder freighter.
older and direct competitors.
The A320 and A321 P2Fs will be the most modern solution
Further demand is likely to come from the US cargo market.
in the small freighter market segment (up to 30t payload)
The US fleet currently accounts for the majority of aged and
for the next decade and will be a suitable freighter aircraft
inefficient freighters, such as the 727-200, 737-200 and DC-9 as
for the growing worldwide express market. It is also an
well as aging 737 Classics. These aircraft are inapt for today’s
ideal replacement for older aircraft that are currently in
and tomorrows market requirements being excessively fuel
express operations.
consumptive and responsible for high fuel and noise emissions.
A key market for the A320 P2F Family is the emerging Asia-
Typically, small freighters are retired after 37 years of operation.
Pacific region, particularly India, China, Latin America, and
Noting the average age of the US fleet, this should generate
North America, where the major freight integrators and other
demand for over 300 replacement aircraft in North America
operators collectively hold more than half the world’s current
over the next 10 years.
freighter fleet.
Airbus’ Global Market Forecast 2009 predicts that of the 812
The Asia-Pacific region will be the most dynamic region in
small jet freighters that will be required until 2028, 786 will
terms of economic growth and ‘just-in-time’ manufacturing
be converted freighters. In the regional and long-range
processes require flexible and fast air cargo. A number of
freighter market, 1285 of the 1816 aircraft are expected to be
products must be delivered promptly, namely electronic
converted freighters.
equipment and designer clothes (which may otherwise be copied by rival designers before reaching the customer); perishables such a flowers and food also need guaranteed on-
THE A320 P2F CONVERSION PROGRAMME: A NEW CO-OPERATION CONCEPT
time and swift transport. It is notable that a large percentage of
The A320 and A321 P2F is the first converted aircraft under
such items are produced in the Asia-Pacific region, meaning
the Airbus flag. As an OEM certified conversion, the operator
there is a profound need for efficient, reliable freighters in the
will enjoy full Airbus support throughout the aircraft’s lifetime
region. Added to this is that many main cargo hubs are difficult
– unique in this market sector. Also unique is the programme’s
or impossible to serve swiftly by land transport. In particular,
approach for this new freighter: Airbus may be the type
the emerging markets of China and India will have to expand
certificate holder and the name giving party in this project, but
their domestic express network to serve tomorrow’s demands.
it is sharing the conversion solution design development with
As the express-package and postal operations market is
other parties.
predominantly delivering within 24 hours, most aircraft
Airbus together with EADS’ conversion arm Elbe
are flying over night. The A320 P2F Family provides full
Flugzeugwerke (EFW), hold 50 per cent of the special
compliance with the latest emissions and noise regulations.
purpose company Airbus Freighter Conversion (AFC), which
Younger freighter types, such as the A320 P2F, should become
was founded to market the A320 and A321 P2F solution.
increasingly popular as higher long-term fuel expense and
In addition, Russia’s aerospace holding, United Aircraft
increasing costs for maintenance and technical support make
Corporation (UAC), and Irkut each hold 25 per cent in shares.
older aircraft operations expensive and inefficient. Operational
While EFW and Irkut are responsible for the P2F detailed
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design, Airbus is responsible
freighter for the operator’s network.
for non-specific design, design
For example, many express freight
validation, and final certification of
operators fly on a hub-and-spoke
the conversion solution.
basis, meaning that they carry
Whether to choose an original
freight from smaller airports to
equipment manufacturer (OEM)
a central hub and then forward
conversion or a non-OEM
the goods to the final destination
conversion is a matter of faith. OEM
or other international hubs.
conversions provided by Airbus
Freight transportation between
or Boeing offer original design
international hubs is operated on
solutions, sometimes based on the
range freighters (such as the A300-600 P2F, 767SF,
f r e i g h t e r, o r i g i n a l
A330F or 747SF) while distribution to the hubs
parts and integrated
is either by belly freight on passenger aircraft via
customer service.
road transport or feeder aircraft. For the latter,
Third-party converters,
narrowbody freighters, such as the 737 or the new
such
Pemco,
A320 or A321 P2F, will come more and more into
Precision Conversion,
consideration, enabling operators short-range
Aeronautical
flights with a high daily utilisation and more
Engineers,
flexibility than a passenger flight schedule.
as
ST
Aerospace and IAI
84
owned or leased widebody long-
respective production
One aspect not to be underestimated when
Bedek offer licensed solutions and are sometimes more
choosing the right aircraft is the continuous support for
flexible in terms of conversion slots. The major difference
freighters after the conversion has been completed. Since
however, is the conversion price. Whereas third parties can
2009, operators of Boeing converted freighters have had to pay
act more flexibly and are in most cases cheaper than the
an annual fee to access Boeing technical support (which does
manufacturers’ equivalent, OEM conversions can add more
not cover the support costs). Airbus is involved directly in the
value to the aircraft’s lifecycle and keep residual values high.
conversion process and is Type Certificate holder of the A320
There are many factors to consider when deciding which
and A321 P2F. In the case of the A300-600 P2F and A310-300
conversion company to choose: availability of conversion slots,
P2F (converted by EADS conversion arm Elbe Flugzeugwerke),
the manufacturer’s and converter’s experience and reputation,
Airbus is supplement type certificate (STC) holder and will
aircraft acquisition and conversion price, economics of the
also be the STC holder with the future A330 P2F. Third-party
freighter, service support and (not least) the suitability of the
converters however, have recently produced various licence AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE partnerships to offer their customers continuous support
the reinforced frame shell will be installed together with a
regardless of Boeing’s annual fee. Airbus provides maintenance
121 inch wide cargo door in the aft of the aircraft. Having the
provision wherever the A320 P2F is operated and a popular
heavy main deck cargo door in the aft improves the converted
fleet means higher availability in mechanics, ground support
freighter’s centre of gravity and offers the operator more loading
equipment, spares, and access to the Airbus customer services
flexibility with no risk of tipping.
network worldwide. The A320 Pax Family and A320 P2F
In the forward part of the aircraft, a 9G safety barrier wall
freighter family will both continue to have global support for
will be installed and a two-seat courier area (plus two optional
the full length of their lifetimes.
seats). A manual cargo loading system
CONVERSION WORKSTEPS
will be installed in
Regardless of whether the conversion is performed by an OEM
the main deck. The
or third-party conversion house, the basic steps to convert the
A320 P2F launch
passenger aircraft into a freighter are almost the same. Seats,
customer AerCap,
head racks, floors and linings are ripped out, floor beams and
has recently selected
frames are re-enforced or exchanged, windows closed and a
PFW
large hole cut into the fuselage for the installation of a cargo
AG to design and
door, either in the forward (e.g. 737, 757, A300) or aft section
manufacture the cargo
(e.g. BAe146 and A320/A321 P2F) of the aircraft. Usually,
loading system for
parts of the fuselage are replaced or strengthened to enable the
the first converted
converted freighter to bear heavier loads, necessary because
freighters. The lower cargo compartments remain unchanged –
the aircraft were designed to carry heavy loads only in the
fitted either with bulk nets, a cargo loading system or a sliding
lower deck. Finally, systems will be adopted and changed to fit
carpet. Based on its initial design and wider fuselage section,
the aircrafts’ new role as a freighter. Depending on the aircraft
it is possible to carry bulk, containerised or palletised freight
size and programme, on average the conversion process lasts
in the belly holds of the A320 P2F Family. This is a unique
between 60 (e.g. for 737 or A320) and 100 working days (e.g.
feature and it is a significant advantage in this market segment,
BAE146 or 747).
delivering additional loading flexibility. Additionally, the A320
In the case of the A320 P2F and A321 P2F, all workmanship
Aerospace
Family lower decks offer heating as well as ventilation.
will be performed in accordance with Airbus’ production
These and its other qualities means the A320 and
standards using dedicated engineering sources from the Airbus
A321 P2F provide new perspectives for perishables and live
single-aisle programme, ensuring OEM quality, OEM material
stock transportation, and therefore new opportunities for air
and OEM customer support. For the A320 P2F and A321 P2F,
cargo carriers. Q
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Who will pay for the big bad ash cloud? The volcanic ash cloud that closed European air space during April added further serious injury to an already battered industry. Marjorie Holmes, partner at Reed Smith examines the cost of the air space closure as well as the legalities and likelihood of European airlines receiving financial reimbursement.
F
IRST ESTIMATES BY EUROCONTROL, THE European
It was reported that the European aviation community
Organisation for the Safety of Air Navigation, were
— comprising airlines, airports, ground handlers and tour
that more than 100,000 European Union (EU) flights were
operators — suffered losses of between €1.5bn to €1.2bn.
cancelled as a result of the volcanic ash that covered most of
($1= €0.76) A forecast of costs published by the Association of
Europe following the eruption of Eyjafjallajökull during April
European Airlines (AEA), which represents 36 major airlines,
15-21, 2010.
estimated revenue losses of €850m for April 5-23 in addition to costs of €194m for passenger rights exposure. Further closure of European air space has occurred since then, and it is possible
“If national member states do become responsible for covering the cost of flying European passengers home instead of airlines, one must ask where it should source this money – should it come from community funds, the taxpayer, or the consumer?”
that other eruptions will follow. The thorny issue is who should, and can, foot the bill? The European community has created a high level of protection for all passengers travelling on European carriers to, or within the EU, which in some cases is disproportionate to passengers’ travel costs. It appears unfair and unwise that this cost be left to airlines. Ryanair CEO, Michael O’Leary, was reported in the press as saying that his airline would only reimburse passengers the
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AIRCRAFT FINANCE GUIDE transport to and from the hotel. By all accounts, Ryanair is now endeavouring to comply with its obligations, though it was reported that ENAC, the Italian civil aviation authority, had issued a fine of €3m against the airline for failing to conform. Airlines have visited the European Commission to discuss compensation for the massive outlay caused by the eruption. Yet responsibility to approve state aid in the airline industry has been moved from the European Commission’s directorate general for Mobility and Transport (DG MOVE), headed by commissioner Siim Kallas, to the directorate general for competition (DG Comp) following the appointment of its new commissioners in February 2010. Amongst this flux, a decision has yet to be reached. Of concern to all is the question of whether monies paid by member states would be considered as aid. Legally, sums paid in compensation under an obligation to the public are not classed as aid and although special rules apply within the land transport sector (rail, road and internal waterways) — possibly because of extensive public service obligations in that area — this is not so in the airline sector. DG Comp commissioner, Joaquín Almunia seems to be of the view that any funding would amount to aid and has been quoted in the press as saying that national governments could offer state aid to the industry in the case of price of tickets, but European Regulation 261/2004 gives EU air passengers the right to compensation and assistance in the event of cancelled flights, denied boarding or long delays. The regulation aims to ensure a high level
natural disasters, but that the EU (namely, himself) must approve the aid. The commission has promised to consider favourably such applications if measures are temporary and are granted based on uniform criteria established at EU level.
of protection for passengers and extends to
In the past, some governments have been eager to provide
scheduled, but also non-scheduled flights,
aid to their flag carriers. In 2002, following a complaint
including those forming part of package tours.
from Hellenic Air Carrier Association (HACA), the European
Compensation must be paid unless there are
Commission initiated a formal investigation against the Greek
‘extraordinary circumstances’; legally, these
government for granting aid to Olympic Airways. In 1994,
include meteorological conditions that render
aid had been approved subject to 21 commitments, including
flying unsafe. The eruption of Eyjafjallajökull (the
not to interfere with management except within their role as
first since 1821) and the spread of the volcanic ash
shareholders and to provide more aid via tax exemptions, but
over European air space is undoubtedly one such
several commitments were not observed and the commission
‘extraordinary circumstance’, especially given
decided that there had been “abusive” application of aid
that airports closed in circumstances beyond the
granted in 1994 and 1998.
control of the airlines, or indeed anyone else.
The body not only viewed the restructuring aid as
But this same exception does not apply to the
incompatible, but when Greece failed to recover it, the
reimbursement of fares and the cost of caring
commission referred the matter to the European Court of
for delayed passengers, such as providing them
Justice (ECJ), which judged that Greece had infringed state
with food and drink, hotel accommodation and
aid rules.
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“Volcanic eruptions, though unusual, are unavoidable, but advance notice can minimise disruption. To mitigate future costs we must become more aware of such risks as well as develop strategies to cope with them.”
Following September 11-14, when US air space was closed under threat of terrorist attack, several member states were awarded compensation in the form of aid, as the circumstance was deemed ‘exceptional’. Indeed Austrian and French governments attempted to award airlines with aid that exceeded the cost of grounding aircraft, and in the case of France, it included extra security costs following the reopening of airports. In another Olympic Airways case, the European Court of First Instance (CFI) partially annulled the commission’s decision in relation to Greek aid, concluding that if there was a direct causal link between financial loss and the events of September 11, this could be covered by state aid. However, it appears that in the current climate, member states are not flocking to provide reimbursement. And if national member states do become responsible for covering the cost of flying European passengers home instead of airlines, one must ask where it should source this money — should it come from community funds, the taxpayer, or the consumer? Some governments cannot afford to provide state aid to their airlines, and while the Irish government may have a public service obligation to its citizens, 88
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why should it fund the reimbursement of non-Irish citizens travelling, for example, from Italy to Germany (Rimini to Frankfurt) on Ryanair?
Europe’s ferry fleet covered by a new passenger rights law. Prevention is always better than cure. Volcanic eruptions, though unusual, are unavoidable, but advance notice can
The transport sector has a number of community funding
minimise disruption. To mitigate future costs we must become
schemes, administered by DG MOVE, including the Marco Polo
more aware of such risks as well as develop strategies to
programme, which is aimed at increasing sea cargo and limiting
cope with them. One possible solution is that airlines jointly
the transport of cargo by road. Another programme is Ten-T, which
purchase pooled insurance for this type of risk; a compulsory
with budgetary resources of €8.17m, was set up to complement
or optional joint purchase scheme is a viable option that should
national resources of financing for infrastructure projects that
be considered.
interconnect neighbouring countries.
The European Commission’s DG MOVE has issued guidelines
Yet it appears that the European community may not have the
on measures to minimise disruption caused by the volcanic ash
appetite to fund either such projects, or airlines, especially given
and the European Commission is preparing a paper to discuss
that it is looking at a €750bn rescue plan for the Euro. At the
a more coherent approach to safety risk assessment on an
time of writing, the Marco Polo freight subsidy was on the table
international basis. The commission will discuss its finding at
for discussion with the view to axing it in the current round of
the International Civil Aviation Organisation’s (ICAO) General
EU budget negotiations — incidentally at the same time that
Assembly in September 2010, after which we should all
the European Parliament wishes to increase the percentage of
anticipate a clear and fair strategy. Q
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Exploring tax lease structures Over the last few years, tax-based leasing in the aviation industry has been in decline. This is due to a number of factors, but is largely because of the changing attitude of many tax authorities to what they now perceive as tax avoidance schemes. Matthew Hodkin, Laurence Toxé and Igsaan Varachia, of international legal practice Norton Rose, discuss the issues surrounding tax lease structures. 90
ITHIN THE EU, TAX-BASED LEASING used to be
W
tolerated and even encouraged by tax authorities where
it could be used to incentivise particular industries such as aviation and shipping and encourage businesses in those sectors to undertake activities in their ‘home’ jurisdiction. Thus, most tax-based leasing systems began to incorporate protective measures to ensure that the benefits were only available where the asset was being leased to a company in the jurisdiction of the tax benefit. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE This made sense from a tax point of view as, for example, the UK tax authorities would be shifting the benefit of UK tax depreciation from one UK company (being the airline) to another more able to use the relief (usually a bank). However, as the understanding of the impact of EU law on domestic law grew throughout the 1990s, it became apparent that such measures could potentially fall foul of not only state aid rules, but also the EU fundamental freedoms as applied to tax measures. This is one of the reasons why tax authorities in recent years have moved from a system of offering generous benefits to those operating within their jurisdiction, to a system of offering less generous benefits to all-comers. This article looks at some of the tax-based leasing structures that are still viable in the EU, with sections on the UK, France and Germany.
THE UK In 2006, the UK imposed a fundamental change to its leasing rules. Previously, tax depreciation (at a rate approximating to 16.5 per cent on a reducing balance basis) had been available to the legal owner of an aircraft, regardless of the terms on which he leased the aircraft, provided the lessee was taxable
numbers as a larger body of interested parties makes for more significant lobbying capability.
in the UK. From 2006, the rules have been changed to give
s TAX CAPACITY: traditionally, UK lessors have been
the tax depreciation to what HM Revenue & Customs (HMRC)
subsidiaries of the domestic banks, which have sheltered
perceive as the ‘economic owner’ of the aircraft, so that broadly
bank profits with the tax losses generated in the early years
speaking only ‘true’ operating lessors are entitled to the tax
of leasing transactions. In recent years, tax capacity has not
benefit of owning an aircraft.
been as predictable as throughout the previous decade (to say
This means that, other than in respect of some very short-term leases (less than five years without extensions), the tests that must be satisfied in order for a lessor to claim allowances are: s 4HE LEASE MUST NOT BE ACCOUNTED FOR AS A l NANCE LEASE BY THE lessor or its consolidated group s 4HE TERM OF THE LEASE MUST NOT BE FOR MORE THAN PER CENT OF the remaining useful economic life of the aircraft, and
the least) and banks have begun to look harder at the way they price tax capacity. s ATTITUDE TO THE ASSETS: it certainly seems as though the UK banks have gradually, since 2001, grown more averse to investing in aviation assets. s ACCOUNTING TREATMENT: the vagaries of IFRS lease accounting can mean that entering into a new leasing
s 4HE PRESENT VALUE OF THE PAYMENTS DUE UNDER THE LEASE
transaction can give rise to a pre-tax loss in the early years
(including any guaranteed residual value amount) must
for the lessor. Where an aviation finance team’s success is
be less than 80 per cent of the fair value of the aircraft at
measured on a pre-tax basis, such a transaction is unlikely to
delivery.
prove popular.
Leases that fail any of these tests are known as ‘long-funding
Despite the above, the success of the ROSCOs operating under
leases’.
a similar business model does suggest that the tax regime exists
As can be seen, this replicates to a certain extent some of
for a successful UK-based aircraft leasing operation. Although
the factors that may influence a decision under international
we are aware of a number of isolated leasing transactions that
financial reporting standards (IFRS) whether a lease is a finance
have taken place under the new regime (usually for corporate
lease or an operating lease. It is designed to ensure that lessors
clients of the UK banks), there is still no significant player in
under structured leases, which are accounted for as operating
the UK market.
leases, do not retain the benefit of the tax depreciation. Where the lessor does not qualify for tax depreciation, the transaction is treated as a financing in his hands and the tax depreciation generally passes to the lessee. This change was designed with one eye on the UK rolling stock leasing market (the vast majority of UK rolling stock is owned by operating lessors called ROSCOs), and so the tests do sit relatively well with the business model of most aircraft lessors. However, since the introduction of long-funding leases, no significant UK aircraft leasing business has established itself. This is down to a number of factors: s INERTIA: aircraft lessors are comfortable with Ireland
“Within the EU, tax-based leasing used to be tolerated and even encouraged by tax authorities where it could be used to incentivise particular industries such as aviation and shipping and encourage businesses in those sectors to undertake activities in their ‘home’ jurisdiction.”
and, where tax regimes are concerned, there is safety in AIRCRAFT FINANCE GUIDE 2011
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GERMANY
lower going-concern value to reflect technical or economic
In similar fashion to the UK, the German lease regime has
obsolescence is permissible for tax purposes.
recently undergone some changes that have restricted the
As in the UK, the German lease generally requires that the
benefits available. The tax benefits conferred by depreciation
person claiming the allowances is the economic owner of the
under a German lease are based on tables issued by the Federal
asset.
Ministry of Finance for any given asset such that aircraft are generally written off over a period of 12 years. For assets
Lease payments made out of Germany are generally no longer subject to German withholding tax.
acquired during 2010, the economic owner may apply the
When combined with a German lease, KG (Kommand-
declining-balance depreciation method. A write-down to a
itgesellschaft) financing structures have experienced a renaissance over the past years in Germany. The KG is treated as a transparent entity from a German tax perspective. Therefore, for German income tax purposes, the
“The last couple of years have seen a decline in interest of individual investors, mainly due to market turmoil. There are signs that investor appetite is increasing in 2010, although structures that can incorporate a guaranteed return of capital may (if achieved) prove to be the way.”
income generated by the KG is not subject to tax at KG level but rather at investor level at their applicable personal income tax rates which vary. Generally speaking, the investors are individuals and there is a market for individual investors in Germany in a way that does not really exist in the UK. For example, some recent KG funds have been launched to finance A380 aircraft, which are attracting interest from investors who want the kudos of investing in the aircraft. When structured as a non-trading entity, which is normally the case, the KG derives rental income from the lease of the aircraft, assuming the aircraft is registered on the German
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aircraft register. Otherwise, the income is considered to be
tax benefit available under a KG. There are also rules, which
‘other income’ for German tax purposes. In any event, the
can trigger a capital gain on an investor on a disposal of the
taxable income is generally determined by income less
aircraft.
interest, depreciation and other costs.
The last couple of years have seen a decline in interest of
As a non-trading entity, the KG should not be subject to the
individual investors, mainly due to market turmoil. There are
interest ceiling rules, which limit the deduction of interest
signs that investor appetite is increasing in 2010, although
expenses, but generally, losses will only be available to offset
structures that can incorporate a guaranteed return of capital
against profits from the same source, which can restrict the
may (if achieved) prove to be the way forward.
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“Banks have recently become more cautious due to rumours of a possible renegotiation of the double taxation treaty with China together with some doubt about the ability to get full beneďŹ t of the tax credits under French tax law‌ Since then, the aircraft tax leasing market has been very quiet. Banks have very rarely used the two tax schemes that are theoretically available to them, namely the single investor lease scheme and the 39 C scheme, to ďŹ nance aircraft.â€? FRANCE
Banks have very rarely used the two tax schemes that are
France had an active aircraft tax leasing industry until about
theoretically available to them, namely the single investor lease
2007 although, historically, the GIE ďŹ scal scheme (which was
scheme and the 39 C scheme, to ďŹ nance aircraft (while they are
the main traditional French tax lease and which was looked at
still widely used for ships and trains).
by the European Commission in 2006) was not heavily used
Both of these schemes rely on the declining balance
for aircraft. This is why banks started to look at alternative
depreciation available to the legal owner of the asset (rather
tax structures at the beginning of the 2000s. Combined with
than by the economic owner). Under a single investor lease,
the explosion of the aircraft domestic market for Chinese
the lessor must be 95 per cent owned by the wider group of
airlines, French banks came up with a structure based on the
the bank with tax capacity and so the tax beneďŹ t can be used
tax sparing provision contained in the French-Chinese double
by the consolidated group. Under a 39 C lease structure, the
taxation treaty of 1984. France is indeed one of the last Western
lessor is a tax-transparent entity and therefore the investors
jurisdictions to have double taxation treaties with tax sparing
can be multiple partners who will share the tax profits
provisions with a number of jurisdictions, especially in Asia.
and losses made by the partnership pro rata to their share in
Under this structure a French bank with tax capacity would provide a ďŹ nance lease to a Chinese airline lessee and would
the partnership. The structures based on tax transparency are the successors
obtain the following beneďŹ ts:
to the GIE fiscal, and have been introduced under specific
s 4HERE WAS NO WITHHOLDING TAX AT SOURCE IN #HINA
legislation following the well publicised enquiry by the
s 4HE TAX CREDIT GRANTED IN &RANCE AMOUNTED TO PER CENT OF
European Commission into the legality of the GIE ďŹ scal. This
the gross rental received. s 4HE TAX CREDIT COULD BE USED BY THE PARENT COMPANY TO OFFSET against proďŹ ts of a consolidated group in France. Similar transactions were also made with Turkey, Singapore
is why the 39 C regime contains more constraints than single investor lease structures. There are on the contrary little constraints to the single investor lease scheme, except for general anti-avoidance rules.
and Malaysia, all of which had tax sparing provisions in
The reason for banks not using these two schemes for
their treaties with France. Banks have recently become more
aircraft ďŹ nancing compared to other types of assets seem to be
cautious due to rumours of a possible renegotiation of the
the following:
double taxation treaty with China together with some doubt
s 4AX CAPACITY THIS HAS BEEN LOWER AND ESPECIALLY LESS
about the ability to get full benefit of the tax credits under
predictable than it used to be. Moreover previous tax sparing
French tax law. China has also reintroduced a small domestic
transactions require tax capacity over the length of the lease
withholding tax on lease payments.
and not only in the ďŹ rst ďŹ nancial years, requiring banks to
Since then, the aircraft tax leasing market has been very quiet.
keep tax capacity available for historic deals. s !RBITRAGE WITH OTHER TYPES OF ASSETS BANKS HAVE BEEN tempted to keep their tax capacity for more financially attractive tax schemes such as ship financing where net present values (NPV) are higher due to the exit strategies. s 2EDUCED COST OF FUNDING BANKS HAVE HAD THE OPPORTUNITY TO ďŹ nance themselves at a lower cost and have consequently increased their margins, making the existence of the tax structures less essential. Therefore, the current aircraft leasing market is rather a traditional market based on standard loans, more and more frequently with credit export agency support. A recent development might be that European credit export agencies might, like their US equivalent EX-IM, decide to support bond issues made by special purpose vehicles (SPVs) for aircraft ďŹ nancing. Q
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The benefits of covered bonds in the aviation market After government bonds, the European covered bond market is now the second biggest bond market in Europe, worth an estimated €1.7tn ($2.2tn). From their beginning in the 13th Century, covered bonds have blossomed into a highly successful form of security that is being used in increasingly diverse ways by a wide range of issuers. Rex Rosales and Simon Greer of Reed Smith examine the benefits of covered bonds and how they can be successfully used by a wide range of financial institutions and investors, including those in the aviation market. O WHAT IS A COVERED bond? It is defined officially in
finance institutions (particularly given the current state of the
the UK (Regulated Covered Bonds Regulations 2008) as “a
banking markets) to re-finance existing arrangements.
S
bond in relation to which the claims attached to that bond are
The potential of this market was illustrated in March 2009
guaranteed to be paid by an owner from an asset pool it owns”.
when Germany introduced the ‘Aircraft Pfandbrief’, a new
Normally a covered bond will be a fixed interest bullet bond
category of covered bond in which there is expected to be a
whereby repayment is in a lump sum due at maturity. Covered
market of around €44bn ($1= €0.78). This model will no doubt
bonds are also full recourse debt securities, which is a big
become increasingly popular in the aviation market as it has
advantage to investors.
many benefits for both the financier and the investor. In the
Typically the owner will be a bank or other regulated credit
current financial climate, it is clear that re-financing and low-
institution which will be fully secured over a pool of assets,
risk investments are in high demand and covered bonds are an
usually comprising of mortgages and public sector loans. In
excellent instrument through which to achieve both.
terms of the aviation market, the cover assets pool would
The internationalisation of covered bonds has led to
include loan debt secured by aircraft mortgages or, in more
legislative problems and considerable debate as to how to
recent developments, Export Credit Agency (ECA) — backed
regulate them. Within the EU, the problem has been that
financings. This presents an excellent opportunity for aircraft
individual nations had developed their own legislation
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AIRCRAFT FINANCE GUIDE to regulate covered bonds and, therefore, initiation to implement uniform EU legislation has proved difficult. This is particularly true in the UK. The relevant EU legislation is the UCITS directive (85/611/EC). This directive sets out the five key characteristics of a covered bond: s 4HE ISSUER IS A CREDIT INSTITUTION which has its registered office in an EU member state; s 3UMS DERIVING FROM THE ISSUE ARE invested in conformity with the national covered bond legislation in specified eligible assets; s &OR THE LIFE OF THE BONDS THE eligible assets are capable of covering claims in respect of the bonds; s )N THE EVENT OF THE FAILURE OF the issuer, bondholders have a priority claim in respect of the eligible assets; and s 4HE ISSUANCE OF COVERED BONDS IS subject by law to special public supervision designed to protect bondholders. These
are the fundamental
provisions that EU states have had to incorporate into their national laws in order to implement the directive. However, the respective national laws have not been equal and this has led to imbalance in the covered bond market. The best example of this is the UK, where legislation has struggled to implement the directive and thus covered bonds have been treated differently from their counterparts in other EU member states. In particular, UK covered bonds have been dealt with differently regarding exposure limits applicable to regulated funds and for regulated capital purposes. This has led certain investors to prefer European covered bonds over UK covered bonds. The first covered bond in the UK was issued by HBOS Treasury Services in July 2003. Since then many other financial institutions including Barclays, Lloyds TSB, HSBC, RBS and Nationwide Building Society have followed suit. UK covered bonds have a particular structure that differs from traditional 96
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“The first covered bond in the UK was issued by HBOS Treasury Services in July 2003. Since then many other financial institutions including Barclays, Lloyds TSB, HSBC, RBS and Nationwide Building Society have followed suit.”
covered bonds and is known as the ‘segregated’ structure.
The SPV then secures its obligations under the guarantee by
In the UK segregated structure an FSA authorised credit
granting a deed of charge in favour of a security trustee (acting
institution (normally a bank or a building society) issues the
for the benefit of the bond holders) over its rights and interests
covered bond, which is a direct, unsecured and unconditional
in the cover pool assets. There should be no discrepancy
obligation of the issuer. The issuer then immediately lends the
between the cashflows coming in from the cover pool assets
proceeds of the covered bond issue under an intercompany
and the cashflows going out to the bondholders. Therefore,
loan to a special purpose vehicle (SPV) that is on its balance
the SPV will enter into hedging arrangements to deal with
sheet. The SPV then uses the intercompany loan to acquire the
differences in interest rates, timing of payments and exchange
assets which form the cover pool to the bond.
rate fluctuation.
The SPV is incorporated as an English limited liability
The European ‘integrated’ structure differs from the UK
partnership (LLP) and therefore the cover pool assets are
‘segregated’ structure, in that there is no need for an SPV – the
protected from any insolvency of the issuer. The assets are
issuer also holds the cover pool assets. Recent issuers include
acquired on arm’s length terms and typically are mortgage loans
BNP Paribas, ABN Amro, Natixis and Deutsche Bank. Under
or other eligible assets from the originator. The assets must be
the ‘integrated structure’ a duly authorised credit institution not
sufficient to cover all amounts that are due under the covered
only issues the bonds, but also directly acquires the assets to
bonds and are subject to strict conditions and criteria imposed
build the portfolio for the cover pool. The cover pool assets
by the FSA in relation to their substitution or replacement. The
must be sufficient to cover all sums due under the bonds and
SPV guarantees both the issuer’s principal and interest payment
they are separated from the issuer’s other assets automatically
obligations under the covered bonds. The guarantee is a direct,
by the operation of law. Commercially, this achieves the same
unsubordinated and unconditional obligation on the SPV and
effect as the SPV in the segregated structure. The cover pool
is callable on the default of the issuer to pay any sums due
assets are exclusive to the bondholders giving them a senior
under the covered bonds.
priority claim over these assets.
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BNP Paribas recently launched a covered bond programme
“The fact that covered bonds give the investor full recourse against the issuer and that they are regulated by the UCITS directive means that they are a comparatively safe and transparent investment and therefore attractive to a broad range of investors.”
which is of major significance to the aviation finance market.
98
BNP Paribas Public Sector SCF (société de crédit foncier, or the
the rights and powers of the issuer under the relevant eligible
SCF), a subsidiary of BNP Paribas, issued French law-governed
assets, the guarantors for the related guarantees and relevant
covered bonds known as ‘Obligations Foncières’ (OFs). The
debtors in relation to the eligible assets. The OFs may be issued
OFs are notable as being the first covered bonds to include
in different currencies and may give full redemption at final
sovereign-backed assets in the cover pool.
maturity or full redemption at an extended maturity. With
In terms of structure, as already stated, the cover pool consists
regard to over-collateralisation, the OFs have a healthy level
of sovereign-backed assets with potential to add public sector
of 149 per cent, which further illustrates the credit strength of
loans in the future. BNP Paribas may only substitute these
this bond. This level is to be checked quarterly by the specific
assets provided the value of the cover pool remains at least
controller to ensure that the SCF’s total assets are greater than
equal to what it was before the substitution. An example of
the debt due under the OF.
a typical OF cover pool asset would be aircraft finance loans
In addition to over-collateralisation, further comfort is derived
which are guaranteed by ECAs (including European and Ex-
from French legislation which provides that the holders of the
Im), being direct obligations of the relevant sovereign. The
OFs will have priority over the SCF’s assets upon its insolvency
loans are assigned to the SCF by way of a bordereau [printed
due to the privilege granted to the bonds.
form that the parties fill out specifying the details and figures
The BNP Paribas programme attracted an AAA (or equivalent)
of all the loans assigned to the SCF] signed by the parties and,
rating from all three rating agencies which is not uncommon
from the date of signing the bordereau, the transfer is binding
for covered bond issues. They are typically regarded as safe
on third parties. BNP Paribas is the servicer of the OFs and
investments, not dissimilar to government bonds. In essence,
responsible for all communications and dealings in relation to
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pool assets rather than on the corporate rating of the issuers.
assets. But further to this, should the cover pool assets be
This is useful for financiers who may not have a strong credit
insufficient to satisfy the claims of all the bondholders, the
rating themselves. A high quality asset pool (resulting from
investor has a direct, unconditional contractual claim to the
strict over-collateralisation requirements and eligibility criteria)
assets of the issuer. This double protection makes covered
gives the covered bond a high credit rating, thus enabling these
bonds a particularly safe investment. In fact since the very first
financiers to attract investors they previously would have been
‘Pfandbrief’ right through to today’s covered bonds, there has
unable to target. In the present climate, aviation financiers
never been a default by any issuer of a covered bond.
looking to raise capital should realise that investments with
Another key benefit of covered bonds is that they have a
high credit ratings that are low risk, yet have a relatively high
higher yield than government bonds yet still maintain a very
yield, are in very high demand from investors and thus covered
low risk profile. Regulated covered bonds pay higher rates
bonds present a great opportunity to tap into a growing market.
of interest than government gilts without increasing the risk
Another advantage to the issuer is that comparatively,
to the investor. This makes them particularly attractive to
regulated covered bonds are cheaper to issue than unregulated
conservative investors who wish to increase investment yields
covered bonds and other forms of asset-backed securities.
yet are unwilling to alter the risk profile of their investment
This low cost of funds is due to regulated covered bonds
portfolio. In this way covered bonds give another benefit as
having lower risk, stringent regulatory supervision and high
they allow conservative investors, who are normally restricted
liquidity. In addition, covered bonds enable issuers to attract
to investing in government bonds, to diversify their portfolios
a wide and diverse range of investors. The fact that covered
yet maintain the high credit quality of their investments.
bonds give the investor full recourse against the issuer and that
It should also be mentioned that liquidity is a further benefit to
they are regulated by the UCITS directive means that they are
investors. Regulated covered bonds and the cover pool assets
a comparatively safe and transparent investment and therefore
behind them are easily tradable and there are markets for them
attractive to a broad range of investors.
due to their high credit ratings and low risk.
From an investor’s point of view, covered bonds also have
Overall, covered bonds often offer distinct advantages for both
many advantages. Perhaps the most significant benefit of
the issuer and the investor. It is clear that there is an important
covered bonds is the dual-protection that they offer to the
market for this high yield to low risk investment and the signs
investor. This dual-protection means that investors in covered
are that it is only going to grow further. In a climate where
bonds have full recourse to the issuer, in that they are not
there is both a prevalence of ECA-supported transactions and
only covered by the issuer’s ring-fenced assets behind the
tight controls on the use of bank balance sheets, the ability
bond, but they also have a full recourse claim to the issuer’s
for aircraft finance banks to bundle up their government
unsecured assets. The ring-fencing of the issuer’s assets ensures
guaranteed transactions and issue covered bonds backed by
that they are protected from the insolvency of the issuer and
these transactions presents an ideal opportunity to raise capital
also that the investor in the bond will have priority to these
for further aviation transactions. Q
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Maintenance efficiency: Warranty and guarantee considerations The administration of warranties and guarantees is a complex matter and one that is often beyond the capabilities of smaller airline operators. Harish Shah of Aviation Warranty Solutions looks at some of the main considerations when managing such agreements and making associated claims.
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T
HE WORLD’S AIRLINES ARE UNDER significant pressure
Efficiencies can be gained in many areas including: the
to increase profitability yet operator margins are becoming
decrease of overall maintenance costs; streamlining of the
tighter. One of the best means of improving the bottom line is
supply chain; minimisation of unscheduled maintenance
through tightening financial controls and reducing costs. With
and the optimisation of scheduled maintenance; regulatory
maintenance accounting for as much as 20 per cent of an airline’s
compliance and tightened accountability of technical
direct operating costs, this is one area in which airlines have
operations; correctly outsourcing and/or in-sourcing
the ability to exert cost control. As a result, operators are being
maintenance activities; and ensuring continued safe and
challenged to increase their overall maintenance efficiency.
efficient operations. AIRCRAFT FINANCE GUIDE 2011
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WARRANTIES AND GUARANTEES One area in which airlines can reduce the cost of unscheduled maintenance and modification programmes is by taking advantage of manufacturer warranties and guarantees. These are offered and negotiated when purchasing modern aircraft and engines and they enable monetary recovery through warranty claims that can account for many millions of dollars each year. It is generally acknowledged that many operators and MRO’s have efficient warranty recovery departments that actively recover costs through warranty claims – though other operators do not give this area the attention it deserves. By ensuring that staff are adequately skilled and technically knowledgeable, claims can be made for potential unscheduled maintenance activities; modification programmes; free-of-charge (FOC) modification kits and materials; transport cost recovery; and the labour required for removal and re-fitting components. These issues can be resolved at no cost provided airlines claim through warranty channels or by initiating negotiations with the manufacturers. Yet in the absence of adequate skills and knowledge, many claims are not made and many operators do not make use of their contractual rights. The processing of warranty claims is not as simple as it might appear. Firstly, one must find the agreements that have been negotiated when purchasing goods or services. These can be found in a number of documents as shown in figure one: Purchase agreement (GTA)
While negotiating a service agreement or the purchase of a Warranty Provisions
Detailed specification
spare part it is important to ensure that warranty terms are clear and there are set time limits and conditions for the acceptance of claims and closure of items. It is also wise to make certain that the transfer of warranty rights are in place within a certain timeframe
Product assurance document
and acknowledged by the manufacturer/ repair shop and that you have the permission and full authority to negotiate all warranty and guarantee matters with the manufacturers and vendors.
Customer support document
Customer service general terms agreement
Primary contractual documents
Additional warranty information may be found in side letters to the purchase agreement; delivery exception and commitment letters; service bulletins and service letters; programme letters; and campaign changes. When purchasing engines and parts it is important that one is aware of the terms and conditions of the warranties and guarantees and that the buyer negotiates better conditions. It is also wise to make administration clauses clear, thereby simplifying the warranty claim process if a component fails – one should not simply concentrate on obtaining the best purchase price as a strong warranty administration can reduce costs and helps the end user to achieve their most important goal – happy shareholders. AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE and they will often work together with an operator, sharing information in order to enable them to gain a competitive advantage. This is done by effectively lowering the costs of ownership and increasing customer satisfaction by proactively offering up-front warranty programmes and implementing their own warranty recovery processes. Such companies will usually visit the customers’ warranty departments on a regular basis and sometimes provide useful training on a FOC basis. Such practices tend to be curtailed in an economic downturn and are now being enacted on a reactive rather than proactive basis. Unfortunately, when a purchase has been agreed, the associated purchase agreement is not necessarily passed-on to the departments that manage such contracts. Such departments are created to maximise supplier performance and ensure that the available warranties and guarantees are fully utilised, the non-availability of contracts makes this impossible. Over time, maintenance programmes will change as new alternate parts are approved and fault modes emerge, requiring
MANUFACTURERS’ PERSPECTIVE
additional inspections or maintenance work. Sometimes,
Aircraft, engine and component manufacturers face growing
modifications are offered (for example) by service bulletins (SB)
competition in the marketplace and the challenge they have is
to their customers.
to distinguish themselves from rivals by providing a superior
All of these activities generate additional maintenance costs –
service and by lowering the cost to own their products.
many operators simply accept these and pay for them without
Furthermore, in an effort to expand their businesses, many
challenging the costs or the need for the modifications.
manufacturers have
When challenged, most OEMs
extended the scope of
will reduce the costs, provide FOC
their services, offering
parts and labour, or reimburse the
enhanced warranties
costs through warranty claims. On
in order to sell their
occasion they take the latter course
products.
of action, knowing that the warranty
Demands on the
claims will not be made as they will
manufacturers do not
not inform their own warranty and
end with the delivery
commercial departments – thereby
of the finished product,
making it difficult for the operators to
indeed
recover these costs.
they have
an interest in their
When warranty claims are made,
products throughout
costs associated with unscheduled
the entire life cycle.
maintenance activities and
Specifically, OEMs are
failures are reduced. In an equal and opposite manner,
product support. They must monitor the performance and
inefficient use of in-house warranty recovery resources results
reliability of their aircraft, engines or components in the field
in excess cost and decreased success rate of monetary recovery.
and devise troubleshooting procedures. They may re-design
Furthermore, by ensuring efficient use of the available product
their equipment based on this in-field experience by determining
assurance guarantees it is possible to reduce inventories that are
the root causes of any unanticipated failures, resolving those
often significantly larger than necessary due to the difficulty of
problems as quickly and cost-effectively as possible.
accurately predicting the requirement of parts and identifying
These activities allow aerospace manufacturers to keep their customers happy and enable them to sell parts and
obsolete parts. Therefore by understanding and controling warranties and
services time again. Most of the associated sales brochures
guarantees it is possible to:
and presentations will only provide a brief explanation of
s 2EDUCE MAINTENANCE COSTS AND OVERHEADS AS ALL COSTS
the warranty programmes and the terms offered. Usually, it
associated through design deficiencies, material and
is the airline’s senior purchasing staff that are privy to the
workmanship errors are pursued and recovered from
detailed terms and conditions associated with part or service
manufacturers and vendors.
acquisition. Their decision to purchase is based on price,
s 2EDUCE COMPONENT REPAIR AND OVERHAUL COSTS AS ALL COSTS
availability, lead times, warranties, guaranties, FOC spares
associated with warranty-repaired items are recovered
package, discounts and so on.
through efficient administration of product support
However many OEMs actively encourage warranty recovery 102
unexpected in-service component
challenged to provide responsive customer service and ongoing
agreements. AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE s 2EDUCE MODIFICATION AND UPGRADE COSTS BY ensuring all FOC service bulletins kits, upgrade programmes and chargeable modifications are negotiated with the vendors for price reductions.
THE NATURE OF WARRANTIES Engine manufacturers normally provide new parts warranties for between 12-18 months with a time limitation between 1,000-4,000 flight hours. Remedies usually cover the cost of the failed part or FOC repair but not removal and refit labour or associated transport, unless negotiated prior to purchase. They also provide comprehensive performance guarantees, which span several years and provide protection for an operator’s fleet of engines. These usually cover unscheduled engine shop visit rates; in-flight shut downs; engine surges; excessive fuel burn; engine-caused delays; and remote site engine removals. Performance guarantee remedies are usually in the form of cash compensation so long as the reporting terms contained within the contract have been met.
are clearly unsuitable in operation (not fit for their intended
Engine repair shops typically provide warranty terms that
use) are the main candidates for this classification. There is
are valid for 18 months from delivery and 12 months from
no relationship between FOC statement and the mandatory
installation and between 1,000-3,000 flight hours. They do
modification classification.
not normally provide performance guarantees that protect an
In order to process warranty claims ensure that the spares
operator’s fleet of engines. Remedies typically cover associated
purchasing agreements and component repair records
transportation costs and the cost of rectification. The labour costs
are available to the warranty administration within your
of removing and replacing failed parts is not normally covered.
organisation; ensure that they have access to technical
Unlike airframe parts that contain guarantees based on
documents and/or on-line sites; and provide access to third-
mean time between repair (MTBR) and component reliability
party maintenance organisations who maintain your fleet if
programmes defined by the manufacturers, engine components
work is not accomplished in-house. If the administration of
do have such programmes/guarantees in place. Instead, it
warranty is contracted out, ensure that the MRO/agent reports
is necessary to rely on an engine monitoring team to identify
credit and claims status on a regular basis, and conduct regular
trends, to set the reliability status of engine parts, and to alert
audits to ensure the efficiency of claims submitted by them.
warranty administration if a part is continually failing within
To ensure timely processing of claims you must have the
a set in-service period. This is in order to post the intention to
following information available: the part number and serial
claim while the engineering department identifies the cause of
number of the part; the part number and serial number of the
the problem, often in liaison with the OEM. This will enable
engine to which the part was fitted; the date the part was fitted
the warranty department to recover the actual costs incurred.
and hours/cycles since fitting; the date the part was purchased, the order number and invoice; details of the relevant warranty
CONDITIONS
clause contained within the purchase agreement; and the
Administrative time limits typically apply to the submission
availability of the part if it is expendable.
of a warranty claim (typically, 60 to 90 days is acceptable).
In some cases the condition of damaged parts needs to be
A claim determination period of up to 30 days is typically
confirmed by the suppliers or OEM representatives prior to
allowed for claim settlement, although operators should retain
scrapping them. Furthermore, it is necessary to submit the
parts for a minimum of 60 days to permit possible inspection.
claim within the time period defined in the agreement and
In the case of aircraft on ground (AOG) situations, warranty
ensure that the claim is followed up on a regular basis until it
settlement cannot be made available as an on-the-spot remedy
has been successfully concluded.
is in contradiction to the spirit of the warranty procedures.
By effective use and management of the warranties and
Therefore no AOG situations are delivered FOC and instead
guarantees that are available when purchasing new and used
a warranty claim should be filed after the fact and within the
engines, spare parts and services, it is possible to ensure that
specified time limits.
full value is obtained during the service life of a product. It
Regarding FOC classification together with industry support,
is important that the staff who are tasked with managing the
OEMs will take direct responsibility in the case of a production
life-cycle of the product are sufficiently trained and have the
error or design defect. SBs issued to correct design defects
necessary tools to administer the warranty recovery process,
becoming apparent within the warranty period and items that
providing ongoing training as required. Q
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ARMONISING THE REGULATION OF AVIATION safety
H
implementing common safety standards.
in greater Europe is a task often complicated by the
ECAC’s mission is the promotion of the continued
multiplicity of constitutionally unrelated players and their
development of a safe, efficient and sustainable European air
overlapping responsibilities. Terms such as ‘ECAC’, ‘JAA’,
transport system. Founded in 1955 as an intergovernmental
‘EASA’ and ‘Eurocontrol’ may be familiar to those in the
organisation, it seeks to harmonise civil aviation policies and
aviation industry but their relationship to one another may
practices among its member states and promote understanding
not always be.
on policy matters between its member states and other parts of the world.
David McMillan, Director General, Eurocontrol
EASA The European Aviation Safety Agency (EASA) has acquired
EUROCONTROL
most of the responsibilities of the Joint Aviation Authorities
Eurocontrol (formally, the European Organisation for the
(JAA), itself the former associated body of the European
Safety of Air Navigation) was established by the Eurocontrol
Civil Aviation Conference (ECAC) which represented the
Convention in 1960 and currently has 38 members. Its mission
civil aviation regulatory authorities of a number of European
statement is: “to harmonise and integrate air navigation
states that have agreed to co-operate in developing and
services in Europe, aiming at the creation of a uniform air traffic management (ATM) system for civil and military users, in order to achieve the safe, secure, orderly, expeditious and economic flow of traffic throughout Europe, while minimising
“EASA is developing rules for air navigation services, however with a power battle between Eurocontrol and the European Commission and the latter being the most powerful, Eurocontrol is likely to lose its authority to set regulations.”
adverse environmental impact.” Eurocontrol’s vision is to strive for a safe and efficient panEuropean ATM network to facilitate the sustainable growth of aviation in Europe and its aim is to ensure that air traffic management services, of which air traffic control is a part, remain safe today and in the future. Indeed, Eurocontrol states that safety is its raison d’être and it is active in all areas of air traffic management safety, including research, planning, management, operations and regulation.
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ROUTE CHARGES In 1971, Eurocontrol introduced a route charges system which was set up the Central Route Charges Office (CRCO). The CRCO collects charges for flights on behalf of Eurocontrol members, the proceeds of which are used to finance the safety activities of Eurocontrol. Such services are also offered to non-members by way of bilateral agreement. One of the controversial aspects of CRCO’s powers has been its reliance on broad powers of the United Kingdom Civil Aviation Authority (UK CAA) to act on its behalf with respect to unpaid charges. Under a UK regulation (Regulation 11 of the Civil Aviation Navigation Services Charges of 2000) a default in payment of charges due to Eurocontrol may result in the UK CAA detaining aircraft from its operator; this is legal whether or not the operator incurred those charges. The CAA may also detain any other aircraft which the defaulting party operates at that time. Under this regulation no court order is needed to seize the aircraft, however one must be obtained (under Regulation 13) for the aircraft to be sold by the authorities. The effect of this combined right of detention and sale is to provide an ‘in rem lien’ over the aircraft. The operator, being the airline, remains liable ‘in personam’ (personally) for the debt, but the owner of the aircraft does not. This scheme has been and is currently, the subject of legal challenges on the grounds that it exceeds Eurocontrol’s powers under the Eurocontrol Convention and breaches the human rights of aircraft owners (where the debts are incurred by their lessees) under the European Convention on Human Rights (ECHR), which states: “Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law.”
REVISED EUROCONTROL CONVENTION The Eurocontrol Convention was extensively revised in
Annex IV) to extend the UK system throughout all member
accordance with a protocol in 1997, yet it has not yet come
states, subject to local law, and for the first time allows
into force. According to Eurocontrol, the protocol was: “first
owners in personam liability for the unpaid route charges of
conceived in 1992 as a response to the growing changes in the
their lessees.
air traffic management environment, one of its most significant elements allowed for the expansion of Eurocontrol’s authority
THE EUROPEAN UNION
to include the airport taxiway and runway as well as the
Until the Third Package of 1992 (EC Regulations 2407/92,
en-route, research and co-ordination aspects of air traffic
2408/92 and 2409/92, which has since been superseded by EC
management…. Other features included the co-operation with
Regulation 10078/2008) dealing with licensing, market access
other European institutions, the introduction of European
and fares, the involvement of the EU with air traffic control
ATM performance review and target-setting systems, a more
was limited.
efficient decision-making process based on majority voting
Negotiations for accession by the EU to the Eurocontrol
and the reinforcement of co-operation between civil and
Convention began, however, at the time of negotiation of the
military authorities.”
protocol to the Eurocontrol Convention, Eurocontrol being of
By its own admission, disagreement among member states has slowed ratification yet it is now only a few boxes to tick before coming into effect.
the view that accession by the EU would speed ratification by the Eurocontrol members which were also EU members. The European community consented to the Eurocontrol
Aware of the legal challenges to the in rem debt system
Convention at a diplomatic conference in 2002 and it was
(referred to above), the protocol proposes (in Article 5(1) of
agreed in 2003 to provisionally apply parts of the protocol
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as if they were in force — though these do not include the
JOINT AVIATION AUTHORITIES
controversial provisions regarding owner liability for lessee
Looking towards the future development of the relationship
incurred route charges.
between Eurocontrol and the European Union, it is perhaps
The aim of the accession of the European community to the Eurocontrol Convention (as revised by the protocol) is to assist
instructive to look at the case of the JAA since it has also had an evolving relationship with the European community.
Eurocontrol in achieving its objectives, notably that of being
Unlike Eurocontrol, the JAA was not a creation of a treaty and
a single and efficient body for air traffic management policy-
had no separate international legal personality. Membership
making in Europe.
was open to ECAC members. The JAA began its work in 1970
Thus, legally both the European community and Eurocontrol have distinct international legal personality, with the European
with the objectives of producing common certification codes for large aircraft and for engines.
community being a member of Eurocontrol. The relationship is
EC regulation (1592/2002) replaced individual member states’
much more complex than might appear from this description
national regulation of airworthiness with European community
alone, however, as will be seen in greater detail below.
regulation and transferred certification tasks from national authorities to EASA.
THE EUROPEAN COMMISSION The European Commission has granted certain mandates
EUROPEAN AVIATION SAFETY AGENCY
to Eurocontrol, in reliance on their technical expertise, to
EASA is a European Union institution which is independent
prepare various draft rules relating to the commission’s Single
in technical matters and to a great degree autonomous with
European Sky (SES) initiative of 2004. The commission will
regard to legal, administrative and financial matters. EASA
then submit them to the Single Sky Committee to adopt it
is developing rules for air navigation services however
following their approval.
with a power battle between Eurocontrol and the European
The SES initiative is based, among other things, on EU legislation regarding framework for the creation of the single
Eurocontrol is likely to loose its authority to set regulations.
European sky (Regulation 549/2004); the provision of air
On the other hand, being an international organisation,
navigation services in the single European sky (550/2004); the
Eurocontrol has more power than the JAA had; furthermore
organisation of airspace in Europe (551/2004); and the inter-
EASA and Eurocontrol do not see each other as a threat.
operability of the European air traffic management network (552/2004). 106
Commission and the later being the most powerful,
The advantage in replacing JAA with EASA is that JAA produced harmonised sets of rules which each member AIRCRAFT FINANCE GUIDE 2011
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state then had to implement separately, if at all, sometimes with varying amendments; the result was too much fragmentation. EASA rules are directly applicable at European Union level, thus ensuring standardisation, and unification of norms. The High Level Group set up in 2007 by the European Commission’s Commissioner Barrot to examine air traffic management in Europe concluded that “thought should be given” to articulating the EU as the “driving force in aviation regulation in Europe” and the “sole vehicle to set the regulation agenda for European aviation by eliminating overlaps between the EU and other regulatory processes”. Although the High Level Group speaks of Eurocontrol as “empowered” to play a key role in the SES regime, this seems it is allowed little more than a consultative role, with power remaining with the EU. It should be noted that, although EASA is an institution of the EU, it includes among its member states;
Eurocontrol to become a specialised agency of the EU, thus
Norway, Iceland and Switzerland — which are not EU
ceding its separate international legal personality. If so, it would
members. Thus, in the context of Eurocontrol, it is clear that
appear to make sense for it to become a part of EASA.
full identity of membership is not necessary in order for an international organisation to be an EU institution.
The politics involved, however, would no doubt be bruising. Eurocontrol itself admits that it has been unable to obtain sufficient ratifications for its protocol revising the Eurocontrol
LONG-TERM GOAL OF EU
Convention to come into force due to political differences.
It seems clear that the long-term goal of the EU is to at least
Perhaps more important than focusing on structures is to look
change the role of Eurocontrol (ATM) with EASA (certification
at the intended goal — the functional goal is not (or, at least,
and licensing). The transition from JAA to EASA is an obvious
should not be) to increase the power of the EU as a goal in itself.
precedent here, but there are differences. The fragmentation
Rather, the goal should be, as recognised by the High Level
under JAA resulted from its lack of legal personality and direct
Group, to eliminate fragmentation, bottlenecks and overlaps in
ability to set rules. Conversely, Eurocontrol has a separate
the SES régime on air navigation as a whole.
international legal personality and is thus stronger than JAA was. In other words, the need for replacement is not as great.
To this end, regardless of the constitutional outcome, it is hoped that co-operation rather than competition is the goal of
Additionally, because Eurocontrol has a separate legal
the EU and Eurocontrol. At the level of EASA and Eurocontrol,
personality, with members from beyond the EU, it will be more
it seems that such a desirable goal can be, and is being,
difficult for it to wrest control from Eurocontrol and to vest it
reached. The risk is that it may be endangered by the European
in EASA without the consent of Eurocontrol and its members,
Commission which is seeking to expand its own powers.
especially its non-EU members.
It can be argued that there should be equality between
Another essential factor to bear in mind is that neither the EU
Eurocontrol and the EU. A successful equilibrium could
nor, in particular, EASA, yet have the technical capabilities
be found by combining resources and achievements while
of Eurocontrol (including human resources and expertise) to
respecting each party’s internal legal orders. The revised
adopt its rule-making functions, thus turning it into a mere
Eurocontrol Convention could be a starting point for discussion
service provider.
with Eurocontrol but reservations regarding liability for route
Of course, in the cases of EASA, expertise was largely ensured
charges should not be forgotten. Such aspects may represent
by a large measure of hiring from JAA and the same would be
an overreach on the part of Eurocontrol and may well be ruled
possible in the case of Eurocontrol.
to be in breach of ECHR. This apparent overreach by CRCO
Another possibility, though reliant on the agreement of Eurocontrol members (especially the non-EU ones), is for AIRCRAFT FINANCE GUIDE 2011
should not, yet may, distract from the wider, important and legitimate goals of SES.. Q 107
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
New Owner/Operator
*!.5!29 s "/%).'
737-236 737-236 737-230 737-2L9 737-291 737-242 737-242 737-2H3 737-2H3 737-3T0 737-3T0 737-306 737-301 737-33A 737-3G7 737-322 737-3Y0 737-322 737-3L9 737-39K 737-4Y0 737-4Q8 737-48E 737-4Y0 737-53A 737-522 737-505 737-505 737-522 737-522 737-75B 737-75B 737-73V 737-7H4(W) 737-7H4(W) 737-76N(W) 737-76N(W) 737-752(W) 737-7K9 737-7K5(W) 737-7CN(W) 737-86N(W) 737-83N(W) 737-8BK(W) 737-8FZ(W) 737-8FZ(W) 737-8FZ(W) 737-8FZ(W) 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-8CX 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-85C(W) 737-8V3 737-81B 737-81B 737-8V3 737-89L(W) 737-89L(W) 737-8FN(W) 737-85C(W) 737-85C(W) 737-86J(W) 737-86J(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-860(W) 737-9GPER(W) 747-251F 747-346 747-346 747-306 747-438 747-438 747-438 747-438 747-438 747-438 747-412
PACIFIC AIRCORP SAFAIR SAFAIR AIRQUARIUS AIR CHARTER GLOBAL AIR FZC CHARTER SLABAUGH, MICHAEL AEROVISTA M/S APL AIRASIA GENERAL ELECTRIC AIR SLOVAKIA VIVA AEROBUS AERGO LEASING JET2 UNKNOWN VIVA AEROBUS SOURCE ONE VIVA AEROBUS HONG KONG AIRLINES CELESTIAL AVIATION ILFC TURK HAVA YOLLARI PAMIR AIRWAYS CANTERBURY COMPANY WELLS FARGO BANK ILFC GEORGIAN AIRWAYS WELLS FARGO BANK ORIX AIR BERLIN AIR BERLIN EUROPE AIRPOST MITSUBISHI SOUTHWEST AIRLINES CELESTIAL CIMBER STERLING TURK HAVA YOLLARI ASKY AIRLINES AIR BERLIN MATELA OFFSHORE COMAIR [SOUTH AFRICA] BIMAN BANGLADESH AIRLINES WILMINGTON TRUST DELTA AIR LINES BABCOCK & BROWN IZADELL NORWEGIAN AIR SHUTTLE AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES MACQUARIE RYANAIR RYANAIR RYANAIR RYANAIR RYANAIR XIAMEN AIRLINES COPA AIRLINES CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES COPA AIRLINES AIR CHINA AIR CHINA TRAVEL SERVICE AIRLINES XIAMEN AIRLINES XIAMEN AIRLINES AIR BERLIN AIR BERLIN RYANAIR RYANAIR RYANAIR ETHIOPIAN AIRLINES LION AIR DELTA AIR LINES JALUX SOUTHERN AIR HENSHUIJS, E.M. TJT LEASING QANTAS TJT LEASING QANTAS TJT LEASING QANTAS UNKNOWN
Previous Owner/Operator
AEROLINEAS ARGENTINAS INTERLINK AIRLINES INTERLINK AIRLINES AIR NAMIBIA-NATIONAL AIRLINES PETROZAZ KAM AIR FZC CHARTER KAZAIRTRANS AEROVISTA THAI AIRASIA THAI AIRASIA ALBANIAN AIRLINES APOLLO AVIATION WELLS FARGO BANK CIT GOL PERGOLA UNITED AIR LINES AERCO CHINA XINHUA AIRLINES U.S. BANK OLYMPIC AIRLINES SAGA AIRLINES GENERAL ELECTRIC NORDAVIA AIRLINES UNITED AIR LINES XIAMEN AIRLINES ILFC UNITED AIR LINES BULGARIA AIR GERMANIA GERMANIA NBB ARRAN COMPANY WELLS FARGO BANK MITSUBISHI GECAS CELESTIAL WELLS FARGO BANK ETHIOPIAN AIRLINES TUIFLY PRIVATAIR CELESTIAL WELLS FARGO BANK CIT BOEING DELTA AIR LINES BABCOCK & BROWN IZADELL BOEING WILMINGTON TRUST BOEING WILMINGTON TRUST GOL BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING MCAP BOEING BOEING BOEING BOEING BOEING U.S. BANK JAPAN AIRLINES JALUX SURINAM AIRWAYS MONTANA LEASING TJT LEASING MONTANA LEASING TJT LEASING MONTANA LEASING TJT LEASING CATHAY
Serial No. or No. of (Orders)/ [Options]
21794 21802 22119 22735 21640 22074 22074 22624 22624 23367 23367 23545 23552 23634 24011 24668 24677 24717 26442 27362 24688 25377 25775 26085 24754 25381 26336 26336 26642 26704 28102 28108 32414 32457 32457 32737 32737 34297 34401 35136 30752 28612 28648 29643 29674 29674 29674 29674 30912 30912 31085 31085 32360 35021 35022 35023 35024 35025 35058 35127 35388 35389 36550 36749 36750 37076 37149 37574 37748 37748 38493 38494 38495 (10) 35734 23888 23068 23068 23508 25151 25151 25245 25245 25315 25315 26548
Line No.
643 670 714 825 536 619 619 758 758 1180 1180 1343 1382 1423 1608 1905 1837 1930 2277 2639 1876 2717 2925 2468 1868 2110 2805 2805 2189 2508 18 28 1214 2473 2473 1130 1130 1808 2216 2465 451 455 888 2303 3140 3140 3140 3140 3137 3137 3149 3149 1084 3161 3139 3148 3146 3152 3150 2963 3154 3144 3114 3145 3155 3147 3142 3160 3157 3157 3162 3141 3143 3153 682 589 589 657 865 865 875 875 883 883 923
Engine Model
JT8D-15A JT8D-15A JT8D-15 JT8D-17 JT8D-15A JT8D-15 JT8D-15 JT8D-17A JT8D-17A CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3B2 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-7B22 CFM56-7B22 CFM56-7B20 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B22 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B27 JT9D-7Q JT9D-7R4G2 JT9D-7R4G2 CF6-50E2 RB211-524G RB211-524G RB211-524G RB211-524G RB211-524G RB211-524G PW4056
Date of Manf. or First Exp. Deliv.
1980-02 1980-05 1980-10 1981-11 1978-09 1979-10 1979-10 1981-04 1981-04 1985-11 1985-11 1987-01 1987-04 1987-07 1988-08 1990-07 1990-02 1990-09 1992-04 1994-07 1990-05 1995-04 1997-08 1993-04 1990-05 1991-08 1996-06 1996-06 1991-11 1993-07 1997-10 1997-12 2002-08 2007-12 2007-12 2002-04 2002-04 2005-10 2007-03 2007-11 1999-11 1999-12 2001-06 2007-06 2009-12 2009-12 2009-12 2009-12 2009-12 2009-12 2009-12 2009-12 2002-02 2010-01 2009-12 2009-12 2009-12 2009-12 2009-12 2009-06 2009-12 2009-12 2009-11 2009-12 2010-01 2009-12 2009-12 2010-01 2010-01 2010-01 2010-01 2009-12 2009-12 2014-11 2009-12 1987-06 1983-10 1983-10 1986-08 1991-06 1991-06 1991-08 1991-08 1991-09 1991-09 1992-05
Transaction Type
RETURNED RETURNED RETURNED RETURNED LEASED RETURNED SOLD RETURNED SOLD RETURNED RETURNED RETURNED LEASED SOLD LEASED RETURNED SOLD SOLD SOLD SOLD SOLD RETURNED SUB-LEASED LEASED RETURNED SOLD RETURNED LEASED SOLD RETURNED SUB-LEASED SUB-LEASED LEASED SOLD LEASED SOLD LEASED LEASED SUB-LEASED SUB-LEASED RETURNED LEASED LEASED TRANSFERRED DELIVERED SOLD SOLD LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK RETURNED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED ORDERED DELIVERED LEASE-BUYOUT SOLD SOLD RETURNED SOLD LEASED SOLD LEASED SOLD LEASED RETURNED
Date
2010.01.20 2010.01.31 2010.01.31 2010.01.01 2010.01.01 2010.01.15 2010.01.15 2010.01.01 2010.01.02 2010.01.01 2010.01.01 2010.01.22 2010.01.18 2010.01.27 2010.01.22 2010.01.15 2010.01.07 2010.01.28 2010.01.26 2010.01.01 2010.01.27 2010.01.22 2010.01.01 2010.01.11 2010.01.22 2010.01.06 2010.01.01 2010.01.02 2010.01.15 2010.01.12 2010.01.01 2010.01.01 2010.01.08 2010.01.26 2010.01.26 2010.01.22 2010.01.22 2010.01.20 2010.01.01 2010.01.31 2010.01.27 2010.01.29 2010.01.20 2010.01.29 2010.01.13 2010.01.13 2010.01.13 2010.01.13 2010.01.19 2010.01.19 2010.01.22 2010.01.22 2010.01.28 2010.01.28 2010.01.14 2010.01.21 2010.01.22 2010.01.25 2010.01.25 2010.01.15 2010.01.25 2010.01.19 2010.01.19 2010.01.19 2010.01.26 2010.01.25 2010.01.19 2010.01.28 2010.01.27 2010.01.27 2010.01.28 2010.01.14 2010.01.19 2010.01.12 2010.01.21 2010.01.07 2010.01.15 2010.01.15 2010.01.18 2010.01.05 2010.01.05 2010.01.06 2010.01.06 2010.01.05 2010.01.05 2010.01.12
Source: OAG Fleet iNet, September 10, 2010
108
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AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
747-412 747-422 747-412 757-28A 757-2Y0 757-256 757-23N 757-23N 767-281 767-281 767-2J6ER 767-2FKER 767-383ER 767-338ER 767-338ER 767-3Y0ER 767-306ER 767-338ER 767-306ER 767-34AF 767-34AF 767-34AF 777-212ER 777-212ER 777-2DZLR 777-31HER 777-367ER 777-367ER 777-36NER 777-36NER
New Owner/Operator
PULLMANTUR AIR CORSAIR PULLMANTUR AIR AIR SLOVAKIA AIRPLANES HOLDINGS AEROLINEA PRIPAL CHILE WILMINGTON TRUST JET2 ABX AIR CARGO AIRCRAFT CARGO AIRCRAFT JAPAN AIR FORCE AIR ALGERIE TJT LEASING QANTAS RYAN INT AIRLINES LOT POLISH AIRLINES QANTAS COURTEAU COMMERCIAL CORP UPS C.C. & E.I. UPS EURO ATLANTIC AIRWAYS BIMAN BANGLADESH AIRLINES QATAR AIRWAYS EMIRATES CATHAY CATHAY GECAS PHILIPPINE AIRLINES
*!.5!29 s !)2"53 A310-324 A318-112ELITE A319-111 A319-111 A319-112 A319-132 A319-112 A319-115X A319-115X A319-115X A319-133X A319-133X A320-231 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-231 A320-232 A320-214 A320-216 A320-216 A320-232 A320-214 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-214 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A321-231
EADS JETALLIANCE CELESTIAL EASYJET SWITZERLAND INDIAN AIRLINES GERMANWINGS HAINAN AIRLINES DC AVIATION GMBH QATAR AIRWAYS AIRBUS SOPHAR PROPERTY HOLDING UNKNOWN MYANMAR AIRWAYS INT ALPSTREAM ALPSTREAM BETASTREAM ALPSTREAM ALPSTREAM ALPSTREAM BETASTREAM THOMAS COOK CIT AIR CHINA 320 SOCCIA CCM AIRLINES TIGER AIRWAYS AUSTRALIA SHENZHEN AIRLINES CHINA EASTERN AIRLINES LUFTHANSA EASYJET EASYJET GULF AIR BOC AEROFLOT AIR BERLIN AL SAHAAB JAZEERA AIRWAYS AEGEAN AIRLINES AVIANCA WELLS FARGO BANK AVIANCA AERVENTURE SPRING AIRLINES QATAR AIRWAYS CHINA SOUTHERN AIRLINES WIZZ AIR HUNGARY SHENZHEN AIRLINES CIT QANTAS JETSTAR AIRWAYS TIGER AIRWAYS BRITISH AIRWAYS YEMENIA ALPSTREAM AG
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
GARUDA GARUDA GARUDA ALBANIAN AIRLINES TITAN AIRWAYS PRIVILEGE STYLE WELLS FARGO BANK DART GROUP CARGO AIRCRAFT UNKNOWN UNKNOWN BOEING EURO ATLANTIC AIRWAYS MONTANA LEASING TJT LEASING GOL CARIBBEAN AIRLINES JOSEPHINE LEASING PRIVATAIR BOEING BOEING C.C. & E.I. SINGAPORE AIRLINES EURO ATLANTIC AIRWAYS BOEING BOEING BOEING BOC BOEING GECAS
26549 26875 27178 24544 26151 26241 27973 27973 22787 23144 23307 35498 24318 25575 25575 26204 26263 28724 30393 37858 37858 37858 28513 28513 36018 35595 36160 36160 37712 37712
FEDERAL EXPRESS AIRBUS HAMBURG EASYJET CELESTIAL AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS QATAR AIRWAYS AIRBUS AIRBUS ADRIA AIRWAYS BLUE WINGS BLUE WINGS BLUE WINGS BLUE WINGS BLUE WINGS BLUE WINGS BLUE WINGS NATWEST US AIRWAYS GECAS IBERIA 320 SOCCIA TIGER AIRWAYS AIRBUS AIRBUS AIRBUS AIRBUS UNKNOWN AIRBUS AIRBUS BOC AIRBUS AIRBUS AL SAHAAB AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AERVENTURE AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS CIT CIT AIRBUS AIRBUS AIRBUS BLUE WINGS
654 3886 3084 3084 4164 4166 [-12] 3243 3994 3994 4151 (1) 113 1240 1257 1464 1546 1557 1650 1785 193 2359 3221 3882 3882 3986 4010 4027 4153 4157 4157 4158 4160 4160 4161 4162 4162 4165 4167 4167 4167 4168 4168 4170 4172 4174 4176 4178 4178 4178 4181 4185 (10) 4044
Line No.
1030 931 1015 280 472 572 735 735 58 115 126 966 257 451 451 464 592 662 781 986 986 986 144 144 842 840 843 843 841 841
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
PW4056 PW4056 PW4056 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 CF6-80A CF6-80A JT9D-7R4E4 CF6-80C2B6FA PW4060 CF6-80C2B6 CF6-80C2B6 PW4060 CF6-80C2B6F CF6-80C2B6 CF6-80C2B6F CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F TRENT892B TRENT892B GE90-110B1L GE90-115B GE90-115BL2 GE90-115BL2 GE90-115B GE90-115B
1994-04 1992-07 1993-12 1990-03 1992-06 1993-07 1996-10 1996-10 1983-05 1985-03 1985-08 2008-03 1989-02 1992-08 1992-08 1992-10 1995-08 1997-05 1999-12 2009-12 2009-12 2009-12 1998-05 1998-05 2009-12 2009-12 2009-12 2009-12 2009-12 2009-12
RETURNED RETURNED RETURNED RETURNED RETURNED LEASED SOLD LEASED SALE-LEASEBACK SOLD SOLD SOLD SUB-LEASED SOLD LEASED SUB-LEASED RETURNED LEASE-BUYOUT RETURNED DELIVERED SOLD LEASED SOLD LEASED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED LEASED
2010.01.02 2010.01.02 2010.01.10 2010.01.22 2010.01.18 2010.01.13 2010.01.13 2010.01.27 2010.01.22 2010.01.13 2010.01.13 2010.01.08 2010.01.18 2010.01.05 2010.01.05 2010.01.02 2010.01.10 2010.01.04 2010.01.27 2010.01.21 2010.01.21 2010.01.21 2010.01.12 2010.01.23 2010.01.28 2010.01.27 2010.01.25 2010.01.25 2010.01.20 2010.01.20
PW4152 CFM56-5B9/3 CFM56-5B5/P CFM56-5B5/P CFM56-5B6/3 V2524-A5 CFM56-5B6/3 CFM56-5B7/P CFM56-5B7/3 CFM56-5B7/3 V2527M-A5 V2527M-A5 V2500-A1 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2500-A1 V2527-A5 CFM56-5B4/P CFM56-5B6/3 CFM56-5B6/3 V2527-A5 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2533-A5
1992-06 2009-04 2007-03 2007-03 2010-01 2010-01 2007-09 2009-08 2009-08 2010-01 2010-10 1990-07 2000-05 2000-05 2001-03 2001-07 2001-07 2001-11 2002-04 1991-08 2004-12 2007-08 2009-04 2009-04 2009-07 2009-12 2010-01 2010-01 2009-12 2009-12 2009-12 2010-01 2010-01 2010-01 2009-12 2009-12 2009-12 2009-12 2009-12 2009-12 2010-01 2010-01 2009-12 2009-12 2009-12 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2011-11 2009-09
SOLD RETURNED RETURNED LEASED DELIVERED DELIVERED CNCL-OPTION RETURNED DELIVERED LEASED DELIVERED ORDERED SOLD RETURNED RETURNED RETURNED RETURNED RETURNED RETURNED RETURNED LEASE-BUYOUT RETURNED LEASED SOLD LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED LEASED DELIVERED DELIVERED LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED LEASED SUB-LEASED DELIVERED DELIVERED ORDERED RETURNED
2010.01.12 2010.01.21 2010.01.05 2010.01.05 2010.01.27 2010.01.20 2010.01.01 2010.01.01 2010.01.14 2010.01.14 2010.01.20 2010.01.07 2010.01.01 2010.01.13 2010.01.13 2010.01.13 2010.01.13 2010.01.13 2010.01.13 2010.01.13 2010.01.05 2010.01.28 2010.01.12 2010.01.13 2010.01.13 2010.01.15 2010.01.13 2010.01.26 2010.01.13 2010.01.11 2010.01.11 2010.01.19 2010.01.19 2010.01.19 2010.01.20 2010.01.11 2010.01.11 2010.01.19 2010.01.19 2010.01.19 2010.01.19 2010.01.22 2010.01.22 2010.01.27 2010.01.21 2010.01.15 2010.01.21 2010.01.29 2010.01.29 2010.01.29 2010.01.22 2010.01.28 2010.01.10 2010.01.13
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
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A321-211 A321-231 A330-243 A330-243(MRTT) A330-243 A330-243 A330-243 A330-343E A330-343E A330-343E A330-343E A330-343E A330-343X A330-343X A330-343X A330-343X A380-861 A380-861 A380-842 A380-842
New Owner/Operator
INDIAN AIRLINES ONUR AIR HI FLY MTAD THOMAS COOK AIR TRANSAT THOMAS COOK AERCAP AEROFLOT ETIHAD AIRWAYS ETIHAD AIRWAYS SWISS THOMAS COOK THOMAS COOK IBERWORLD AIRLINES XL AIRWAYS FRANCE EMIRATES EMIRATES QANTAS QANTAS
&%"25!29 s "/%).' 737-228 737-228 737-228 737-228 737-229 737-229 737-229 737-229 737-229 737-229 737-2S9 737-204 737-204 737-230 737-230 737-247 737-247 737-268C 737-3T0 737-3A4 737-341 737-33A 737-3Q8 737-3L9 737-3L9 737-39K 737-36N 737-31S 737-4Y0 737-405 737-405 737-408 737-476 737-4B7 737-4Q8 737-4S3 737-4Q8 737-4Q8 737-505 737-529 737-529 737-529 737-522 737-522 737-5Q8 737-524 737-524 737-524 737-73V(W) 737-7K2(W) 737-7K2(W) 737-7Q8(W) 737-7Q8(W) 737-7K5(W) 737-73V 737-73V 737-752(W) 737-7K5(W) 737-7CT(W) 737-7CT(W) 737-7BC(W) 737-7ES 737-7ES 737-7JR(W) 737-86J(W)
SEHBAI, EHSAN KHALID SHAHEEN AIR TRITON AVIATION FINANCE SKY KING STRATEGIC AIR CONSULTANTS RED CLOUD ASSETS STRATEGIC AIR CONSULTANTS RED CLOUD ASSETS STRATEGIC AIR CONSULTANTS RED CLOUD ASSETS WILMINGTON TRUST AERGO CAPITAL PERUVIAN AIRLINES ENGAGE AVIATION ENGAGE AVIATION AIRCRAFT LEASE FINANCE SKY AIRLINE CARGO AIRWAYS INT SKY AIRLINE AFS 68 FLYLAL CHARTERS ANSETT WORLDWIDE ILFC GLOBAL AIR VOLITO HONG KONG AIRLINES VIKING HELLAS DEUTSCHE STRUCTURED FINANCE AERGO LEASING GUSTAV LEASING WELLS FARGO BANK OASIS QANTAS IRAQI AIRWAYS CORENDON AIRLINES BOULLIOUN MSA TAILWIND AFS IX WELLS FARGO BANK CIT CIT WELLS FARGO BANK BLUE AIR-TRANSPORT AERIAN UNITED NATIONS UNKNOWN WELLS FARGO BANK TRANSAERO AIRLINES AEROLINEAS ARGENTINAS KLM KLM ILFC ILFC AIR BERLIN PEGASUS PEGASUS TURK HAVA YOLLARI AIR BERLIN BOC WESTJET ELORA AIR KOREAN AEROSPACE I BOEING WELLS FARGO BANK SAGA AIRLINES
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
AIRBUS ALS GARUDA AIRBUS THOMAS COOK GARUDA THOMAS COOK AIRBUS AERCAP AIRBUS UNION AFA LEASING AIRBUS GARUDA GARUDA GARUDA IBERWORLD AIRLINES AIRBUS DORIC AIRBUS QF ECA
4155 963 1008 1080 254 271 301 1077 1077 1081 1081 1084 356 357 670 670 025 025 029 029
AEROTRANS SEHBAI, EHSAN KHALID AEROLINEAS ARGENTINAS WELLS FARGO BANK TRANSPACIFIC STRATEGIC AIR CONSULTANTS WELLS FARGO BANK STRATEGIC AIR CONSULTANTS WELLS FARGO BANK STRATEGIC AIR CONSULTANTS EXECUTIVE JET AIRCRAFT COMPANY STAR UP AIRCRAFT GUARANTY MGMT& TRUST AIR ONE SARDALEASING SILVER SKY LINEAS AEREAS AIRCRAFT LEASE FINANCE TOUMAI AIR TCHAD GENERAL ELECTRIC SOUTHWEST AIRLINES GE CAPITAL AEGEAN AIRLINES OLYMPIC AIRLINES GALAXY AVIATION AIRASIA CHINA XINHUA AIRLINES VIKING AIRLINES THOMSON AIRWAYS HOLA AIRLINES BRUSSELS AIRLINES GUSTAV LEASING HOLA AIRLINES TJU AIRCRAFT RENTALS EAST AIR SUN AIR AEGEAN AIRLINES AEGEAN AIRLINES ILFC AIR BALTIC MAT AIRWAYS AEROSVIT AIRLINES AEROSVIT AIRLINES UNITED AIR LINES SMARTWINGS GEORGIAN AIRWAYS CONTINENTAL AIRLINES UNKNOWN WELLS FARGO BANK WELLS FARGO BANK BOEING APPIA LEASING ILFC ILFC TUIFLY EASYJET EASYJET CELESTIAL TUIFLY BOEING BOC GLOBAL JET BOEING BOEING BANK OF UTAH ARIANA AFGHAN AIRLINES
23008 23008 23011 23792 20911 20911 21176 21176 21177 21177 21957 22058 22058 23153 23158 23608 23608 20575 67 23505 24275 25743 26303 26441 27061 27274 28567 29057 23870 24271 24271 24352 24446 24550 25375 25595 26308 28199 24646 25249 25419 26537 26651 26703 28055 28922 28922 28922 30237 30364 30364 30687 30710 30717 32416 32417 34298 35140 37421 37421 30791 35327 35328 37111 28069
Line No.
952 952 971 1397 360 360 431 431 433 433 618 629 629 1075 1089 1399 1399 295 1180 1318 1637 2206 2635 2250 2347 2559 2971 2942 1647 1738 1738 1705 2569 1793 2598 2233 2665 2826 2138 2145 2165 2296 2257 2498 3024 3055 3055 3055 730 3172 3172 2252 2188 2228 1270 1285 1812 2575 3184 3184 623 3071 3189 2595 42
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
CFM56-5B3/3 V2533-A5 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 GP7270 GP7270 TRENT972-84 TRENT972-84
2010-01 1999-02 2009-03 2009-12 1999-04 1999-03 1999-10 2009-12 2009-12 2009-12 2009-12 2009-12 2000-07 2000-08 2005-06 2005-06 2009-07 2009-07 2009-03 2009-03
DELIVERED LEASED RETURNED DELIVERED RETURNED RETURNED RETURNED DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED RETURNED RETURNED RETURNED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK
2010.01.27 2010.01.28 2010.01.01 2010.01.28 2010.01.06 2010.01.03 2010.01.06 2010.01.19 2010.01.19 2010.01.28 2010.01.28 2010.01.29 2010.01.01 2010.01.02 2010.01.02 2010.01.03 2010.01.15 2010.01.15 2010.01.07 2010.01.07
JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-17 JT8D-15 JT8D-15 JT8D-15 JT8D-15 JT8D-15A JT8D-15A JT8D-15 CFM56-3B1 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B20 CFM56-7B20 CFM56-7B22 CFM56-7B24 CFM56-7B20 CFM56-7B20 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B26
1983-02 1983-02 1983-05 1987-05 1974-05 1974-05 1975-08 1975-08 1975-09 1975-09 1979-10 1979-12 1979-12 1984-11 1985-01 1987-05 1987-05 1972-01 1985-11 1986-11 1988-10 1991-12 1994-06 1992-02 1992-07 1993-11 1997-11 1997-09 1988-11 1989-05 1989-05 1989-03 1993-12 1989-09 1994-03 1992-02 1994-10 1996-10 1991-09 1991-09 1991-10 1992-05 1992-03 1993-06 1998-03 1998-06 1998-06 1998-06 2000-11 2010-01 2010-01 2007-04 2007-01 2007-03 2002-12 2003-02 2005-10 2008-04 2010-01 2010-01 2000-07 2009-10 2010-02 2008-04 1998-03
SOLD LEASED RETURNED LEASED SOLD SOLD SOLD SOLD SOLD SOLD SOLD RETURNED LEASED SOLD SOLD RETURNED LEASED LEASED LEASED RETURNED LEASED RETURNED RETURNED LEASED RETURNED SOLD SUB-LEASED RETURNED RETURNED RETURNED SOLD RETURNED LEASE-BUYOUT SUB-LEASED RETURNED RETURNED RETURNED LEASED RETURNED SOLD RETURNED RETURNED SOLD SUB-LEASED SUB-LEASED SOLD SOLD LEASED LEASED DELIVERED SALE-LEASEBACK SOLD SOLD SUB-LEASED RETURNED RETURNED LEASED SUB-LEASED DELIVERED LEASED RETURNED SOLD DELIVERED SOLD RETURNED
2010.02.09 2010.02.09 2010.02.07 2010.02.17 2010.02.25 2010.02.25 2010.02.25 2010.02.25 2010.02.25 2010.02.25 2010.02.05 2010.02.04 2010.02.04 2010.02.10 2010.02.10 2010.02.23 2010.02.24 2010.02.01 2010.02.01 2010.02.02 2010.02.01 2010.02.01 2010.02.02 2010.02.23 2010.02.28 2010.02.01 2010.02.05 2010.02.08 2010.02.05 2010.02.10 2010.02.10 2010.02.16 2010.02.16 2010.02.01 2010.02.11 2010.02.15 2010.02.15 2010.02.01 2010.02.10 2010.02.17 2010.02.09 2010.02.09 2010.02.01 2010.02.03 2010.02.01 2010.02.03 2010.02.03 2010.02.03 2010.02.03 2010.02.16 2010.02.16 2010.02.08 2010.02.08 2010.02.20 2010.02.21 2010.02.23 2010.02.22 2010.02.14 2010.02.22 2010.02.22 2010.02.16 2010.02.08 2010.02.22 2010.02.19 2010.02.28
Source: OAG Fleet iNet, September 10, 2010
110
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-86N(W) 737-83N(W) 737-823(W) 737-823(W) 737-86J(W) 737-86J(W) 737-8BK(W) 737-8HX(W) 737-8HX(W) 737-8HX(W) 737-8U3(W) 737-8U3(W) 737-8U3(W) 737-86N(W) 737-8Q8(W) 737-8U3(W) 737-8U3(W) 737-86Q 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-8U3(W) 737-8U3(W) 737-8Q8(W) 737-86N(W) 737-8AS(W) 737-846(W) 737-846(W) 737-84P(W) 737-8GQ(W) 737-8GQ(W) 737-8EH(W) 737-8EH(W) 737-89L(W) 737-89L(W) 737-84P(W) 737-8FN(W) 737-8CT(W) 737-8CT(W) 737-8K2(W) 737-85C(W) 737-8EH(W) 737-86J(W) 737-86J(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8JE(W) 737-8F2(W) 737-9GPER(W) 737-900ER(W) 737-9F2ER(W) 747-412 757-225 757-225 757-225 757-256 757-256 757-256 757-2K2(W) 757-236 767-281 767-3P6ER 767-319ER 767-383ER 767-3Q8ER 767-306ER 767-319ER 767-316ER 777-21H 777-21H 777-21H 777-F6N 777-F6N 777-FZB 777-FZB 777-367ER 777-367ER 777-3DZER 777-31HER 787-822
New Owner/Operator
JEJU AIR BIMAN BANGLADESH AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES RBS BLUE AIR-TRANSPORT AERIAN TRAVEL SERVICE AIRLINES DELTA AIR LINES ACG UKRAINE INT AIRLINES DELTA AIR LINES BABCOCK & BROWN GARUDA OGYGIAN ILFC GARUDA GARUDA BOULLIOUN AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES BABCOCK & BROWN GARUDA ILFC GECAS RYANAIR JAPAN AIRLINES JAPAN AIRLINES HAINAN AIRLINES SILURUS BAYHAM HOLDINGS GOL GOL AIR CHINA AIR CHINA HAINAN AIRLINES TRAVEL SERVICE AIRLINES BOC WESTJET CARIBBEAN AIRLINES XIAMEN AIRLINES GOL AIR BERLIN AIR BERLIN RYANAIR RYANAIR RYANAIR RYANAIR RYANAIR ARIK AIR TURK HAVA YOLLARI LION AIR SOMON AIR TURK HAVA YOLLARI CASPIAN LEASING GENERAL ELECTRIC GENERAL ELECTRIC GENERAL ELECTRIC PRIVILEGE STYLE ILFC PRIVILEGE STYLE WYNERGY AEROSPACE CORP JET-I LEASING CARGO AIRCRAFT KENYA AIRWAYS ILFC WELLS FARGO BANK ILFC ILFC ILFC LAN AIRLINES VELING EMIRATES EMIRATES GECAS CHINA CARGO AIRLINES OAK HILL CAPITAL SOUTHERN AIR [ CATHAY CATHAY QATAR AIRWAYS EMIRATES UNITED AIR LINES
Previous Owner/Operator
BABCOCK & BROWN GENERAL ELECTRIC BOEING WILMINGTON TRUST AIR BERLIN RBS WILMINGTON TRUST BOEING DELTA AIR LINES ACG BOEING DELTA AIR LINES BABCOCK & BROWN VIRGIN BLUE AIRLINES ILFC BOEING DUBAI AEROSPACE ENTERPRISES AIR INDIA EXPRESS BOEING WILMINGTON TRUST BOEING BOEING BOEING BABCOCK & BROWN ILFC AIR EUROPA BOEING BOEING JS AVIATION BOEING BANK OF UTAH SILURUS BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOC TRANSAVIA AIRLINES BOEING BOEING BOEING BOC BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING EAGLE AVIATION EUROPE US AIRWAYS US AIRWAYS US AIRWAYS AEROLINEA PRIPAL BBAM ILFC AVIANCA CHINA SOUTHERN AIRLINES ABX AIR UNKNOWN ILFC DOVER WELLS FARGO BANK BELAIR AIRLINES ILFC ILFC BOEING ATISA ONE VELING VELING BOEING GECAS BOEING WELLS FARGO BANK BOEING BOC BOEING BOEING BOEING
Serial No. or No. of (Orders)/ [Options]
28608 28653 29560 29560 29641 29641 29643 29662 29662 29662 29666 29666 29666 29884 30040 30141 30141 30296 30916 30916 31087 31089 31763 31763 32841 34251 35026 35355 35355 35757 35792 35792 35831 36596 36751 36752 36782 37077 37092 37092 37160 37575 37599 37749 37749 38496 38497 38498 38499 38500 38971 (10) 35735 (2) (10) 27071 22192 22196 22199 26241 26252 26252 26635 29946 23016 24484 26264 26544 27600 27957 29388 37802 27247 27247 27248 37711 37711 37986 37986 36164 36164 37662 38983 (25)
Line No.
410 948 3156 3156 1654 1654 2303 3182 3182 3182 3171 3171 3171 1094 1693 3166 3166 1647 3170 3170 3178 3185 3177 3177 1705 1817 3187 3159 3159 3192 2351 2351 3165 3180 3167 3188 3186 3163 3164 3164 2880 3190 3191 3176 3176 3168 3173 3179 3181 3174 3065 3183
1072 3 7 17 572 900 900 608 877 80 260 555 412 655 587 785 987 30 30 33 846 846 844 844 845 845 849 847
Engine Model
CFM56-7B27 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 PW4056 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 CF6-80A CF6-80C2B4 CF6-80C2B6 PW4060 PW4060 CF6-80C2B6F CF6-80C2B6F CF6-80C2B7F TRENT884 TRENT884 TRENT884 GE90-110B1L GE90-110B1L GE90-110B1L GE90-110B1L GE90-115BL2 GE90-115BL2 GE90-115B GE90-115B
Date of Manf. or First Exp. Deliv. 1999-10 2001-08 2010-01 2010-01 2005-01 2005-01 2007-06 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2002-02 2005-03 2010-01 2010-01 2005-01 2010-01 2010-01 2010-01 2010-02 2010-01 2010-01 2005-04 2005-11 2010-02 2010-01 2010-01 2010-02 2007-07 2007-07 2010-01 2010-01 2010-01 2010-02 2010-02 2010-01 2010-01 2010-01 2009-04 2010-02 2010-02 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2009-09 2011-05 2010-01 2011-09 2011-11 1995-10 1982-03 1982-07 1983-02 1993-07 1999-10 1999-10 1994-03 1999-06 1983-12 1989-03 1994-09 1991-12 1997-03 1995-06 2000-01 2010-02 1996-04 1996-04 1996-05 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2016-07
Transaction Type
LEASED LEASED DELIVERED SALE-LEASEBACK RETURNED LEASED LEASED DELIVERED SOLD LEASED DELIVERED SOLD LEASED RETURNED SOLD DELIVERED SALE-LEASEBACK RETURNED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED LEASED SOLD RETURNED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED SOLD LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED ORDERED DELIVERED ORDERED ORDERED RETURNED RETURNED RETURNED RETURNED RETURNED SOLD LEASED RETURNED RETURNED SOLD SOLD SOLD SOLD RETURNED SOLD SOLD DELIVERED SOLD LEASED SALE-LEASEBACK DELIVERED LEASED DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED ORDERED
Date
2010.02.09 2010.02.04 2010.02.01 2010.02.01 2010.02.03 2010.02.26 2010.02.16 2010.02.19 2010.02.19 2010.02.19 2010.02.10 2010.02.10 2010.02.10 2010.02.20 2010.02.08 2010.02.05 2010.02.05 2010.02.01 2010.02.12 2010.02.18 2010.02.19 2010.02.26 2010.02.16 2010.02.16 2010.02.08 2010.02.28 2010.02.25 2010.02.01 2010.02.01 2010.02.26 2010.02.02 2010.02.02 2010.02.03 2010.02.18 2010.02.05 2010.02.26 2010.02.26 2010.02.03 2010.02.05 2010.02.05 2010.02.01 2010.02.19 2010.02.26 2010.02.16 2010.02.16 2010.02.11 2010.02.12 2010.02.17 2010.02.18 2010.02.11 2010.02.16 2010.02.22 2010.02.17 2010.02.25 2010.02.22 2010.02.01 2010.02.28 2010.02.03 2010.02.08 2010.02.28 2010.02.01 2010.02.02 2010.02.01 2010.02.09 2010.02.25 2010.02.02 2010.02.08 2010.02.02 2010.02.12 2010.02.08 2010.02.08 2010.02.26 2010.02.01 2010.02.02 2010.02.02 2010.02.26 2010.02.26 2010.02.05 2010.02.05 2010.02.10 2010.02.10 2010.02.25 2010.02.11 2010.02.19
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
111
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
New Owner/Operator
&%"25!29 s !)2"53 A300B4-622R A300B4-622R A310-325ET A319-133X A319-132 A319-132 A319-132 A319-132 A319-112 A319-115 A319-115 A319-115 A319-112 A319-112 A319-112 A319-133X A319-115X A320-212 A320-214 A320-211 A320-232 A320-214 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-214 A320-232 A320-232 A320-232 A320-212 A320-232 A321-112 A321-112 A321-112 A321-112 A321-231 A321-213 A321-231 A321-231 A321-211 A321-231 A321-211 A321-211 A330-243 A330-243 A330-202 A330-202 A330-302E A330-302E A330-343E A330-343E A380-861 A380-861
TIGRIS INT SAHA AIRLINES BIMAN BANGLADESH AIRLINES AIRBUS HAMBURG TAM LINHAS AEREAS TAM LINHAS AEREAS TAM LINHAS AEREAS TAM LINHAS AEREAS LUFTHANSA AVIANCA AIRCOL AVIANCA AERVENTURE WELLS FARGO BANK MEXICANA GERMAN AIR FORCE UNKNOWN DB LEASING TRUST LOTUS AIRLINE LUFTHANSA ITALIA ACG TURKUAZ AIRLINES CYPRUS AIRWAYS JETSTAR ASIA CHINA EASTERN AIRLINES JUNEYAO AIRLINES AVIANCA AVIANCA WELLS FARGO BANK AVIANCA BOC ARCU QANTAS JETSTAR AIRWAYS EASYJET EASYJET QATAR AIRWAYS AIR BERLIN CELESTIAL AVIATION BELAIR AIRLINES AIR BERLIN GULF AIR ALAFCO OLYMPIC AIR LUFTHANSA ALAFCO OLYMPIC AIR EASYJET EASYJET CIT CYPRUS AIRWAYS COMLUX AVIATION AIR LUTHER AIR LUTHER INDIAN AIRLINES US AIRWAYS AERDRAGON FREE BIRD AIRLINES TIGER AIRWAYS INDIAN AIRLINES SHENZHEN AIRLINES INDIGO INDIGO WELLS FARGO BANK US AIRWAYS ALITALIA ALITALIA ALITALIA ALITALIA QATAR AIRWAYS AIR CHINA CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES SHANGHAI AIRLINES M & C CORPORATE SERVICES BIN TALAL BIN ABDULAZIZ AL SAUD,ALWALEED AERCAP SICHUAN AIRLINES CIT QANTAS FINNAIR FINNAIR AWAS SINGAPORE AIRLINES AIR FRANCE AIR FRANCE
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
CHINA SOUTHERN AIRLINES TIGRIS ILFC DEER AIR AIRBUS LICO LEASING AIRBUS LICO LEASING AIRBUS AIRBUS AIRBUS AIRCOL AIRBUS AIRBUS WELLS FARGO BANK LUFTHANSA TECHNIK AIRBUS HELLAS JET KUWAIT AIRWAYS LUFTHANSA EASYJET ILFC CIT JETSTAR AIRWAYS AIRBUS AIRBUS NEWPORT LEASING AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRBUS ARCU BOC AIRBUS UNKNOWN AIRBUS AIRBUS AIR BERLIN CELESTIAL AIR BERLIN AIRBUS AIRBUS ALAFCO AIRBUS AIRBUS ALAFCO AIRBUS UNKNOWN AIRBUS CIT AIRBUS AIRBUS AIRCRAFT GUARANTY AIRBUS AIRBUS AIRBUS AERDRAGON AIRBUS AIRBUS AIRBUS AIRBUS INDIAER WELLS FARGO BANK ILFC UNKNOWN UNKNOWN UNKNOWN UNKNOWN AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS WILMINGTON TRUST
750 750 642 4042 4163 4163 4171 4171 4182 4200 4200 4200 4204 4204 4204 3897 4024 087 1054 172 1918 2048 2359 2453 4043 4064 4100 4175 4175 4175 4177 4177 4177 4177 4179 4179 4183 4187 4187 4187 4187 4188 4190 4190 4191 4193 4193 4196 4196 4197 4197 4199 4199 4199 4201 4202 4207 4207 4210 4212 4214 4216 4216 445 565 819 848 940 959 4173 4180 4184 4189 4194 4198 956
PW4158 PW4158 PW4156A V2527M-A5 V2524-A5 V2524-A5 V2524-A5 V2524-A5 CFM56-5B6/3 CFM56-5B7/3 CFM56-5B7/3 CFM56-5B7/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 V2527M-A5 CFM56-5B7/3 CFM56-5A3 CFM56-5B4/2P CFM56-5A1 V2527-A5 CFM56-5B4/P V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 CFM56-5A3 V2527-A5 CFM56-5B2/P CFM56-5B2/P CFM56-5B2/P CFM56-5B2/P V2533-A5 CFM56-5B2/3 V2533-A5 V2533-A5 CFM56-5B3/3 V2533-A5 CFM56-5B3/P
1995-02 1995-02 1992-02 2009-10 2010-01 2010-01 2010-01 2010-01 2010-01 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2009-05 2009-09 1989-11 1999-06 1991-02 2002-12 2003-06 2004-12 2005-05 2010-01 2010-01 2009-10 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-02 2010-02 2010-02 2010-02 2010-01 2010-01 2010-01 2010-02 2010-01 2010-01 2010-02 2010-02 2010-01 2010-01 2010-01 2010-01 2010-01 2010-01 2010-02 2010-01 2010-01 2010-01 2010-02 2010-02 2010-02 2010-02 1993-09 1995-11 1998-04 1998-07 1999-01 1999-02 2010-01 2010-01 2010-02 2010-02 2010-02 2010-02 1999-01
SOLD SOLD LEASED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED DELIVERED SOLD LEASED DELIVERED SOLD LEASED RETURNED DELIVERED RETURNED RETURNED LEASED SOLD LEASED LEASED SUB-LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED SOLD LEASED DELIVERED SOLD LEASED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED SOLD LEASED SUB-LEASED DELIVERED DELIVERED LEASED DELIVERED DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED SOLD SALE-LEASEBACK DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK SOLD LEASED SALE-LEASEBACK SALE-LEASEBACK SALE-LEASEBACK SALE-LEASEBACK DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SOLD
2010.02.01 2010.02.01 2010.02.25 2010.02.01 2010.02.08 2010.02.08 2010.02.09 2010.02.09 2010.02.03 2010.02.26 2010.02.26 2010.02.26 2010.02.24 2010.02.24 2010.02.24 2010.02.01 2010.02.01 2010.02.01 2010.02.28 2010.02.01 2010.02.12 2010.02.17 2010.02.11 2010.02.26 2010.02.04 2010.02.08 2010.02.18 2010.02.09 2010.02.09 2010.02.09 2010.02.04 2010.02.04 2010.02.04 2010.02.04 2010.02.09 2010.02.09 2010.02.01 2010.02.11 2010.02.11 2010.02.11 2010.02.11 2010.02.08 2010.02.05 2010.02.05 2010.02.16 2010.02.03 2010.02.03 2010.02.17 2010.02.17 2010.02.16 2010.02.16 2010.02.26 2010.02.26 2010.02.26 2010.02.24 2010.02.24 2010.02.11 2010.02.11 2010.02.19 2010.02.23 2010.02.25 2010.02.22 2010.02.22 2010.02.26 2010.02.18 2010.02.11 2010.02.10 2010.02.09 2010.02.08 2010.02.08 2010.02.03 2010.02.10 2010.02.10 2010.02.26 2010.02.25 2010.02.04
M & C CORP SERVICES
956
CFM56-5B3/P
1999-01
LEASED
2010.02.04
AIRBUS AERCAP AIRBUS CIT AIRBUS AINO AVIATION AIRBUS AWAS AIRBUS DS-RENDITE-FONDS
1082 1082 1094 1094 1078 1078 1085 1085 040 040
TRENT772C-60 TRENT772C-60 CF6-80E1A4 CF6-80E1A4 CF6-80E1A4B CF6-80E1A4B TRENT772B-60 TRENT772B-60 GP7270 GP7270
2010-01 2010-01 2010-02 2010-02 2009-11 2009-11 2009-12 2009-12 2009-06 2009-06
DELIVERED LEASED DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED SALE-LEASEBACK
2010.02.04 2010.02.04 2010.02.22 2010.02.22 2010.02.11 2010.02.11 2010.02.05 2010.02.05 2010.02.10 2010.02.12
Source: OAG Fleet iNet, September 10, 2010
112
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
New Owner/Operator
-!2#( s "/%).' 737-205 737-2V5 737-2V5 737-2V5 737-244 737-244 737-210C 737-3B7 737-33A 737-3B7 737-3B7 737-3B7 737-3B7 737-3Y0 737-35B 737-322 737-322 737-322 737-322 737-3Y0 737-31S 737-34S 737-33V 737-33V 737-4Y0 737-4Y0 737-4Y0 737-4Q8 737-436 737-4Y0 737-4Y0 737-4Q8 737-4Q8 737-4Q8 737-4D7 737-430
GLOBAL AIR SAFAIR OPERATIONS SAFAIR AIR NAMIBIA-NATIONAL AIRLINES SAFAIR AFRICA CHARTER AIRLINE AEKO KULA AFS SAFAIR CIT U.S. BANK TAG AVIATION SOUTHERN AIRCRAFT CONSULTANCY AERSALE BANK OF UTAH MAGNICHARTERS MAGNICHARTERS PUMA LINHAS AEREAS BANK OF UTAH SRIWIJAYA AIR AIR CONTRACTORS CELESTIAL CELESTIAL CELESTIAL DINGLEWOOD AERSALE AERSALE ACG CSA CZECH AIRLINES GENERAL ELECTRIC PAMIR AIRWAYS ILFC ILFC ENTER AIR NOK AIRLINES ACS GERMAN OPERATING AIRCRAFT 737-430 LEASING 737-505 ESTONIAN AIR 737-505 EUROPEAN AVIATION 737-505 SOUTHERN AIRCRAFT CONSULTANCY 737-505 UNITED NATIONS 737-505 ILFC 737-522 UNITED AIR LINES 737-522 UNKNOWN 737-528 ITOCHU LEASE COMPANY 737-524 CONTINENTAL AIRLINES 737-76N(W ETOPS) GENESIS LEASE 737-76N(W ETOPS) AIR BERLIN 737-71Q JET LITE 737-71Q JET LITE 737-7Q8(W) ILFC 737-7Q8(W) AIRES COLOMBIA 737-7Q8(W) ILFC 737-7Q8(W) AIRES COLOMBIA 737-7K5(W) AIR BERLIN 737-73V(W) AIRES COLOMBIA 737-73V EASTAR JET AIRLINES 737-73V LANDELL 737-73V BOC 737-73V BOC 737-76N(W) WELLS FARGO BANK 737-76N(W) AIRTRAN AIRWAYS 737-76N(W) WELLS FARGO BANK 737-76N(W) AIRTRAN AIRWAYS 737-783(W) SAS 737-7K5(W) AIR BERLIN 737-7K5(W) AIR BERLIN 737-7K5(W) AIR BERLIN 737-7H4(W) SOUTHWEST AIRLINES 737-7H4(W) SOUTHWEST AIRLINES 737-7H4(W) SOUTHWEST AIRLINES 737-724 CONTINENTAL AIRLINES 737-7AK(W) U.S. AIRCRAFT 737-7AK(W) HAINAN AIRLINES 737-7AK(W) DEER JET 737-7BC(W) PRIVAJET 737-7HF(W) BANK OF UTAH 737-7HF(W) WHITE SAPPHIRE 737-7KK(W) BOEING BUSINESS JETS 737-7KK(W) BANK OF UTAH 737-83N(W ETOPS) SAGA AIRLINES 737-86N(W) GENESIS 737-86N(W) PEGASUS AIRLINES 737-86N(W) GENESIS 737-86N(W) PEGASUS AIRLINES
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
EL SOL DE AMERICA WELLS FARGO BANK SAFAIR OPERATIONS AIR NAMIBIA-NATIONAL AIRLINES STAR AIR CARGO STAR AIR CARGO ALOHA AIR CARGO WELLS FARGO BANK AERGO GEORGIAN AIRWAYS WACHOVIA BANK U.S. BANK TAG AVIATION WELLS FARGO BANK WELLS FARGO BANK BANK OF UTAH BANK OF UTAH UNKNOWN GOL WELLS FARGO BANK DEUTSCHE STRUCTURED FINANCE GARUDA NIGERIAN EAGLE AIRLINES NIGERIAN EAGLE AIRLINES BRUSSELS AIRLINES WELLS FARGO BANK WELLS FARGO BANK ALASKA AIRLINES DANUBE WINGS TURK HAVA YOLLARI BANK OF BUTTERFIELD ASIANA AIRLINES ASIANA AIRLINES ILFC THAI AIRWAYS AIR ONE
21184 22531 22531 22531 22591 22591 20917 23315 23634 23859 23859 23859 23859 23923 23970 24248 24532 24668 24670 25179 29057 29109 29341 29342 24314 24469 24493 25106 25839 26086 26086 26299 26320 26320 26613 27003
440 724 724 724 859 859 344 1210 1423 1551 1551 1551 1551 1540 1467 1636 1754 1905 1909 2205 2942 3001 3125 3127 1680 1749 1751 2518 2188 2475 2475 2602 2563 2563 2338 2328
JT8D-9A JT8D-9A JT8D-9A JT8D-9A JT8D-17A JT8D-17A JT8D-17A CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1
1975-11 1980-11 1980-11 1980-11 1982-03 1982-03 1974-02 1986-02 1987-07 1988-04 1988-04 1988-04 1988-04 1988-03 1987-10 1988-10 1989-07 1990-07 1990-07 1991-12 1997-09 1998-01 1999-09 1999-10 1989-01 1989-06 1989-06 1993-08 1991-11 1993-04 1993-04 1994-03 1993-12 1993-12 1992-07 1992-06
SOLD SOLD LEASED SUB-LEASED RETURNED SUB-LEASED RETURNED SOLD LEASED RETURNED SOLD SOLD SOLD SOLD SOLD LEASED LEASED LEASED RETURNED SOLD SOLD RETURNED RETURNED RETURNED RETURNED SOLD SOLD RETURNED RETURNED RETURNED SOLD RETURNED RETURNED LEASED LEASED RETURNED
2010.03.01 2010.03.26 2010.03.26 2010.03.26 2010.03.01 2010.03.02 2010.03.31 2010.03.31 2010.03.01 2010.03.05 2010.03.10 2010.03.10 2010.03.10 2010.03.22 2010.03.11 2010.03.25 2010.03.22 2010.03.01 2010.03.31 2010.03.22 2010.03.23 2010.03.22 2010.03.15 2010.03.15 2010.03.27 2010.03.22 2010.03.22 2010.03.29 2010.03.07 2010.03.10 2010.03.10 2010.03.14 2010.03.15 2010.03.15 2010.03.01 2010.03.01
AIR ONE
27007
2367
CFM56-3C1
1992-08
RETURNED
2010.03.01
AFS IX WELLS FARGO BANK EUROPEAN AVIATION GEORGIAN AIRWAYS XIAMEN AIRLINES WILMINGTON TRUST BULGARIA AIR BRITISH AIRWAYS CONTINENTAL AIRLINES GENESIS LEASE GENESIS LEASE JET AIRWAYS JET AIRWAYS ILFC ILFC ILFC ILFC TUIFLY PAFCO TRUST PAFCO TRUST EASYJET EASYJET EASYJET AFS WELLS FARGO BANK AFS WELLS FARGO BANK BOEING TUIFLY TUIFLY TUIFLY BOEING BOEING BOEING BOEING CRESCENT HEIGHTS WELLS FARGO BANK HAINAN AIRLINES ELORA AIR WHITE SAPPHIRE BANK OF UTAH BOEING BOEING AIR ALGERIE GENESIS GENESIS GENESIS GENESIS
24646 24649 24649 26336 26338 26646 26687 27425 28924 28654 28654 29043 29044 30687 30687 30710 30710 30714 32416 32417 32418 32419 32420 32652 32652 32667 32667 34549 34693 35277 35282 36659 36660 36913 (3) 29866 29866 29866 30791 35977 35977 38608 38608 28249 28619 28619 28624 28624
2138 2225 2225 2805 2822 2214 2402 2730 3063 986 986 138 152 2252 2252 2188 2188 2202 1270 1285 1300 1321 1341 1627 1627 1623 1623 3210 2260 2609 2585 3220 3226 3195
CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-7B24 CFM56-7B24 CFM56-7B22 CFM56-7B22 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B22 CFM56-7B24 CFM56-7B24 CFM56-7B20 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26
1991-09 1992-01 1992-01 1996-06 1996-09 1992-01 1992-11 1995-05 1998-07 2001-10 2001-10 1998-10 1998-10 2007-04 2007-04 2007-01 2007-01 2007-02 2002-12 2003-02 2003-03 2003-04 2003-06 2004-12 2004-12 2004-11 2004-11 2010-02 2007-04 2008-05 2008-04 2010-03 2010-03 2010-02 2014-12 1999-10 1999-10 1999-10 2000-07 2006-08 2006-08 2010-02 2010-02 2002-04 2000-03 2000-03 2000-05 2000-05
LEASED SOLD SOLD SUB-LEASED RETURNED LEASE-BUYOUT RETURNED RETURNED SOLD SOLD LEASED SUB-LEASED SUB-LEASED SOLD LEASED SOLD LEASED SUB-LEASED LEASED LEASED RETURNED RETURNED RETURNED TRANSFERRED LEASED TRANSFERRED LEASED DELIVERED SUB-LEASED SUB-LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED ORDERED RETURNED SOLD LEASED SOLD SOLD LEASED DELIVERED SOLD RETURNED SOLD LEASED SOLD LEASED
2010.03.21 2010.03.15 2010.03.15 2010.03.01 2010.03.31 2010.03.10 2010.03.01 2010.03.19 2010.03.09 2010.03.25 2010.03.25 2010.03.01 2010.03.31 2010.03.09 2010.03.23 2010.03.09 2010.03.23 2010.03.28 2010.03.06 2010.03.04 2010.03.07 2010.03.31 2010.03.31 2010.03.23 2010.03.23 2010.03.24 2010.03.24 2010.03.16 2010.03.01 2010.03.07 2010.03.21 2010.03.25 2010.03.31 2010.03.04 2010.03.02 2010.03.08 2010.03.08 2010.03.08 2010.03.25 2010.03.02 2010.03.02 2010.03.19 2010.03.19 2010.03.01 2010.03.25 2010.03.25 2010.03.25 2010.03.25
408 408 408 623 2047 2047 3208 3208 1123 534 534 585 585
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
113
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-86N(W) 737-86N(W) 737-86N(W) 737-8KN(W) 737-8KN(W) 737-8KN(W) 737-8V3(W) 737-8V3(W) 737-8V3(W) 737-8HX(W) 737-8U3(W) 737-8U3(W) 737-883 737-883 737-81Q(W ETOPS) 737-86N(W) 737-86N(W) 737-823(W) 737-8FZ(W) 737-8FZ(W) 737-8FZ(W) 737-823(W) 737-823(W) 737-823(W) 737-86N(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-846(W) 737-846(W) 737-8GQ(W) 737-8GJ(W) 737-8FE(W) 737-8K2(W) 737-8EH(W) 737-8JP(W) 737-8JP(W) 737-8JP(W) 737-86N(W) 737-86N(W) 737-86N(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8JP(W) 737-8JP(W) 737-8JP(W) 737-86N(W) 737-86N(W) 737-82R(W) 737-8FE(W) 737-8FE(W) 737-800 737-9GPER(W) 737-9GPER(W) 737-9FGER(W)
New Owner/Operator
ALCYONE AUSTRALIA WELLS FARGO BANK ORENBURG AIRLINES DELTA AIR LINES BABCOCK & BROWN FLYDUBAI DELTA AIR LINES ACG COPA AIRLINES TRANSAVIA FRANCE GARUDA GARUDA SAS FGL AIRCRAFT IRELAND XL AIRWAYS GERMANY GENESIS SUNEXPRESS AMERICAN AIRLINES DELTA AIR LINES KANEDELL NORWEGIAN AIR SHUTTLE AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES SUNEXPRESS RYANAIR RYANAIR RYANAIR JAPAN AIRLINES JAPAN AIRLINES AWAS SPICEJET PACIFIC BLUE AIRLINES TRANSAVIA AIRLINES GOL CIT CIT NORWEGIAN AIR SHUTTLE GECAS CELESTIAL NORWEGIAN AIR SHUTTLE RYANAIR RYANAIR RYANAIR RYANAIR RYANAIR NORWEGIAN AIR SHUTTLE DY1 LEASING NORWEGIAN AIR SHUTTLE GECAS CHINA EASTERN AIRLINES PEGASUS AIRLINES VIRGIN BLUE AIRLINES VIRGIN BLUE AIRLINES RAK AIRWAYS LION AIR LION AIR BOEING BUSINESS JETS SAUDI MINISTRY OF FINANCE & 737-9FGER(W) ECONOMY 747-341 AIR ATLANTA ICELANDIC 747-4KZF IBJ LEASING 747-4KZF AIRBRIDGE CARGO AIRLINES 757-2B6 CHEMCO 757-2B6 CARGO JETS INT 757-2B6 AEROLEASE 757-223(W) U.S. BANK 757-223(W) AMERICAN AIRLINES 757-28A TRITON AVIATION INT 757-223(W) U.S. BANK 757-223(W) AMERICAN AIRLINES 757-223(W) U.S. BANK 757-223(W) AMERICAN AIRLINES 757-223(W) U.S. BANK 757-223(W) AMERICAN AIRLINES 757-223(W) U.S. BANK 757-223(W) AMERICAN AIRLINES 757-236 IAI 757-236(W ETOPS) CIT 757-2Y0 ICELANDAIR 757-2K2(W) AEROLINEAS GALAPAGOS 757-204 SUNRISE ASSET MGMT 757-28A THOMAS COOK 757-21K THOMAS COOK 757-25F THOMAS COOK 757-27A AWI FINANCE 757-27A AEROLEASE
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
VIRGIN BLUE AIRLINES ALCYONE AUSTRALIA CELESTIAL BOEING DELTA AIR LINES BABCOCK & BROWN BOEING DELTA AIR LINES ACG TRANSAVIA AIRLINES BOEING DUBAI AEROSPACE ENTERPRISES AIR EUROPA AIR EUROPA MIAMI AIR INT GENESIS GENESIS BOEING BOEING DELTA AIR LINES KANEDELL BOEING BOEING BOEING GECAS BOEING BOEING BOEING BOEING JS AVIATION OKAY AIRWAYS BOEING VIRGIN BLUE AIRLINES CARIBBEAN AIRLINES BOEING BOEING BOEING CIT BOEING BOEING CELESTIAL BOEING BOEING BOEING BOEING BOEING BOEING BOEING DY1 LEASING BOEING GECAS BOEING BOEING BOEING BOEING BOEING BOEING BOEING
28644 28644 28644 29636 29636 29636 29667 29667 29667 29677 30142 30142 30194 30194 30618 30806 30806 31091 31713 31713 31713 33209 33210 33211 34251 35027 35028 35030 35356 35356 35793 36367 36605 37160 37600 37816 37816 37816 37884 37884 37884 38503 38504 38505 38506 38507 39164 39164 39164 39388 39388 40871 (40) [24] (-4) 35736 35737 39317
839 839 839 3197 3197 3197 3151 3151 3151 2946 3213 3213 666 666 830 790 790 3209 3215 3215 3215 3193 3200 3217 1817 3198 3199 3222 3201 3201 2428 3218 2710 2880 3205 3194 3194 3194 3223 3223 3223 3202 3203 3206 3221 3211 3196 3196 3196 3204 3204 3212
BOEING SAUDI ARABIAN AIRLINES UNKNOWN IBJ LEASING ROYAL AIR MAROC CHEMCO CARGO JETS INT WACHOVIA BANK U.S. BANK AIR SLOVAKIA WACHOVIA BANK U.S. BANK WACHOVIA BANK U.S. BANK WACHOVIA BANK U.S. BANK WACHOVIA BANK U.S. BANK SKYSERVICE SKYSERVICE AIRPLANES HOLDINGS WELLS FARGO BANK WELLS FARGO BANK SKYSERVICE SKYSERVICE SKYSERVICE FAR EASTERN AIR TRANSPORT AWI FINANCE
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
3207 3225 3219
CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B24 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27
2001-04 2001-04 2001-04 2010-02 2010-02 2010-02 2009-12 2009-12 2009-12 2009-06 2010-02 2010-02 2000-08 2000-08 2001-04 2001-02 2001-02 2010-02 2010-03 2010-03 2010-03 2010-02 2010-02 2010-03 2005-11 2010-02 2010-02 2010-03 2010-02 2010-02 2007-10 2010-03 2008-07 2009-04 2010-02 2010-02 2010-02 2010-02 2010-03 2010-03 2010-03 2010-02 2010-02 2010-02 2010-03 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2011-10 2016-12 2010-02 2010-03 2010-03
RETURNED SOLD LEASED DELIVERED SOLD LEASED DELIVERED SOLD LEASED RETURNED DELIVERED SALE-LEASEBACK RETURNED RETURNED SUB-LEASED SOLD LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK RETURNED DELIVERED SUB-LEASED RETURNED DELIVERED DELIVERED SOLD LEASED DELIVERED SOLD LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED DELIVERED ORDERED OPTIONED CNCL-ORDER DELIVERED DELIVERED DELIVERED
2010.03.16 2010.03.16 2010.03.18 2010.03.08 2010.03.08 2010.03.08 2010.03.19 2010.03.19 2010.03.19 2010.03.30 2010.03.22 2010.03.22 2010.03.09 2010.03.09 2010.03.23 2010.03.25 2010.03.25 2010.03.22 2010.03.23 2010.03.23 2010.03.23 2010.03.04 2010.03.11 2010.03.29 2010.03.02 2010.03.05 2010.03.05 2010.03.26 2010.03.09 2010.03.09 2010.03.05 2010.03.25 2010.03.23 2010.03.03 2010.03.11 2010.03.03 2010.03.03 2010.03.03 2010.03.29 2010.03.29 2010.03.29 2010.03.11 2010.03.11 2010.03.12 2010.03.26 2010.03.18 2010.03.04 2010.03.04 2010.03.04 2010.03.31 2010.03.31 2010.03.18 2010.03.26 2010.03.26 2010.03.01 2010.03.15 2010.03.29 2010.03.26
39317
3219
CFM56-7B27
2010-03
SOLD
2010.03.26
24107 36784 36784 23686 23686 23686 24526 24526 24544 24577 24577 24578 24578 24587 24587 24588 24588 24772 25053 26151 26635 26964 27621 28674 28718 29607 29607
702 1411 1411 103 103 103 260 260 280 269 269 276 276 315 315 316 316 271 358 472 608 452 738 746 752 832 832
CF6-80C2B1 CF6-80C2B1F CF6-80C2B1F PW2037 PW2037 PW2037 RB211-535E4-B RB211-535E4-B RB211-535E4 RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4-B RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 PW2037 PW2037
1988-04 2008-11 2008-11 1986-05 1986-05 1986-05 1989-12 1989-12 1990-03 1990-02 1990-02 1990-03 1990-03 1990-08 1990-08 1990-08 1990-08 1990-02 1991-03 1992-06 1994-03 1992-04 1997-01 1997-02 1997-03 1998-10 1998-10
RETURNED SOLD LEASED RETURNED SOLD SOLD SOLD LEASED RETURNED SOLD LEASED SOLD LEASED SOLD LEASED SOLD LEASED RETURNED RETURNED LEASED LEASED SOLD RETURNED RETURNED RETURNED RETURNED SOLD
2010.03.27 2010.03.29 2010.03.29 2010.03.08 2010.03.08 2010.03.08 2010.03.16 2010.03.16 2010.03.12 2010.03.15 2010.03.15 2010.03.16 2010.03.16 2010.03.16 2010.03.16 2010.03.16 2010.03.16 2010.03.31 2010.03.31 2010.03.19 2010.03.24 2010.03.31 2010.03.31 2010.03.31 2010.03.31 2010.03.31 2010.03.31
Source: OAG Fleet iNet, September 10, 2010
114
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AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
757-27A 757-27A 757-27A 757-27A 757-236(W) 757-236(W) 767-216ER 767-216ER 767-284ER 767-383ER 767-341ER 767-319ER 767-306ER 767-31KER 767-31KER 767-319ER 767-3Q8ER 767-319ER 767-316ER(W) 767-34AF 777-28EER 777-224ER 777-F28 777-232LR 777-232LR 777-328ER 777-3DZER 777-381ER 777-36NER 777-36NER 777-3ZGER 777-3ZGER 787-86J 787-86J
New Owner/Operator
Previous Owner/Operator
AWI FINANCE AEROLEASE AWI FINANCE AEROLEASE THOMSON AIRWAYS THOMSON AIRWAYS U.S. BANK WELLS FARGO BANK AWMS EURO ATLANTIC AIRWAYS BUSINESS AIR ILFC ILFC MONARCH AIRLINES THOMAS COOK ILFC ILFC CELESTIAL LAN ARGENTINA UPS ASIANA AIRLINES CONTINENTAL AIRLINES AIR FRANCE DELTA AIR LINES DELTA AIR LINES AIR FRANCE QATAR AIRWAYS ALL NIPPON AIRWAYS GECAS EGYPTAIR V AUSTRALIA V AUSTRALIA AIR BERLIN AIR BERLIN
FAR EASTERN AIR TRANSPORT AWI FINANCE FAR EASTERN AIR TRANSPORT AWI FINANCE SKYSERVICE SKYSERVICE BCC GRAND CAYMAN U.S. BANK VIVA MACAU AIR ALGERIE WELLS FARGO BANK ILFC ILFC AIR MEDITERRANEE [ MONARCH AIRLINES ILFC AIR CHINA GECAS LAN AIRLINES BOEING BOEING BOEING BOEING BOEING BOEING CONSTANTIN SOFIA BOEING BOEING BOEING GECAS BOEING BOEING BOEING BOEING
29610 29610 29611 29611 29942 29943 23624 23624 24716 24318 24753 26264 27957 28865 28865 29388 30301 30586 35229 37944 35525 (-1) 32969 40559 40560 35677 36096 37951 38284 38284 (-2) [-6] (-10) [-5]
904 904 910 910 867 871 144 144 297 257 291 555 587 657 657 785 762 808 949 988 853
HI FLY AIR INDIA TAPTI AVIATION GENESIS LEASE GENESIS LEASE GENESIS LEASE GENESIS LEASE EASYJET CELESTIAL AIR BERLIN SKANDINAVISKA ENSKILDA BANKEN AIR BERLIN AIRBUS AMARILLYS AIRBUS AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRBUS AIRBUS ARCU GENESIS LEASE GENESIS LEASE GENESIS LEASE GENESIS LEASE CYPRUS AIRWAYS HELLAS JET USA 3000 AIRLINES USA 3000 AIRLINES USA 3000 AIRLINES SMARTLYNX AIRLINES GENESIS LEASE GENESIS LEASE IBERIA GENESIS LEASE GENESIS LEASE GENESIS LEASE GENESIS LEASE WELLS FARGO BANK GENESIS LEASE GENESIS LEASE WELLS FARGO BANK WELLS FARGO BANK WELLS FARGO BANK ACG GENESIS LEASE GENESIS LEASE SKYSERVICE
495 665 665 1136 1136 1155 1155 2420 2420 3202 3202 3202 4192 4192 4215 4227 4254 4254 4254 4256 4258 4258 4258 946 946 949 949 038 088 1152 1152 1198 142 1441 1441 1454 1493 1493 1500 1500 164 1767 1767 179 1860 1860 1918 1942 1942 1961
459
-!2#( s !)2"53 A310-304 A310-324 A310-324 A319-112 A319-112 A319-112 A319-112 A319-111 A319-111 A319-112 A319-112 A319-112 A319-132 A319-132 A319-133 A319-132 A319-112 A319-112 A319-112 A319-132 A319-112 A319-112 A319-112 A319-112 A319-112 A319-112 A319-112 A320-231 A320-212 A320-214 A320-214 A320-214 A320-211 A320-214 A320-214 A320-214 A320-214 A320-214 A320-233 A320-233 A320-231 A320-214 A320-214 A320-231 A320-214 A320-214 A320-232 A320-214 A320-214 A320-214
PACIFIC FLIER TAPTI AVIATION JT POWER GENESIS LEASE GERMANWINGS GENESIS LEASE GERMANWINGS CELESTIAL EASYJET SWITZERLAND SKANDINAVISKA ENSKILDA BANKEN BELAIR AIRLINES AIR BERLIN TAM LINHAS AEREAS TAM LINHAS AEREAS SILKAIR GERMANWINGS AERVENTURE WELLS FARGO BANK MEXICANA GERMANWINGS BOC ARCU CSA CZECH AIRLINES GENESIS LEASE CHENGDU AIRLINES GENESIS LEASE CHENGDU AIRLINES TCS INVESTMENT HOLDING DB AIRCRAFT LEASING TRUST LIFT IRELAND LEASING LIFT ITALY AFS CHAM WINGS AIRLINES GENESIS LEASE LTU INT AIRWAYS ILFC GENESIS LEASE LTU INT AIRWAYS GENESIS LEASE SICHUAN AIRLINES MEXICANA GENESIS LEASE ROSSIYA RUSSIAN AIRLINES MEXICANA WELLS FARGO BANK USA 3000 AIRLINES AVIANOVA GENESIS LEASE THOMAS COOK THOMAS COOK
Serial No. or No. of (Orders)/ [Options]
Line No.
827 854 857 579 851 855 850 850
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
PW2037 PW2037 PW2037 PW2037 RB211-535E4 RB211-535E4 CF6-80A2 CF6-80A2 PW4060 PW4060 CF6-80C2B6F CF6-80C2B6 CF6-80C2B6F CF6-80C2B7 CF6-80C2B7 CF6-80C2B6F PW4060 CF6-80C2B6F CF6-80C2B7F CF6-80C2B7F PW4090 GE90-90B GE90-110B1L GE90-110B1L GE90-110B1L GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B
1999-11 1999-11 2000-01 2000-01 1999-04 1999-05 1986-06 1986-06 1990-02 1989-02 1989-12 1994-09 1995-06 1997-04 1997-04 2000-01 1999-07 2000-08 2006-10 2010-02 2010-02 2009-10 2010-02 2010-03 2006-07 2010-02 2010-02 2010-02 2010-02 -
RETURNED SOLD RETURNED SOLD RETURNED RETURNED REPOSSESSED SOLD RETURNED RETURNED LEASED SOLD SOLD RETURNED SOLD SOLD RETURNED SOLD LEASED DELIVERED DELIVERED CNCL-ORDER DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED LEASED CNCL-ORDER CNCL-OPTION CNCL-ORDER CNCL-OPTION
2010.03.31 2010.03.31 2010.03.31 2010.03.31 2010.03.25 2010.03.30 2010.03.26 2010.03.26 2010.03.17 2010.03.30 2010.03.11 2010.03.09 2010.03.09 2010.03.15 2010.03.18 2010.03.09 2010.03.01 2010.03.17 2010.03.12 2010.03.29 2010.03.29 2010.03.01 2010.03.25 2010.03.22 2010.03.24 2010.03.29 2010.03.04 2010.03.29 2010.03.08 2010.03.08 2010.03.01 2010.03.01 2010.03.01 2010.03.01
CF6-80C2A2 PW4152 PW4152 CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P CFM56-5B5/P CFM56-5B5/P CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P V2524-A5 V2524-A5 V2527M-A5 V2524-A5 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 V2524-A5 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P V2500-A1 CFM56-5A3 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5A1 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P V2527E-A5 V2527E-A5 V2500-A1 CFM56-5B4/P CFM56-5B4/P V2500-A1 CFM56-5B4/P CFM56-5B4/P V2527-A5 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P
1989-02 1992-12 1992-12 1999-11 1999-11 1999-12 1999-12 2005-02 2005-02 2007-07 2007-07 2007-07 2010-01 2010-01 2010-02 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 1999-01 1999-01 1999-01 1999-01 1989-03 1989-11 1999-12 1999-12 2000-03 1990-11 2001-02 2001-02 2001-03 2001-05 2001-05 2001-05 2001-05 1991-07 2002-03 2002-03 1991-08 2002-08 2002-08 2002-12 2003-01 2003-01 2003-02
SUB-LEASED RETURNED SOLD TRANSFERRED LEASED TRANSFERRED LEASED RETURNED LEASED SOLD LEASED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED TRANSFERRED LEASED TRANSFERRED LEASED RETURNED RETURNED RETURNED RETURNED RETURNED SUB-LEASED TRANSFERRED LEASED RETURNED TRANSFERRED LEASED TRANSFERRED LEASED LEASED TRANSFERRED LEASED LEASED TRANSFERRED LEASED LEASED TRANSFERRED LEASED RETURNED
2010.03.01 2010.03.07 2010.03.07 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.18 2010.03.18 2010.03.23 2010.03.23 2010.03.23 2010.03.04 2010.03.04 2010.03.04 2010.03.15 2010.03.29 2010.03.29 2010.03.29 2010.03.29 2010.03.31 2010.03.31 2010.03.31 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.08 2010.03.19 2010.03.14 2010.03.14 2010.03.17 2010.03.10 2010.03.25 2010.03.25 2010.03.01 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.01 2010.03.25 2010.03.25 2010.03.01 2010.03.25 2010.03.25 2010.03.04 2010.03.25 2010.03.25 2010.03.30
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
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New Owner/Operator
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-231 A320-214 A320-214 A320-214 A320-231 A320-214 A320-231 A320-214 A320-214 A320-232 A320-231 A320-216 A320-216 A320-214 A320-232 A320-231 A320-216 A320-216 A320-216 A320-216 A320-214 A320-214 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-214 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-212
GENESIS LEASE THOMAS COOK SKYSERVICE THOMAS COOK AIR PHILIPPINES AFS URAL AIRLINES GENESIS LEASE VUELING AIRLINES NIKI LUFTFAHRT UNKNOWN AIR FRANCE WELLS FARGO BANK NILE AIR LARE LEASING INDIGO WESTPARK NILE AIR LARE LEASING INDIGO DEBIS AIRFINANCE XLEASE AIR FRANCE BELAIR AIRLINES DEBIS ALAFCO VIKING HELLAS ALAFCO ALAFCO TIGER AIRWAYS MEXICANA AIRBUS FIN. SERV ALITALIA SPRING AIRLINES CHINA EASTERN AIRLINES VIKING HELLAS AIRBUS FIN. SERV ALITALIA AIRBUS FIN. SERV ALITALIA AFRIQIYAH AIRWAYS CHINA SOUTHERN AIRLINES AERVENTURE WELLS FARGO BANK SPIRIT AIRLINES GULF AIR EASYJET UNKNOWN EASYJET WIZZ AIR HUNGARY WIZZ AIR HUNGARY CHINA SOUTHERN AIRLINES SHENZHEN AIRLINES BOC ARCU QANTAS JETSTAR AIRWAYS NIKI LUFTFAHRT EASYJET EASYJET EASYJET EASYJET AERVENTURE WATANIYA AIRWAYS INDIAN AIRLINES INDIAN AIRLINES BRITISH AIRWAYS CHINA EASTERN AIRLINES AERVENTURE SKYLEASE AIR FRANCE US AIRWAYS AERVENTURE WELLS FARGO BANK AIR ARABIA GECAS SPRING AIRLINES BOC ARCU QANTAS JETSTAR AIRWAYS WIZZ AIR HUNGARY AERVENTURE WELLS FARGO BANK FRONTIER AIRLINES LUFTHANSA KYRGYZ AIRWAYS
GENESIS LEASE GENESIS LEASE SKYSERVICE SKYSERVICE PHILIPPINE AIRLINES USA 3000 AIRLINES AFS GENESIS LEASE GENESIS LEASE AIR BERLIN CELESTIAL UNKNOWN WELLS FARGO BANK WELLS FARGO BANK LARE LEASING LARE LEASING WESTPARK WESTPARK LARE LEASING LARE LEASING INDIAN AIRLINES CELESTIAL XLEASE AIR BERLIN INDIAN AIRLINES BAHRAIN AIR AWMS BAHRAIN AIR BAHRAIN AIR TIGER AIRWAYS WELLS FARGO BANK AIRBUS AIRBUS FIN. SERV AIRBUS AIRBUS AWMS (CELTIC) AIRBUS AIRBUS FIN. SERV AIRBUS AIRBUS FIN. SERV AIRBUS AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRBUS EASYJET UNKNOWN AIRBUS BABCOCK & BROWN AIRBUS AIRBUS AIRBUS AIRBUS ARCU AIRBUS AIRBUS AIRBUS UNKNOWN AIRBUS UNKNOWN AIRBUS AERVENTURE AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS SKYLEASE AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS GECAS AIRBUS AIRBUS ARCU BOC AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS WELLS FARGO BANK
1965 1965 1965 1965 2183 2327 2327 2388 2388 2685 3008 3008 3183 3183 3192 3192 3219 3219 3227 3227 326 3420 3420 3422 344 3896 393 3931 3949 4053 406 4075 4075 4093 4111 414 4143 4143 4152 4152 4203 4205 4206 4206 4206 4218 4219 4219 4219 4223 4223 4225 4226 4229 4229 4229 4229 4231 4233 4233 4234 4234 4235 4235 4236 4237 4238 4240 4241 4241 4241 4242 4243 4243 4243 4244 4244 4245 4245 4245 4245 4246 4253 4253 4253 4261 445
Line No.
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2500-A1 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2500-A1 CFM56-5B4/3 V2500-A1 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2500-A1 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B4/3 V2527-A5 V2500-A1 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5A3
2003-02 2003-02 2003-02 2003-02 2004-03 2004-10 2004-10 2005-02 2005-02 2006-02 2006-12 2006-12 2007-06 2007-06 2007-07 2007-07 2007-08 2007-08 2007-08 2007-08 1992-04 2008-02 2008-02 2008-02 1992-06 2009-04 1992-12 2009-05 2009-06 2009-09 1993-01 2009-10 2009-10 2010-02 2010-03 1993-03 2009-12 2009-12 2009-12 2009-12 2010-01 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-03 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 1993-09
TRANSFERRED LEASED SUB-LEASED RETURNED SUB-LEASED RETURNED LEASED TRANSFERRED LEASED LEASED SOLD LEASED TRANSFERRED LEASED TRANSFERRED LEASED TRANSFERRED LEASED TRANSFERRED LEASED RETURNED SOLD LEASED SUB-LEASED RETURNED RETURNED LEASED RETURNED RETURNED SUB-LEASED LEASED DELIVERED LEASED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED SOLD LEASED SUB-LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED DELIVERED SOLD LEASED SUB-LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED
2010.03.25 2010.03.25 2010.03.25 2010.03.30 2010.03.28 2010.03.30 2010.03.30 2010.03.25 2010.03.25 2010.03.26 2010.03.29 2010.03.29 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.02 2010.03.29 2010.03.29 2010.03.15 2010.03.04 2010.03.31 2010.03.16 2010.03.31 2010.03.31 2010.03.04 2010.03.01 2010.03.24 2010.03.24 2010.03.10 2010.03.29 2010.03.17 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.19 2010.03.01 2010.03.04 2010.03.04 2010.03.04 2010.03.04 2010.03.16 2010.03.16 2010.03.17 2010.03.01 2010.03.01 2010.03.01 2010.03.01 2010.03.04 2010.03.04 2010.03.04 2010.03.04 2010.03.24 2010.03.02 2010.03.02 2010.03.05 2010.03.05 2010.03.22 2010.03.22 2010.03.29 2010.03.30 2010.03.18 2010.03.23 2010.03.26 2010.03.26 2010.03.26 2010.03.25 2010.03.17 2010.03.17 2010.03.17 2010.03.24 2010.03.24 2010.03.26 2010.03.26 2010.03.26 2010.03.26 2010.03.25 2010.03.30 2010.03.30 2010.03.30 2010.03.29 2010.03.09
Source: OAG Fleet iNet, September 10, 2010
116
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AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
A320-233 A320-231 A320-214 A320-214 A320-214 A320-214 A321-231 A321-231 A321-231 A321-231 A321-231 A321-231 A321-231 A321-213 A321-231 A321-231 A321-212 A321-231 A330-243 A330-223 A330-243 A330-223 A330-243 A330-203 A330-203 A330-243 A330-301 A330-343E A330-343 A330-343 A330-343E A330-343E A330-343E A330-343E A330-343E A330-343E A330-343E A330-343E A330-323 A330-323 A340-313X A340-313X A340-642(HGW) A350-900XWB
New Owner/Operator
METRO BATAVIA DEBIS JET-I OWNER CIT GENESIS LEASE PHILIPPINE AIRLINES STATUTORY TRUST US AIRWAYS VIETNAM AIRLINES SHANGHAI AIRLINES AERVENTURE VIETNAM AIRLINES CHINA SOUTHERN AIRLINES AIR CHINA CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES AIR FRANCE LUFTHANSA BELGIAN AIR FORCE HONG KONG AIRLINES US AIRWAYS CHINA SOUTHERN AIRLINES US AIRWAYS GENESIS LEASE EVA AIRWAYS HAWAIIAN AIRLINES BRAVO LEASING THAI AIRWAYS INT AERCAP AIR CHINA THAI AIRWAYS INT OMAN AIR AWAS IBERWORLD AIRLINES LEASE CORP INT SINGAPORE AIRLINES AWAS SINGAPORE AIRLINES MALAYSIAN AIRLINE SYSTEM MALAYSIAN AIRLINE SYSTEM AIRBUS FIN. SERV AIRBUS FIN. SERV IBERIA UNITED AIR LINES
!02), s "/%).' 737-236 737-2Q3 737-2T5 737-2T5 737-347 737-347 737-3T0 737-3T0 737-306 737-329 737-329 737-322 737-329 737-329 737-382 737-382 737-322 737-3Q8 737-33A 737-33A 737-33A 737-33A 737-36N(W) 737-36N(W) 737-34S 737-3S3 737-4Q8 737-4Y0 737-4Q8 737-4Y0 737-4Q8 737-48E 737-48E 737-4Q8 737-430
ARJET AIRLINES SKY AIRLINE SAFAIR AFRICA CHARTER AIRLINE AERSALE AERSALE GENERAL ELECTRIC BANK OF UTAH AIR SLOVAKIA UNKNOWN TRANSAERO AIRLINES UNKNOWN UNKNOWN TRANSAERO AIRLINES AEROSUR BOLIVIANA DE AVIACION FLYLAL POLSKA TRITON AMF AERSALE AMF AERSALE AIRCRAFT FINANCE TRUST AIR ITALY CELESTIAL MERCURY AIRCRAFT BOEING LEASING AEROSVIT AIRLINES MSA EHEIM ILFC SAGA AIRLINES SAGA AIRLINES ENTER AIR AIR ITALY
737-430
AIR ITALY
737-4M0 737-5Y0 737-505 737-522
CELESTIAL AIRPLANES HOLDINGS BELAVIA AEROVISTA
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
ACG INDIAN AIRLINES CCM AIRLINES CHINA EASTERN AIRLINES GENESIS LEASE GENESIS LEASE UNKNOWN UNKNOWN AIRBUS AIRBUS AIRBUS AERVENTURE AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS HI FLY AIRBUS AIRBUS AIRBUS AIRBUS GENESIS LEASE GENESIS LEASE AIRBUS AER LINGUS AIRBUS AIRBUS AERCAP AIRBUS AIRBUS AIRBUS AWAS AIRBUS LEASE CORP INT AIRBUS AWAS AIRBUS AIRBUS IBERIA IBERIA AIRBUS AIRBUS
460 478 533 772 936 936 3977 3977 4136 4209 4213 4213 4217 4221 4224 4230 4251 (-1) 1008 (6) 1095 1096 1100 655 655 (1) 055 1086 1087 1087 1090 1093 1097 1097 1098 1098 1099 1099 (15) [10] 197 378 1079 (25)
PACIFIC AIRCORP WELLS FARGO BANK AIR BOTSWANA AIR BOTSWANA BANK OF UTAH BANK OF UTAH CONTINENTAL AIRLINES WILMINGTON TRUST ALBANIAN AIRLINES EAST IRELAND UNKNOWN GOL EAST IRELAND UNKNOWN PEGASUS ORIX FLYLAL CHARTERS ILFC CHARTER AIR AMF CHARTER AIR AMF AFT AIRCRAFT FINANCE TRUST GARUDA CHINA EASTERN AIRLINES ILFC FGK TRAFALGAR ALASKA AIRLINES BREMENFLY ILFC TURK HAVA YOLLARI TURK HAVA YOLLARI ILFC ACS GERMAN OPERATING AIRCRAFT LEASING GMBH GARUDA UKRAINE AIRLINES ILFC WELLS FARGO BANK
21799 22736 22396 22396 23440 23441 23458 23458 23542 23772 23772 24249 24355 24355 24366 24450 24664 26303 27469 27469 27910 27910 28561 28561 29108 29244 24703 24903 25105 25178 25377 25773 25775 26299 27003
Line No.
660 896 730 730 1218 1220 1244 1244 1317 1432 1432 1638 1709 1709 1699 1873 1877 2635 2864 2864 2873 2873 2896 2896 2983 3059 1828 1978 2505 2199 2717 2905 2925 2602 2328
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
V2527E-A5 V2500-A1 CFM56-5B4/2P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P V2533-A5 V2533-A5 V2533-A5 V2533-A5 V2533-A5 V2533-A5 V2533-A5 CFM56-5B2/3 V2533-A5 V2533-A5 CFM56-5B1/3 V2533-A5 TRENT772B-60 PW4170 TRENT772B-60 PW4170 TRENT772B-60 CF6-80E1A3 CF6-80E1A3 TRENT772B-60 CF6-80E1A2 TRENT772B-60 TRENT772C-60 TRENT772C-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 PW4168A PW4168A CFM56-5C4 CFM56-5C4 TRENT556A2-61 TRENTXWB-83
1993-12 1994-04 1995-03 1998-01 1998-12 1998-12 2009-07 2009-07 2010-01 2010-02 2010-02 2010-02 2010-03 2010-03 2010-03 2010-03 2010-03 2009-03 2010-05 2010-02 2010-02 2010-03 2005-02 2005-02 2011-05 1994-03 2010-01 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2010-02 2011-10 2016-12 1997-10 2000-12 2010-01 2016-11
LEASED RETURNED RETURNED RETURNED TRANSFERRED LEASED TRANSFERRED LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED CNCL-ORDER SUB-LEASED ORDERED DELIVERED DELIVERED DELIVERED TRANSFERRED LEASED ORDERED RETURNED DELIVERED DELIVERED SOLD DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED ORDERED OPTIONED SOLD SOLD DELIVERED ORDERED
2010.03.05 2010.03.02 2010.03.01 2010.03.23 2010.03.25 2010.03.25 2010.03.25 2010.03.25 2010.03.12 2010.03.02 2010.03.16 2010.03.16 2010.03.10 2010.03.10 2010.03.17 2010.03.18 2010.03.30 2010.03.01 2010.03.01 2010.03.29 2010.03.24 2010.03.31 2010.03.23 2010.03.25 2010.03.25 2010.03.09 2010.03.12 2010.03.29 2010.03.09 2010.03.09 2010.03.29 2010.03.23 2010.03.16 2010.03.16 2010.03.10 2010.03.10 2010.03.15 2010.03.15 2010.03.31 2010.03.31 2010.03.01 2010.03.01 2010.03.26 2010.03.10
JT8D-15A JT8D-17 JT8D-15 JT8D-15 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1
1980-04 1982-06 1980-12 1980-12 1986-03 1986-03 1986-05 1986-05 1986-11 1987-07 1987-07 1988-10 1989-03 1989-03 1989-03 1990-05 1990-05 1994-06 1997-02 1997-02 1997-03 1997-03 1997-05 1997-05 1997-12 1998-07 1990-02 1990-12 1993-06 1991-12 1995-04 1997-06 1997-08 1994-03 1992-06
SOLD LEASED RETURNED SUB-LEASED SOLD SOLD RETURNED SOLD RETURNED SOLD LEASED RETURNED SOLD LEASED LEASED LEASED SUB-LEASED SOLD RETURNED SOLD RETURNED SOLD SOLD LEASED RETURNED RETURNED SOLD LEASED RETURNED RETURNED SOLD RETURNED RETURNED LEASED LEASED
2010.04.01 2010.04.07 2010.04.01 2010.04.02 2010.04.19 2010.04.19 2010.04.26 2010.04.26 2010.04.01 2010.04.22 2010.04.22 2010.04.01 2010.04.23 2010.04.23 2010.04.27 2010.04.08 2010.04.15 2010.04.28 2010.04.23 2010.04.23 2010.04.23 2010.04.23 2010.04.27 2010.04.27 2010.04.19 2010.04.02 2010.04.27 2010.04.28 2010.04.23 2010.04.30 2010.04.28 2010.04.01 2010.04.01 2010.04.08 2010.04.01
27007
2367
CFM56-3C1
1992-08
LEASED
2010.04.13
29203 25192 26338 26687
3049 2262 2822 2402
CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1
1998-06 1992-03 1996-09 1992-11
RETURNED RETURNED LEASED SOLD
2010.04.01 2010.04.26 2010.04.06 2010.04.21
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
117
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AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-528 737-524 737-524 737-524 737-683 737-683 737-73V 737-73V 737-73V 737-7BD(W) 737-752(W) 737-752(W) 737-783(W) 737-7GL(W) 737-76D(W) 737-79P(W) 737-7H4(W) 737-7BC(W) 737-7BC(W) 737-7ES 737-7ES 737-700(W) 737-8K5(W) 737-8K5(W) 737-8K5(W) 737-8K5(W) 737-8K5(W) 737-8Q8(W) 737-8K2(W) 737-8K2(W) 737-85F 737-86J(W) 737-86J(W) 737-823(W) 737-823(W) 737-823(W) 737-8BK(W) 737-8U3(W) 737-8U3(W) 737-8U3(W) 737-8U3(W) 737-883 737-883 737-86Q 737-8Q8(W) 737-823(W) 737-8FZ(W) 737-8FZ(W) 737-8FZ(W) 737-8CX 737-8CX(W) 737-83N(W) 737-8Q8(W) 737-8B6(W) 737-8B6(W) 737-823(W) 737-8Q8(W) 737-8K2(W) 737-8K5(W) 737-8K5(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8FH(W) 737-8K5(W) 737-8K5(W) 737-890(W) 737-8Q8(W) 737-86N(W) 737-86N(W) 737-890(W) 737-8FE(W) 737-89L(W) 737-86N(W) 737-86N(W) 737-84P(W) 737-84P(W) 737-84P(W) 737-85C(W) 737-85C(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8JP(W) 737-8JP(W)
New Owner/Operator
ESTONIAN AIR UNKNOWN TRANSAERO AIRLINES WELLS FARGO BANK FUJI TEKKO SAS EUROPE AIRPOST TURK HAVA YOLLARI TURK HAVA YOLLARI TRANSAVIA AIRLINES TURK HAVA YOLLARI TURK HAVA YOLLARI SAS TURK HAVA YOLLARI SHANGHAI AIRLINES CHINA EASTERN AIRLINES SOUTHWEST AIRLINES HAWAII LEASING WELLS FARGO BANK ROYAL AUSTRALIAN AIR FORCE ROYAL AUSTRALIAN AIR FORCE BOEING BUSINESS JETS GERMANAIR AIRLINE TAJMYR GERMANAIR TUIFLY TUIFLY XL AIRWAYS GERMANY TRANSAVIA AIRLINES TRANSAVIA AIRLINES AERCAP CORENDON AIRLINES CORENDON AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES XL AIRWAYS FRANCE GARUDA GARUDA GARUDA GARUDA SKY AIRLINE TURK HAVA YOLLARI TURK HAVA YOLLARI VIKING AIRLINES AMERICAN AIRLINES DELTA AIR LINES BABCOCK & BROWN SHANDONG AIRLINES AEROMEXICO XL AIRWAYS FRANCE GENERAL ELECTRIC SHREWSBURY ROYAL AIR MAROC ROYAL AIR MAROC AMERICAN AIRLINES EUROCYPRIA AIRLINES TRANSAVIA AIRLINES GERMANWINGS TUIFLY RYANAIR RYANAIR RYANAIR RYANAIR XL AIRWAYS GERMANY GERMANWINGS TUI AIRLINES NEDERLAND ALASKA AIRLINES SOMON AIR GY AVIATION LEASE NORWEGIAN AIR SHUTTLE ALASKA AIRLINES VIRGIN BLUE AIRLINES AIR CHINA GY AVIATION LEASE NORWEGIAN AIR SHUTTLE BOC HAINAN AIRLINES HONG KONG EXPRESS AIRWAYS XIAMEN AIRLINES XIAMEN AIRLINES RYANAIR RYANAIR RYANAIR RYANAIR NORWEGIAN AIR SHUTTLE DY1 LEASING
Previous Owner/Operator
ITOCHU LEASE WELLS FARGO BANK UNKNOWN CONTINENTAL AIRLINES FG UNITY KUMIAI FUJI TEKKO LANDELL BOC BOC ENERJET WELLS FARGO BANK WELLS FARGO BANK SL ATLAS CONTINUITY AIR FINANCE BOEING BOEING BOEING NETJETS AVIATION WELLS FARGO BANK BOEING BOEING BOEING TUIFLY GERMANAIR TUIFLY CANJET AIRLINES CANJET AIRLINES AIR NAMIBIA-NATIONAL AIRLINES SUN COUNTRY AIRLINES SUN COUNTRY AIRLINES AIR BERLIN AIR BERLIN AIR BERLIN BOEING BOEING WILMINGTON TRUST TRAVEL SERVICE AIRLINES BOEING DUBAI AEROSPACE ENTERPRISES BOEING DUBAI AEROSPACE ENTERPRISES FGL FGL WELLS FARGO BANK SUNWING AIRLINES BOEING BOEING DELTA AIR LINES BABCOCK & BROWN MASL TRAVEL SERVICE AIRLINES GOL ILFC BOEING BOEING BOEING SUNWING AIRLINES BOEING TUIFLY CANJET AIRLINES BOEING BOEING BOEING BOEING SUNWING AIRLINES TUIFLY CANJET AIRLINES BOEING TRAVEL SERVICE AIRLINES CELESTIAL GY AVIATION LEASE BOEING BOEING BOEING CELESTIAL GY AVIATION LEASE BOEING BOC BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING
Serial No. or No. of (Orders)/ [Options]
27425 28919 28919 28924 28308 28308 32418 32419 32420 33920 34299 34300 34549 34760 35779 36767 36918 30327 30327 33474 33477 (-1) 27977 27977 27978 27981 27987 28218 28375 28380 28825 29120 29121 29576 29577 29577 29643 30143 30143 30144 30144 30194 30194 30296 30637 31093 31717 31717 31717 32359 32362 32576 32841 33070 33071 33521 33699 34172 34687 34688 34978 35029 35031 35032 35093 35143 35146 35198 35275 35647 35647 36578 36609 36753 36814 36814 37422 37422 37422 37576 37577 38508 38509 38510 38511 39002 39002
Line No.
2730 3045 3045 3063 333 333 1300 1321 1341 1753 1829 1848 3210 2352 3235 3239 3251 356 356 1245 1885 9 9 40 7 499 160 85 524 188 202 239 3244 3252 3252 2303 3243 3243 3249 3249 666 666 1647 800 3236 3237 3237 3237 1041 1125 875 1705 3233 3258 3228 1309 3242 1907 1909 3256 3254 3230 3240 2176 2763 2875 3229 2604 2927 2927 3257 3232 3247 3015 3015 3214 3214 3214 3245 3255 3234 3248 3246 3241 3231 3231
Engine Model
CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B20 CFM56-7B22 CFM56-7B22 CFM56-7B22 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27B1 CFM56-7B27B1 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B27B1 CFM56-7B27B1 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26
Date of Manf. or First Exp. Deliv. 1995-05 1998-05 1998-05 1998-07 1999-07 1999-07 2003-03 2003-04 2003-06 2005-06 2005-11 2005-12 2010-02 2007-07 2010-03 2010-03 2010-04 1999-08 1999-08 2002-10 2006-02 1997-06 1997-06 1998-02 1997-06 2000-02 1998-11 1998-07 2000-03 1998-12 1999-01 1999-03 2010-03 2010-04 2010-04 2007-06 2010-03 2010-03 2010-03 2010-03 2000-08 2000-08 2005-01 2001-02 2010-03 2010-03 2010-03 2010-03 2001-12 2002-04 2001-05 2005-04 2010-03 2010-04 2010-03 2003-03 2010-03 2006-03 2006-03 2010-04 2010-04 2010-03 2010-03 2007-01 2008-12 2009-03 2010-03 2008-04 2009-05 2009-05 2010-04 2010-03 2010-03 2009-08 2009-08 2010-02 2010-02 2010-02 2010-03 2010-04 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03
Transaction Type
LEASED SOLD LEASED SOLD SOLD LEASED LEASED LEASED LEASED SUB-LEASED LEASED LEASED SALE-LEASEBACK LEASED DELIVERED DELIVERED DELIVERED RETURNED SOLD LEASE-BUYOUT LEASE-BUYOUT CNCL-ORDER RETURNED LEASED RETURNED RETURNED RETURNED RETURNED RETURNED RETURNED RETURNED SUB-LEASED SUB-LEASED DELIVERED DELIVERED SALE-LEASEBACK SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK LEASED SUB-LEASED LEASED RETURNED DELIVERED DELIVERED SOLD LEASED LEASED SUB-LEASED RETURNED SOLD DELIVERED DELIVERED DELIVERED RETURNED DELIVERED LEASED RETURNED DELIVERED DELIVERED DELIVERED DELIVERED RETURNED SUB-LEASED RETURNED DELIVERED SUB-LEASED SOLD LEASED DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SOLD
Date
2010.04.01 2010.04.01 2010.04.05 2010.04.02 2010.04.15 2010.04.15 2010.04.01 2010.04.06 2010.04.16 2010.04.27 2010.04.02 2010.04.01 2010.04.23 2010.04.06 2010.04.12 2010.04.15 2010.04.26 2010.04.15 2010.04.15 2010.04.28 2010.04.28 2010.04.01 2010.04.29 2010.04.29 2010.04.30 2010.04.21 2010.04.28 2010.04.30 2010.04.01 2010.04.12 2010.04.29 2010.04.28 2010.04.21 2010.04.26 2010.04.28 2010.04.30 2010.04.08 2010.04.19 2010.04.19 2010.04.26 2010.04.26 2010.04.19 2010.04.19 2010.04.24 2010.04.30 2010.04.09 2010.04.14 2010.04.14 2010.04.14 2010.04.20 2010.04.09 2010.04.01 2010.04.19 2010.04.21 2010.04.29 2010.04.06 2010.04.21 2010.04.21 2010.04.29 2010.04.30 2010.04.29 2010.04.28 2010.04.15 2010.04.16 2010.04.09 2010.04.29 2010.04.27 2010.04.12 2010.04.06 2010.04.09 2010.04.09 2010.04.29 2010.04.27 2010.04.22 2010.04.09 2010.04.09 2010.04.23 2010.04.23 2010.04.23 2010.04.21 2010.04.29 2010.04.15 2010.04.23 2010.04.21 2010.04.21 2010.04.06 2010.04.06
Source: OAG Fleet iNet, September 10, 2010
118
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-8JP(W) 737-8HC(W) 737-82R(W) 737-82R(W) 747-4B5 747-481 757-230 757-236(W) 757-236 757-23N 767-281 767-241ER 767-259ER 767-284ER 767-216ER 767-216ER 767-38E 767-383ER 767-319ER 767-322ER 767-383ER 767-316ER 767-3Q8ER 767-316ER(W) 767-34AF 767-34AF 767-34AF 777-258ER 777-258ER 777-FS2 777-3DZER 777-367ER 777-367ER 777-337ER 777-36NER 777-36NER 777-31HER 777-31HER 777-368ER
New Owner/Operator
NORWEGIAN AIR SHUTTLE SUNEXPRESS PEGASUS AIRLINES PEGASUS AIRLINES SOUTH KOREAN GOVERNMENT ATLAS AIR AIR ITALY POLAND THOMSON AIRWAYS JET LEASING THOMAS COOK ABX AIR GECAS AERSALE AERSALE UNKNOWN TRANSAERO AIRLINES MSA WELLS FARGO BANK MSA AEROSVIT AIRLINES ICELANDAIR LAN AIRLINES GMG AIRLINES LAN ECUADOR UPS C.C. & E.I. UPS EL AL EL AL FEDERAL EXPRESS QATAR AIRWAYS CATHAY CATHAY AIR INDIA GECAS EGYPTAIR EMIRATES EMIRATES SAUDI ARABIAN AIRLINES
!02), s !)2"53 A300B4-605R A300B4-605R A300B4-605R A310-324 A310-324 A310-324 A318-112ELITE A318-112ELITE A319-112 A319-112 A319-112 A319-112 A319-112 A319-115 A319-111 A319-111 A319-112 A319-112 A319-115 A319-115 A319-115 A319-115 A319-133 A319-112 A319-112 A319-132 A319-132 A319-132 A319-115X A320-211 A320-214 A320-232 A320-214 A320-233 A320-214 A320-231 A320-231 A320-214 A320-214 A320-232 A320-232 A320-232 A320-214 A320-232 A320-211
U.S. BANK AMERICAN AIRLINES SQUADRON SINGAPORE AIRLINES PENNAR AVIATION JT POWER COMLUX AVIATION COMLUX MALTA CONSTITUTION AIRCRAFT LEASING BRUSSELS AIRLINES WELLS FARGO BANK AIR CANADA AERODYNAMICS CHENGDU AIRLINES RBS AIGLE AZUR BH-AIR AIR NAMIBIA-NATIONAL AIRLINES AVIANCA WELLS FARGO BANK AVIANCA OCEANAIR SILKAIR AIGLE AZUR AIGLE AZUR AERVENTURE ADRIA AIRWAYS GERMANWINGS UNKNOWN GA TELESIS URAL AIRLINES MCAP KORALBLUE AIRLINES ONUR AIR THOMSON AIRWAYS SRILANKAN AIRLINES BOULLIOUN ILFC AIR FRANCE UNKNOWN ACG AVIANOVA THOMAS COOK CIT CIT
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
DY1 LEASING BOEING BOEING BOEING KOREAN AIR LINES WELLS FARGO BANK AIR ITALY SKYSERVICE CHINA SOUTHERN AIRLINES AURELA CARGO AIRCRAFT AFT AWAS AWMS EAST IRELAND UNKNOWN VIVA MACAU WELLS FARGO BANK VIVA MACAU DNIEPROAVIA TRAVEL SERVICE AIRLINES LAN ARGENTINA ILFC LAN AIRLINES BOEING BOEING C.C. & E.I. BOEING BOEING BOEING BOEING BOEING BOC BOEING BOEING GECAS BOEING BOEING BOEING
39002 40775 40872 40873 26412 29263 24747 29944 29945 30233 22788 23805 24618 24716 24973 24973 24798 24729 24875 25280 25365 26329 30301 36711 37859 37859 37859 (-4) [-2] (4) 36097 36162 36162 36317 38285 38285 38984 (18) (12)
3231 3250 3227 3238 1284 1204 275 872 873 895 61 180 292 297 347 347 331 358 371 391 395 641 762 970 989 989 989
WILMINGTON TRUST U.S. BANK AMERICAN AIRLINES AIR INDIA SINGAPORE AIRLINES PENNAR AVIATION AIRBUS COMLUX AVIATION WILMINGTON TRUST CONSTITUTION AIRCRAFT LEASING WELLS FARGO BANK WELLS FARGO BANK AERODYNAMICS GECAS IBERIA RBS BULGARIAN GOVERNMENT BH-AIR AIRBUS AIRBUS WELLS FARGO BANK AVIANCA AIRBUS AIRBUS BLUE LANE ECHIVE AIRBUS AERVENTURE AIRBUS AIRBUS BRITISH AIRWAYS LIFT ITALY SKYSERVICE ILFC WELLS FARGO BANK SKYSERVICE MIHIN LANKA MIHIN LANKA SKYSERVICE ROOSTER EASYJET UNKNOWN ACG SKYSERVICE AIR VIA BULGARIAN AIRWAYS NOUVELAIR TUNISIE
463 463 619 680 680 680 4169 4169 1086 1086 1963 1963 1963 2762 2870 2870 3139 3139 4222 4222 4222 4222 4259 4268 4268 4282 4282 4285 4228 039 1152 1411 1454 1509 1571 169 169 1780 1894 1969 1969 1969 2003 2108 246
424 424
859 860 860 864 862 862 861
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 PW4056 CF6-80C2B1F PW2040 RB211-535E4 RB211-535E4 RB211-535E4-B CF6-80A CF6-80C2B2 PW4056 PW4060 CF6-80A2 CF6-80A2 CF6-80C2B2F PW4060 CF6-80C2B6 PW4060 PW4060 CF6-80C2B6 PW4060 CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F TRENT895 TRENT895 GE90-110B1L GE90-115B GE90-115BL2 GE90-115BL2 GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B
2010-03 2010-04 2010-03 2010-03 2001-08 1999-02 1990-03 1999-05 1999-05 1999-09 1983-05 1987-06 1990-01 1990-02 1990-12 1990-12 1990-08 1991-02 1991-05 1991-08 1991-09 1996-12 1999-07 2008-07 2010-03 2010-03 2010-03 2014-07 2010-03 2010-03 2010-03 2010-04 2010-03 2010-03 2010-03 2013-07 2011-09
LEASED DELIVERED DELIVERED DELIVERED LEASED LEASED SUB-LEASED RETURNED RETURNED SUB-LEASED SALE-LEASEBACK SOLD SOLD SOLD SOLD LEASED RETURNED SOLD RETURNED SOLD RETURNED RETURNED LEASED LEASED DELIVERED SOLD LEASED CNCL-ORDER CNCL-OPTION ORDERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED LEASED DELIVERED ORDERED ORDERED
2010.04.06 2010.04.27 2010.04.01 2010.04.13 2010.04.01 2010.04.01 2010.04.21 2010.04.28 2010.04.28 2010.04.30 2010.04.15 2010.04.01 2010.04.13 2010.04.13 2010.04.23 2010.04.23 2010.04.08 2010.04.28 2010.04.08 2010.04.01 2010.04.23 2010.04.29 2010.04.30 2010.04.19 2010.04.28 2010.04.28 2010.04.28 2010.04.01 2010.04.01 2010.04.30 2010.04.08 2010.04.19 2010.04.19 2010.04.30 2010.04.22 2010.04.22 2010.04.14 2010.04.30 2010.04.13
CF6-80C2A5 CF6-80C2A5 CF6-80C2A5 PW4152 PW4152 PW4152 CFM56-5B9/3 CFM56-5B9/3 CFM56-5B6/2P CFM56-5B6/2P CFM56-5B6/P CFM56-5B6/P CFM56-5B6/P CFM56-5B7/P CFM56-5B5/P CFM56-5B5/P CFM56-5B6/P CFM56-5B6/P CFM56-5B7/3 CFM56-5B7/3 CFM56-5B7/3 CFM56-5B7/3 V2527M-A5 CFM56-5B6/3 CFM56-5B6/3 V2524-A5 V2524-A5 V2524-A5 CFM56-5B7/3 CFM56-5A1 CFM56-5B4/P V2527-A5 CFM56-5B4/P V2527E-A5 CFM56-5B4/P V2500-A1 V2500-A1 CFM56-5B4 CFM56-5B4/P V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/P V2527-A5 CFM56-5A1
1988-04 1988-04 1991-09 1993-06 1993-06 1993-06 2010-01 2010-01 1999-09 1999-09 2003-03 2003-03 2003-03 2006-04 2006-08 2006-08 2007-06 2007-06 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-04 2010-04 2010-04 2010-03 1989-03 1999-12 2001-01 2001-03 2001-05 2001-08 1991-08 1991-08 2002-04 2002-10 2003-02 2003-02 2003-02 2003-04 2004-02 1991-09
TRANSFERRED LEASED SOLD RETURNED SOLD SOLD DELIVERED LEASED SOLD LEASED TRANSFERRED LEASED SUB-LEASED LEASED SOLD LEASED RETURNED LEASED DELIVERED SOLD LEASED SUB-LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED DELIVERED RETURNED LEASED RETURNED LEASED LEASED RETURNED RETURNED RETURNED RETURNED SALE-LEASEBACK RETURNED SOLD LEASED RETURNED RETURNED RETURNED
2010.04.19 2010.04.19 2010.04.19 2010.04.08 2010.04.08 2010.04.08 2010.04.08 2010.04.08 2010.04.02 2010.04.02 2010.04.13 2010.04.13 2010.04.13 2010.04.02 2010.04.30 2010.04.30 2010.04.01 2010.04.02 2010.04.07 2010.04.07 2010.04.07 2010.04.07 2010.04.09 2010.04.14 2010.04.14 2010.04.28 2010.04.28 2010.04.29 2010.04.15 2010.04.30 2010.04.30 2010.04.01 2010.04.24 2010.04.15 2010.04.30 2010.04.27 2010.04.27 2010.04.01 2010.04.09 2010.04.15 2010.04.15 2010.04.15 2010.04.01 2010.04.17 2010.04.06
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
119
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
A320-212 A320-212 A320-211 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-231 A320-212 A320-212 A320-212 A320-216 A320-216 A320-216 A320-216 A320-232 A320-231 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-231 A320-231 A320-231 A320-231 A320-212 A320-231 A320-231 A320-214 A320-212 A320-232 A320-233 A320-231 A320-231 A320-231 A320-232 A320-212 A320-214 A321-112 A321-131 A321-211 A321-211 A321-231 A321-231 A321-231 A321-231 A321-211 A321-213 A330-243 A330-243 A330-243 A330-243 A330-243 A330-243 A330-302E A330-343E A330-343E A330-343E A330-343E A330-343E A330-302 A330-343E A330-343E
New Owner/Operator
WILMINGTON TRUST STRATEGIC AIRLINES TRAVEL SERVICE AIRLINES SUMISHIN ALL NIPPON AIRWAYS SUMISHIN ALL NIPPON AIRWAYS NIKI LUFTFAHRT NIKI LUFTFAHRT AIRLOGIC AERCAP AEROTURBINE STRATEGIC AIRLINES AIRBUS FIN. SERV ALITALIA AIRBUS FIN. SERV ALITALIA CHINA SOUTHERN AIRLINES STAR AIRWAYS SHENZHEN AIRLINES EASYJET EASYJET CHINA EASTERN AIRLINES CIT QANTAS JETSTAR AIRWAYS CHINA SOUTHERN AIRLINES AERVENTURE WELLS FARGO BANK SPIRIT AIRLINES [USA] BRITISH AIRWAYS AERVENTURE SKYLEASE AIR FRANCE AIR BERLIN CIT AIR VIA BULGARIAN AIRWAYS AERVENTURE WELLS FARGO BANK FRONTIER AIRLINES AERDRAGON JUNEYAO AIRLINES EASYJET LUFTHANSA ORIX ORIX UNKNOWN SKYWEST AIRLINES STRATEGIC AIRLINES SKYSERVICE THOMAS COOK CEBU PACIFIC AIR STRATEGIC AIRLINES THOMAS COOK AIRLINES METRO BATAVIA SKYSERVICE ORIX-OAS-NO. 22 AIRCRAFT ENTERPRISES THOMAS COOK IRANIAN GOVERNMENT ILFC ARMAVIA ALITALIA ATLASJET INT WELLS FARGO BANK THOMAS COOK CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES AERVENTURE VIETNAM AIRLINES INDIAN AIRLINES AIR CHINA HI FLY CIT HAWAIIAN AIRLINES THOMAS COOK ORBEST KAZAKHSTAN GOVERNMENT FINNAIR SWISS AERCAP AEROFLOT AWAS SINGAPORE AIRLINES AER LINGUS LEASE CORP INT SINGAPORE AIRLINES
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
Engine Model
CFM56-5A3 CFM56-5A3 CFM56-5A1 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/3 V2500-A1 CFM56-5A3 CFM56-5A3 CFM56-5A3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 V2527-A5 V2500-A1 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2500-A1 V2500-A1 V2500-A1 V2500-A1 CFM56-5A3 V2500-A1 V2500-A1 CFM56-5B4/3 CFM56-5A3 V2527-A5 V2527E-A5 V2500-A1
Date of Manf. or First Exp. Deliv. 1991-12 1991-12 1992-03 2007-05 2007-05 2007-05 2007-05 2007-09 2007-10 1992-12 1992-12 1992-12 1992-12 2009-10 2009-10 2009-11 2009-11 2010-03 1994-01 2010-04 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 1993-04 1993-04 1993-04 1993-04 1993-06 1993-06 1993-06 2010-11 1993-08 1993-11 1993-12 1994-04
Transaction Type
SOLD LEASED SUB-LEASED TRANSFERRED LEASED TRANSFERRED LEASED LEASED LEASED SOLD RETURNED SOLD LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED LEASED SUB-LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED LEASED DELIVERED DELIVERED RETURNED SOLD SOLD LEASED RETURNED RETURNED RETURNED ORDERED SUB-LEASED LEASED LEASED RETURNED
Date
ANSETT WORLDWIDE WILMINGTON TRUST SMARTLYNX AIRLINES SUMISHIN LEASE SUMISHIN SUMISHIN LEASE SUMISHIN AIR BERLIN AIR BERLIN IAI TAP AIR PORTUGAL AERCAP AEROTURBINE AIRBUS AIRBUS FIN. SERV AIRBUS AIRBUS FIN. SERV AIRBUS WELLS FARGO BANK AIRBUS AIRBUS UNKNOWN AIRBUS AIRBUS CIT CIT AIRBUS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRBUS AIRBUS SKYLEASE AIRBUS AIRBUS CIT AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AERDRAGON AIRBUS AIRBUS THOMAS COOK WILMINGTON TRUST ORIX UNKNOWN SOLOMON AIRLINES THOMAS COOK THOMAS COOK AIRBUS SMARTLYNX AIRLINES CIT ACG THOMAS COOK
279 279 310 3147 3147 3148 3148 3242 3289 394 395 395 395 4108 4108 4119 4119 4140 415 4159 4250 4250 4252 4257 4257 4257 4260 4264 4264 4264 4265 4267 4267 4267 4269 4270 4270 4272 4272 4272 4276 4276 4286 4289 429 429 429 429 436 437 437 (7) 446 453 461 476
2010.04.02 2010.04.02 2010.04.30 2010.04.01 2010.04.01 2010.04.01 2010.04.01 2010.04.24 2010.04.29 2010.04.30 2010.04.23 2010.04.23 2010.04.23 2010.04.23 2010.04.23 2010.04.29 2010.04.29 2010.04.14 2010.04.07 2010.04.28 2010.04.01 2010.04.01 2010.04.07 2010.04.13 2010.04.13 2010.04.13 2010.04.19 2010.04.08 2010.04.08 2010.04.08 2010.04.15 2010.04.28 2010.04.28 2010.04.28 2010.04.21 2010.04.28 2010.04.28 2010.04.27 2010.04.27 2010.04.27 2010.04.30 2010.04.30 2010.04.29 2010.04.28 2010.04.12 2010.04.12 2010.04.12 2010.04.12 2010.04.17 2010.04.01 2010.04.01 2010.04.20 2010.04.01 2010.04.27 2010.04.19 2010.04.01
THOMAS COOK
476
V2500-A1
1994-04
RETURNED
2010.04.01
WILMINGTON TRUST IRAN AIR CROATIA AIRLINES CIT UNKNOWN ILFC SUNRAY LEASING WELLS FARGO BANK AIRBUS AIRBUS AIRBUS AERVENTURE AIRBUS AIRBUS BELGIAN AIR FORCE AIRBUS CIT THOMAS COOK NOVAIR AIRLINES MIDROC AVIATION AIRBUS AIRBUS AIRBUS AERCAP AIRBUS AWAS AIRBUS AIRBUS LEASE CORP INT
476 530 671 772 495 604 1932 1932 4266 4271 4277 4277 4280 4283 1008 1104 1104 309 461 863 1088 1089 1103 1103 1105 1105 1106 1107 1107
V2500-A1 V2527-A5 CFM56-5A3 CFM56-5B4/P CFM56-5B2 V2530-A5 CFM56-5B3/2P CFM56-5B3/2P V2533-A5 V2533-A5 V2533-A5 V2533-A5 CFM56-5B3/3 CFM56-5B2/3 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 CF6-80E1A4B TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 CF6-80E1A4B TRENT772B-60 TRENT772B-60
1994-04 1995-02 1997-03 1998-01 1994-06 1996-06 2003-02 2003-02 2010-03 2010-03 2010-04 2010-04 2010-04 2010-04 2009-03 2010-03 2010-03 1999-11 2002-03 2007-09 2010-02 2010-02 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03 2010-03
LEASED LEASED RETURNED LEASED SALE-LEASEBACK LEASED SOLD LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED RETURNED DELIVERED LEASED SUB-LEASED RETURNED SOLD DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED LEASED
2010.04.01 2010.04.01 2010.04.19 2010.04.27 2010.04.02 2010.04.01 2010.04.03 2010.04.03 2010.04.09 2010.04.13 2010.04.22 2010.04.22 2010.04.29 2010.04.29 2010.04.20 2010.04.27 2010.04.27 2010.04.21 2010.04.14 2010.04.01 2010.04.15 2010.04.16 2010.04.13 2010.04.13 2010.04.30 2010.04.30 2010.04.07 2010.04.16 2010.04.16
Source: OAG Fleet iNet, September 10, 2010
120
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
A330-322 A330-322 A330-322 A330-343X A380-861 A380-861
New Owner/Operator
SKYSERVICE CIT LTU INT AIRWAYS THOMAS COOK AIR FRANCE AIR FRANCE
-!9 s "/%).' 737-236 737-2V5 737-229 737-229 737-291 737-291 737-291 737-230 737-230 737-217 737-217 737-210C 737-301 737-301 737-3Y0 737-3Y0 737-301 737-301 737-33A 737-329 737-329 737-329 737-322 737-322 737-322 737-322 737-322 737-322 737-322 737-322 737-322 737-322 737-3M8 737-3M8 737-322 737-322 737-322 737-3Y0 737-3Y0 737-33A 737-332 737-332 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-3Q8 737-341 737-36N(W) 737-36N(W) 737-31S 737-31S 737-4Y0 737-42C 737-4Y0 737-4Q8 737-4S3 737-4S3 737-4Q8 737-4Q8 737-42J 737-46J 737-4Q8 737-4Q8 737-48E 737-48E 737-4D7 737-548 737-55D 737-55D 737-53S 737-53S 737-683 737-683 737-683
AFRICA CHARTER AIRLINE SAFAIR TRANSPACIFIC POLYTECHNIC WEST PETROZAZ SERVICIOS AERONAUTICAS BLUE SKY AVIATION AERGO LEASING AERGO LEASING SERVICIOS AERONAUTICAS BLUE SKY AVIATION OUTSOURCING FOR AFRICA PK AIRFINANCE AFS 5 BANK OF NY MELLON SOUTHWEST AIRLINES PK AIRFINANCE AFS AIR BATUMI EUROPEAN SKYBUS MULTIFLIGHT GAINJET AVIATION WELLS FARGO BANK UNITED AIR LINES WELLS FARGO BANK UNITED AIR LINES WELLS FARGO BANK UNITED AIR LINES WELLS FARGO BANK UNITED AIR LINES WELLS FARGO BANK UNITED AIR LINES SNC ALTER BAIL VX CAPITAL PARTNERS MAGNICHARTERS MAGNOLIA IRAQI AIRWAYS SRIWIJAYA AIR AERCAP JET2 YANGTZE RIVER EXPRESS AIRLINES HONG KONG AIRLINES BRITISH MIDLAND ILFC KUBAN AIRLINES BRITISH MIDLAND ILFC KUBAN AIRLINES BRITISH MIDLAND ILFC KUBAN AIRLINES YANGTZE RIVER EXPRESS AIRLINES AIRCRAFT FINANCE TRUST AIR ITALY DEUTSCHE STRUCTURED FINANCE CENTRAL CONNECT AIRLINES SAFAIR LCP LTU AIREXPLORE UTAIR UKRAINE BELLEVUE MISTRAL AIR ANSETT WORLDWIDE MISTRAL AIR EURO AVIATION S7 AIRLINES ILFC TAILWIND WILMINGTON TRUST MIAMI AIR INT TATARSTAN AIRCOMPANY AIR CUENCA CELESTIAL CELESTIAL AFS ZAMBEZI AIRLINES SAS Q AVIATION SAS
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
LTU INT AIRWAYS LTU INT AIRWAYS CIT THOMAS COOK AIRBUS MANON NATICALY SAS
171 171 171 356 043 043
SAFAIR AIR NAMIBIA-NATIONAL AIRLINES WELLS FARGO BANK TRANSPACIFIC GLOBAL AIR PETROZAZ SERVICIOS AERONAUTICAS AERO REGIONAL PARAGUAYA AERO REGIONAL PARAGUAYA PETROZAZ SERVICIOS AERONAUTICAS AEKO KULA DAVIAK AVIATION PK AIRFINANCE MELLON TRUST OF NEW ENGLAND BANK OF NY MELLON DAVIAK AVIATION PK AIRFINANCE RPK SOUTHERN AIRCRAFT CONSULTANCY EUROPEAN SKYBUS MULTIFLIGHT U.S. BANK WELLS FARGO BANK U.S. BANK WELLS FARGO BANK U.S. BANK UNITED AIR LINES U.S. BANK WELLS FARGO BANK U.S. BANK WELLS FARGO BANK AIR ONE SNC ALTER BAIL BANK OF UTAH SOURCE ONE MAGNOLIA WELLS FARGO BANK GARUDA ANSETT CHINA XINHUA AIRLINES CHINA XINHUA AIRLINES BMIBABY BMIBABY ILFC BMIBABY BMIBABY ILFC BMIBABY BMIBABY ILFC CHINA XINHUA AIRLINES AFT AIRCRAFT FINANCE TRUST THOMSON AIRWAYS DEUTSCHE STRUCTURED FINANCE WELLS FARGO BANK AEGEAN AIRLINES EHEIM ILFC BOULLIOUN BELLEVUE MSA ANSETT WORLDWIDE ALIF AVIATION GLOBUS ALASKA AIRLINES ILFC ILFC WILMINGTON TRUST ORIX TRITON LOT POLISH AIRLINES LOT POLISH AIRLINES ESTONIAN AIR AFS MIDWEST AIRLINES LG OLIVE LEASING Q AVIATION
21790 22531 21137 21137 21640 21640 21640 22121 22124 22257 22257 20917 23261 23261 23495 23495 23559 23559 23628 23774 23774 23774 24147 24147 24148 24148 24149 24149 24191 24191 24192 24192 24414 24414 24666 24717 24717 24907 24914 25743 25997 25998 26310 26310 26310 26311 26311 26311 26312 26312 26312 26854 28562 28562 29058 29058 23870 24813 25178 25377 25595 25595 26308 26308 27143 27171 27628 27628 28053 28053 28702 26287 27416 27417 29074 29074 28303 30190 30190
Line No.
599 724 421 421 536 536 536 720 727 756 756 344 1157 1157 1206 1206 1451 1451 1304 1443 1443 1443 1570 1570 1572 1572 1574 1574 1588 1588 1590 1590 1895 1895 1891 1930 1930 2013 2054 2206 2506 2510 2680 2680 2680 2681 2681 2681 2693 2693 2693 2303 2908 2908 2946 2946 1647 2062 2199 2717 2233 2233 2665 2665 2457 2465 2858 2858 2954 2954 2978 2427 2389 2392 3086 3086 257 335 335
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
PW4168 PW4168 PW4168 TRENT772B-60 GP7270 GP7270
1997-04 1997-04 1997-04 2000-07 2009-07 2009-07
RETURNED RETURNED LEASED SUB-LEASED DELIVERED SALE-LEASEBACK
2010.04.01 2010.04.01 2010.04.01 2010.04.23 2010.04.14 2010.04.26
JT8D-15A JT8D-9A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15A JT8D-15 JT8D-15 JT8D-17 JT8D-17 JT8D-17A CFM56-3B2 CFM56-3B2 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3C1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-7B20 CFM56-7B20 CFM56-7B20
1979-08 1980-11 1975-06 1975-06 1978-09 1978-09 1978-09 1980-11 1980-11 1981-03 1981-03 1974-02 1985-09 1985-09 1986-02 1986-02 1987-09 1987-09 1986-10 1987-08 1987-08 1987-08 1988-05 1988-05 1988-05 1988-05 1988-06 1988-06 1988-07 1988-07 1988-07 1988-07 1990-06 1990-06 1990-06 1990-09 1990-09 1991-02 1991-04 1991-12 1993-06 1993-07 1994-11 1994-11 1994-11 1994-11 1994-11 1994-11 1995-01 1995-01 1995-01 1992-05 1997-06 1997-06 1997-09 1997-09 1988-11 1991-05 1991-12 1995-04 1992-02 1992-02 1994-10 1994-10 1993-03 1993-03 1997-02 1997-02 1997-10 1997-10 1997-12 1993-01 1992-10 1992-10 1998-11 1998-11 1999-03 1999-07 1999-07
SUB-LEASED RETURNED SOLD SOLD RETURNED SOLD SOLD RETURNED RETURNED SOLD SOLD SOLD SOLD SOLD TRANSFERRED LEASED SOLD SOLD LEASED SOLD SOLD LEASED SOLD LEASED SOLD LEASED SOLD RETURNED SOLD LEASED SOLD LEASED RETURNED SOLD LEASED SOLD LEASED SOLD RETURNED LEASED SOLD SOLD RETURNED RETURNED LEASED RETURNED RETURNED LEASED RETURNED RETURNED LEASED SOLD SOLD LEASED RETURNED LEASED LEASED RETURNED LEASED LEASED SOLD LEASED SOLD LEASED LEASED SUB-LEASED RETURNED LEASED SOLD LEASED SALE-LEASEBACK LEASED RETURNED RETURNED RETURNED LEASED RETURNED SOLD LEASED
2010.05.01 2010.05.01 2010.05.03 2010.05.27 2010.05.31 2010.05.31 2010.05.31 2010.05.06 2010.05.14 2010.05.31 2010.05.31 2010.05.05 2010.05.24 2010.05.24 2010.05.26 2010.05.26 2010.05.24 2010.05.24 2010.05.26 2010.05.20 2010.05.20 2010.05.20 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.14 2010.05.11 2010.05.11 2010.05.07 2010.05.13 2010.05.13 2010.05.04 2010.05.01 2010.05.04 2010.05.01 2010.05.01 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.11 2010.05.01 2010.05.20 2010.05.20 2010.05.07 2010.05.07 2010.05.27 2010.05.19 2010.05.25 2010.05.21 2010.05.11 2010.05.11 2010.05.05 2010.05.05 2010.05.21 2010.05.01 2010.05.18 2010.05.18 2010.05.19 2010.05.19 2010.05.02 2010.05.28 2010.05.31 2010.05.31 2010.05.26 2010.05.26 2010.05.04 2010.05.12 2010.05.12
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
121
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-7K5(W) 737-79P(W) 737-7BC(W) 737-7EI(W) 737-7EI(W) 737-8K5(W) 737-8K5(W) 737-8K5(W) 737-883 737-86N(W) 737-8Q8(W) 737-823(W) 737-823(W) 737-8FZ(W) 737-8FZ(W) 737-8FZ(W) 737-8BK(W) 737-8BK(W) 737-8HX(W) 737-8HX(W) 737-8HX(W) 737-86N(W) 737-86N(W) 737-8U3(W) 737-8U3(W) 737-86Q(W) 737-809(W) 737-809(W) 737-8Q8(W) 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-8KN(W) 737-8KN(W) 737-8KN(W) 737-83N(W) 737-8Q8(W) 737-8K5(W) 737-8BK 737-8BK(W) 737-8K2(W) 737-808(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8FH(W) 737-8FH(W) 737-8K5(W) 737-890(W) 737-846(W) 737-846(W) 737-8GQ(W) 737-86N(W) 737-86N(W) 737-85R(W) 737-85R(W) 737-85R(W) 737-85R(W) 737-85N(W) 737-84P(W) 737-86J(W) 737-86J(W) 737-8FE(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-8V3 737-8V3 737-8HC(W) 737-8C9(W) 747-446 747-412 747-412 747-481 757-251 757-2G5 757-2G5 757-2G5 757-236 757-2Z0 757-2Z0 757-2Q8(W) 757-2G5
New Owner/Operator
TUI AIRLINES BELGIUM CHINA EASTERN AIRLINES ABU DHABI GOVERNMENT BANC OF AMERICA SILVERBLATT BABCOCK & BROWN AIRLINE TAJMYR TUIFLY SAS VIKING AIRLINES TRAVEL SERVICE AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES DELTA AIR LINES BABCOCK & BROWN SHANDONG AIRLINES CIT TUI AIRLINES BELGIUM DELTA AIR LINES ACG UKRAINE INT AIRLINES WELLS FARGO BANK ORENBURG AIRLINES GARUDA GARUDA TUI AIRLINES BELGIUM WILMINGTON TRUST PRIMERA AIR SCANDINAVIA EUROCYPRIA AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES DELTA AIR LINES BABCOCK & BROWN FLYDUBAI GENERAL ELECTRIC BLUE AIR-TRANSPORT AERIAN KIRRETT CIT VIKING AIRLINES TRANSAVIA AIRLINES VIKING AIRLINES RYANAIR RYANAIR RYANAIR HAINAN AIRLINES RBS TUI AIRLINES BELGIUM ALASKA AIRLINES JAPAN AIRLINES JAPAN AIRLINES MALAYSIAN AIRLINE SYSTEM GECAS AIR CHINA BOC JET AIRWAYS BOC JET AIRWAYS SHANDONG AIRLINES HAINAN AIRLINES AIR BERLIN AIR BERLIN VIRGIN BLUE AIRLINES RYANAIR RYANAIR RYANAIR RYANAIR COPA AIRLINES COPA AIRLINES SUNEXPRESS LUXAIR KALITTA AIR WILMINGTON TRUST PULLMANTUR AIR ATLAS AIR QWEST AIR PARTS FEDERAL EXPRESS NATIONAL AIR CARGO GROUP FEDERAL EXPRESS AIR GREENLAND SF AIRLINES SF AIRLINES ILFC THOMSON AIRWAYS
Previous Owner/Operator
TUIFLY BOEING AMIRI FLIGHT SHANGRI LA ENTERTAINMENT BANC OF AMERICA GERMANAIR BABCOCK & BROWN CANJET AIRLINES AIR EUROPA SUNWING AIRLINES SUNWING AIRLINES BOEING WILMINGTON TRUST BOEING DELTA AIR LINES BABCOCK & BROWN SUN COUNTRY AIRLINES CIT BOEING DELTA AIR LINES ACG OGYGIAN CELESTIAL BOEING MC AVIATION CANJET AIRLINES ILFC WILMINGTON TRUST SUNWING AIRLINES BOEING WILMINGTON TRUST BOEING WILMINGTON TRUST BOEING WILMINGTON TRUST BOEING DELTA AIR LINES BABCOCK & BROWN GOL SHREWSBURY TUIFLY AIR INDIA EXPRESS SUNWING AIRLINES BOEING SUNWING AIRLINES BOEING BOEING BOEING HONG KONG EXPRESS AIRWAYS HONG KONG EXPRESS AIRWAYS CANJET AIRLINES BOEING BOEING JS AVIATION AWAS BOEING GECAS BOEING BOC BOEING BOC BOEING BOEING BOEING MCAP BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING JAPAN AIRLINES SINGAPORE AIRLINES WILMINGTON TRUST WELLS FARGO BANK WELLS FARGO BANK EAST TRUST EAST TRUST EAST TRUST FIH LEASING AIR CHINA AIR CHINA FINNAIR ILFC
Serial No. or No. of (Orders)/ [Options]
35141 36768 30884 34683 34683 27978 27978 27985 28323 28617 29351 29557 29557 29659 29659 29659 29660 29660 29686 29686 29686 29884 29884 30145 30145 30285 30664 30664 30671 30908 30908 31095 31095 31097 31097 31716 31716 31716 32348 32841 32907 33023 33029 34173 34704 34974 34975 34979 35105 35105 35142 35199 35357 35357 35793 36545 36545 36694 36694 36695 36695 36778 36781 37753 37753 37821 38512 38513 38514 38515 40663 40664 40776 (1) 24886 26555 26555 30322 23194 23929 24451 24497 25620 27259 27269 29377 29379
Line No.
2603 3269 747 1859 1859 40 40 470 625 504 1471 3282 3282 3280 3280 3280 2355 2355 3259 3259 3259 1094 1094 3285 3285 1237 743 743 1307 3268 3268 3260 3260 3276 3276 3270 3270 3270 933 1705 1117 1682 1945 3266 1958 3262 3271 3263 2501 2501 2660 3287 3279 3279 2428 3275 3275 3264 3264 3281 3281 3277 3278 3261 3261 3288 3272 3283 3284 3286 3265 3267 3273 825 1075 1075 1250 62 153 227 228 449 609 615 857 919
Engine Model
CFM56-7B24 CFM56-7B24 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B27 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B27 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CF6-80C2B1F PW4056 PW4056 CF6-80C2B1F PW2037 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 PW2040 RB211-535E4
Date of Manf. or First Exp. Deliv. 2008-04 2010-04 2000-12 2006-01 2006-01 1998-02 1998-02 1999-12 2000-07 2000-02 2004-03 2010-04 2010-04 2010-04 2010-04 2010-04 2007-07 2007-07 2010-04 2010-04 2010-04 2002-02 2002-02 2010-05 2010-05 2002-10 2000-12 2000-12 2003-03 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2001-08 2005-04 2002-03 2005-03 2006-04 2010-04 2006-05 2010-04 2010-04 2010-04 2008-01 2008-01 2008-06 2010-05 2010-04 2010-04 2007-10 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-05 2010-04 2010-05 2010-05 2010-05 2010-04 2010-04 2010-04 2012-11 1990-10 1996-02 1996-02 2000-06 1985-04 1987-10 1989-04 1989-04 1992-03 1994-03 1994-04 1999-02 2000-02
Transaction Type
SUB-LEASED DELIVERED RETURNED SOLD LEASED SOLD LEASED RETURNED RETURNED RETURNED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SOLD LEASED RETURNED LEASED DELIVERED SOLD LEASED SOLD LEASED DELIVERED SALE-LEASEBACK RETURNED SOLD LEASED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED SOLD LEASED RETURNED LEASED RETURNED RETURNED SUB-LEASED DELIVERED SUB-LEASED DELIVERED DELIVERED DELIVERED RETURNED RETURNED RETURNED DELIVERED DELIVERED SALE-LEASEBACK LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED ORDERED SOLD SOLD LEASED LEASED SOLD SOLD SOLD SOLD LEASE-BUYOUT SOLD SOLD RETURNED LEASED
Date
2010.05.21 2010.05.12 2010.05.01 2010.05.07 2010.05.07 2010.05.20 2010.05.20 2010.05.05 2010.05.07 2010.05.04 2010.05.18 2010.05.28 2010.05.28 2010.05.27 2010.05.27 2010.05.27 2010.05.24 2010.05.24 2010.05.07 2010.05.07 2010.05.07 2010.05.28 2010.05.28 2010.05.28 2010.05.28 2010.05.05 2010.05.20 2010.05.20 2010.05.26 2010.05.14 2010.05.17 2010.05.07 2010.05.10 2010.05.20 2010.05.21 2010.05.12 2010.05.12 2010.05.12 2010.05.01 2010.05.19 2010.05.21 2010.05.01 2010.05.25 2010.05.04 2010.05.19 2010.05.05 2010.05.13 2010.05.07 2010.05.28 2010.05.28 2010.05.05 2010.05.27 2010.05.24 2010.05.24 2010.05.20 2010.05.18 2010.05.18 2010.05.11 2010.05.11 2010.05.25 2010.05.25 2010.05.18 2010.05.20 2010.05.10 2010.05.10 2010.05.28 2010.05.14 2010.05.25 2010.05.27 2010.05.27 2010.05.07 2010.05.10 2010.05.14 2010.05.19 2010.05.27 2010.05.13 2010.05.13 2010.05.28 2010.05.05 2010.05.19 2010.05.18 2010.05.26 2010.05.06 2010.05.01 2010.05.01 2010.05.01 2010.05.19
Source: OAG Fleet iNet, September 10, 2010
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767-231 767-231 767-231 767-231 767-281 767-205 767-266ER 767-266ER 767-266ER 767-38E 767-383ER 767-33AER 767-306ER 767-3Q8ER 767-33AER 767-316ER(W) 777-FDZ 777-29MLR 777-2DZLR 777-35RER 777-35RER 777-35RER 777-337ER 777-3B5ER 777-381ER
New Owner/Operator
ABX AIR ABX AIR ABX AIR ABX AIR SASOF TR-05 ABX AIR BLUE FALCON CORP INTER AVIATION INTER AIR LINES SOUTH AFRICA AERSALE SANTA BARBARA AIRLINES AWMS NORDWIND AIRLINES ETHIOPIAN AIRLINES HOKKAIDO INT AIRLINES LAN ECUADOR QATAR AIRWAYS AIR AUSTRAL QATAR AIRWAYS THAI AIRWAYS INT THAI AIRWAYS INT THAI AIRWAYS INT AIR INDIA KOREAN AIR LINES ALL NIPPON AIRWAYS
-!9 s !)2"53
A300B4-605R A300B4-605R A300B4-622R A300B4-622R A310-304 A310-304 A310-325ET A310-325ET A319-112 A319-112 A319-112 A319-115 A319-115 A319-115 A319-132 A319-132 A319-111 A320-214 A320-232 A320-232 A320-232 A320-211 A320-214 A320-233 A320-233 A320-232 A320-232 A320-214 A320-232 A320-231 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-214 A320-211 A320-214 A320-214 A320-214 A320-212 A320-231 A320-231 A320-214 A320-211 A320-211 A320-214 A320-231 A320-231 A320-212 A320-214 A320-214 A320-214 A320-232
SQUADRON SQUADRON IRANIAN AIRLINES IRANIAN AIRLINES WHITEJETS TRANSPORTES AEREOS MAHAN AIR AIR COMET ILFC ILFC WELLS FARGO BANK MEXICANA AVIANCA AVIANCA OCEANAIR [ AERVENTURE ADRIA AIRWAYS EASYJET NOUVELAIR TUNISIE BOC SKY AIRLINES WELLS FARGO BANK TRAVEL SERVICE AIRLINES VLADIVOSTOK AIR SKY AIRLINE SKY AIRLINE WELLS FARGO BANK WELLS FARGO BANK THOMSON AIRWAYS WELLS FARGO BANK ACG MCAP MERIDIANA FLY MCAP MERIDIANA FLY ACG AVIANOVA BOULLIOUN INTERJET AIR ARABIA ALC BELAIR AIRLINES TRAVEL SERVICE AIRLINES AIR ARABIA EGYPT UNKNOWN ALPHA STAR AVIATION SERVICES GAIF ALS WELLS FARGO BANK AIR BERLIN SMARTLYNX AIRLINES TRAVEL SERVICE AIRLINES CIT ALS WELLS FARGO BANK GAIF TURK HAVA YOLLARI TURK HAVA YOLLARI TURK HAVA YOLLARI CHINA EASTERN AIRLINES
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
DHL DHL DHL DHL WELLS FARGO BANK DHL TOKOPH, DAVID BLUE FALCON CORP INTER AVIATION MSA ICELANDAIR KENYA AIRWAYS ILFC PACIFIC AIRCORP ANA EARTH LAN AIRLINES BOEING BOEING BOEING JET AIRWAYS JET AIRWAYS JET AIRWAYS BOEING BOEING BOEING
22566 22570 22571 22572 23022 23058 23180 23180 23180 24798 25365 27310 27957 27993 28159 35698 36098 (2) (2) 35157 35158 35161 36318 37645 37948
AMERICAN AIRLINES AMERICAN AIRLINES SAHA AIRLINES SAHA AIRLINES WHITE AIRWAYS VERTIR AIRLINES OF ARMENIA AEROLINEAS ARGENTINAS AEROLINEAS ARGENTINAS AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRCOL AVIANCA AIRBUS AERVENTURE AIRBUS AFRIQIYAH AIRWAYS BRITISH MIDLAND BOC ALPSTREAM ASTRAEUS AIRLINES ILFC WELLS FARGO BANK WELLS FARGO BANK ALPSTREAM ALPSTREAM SKYSERVICE ALPSTREAM WELLS FARGO BANK MCAP MCAP MCAP MCAP EASYJET ACG VUELING AIRLINES BOULLIOUN AIR ARABIA AIR BERLIN ALC SMARTLYNX AIRLINES AIR ARABIA AJWA AVIATION UNKNOWN GULF AIR DEBIS AIRFINANCE ALS NIKI LUFTFAHRT ISRAIR SMARTLYNX AIRLINES MEXICANA DEBIS ALS GULF AIR ALAFCO ALAFCO ALAFCO AIRBUS
615 639 750 762 494 595 640 640 4275 4275 4275 4287 4287 4287 4301 4301 4313 1121 1194 1194 1257 136 1379 1400 1523 1546 1557 1605 1650 169 1715 1715 1723 1723 1993 1993 2227 2227 2764 3021 3021 311 3152 3164 3164 325 326 326 3289 333 333 3374 344 344 375 3896 3931 3949 4186
Line No.
29 63 64 65 104 101 99 99 99 331 395 545 587 619 689 973 865
627 637 693 871 867 866
447
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
JT9D-7R4D JT9D-7R4D JT9D-7R4D JT9D-7R4D CF6-80A JT9D-7R4D JT9D-7R4E JT9D-7R4E JT9D-7R4E CF6-80C2B2F PW4060 CF6-80C2B6F CF6-80C2B6F PW4060 CF6-80C2B7F CF6-80C2B7F GE90-110B1L GE90-110B1L GE90-110B1L GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B
1982-09 1983-06 1983-06 1983-06 1984-10 1984-08 1984-07 1984-07 1984-07 1990-08 1991-09 1994-06 1995-06 1996-06 1998-01 2008-12 2010-04 2011-06 2012-03 2007-03 2007-04 2008-01 2010-05 2010-04 2010-04
SALE-LEASEBACK SALE-LEASEBACK SALE-LEASEBACK SALE-LEASEBACK SOLD SALE-LEASEBACK SOLD SOLD LEASED SOLD SUB-LEASED RETURNED LEASED LEASED LEASE-BUYOUT LEASED DELIVERED ORDERED ORDERED SUB-LEASED SUB-LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED
2010.05.20 2010.05.20 2010.05.20 2010.05.20 2010.05.07 2010.05.20 2010.05.27 2010.05.28 2010.05.28 2010.05.20 2010.05.24 2010.05.25 2010.05.18 2010.05.03 2010.05.19 2010.05.03 2010.05.14 2010.05.11 2010.05.25 2010.05.26 2010.05.26 2010.05.31 2010.05.24 2010.05.10 2010.05.17
CF6-80C2A5 CF6-80C2A5 PW4158 PW4158 CF6-80C2A2 CF6-80C2A2 PW4156A PW4156A CFM56-5B6/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B7/3 CFM56-5B7/3 CFM56-5B7/3 V2524-A5 V2524-A5 CFM56-5B5/3 CFM56-5B4/P V2527-A5 V2527-A5 V2527-A5 CFM56-5A1 CFM56-5B4/P V2527E-A5 V2527E-A5 V2527-A5 V2527-A5 CFM56-5B4/P V2527-A5 V2500-A1 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5A1 CFM56-5B4/P CFM56-5B4/P CFM56-5B4/P CFM56-5A3 V2500-A1 V2500-A1 CFM56-5B4/3 CFM56-5A1 CFM56-5A1 CFM56-5B4/3 V2500-A1 V2500-A1 CFM56-5A3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5
1991-07 1992-05 1995-02 1995-10 1988-11 1991-08 1992-02 1992-02 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-05 1999-10 2000-03 2000-03 2000-05 1990-10 2000-12 2001-01 2001-06 2001-07 2001-07 2001-09 2001-11 1991-08 2002-01 2002-01 2002-01 2002-01 2003-03 2003-03 2004-05 2004-05 2006-04 2007-01 2007-01 1992-03 2007-05 2007-05 2007-05 1992-04 1992-04 1992-04 2007-10 1992-05 1992-05 2008-01 1992-06 1992-06 1992-10 2009-04 2009-05 2009-06 2010-04
SOLD SOLD SOLD SOLD LEASED SUB-LEASED RETURNED RETURNED DELIVERED SOLD LEASED DELIVERED SALE-LEASEBACK SUB-LEASED DELIVERED LEASED DELIVERED RETURNED RETURNED LEASED SOLD SUB-LEASED LEASED LEASED LEASED SOLD SOLD RETURNED SOLD SOLD SOLD LEASED SOLD LEASED SOLD LEASED RETURNED LEASED SUB-LEASED SOLD LEASED SUB-LEASED SUB-LEASED RETURNED SOLD RETURNED SOLD SOLD RETURNED RETURNED SUB-LEASED RETURNED SOLD SOLD RETURNED LEASED LEASED LEASED DELIVERED
2010.05.12 2010.05.25 2010.05.02 2010.05.02 2010.05.01 2010.05.01 2010.05.18 2010.05.18 2010.05.28 2010.05.28 2010.05.28 2010.05.04 2010.05.04 2010.05.04 2010.05.11 2010.05.11 2010.05.21 2010.05.01 2010.05.11 2010.05.11 2010.05.19 2010.05.14 2010.05.05 2010.05.07 2010.05.03 2010.05.19 2010.05.01 2010.05.07 2010.05.19 2010.05.05 2010.05.11 2010.05.11 2010.05.06 2010.05.06 2010.05.05 2010.05.05 2010.05.29 2010.05.29 2010.05.01 2010.05.01 2010.05.02 2010.05.03 2010.05.01 2010.05.01 2010.05.02 2010.05.25 2010.05.19 2010.05.19 2010.05.21 2010.05.09 2010.05.13 2010.05.27 2010.05.19 2010.05.19 2010.05.19 2010.05.01 2010.05.01 2010.05.01 2010.05.12
Source: OAG Fleet iNet, September 10, 2010
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A320-214 A320-216 A320-214 A320-214 A320-216 A320-216 A320-214 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-214 A320-214 A320-216 A320-214 A320-214 A320-214 A320-214 A320-214 A320-232 A320-214 A320-214 A320-214 A320-231 A320-232 A320-216 A320-216 A320-232 A320-232 A320-232 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-232 A320-232 A320-214 A320-214 A320-232 A320-232 A320-232 A320-214 A320-214 A320-231 A320-212 A320-231 A320-231 A320-214 A320-233 A320-216 A320-232 A321-131 A321-211 A321-211 A321-231 A321-231 A321-231 A321-231 A321-231 A321-213 A330-243 A330-243 A330-223 A330-223 A330-243 A330-243 A330-243 A330-243 A330-223 A330-243 A330-243 A330-243 A330-223 A330-223 A330-223 A330-200 A330-300 A330-301 A330-322 A330-342 A330-342 A330-342
New Owner/Operator
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
Line No.
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
SHENZHEN AIRLINES AIRASIA GECAS SAUDI ARABIAN AIRLINES AIRASIA THAI AIRASIA AVIANCA AIRCOL AVIANCA AVIANCA AIRCOL AVIANCA SICHUAN AIRLINES AIR BERLIN AIR BERLIN AIRASIA AIR BERLIN AIR BERLIN ILFC WHITNEY LEASING AIR FRANCE MIDDLE EAST AIRLINES ILFC WHITNEY LEASING AIR FRANCE TRAVEL SERVICE AIRLINES SHENZHEN AIRLINES AIRASIA THAI AIRASIA CIT QANTAS JETSTAR AIRWAYS AERVENTURE WATANIYA AIRWAYS CIT AIR VIA BULGARIAN AIRWAYS AERVENTURE WELLS FARGO BANK FRONTIER AIRLINES WIZZ AIR HUNGARY WIZZ AIR HUNGARY AERVENTURE AIR ARABIA INDIGO INDIGO AIR BERLIN NIKI LUFTFAHRT AERVENTURE WELLS FARGO BANK SPIRIT AIRLINES CHINA SOUTHERN AIRLINES LUFTHANSA TRITON AVIATION INT ACG ACQUISITION 33 ALS WELLS FARGO BANK CIT ONUR AIR IBERIA SOUTH AFRICAN AIRWAYS ATLASJET CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES ILFC VIETNAM AIRLINES AERVENTURE VIETNAM AIRLINES AIR CHINA AERCAP AEROFLOT HONG KONG AIRLINES HONG KONG AIRLINES AERCAP AEROFLOT AERCAP AEROFLOT TAM LINHAS AEREAS AWAS UNKNOWN HAWAIIAN AIRLINES CHINA SOUTHERN AIRLINES ROYAL JORDANIAN AIRLINES ROYAL JORDANIAN AIRLINES CIT
AIRBUS AIRBUS AIRBUS GECAS AIRBUS AIRASIA AIRBUS AIRBUS AIRCOL AIRBUS AIRBUS AIRCOL AIRBUS AIRBUS GECAS AIRBUS AIRBUS GECAS AIRBUS AIRBUS WHITNEY LEASING AIRBUS AIRBUS AIRBUS WHITNEY LEASING AMSTERDAM AIRLINES AIRBUS AIRBUS AIRASIA AIRBUS CIT CIT AIRBUS AERVENTURE AIRBUS CIT AIRBUS AIRBUS WELLS FARGO BANK AIRBUS BABCOCK & BROWN AIRBUS AERVENTURE AIRBUS INDIAER AIRBUS AIR BERLIN AIRBUS AIRBUS WELLS FARGO BANK AIRBUS AIRBUS AIRBLUE GULF AIR DEBIS ALS CHINA EASTERN AIRLINES PALS AIRBUS AIRBUS ILFC AIRBUS AIRBUS AIRBUS AIRBUS ILFC AIRBUS AERVENTURE AIRBUS AERCAP AERCAP AIRBUS AIRBUS AERCAP AERCAP AERCAP AERCAP AIRBUS AIRBUS AIRBUS UNKNOWN AIRBUS AMENTUMNO AMENTUMNO AIRBUS
4208 4263 4273 4273 4278 4278 4281 4281 4281 4284 4284 4284 4288 4291 4291 4293 4294 4294 4295 4295 4295 4296 4298 4298 4298 430 4300 4302 4302 4303 4303 4303 4304 4304 4305 4305 4307 4307 4307 4308 4308 4310 4310 4312 4312 4316 4316 4321 4321 4321 4322 4324 443 466 478 478 799 916 (5) (5) 614 4274 4292 4299 4311 4311 4315 4315 4318 1014 1014 1031 1042 1045 1045 1047 1047 1112 1114 1114 1114 1116 970 979 (4)
CFM56-5B4/3 CFM56-5B6/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B6/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2500-A1 V2527-A5 CFM56-5B6/3 CFM56-5B6/3 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2500-A1 CFM56-5A3 V2500-A1 V2500-A1 CFM56-5B4/P V2527E-A5 CFM56-5B6/3 V2527-A5 V2530-A5 CFM56-5B3/3 CFM56-5B3/3 V2533-A5 V2533-A5 V2533-A5 V2533-A5 V2533-A5 CFM56-5B2/3 TRENT772B-60 TRENT772B-60 PW4170 PW4170 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 PW4170 TRENT772B-60 TRENT772B-60 TRENT772B-60 PW4170 PW4168A PW4168A
2010-05 2010-03 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 2010-04 1993-05 2010-04 2010-04 2010-04 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 1993-08 1994-04 1994-04 1994-04 1998-02 1998-10 2012-06 2016-01 1996-08 2010-03 2010-04 2010-04 2010-05 2010-05 2010-05 2010-05 2010-05 2009-05 2009-05 2009-11 2009-10 2009-08 2009-08 2009-08 2009-08 2010-03 2010-04 2010-04 2010-04 2010-04 2008-11 2008-12 2013-08
DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED SOLD LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED SALE-LEASEBACK DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED SUB-LEASED DELIVERED DELIVERED LEASED DELIVERED LEASED SUB-LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED DELIVERED RETURNED RETURNED SOLD SOLD RETURNED LEASED ORDERED ORDERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED DELIVERED SOLD LEASED SOLD LEASED DELIVERED DELIVERED SOLD LEASED DELIVERED LEASED LEASED ORDERED
2010.05.26 2010.05.17 2010.05.03 2010.05.03 2010.05.18 2010.05.18 2010.05.05 2010.05.05 2010.05.05 2010.05.18 2010.05.18 2010.05.18 2010.05.10 2010.05.03 2010.05.03 2010.05.18 2010.05.04 2010.05.04 2010.05.17 2010.05.17 2010.05.17 2010.05.17 2010.05.17 2010.05.17 2010.05.17 2010.05.14 2010.05.17 2010.05.21 2010.05.21 2010.05.31 2010.05.31 2010.05.31 2010.05.20 2010.05.20 2010.05.27 2010.05.27 2010.05.11 2010.05.11 2010.05.11 2010.05.21 2010.05.21 2010.05.27 2010.05.27 2010.05.31 2010.05.31 2010.05.19 2010.05.19 2010.05.27 2010.05.27 2010.05.27 2010.05.28 2010.05.31 2010.05.19 2010.05.13 2010.05.17 2010.05.17 2010.05.12 2010.05.15 2010.05.03 2010.05.27 2010.05.15 2010.05.11 2010.05.10 2010.05.11 2010.05.20 2010.05.20 2010.05.27 2010.05.27 2010.05.26 2010.05.01 2010.05.02 2010.05.21 2010.05.12 2010.05.01 2010.05.02 2010.05.01 2010.05.02 2010.05.06 2010.05.27 2010.05.27 2010.05.27 2010.05.11 2010.05.21 2010.05.21 2010.05.18
VLADIVOSTOK AIR ILFC ILFC UNKNOWN DRAGONAIR
BRAVO LEASING MALAYSIAN AIRLINE SYSTEM DRAGONAIR CATHAY UNKNOWN
055 095 098 109 109
CF6-80E1A2 PW4168 TRENT772-60 TRENT772-60 TRENT772-60
1994-03 1995-04 1995-04 1995-07 1995-07
LEASED RETURNED RETURNED RETURNED LEASED
2010.05.05 2010.05.01 2010.05.01 2010.05.01 2010.05.02
Source: OAG Fleet iNet, September 10, 2010
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A330-343E A330-343 A330-343 A330-343E A330-343E A330-343X A330-343X A340-312 A340-313X A340-313X A380-861 A380-841
New Owner/Operator
SAUDI ARABIAN AIRLINES AERCAP AIR CHINA LEASE CORP INT SINGAPORE AIRLINES THOMAS COOK IBERWORLD AIRLINES AEROLINEAS ARGENTINAS STRATEGIC AIRLINES HI FLY EMIRATES LUFTHANSA
*5.% s "/%).' 737-2E1 737-242 737-242 737-232 737-232 737-290C 737-301 737-301 737-3T0 737-3S3 737-376 737-3M8 737-3M8 737-322 737-322 737-322 737-322 737-382 737-3Y0 737-3Y5 737-3L9 737-3L9 737-3L9 737-36M 737-36M 737-36N 737-36N 737-36N 737-36N 737-36Q 737-36Q 737-31S 737-4Y0 737-4Y0 737-4Q8 737-4Y0 737-4Q8 737-4Q8 737-497 737-48E 737-4Q8 737-4Q8 737-4K5 737-45D 737-45S 737-46M 737-53A 737-5Y0 737-529 737-529 737-529 737-529 737-55D 737-5L9 737-7Q8 737-7Q8 737-7Q8 737-7V3(W) 737-7H4(W) 737-7H4(W) 737-73V 737-73V 737-7GL(W) 737-7H4(W) 737-7H4(W) 737-7K2(W) 737-75T(W) 737-75T(W) 737-7BC(W) 737-7ES 737-7ES 737-700(W) 737-8K5(W)
ZIMENEX AVIATION P&S AERONAUTICS UNKNOWN KIRRA HOLDINGS TRANS AIR CONGO BCI ALOHA U.S. BANK US MARSHAL SERVICE GLOBAL AIR UNKNOWN SKYBUS AIR ONE ENGAGE AVIATION MAGNICHARTERS AIRCRAFT TRUST NOUVELAIR TUNISIE AEROLINEA PRIPAL CHILE THOMAS COOK SRIWIJAYA AIR ATLANT-SOYUZ AIRLINES VGS FLYLAL CHARTERS AIR BUCHAREST AFT AMES-CAMO ALNITAK AFT ALNITAK AFT RAIN DVB BANK SE OASIS AERCO USA MALAYSIAN AIRLINE SYSTEM SKY KING SANTOS DUMONT ILFC ENTER AIR AFT AIR NORTH CHARTER BREMENFLY TOR AIR JAPAN TRANSOCEAN AIR CELESTIAL BOWLIK INTEC LEASING NORDAVIA REGIONAL AIRLINES AIRPLANES FINANCE MAT AIRWAYS EUROPEAN AVIATION TAG AVIATION SOUTHERN AIRCRAFT CONSULTANCY RWANDAIR EXPRESS AIR MEDITERRANEE ILFC CASTLE SUN COUNTRY AIRLINES AEROREPUBLICA COLOMBIA WELLS FARGO BANK SOUTHWEST AIRLINES NBB MOCKINGBIRD COMPANY EUROPE AIRPOST TURK HAVA YOLLARI SOUTHWEST AIRLINES SOUTHWEST AIRLINES KLM SOUTHERN AIRCRAFT SERVICES HUIZENGA, WAYNE ROYAL JET ROYAL AUSTRALIAN AIR FORCE BOEING DEFENSE, SPACE & SECURITY BOEING BUSINESS JETS GERMANAIR
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
AIRBUS AIRBUS AERCAP AIRBUS LEASE CORP INT THOMAS COOK XL AIRWAYS FRANCE ANSETT WORLDWIDE HI FLY STRATEGIC AIRLINES AIRBUS AIRBUS
1108 1110 1110 1124 1124 356 670 094 117 117 028 038
ACG SLABAUGH, MICHAEL P&S AERONAUTICS WINGS OF LEBANON KIRRA HOLDINGS ICARO EXPRESS WACHOVIA BANK U.S. BANK BANK OF UTAH AERGO AAG SNC ALTER BAIL AIR ONE BANK OF UTAH KARTHAGO AIRLINES AIRCRAFT TRUST WELLS FARGO BANK AURELA AIRPLANES FINANCE BOEING LEASING VOLITO VGS ION TIRIAC AIR AIR CHINA AFT AIR CHINA ALNITAK AIR CHINA ALNITAK SHANDONG AIRLINES RAIN AIR ONE METRO BATAVIA QATAR ISLAMIC BANK ACG LEBLON SALES CORP AIR ONE ILFC GARUDA WELLS FARGO BANK CASTLE IRAQI AIRWAYS TLC BEGONIA LOT POLISH AIRLINES CSA CZECH AIRLINES CSA CZECH AIRLINES CANTERBURY COMPANY AIRPLANES HOLDINGS WELLS FARGO BANK CIT CIT TAG AVIATION CELESTIAL ORIX ATLAS GOL ILFC CASTLE COPA AIRLINES ILFC WELLS FARGO BANK LANDELL NBB MOCKINGBIRD COMPANY BANK OF SCOTLAND BOEING BOEING BOEING BANK OF AMERICA SOUTHERN AIRCRAFT SERVICES ABU DHABI GOVERNMENT BOEING
21112 22074 22074 23083 23083 22577 23231 23231 23458 24059 24296 24413 24413 24455 24655 24655 24669 25162 25187 25614 27061 27061 27924 28333 28333 28554 28554 28558 28558 28760 28760 29056 23868 24915 25106 25177 25376 25376 25663 25764 26281 26302 27102 27131 28473 28549 24754 25192 25249 25419 26537 26537 27416 28084 28219 28219 28219 30049 30677 30677 32418 32418 34759 36662 36924 38054 29142 29142 30884 33986
BOEING
35329
BOEING TUIFLY
(1) 27979
Line No.
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
TRENT772B-60 TRENT772C-60 TRENT772C-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 CFM56-5C3/F CFM56-5C4 CFM56-5C4 GP7270 TRENT970-84
2010-04 2010-04 2010-04 2010-05 2010-05 2000-07 2005-06 1995-03 1995-08 1995-08 2009-10 2009-10
DELIVERED DELIVERED SOLD DELIVERED LEASED RETURNED RETURNED LEASED SUB-LEASED RETURNED DELIVERED DELIVERED
2010.05.10 2010.05.10 2010.05.10 2010.05.21 2010.05.21 2010.05.04 2010.05.02 2010.05.12 2010.05.06 2010.05.18 2010.05.28 2010.05.19
424 619 619 1008 1008 760 1164 1164 1244 1517 1653 1884 1884 1752 1814 1814 1907 2241 2248 2467 2347 2347 2760 2810 2810 2835 2835 2876 2876 2989 2989 2928 1616 2055 2518 2176 2689 2689 2382 2314 2380 2620 2394 2458 3014 2844 1868 2262 2145 2165 2296 2296 2389 2788 183 183 183 388 1520 1520 1300 1300 2320 3296 3290 3292 167 167 747 1934
JT8D-9A JT8D-15 JT8D-15 JT8D-15A JT8D-15A JT8D-17 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3B2 CFM56-3C1 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B2 CFM56-3B1 CFM56-3C1 CFM56-3B2 CFM56-3B2 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-3B1 CFM56-3B1 CFM56-3B1 CFM56-3C1 CFM56-3C1 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B22 CFM56-7B22 CFM56-7B22 CFM56-7B20 CFM56-7B20 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B20 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27
1975-06 1979-10 1979-10 1984-01 1984-01 1981-04 1985-10 1985-10 1986-05 1988-01 1988-11 1990-06 1990-06 1989-06 1990-01 1990-01 1990-07 1992-02 1992-02 1993-04 1992-07 1992-07 1995-09 1996-07 1996-07 1996-11 1996-11 1997-04 1997-04 1998-01 1998-01 1997-08 1988-09 1991-04 1993-08 1991-11 1994-12 1994-12 1992-09 1992-05 1992-09 1994-05 1992-10 1993-03 1998-03 1996-12 1990-05 1992-03 1991-09 1991-10 1992-05 1992-05 1992-10 1996-04 1998-12 1998-12 1998-12 1999-09 2004-05 2004-05 2003-03 2003-03 2007-06 2010-05 2010-05 2010-05 1998-11 1998-11 2000-12 2006-04
SOLD SOLD LEASED SOLD LEASED RETURNED SOLD LEASED LEASED LEASED SOLD LEASE-BUYOUT SOLD LEASED RETURNED LEASED LEASED SUB-LEASED LEASED LEASED SOLD LEASED SUB-LEASED RETURNED SOLD RETURNED SOLD RETURNED SOLD RETURNED SOLD RETURNED RETURNED LEASED LEASED SOLD RETURNED LEASED RETURNED LEASED LEASED RETURNED LEASE-BUYOUT RETURNED RETURNED RETURNED LEASED SOLD SOLD SOLD SOLD SOLD LEASED LEASED RETURNED SOLD LEASED SUB-LEASED SOLD LEASED SOLD LEASED LEASED DELIVERED DELIVERED DELIVERED SOLD LEASED LEASED SOLD
2010.06.30 2010.06.15 2010.06.16 2010.06.01 2010.06.02 2010.06.30 2010.06.17 2010.06.17 2010.06.14 2010.06.18 2010.06.07 2010.06.08 2010.06.08 2010.06.21 2010.06.02 2010.06.02 2010.06.22 2010.06.24 2010.06.03 2010.06.23 2010.06.08 2010.06.08 2010.06.30 2010.06.04 2010.06.04 2010.06.14 2010.06.14 2010.06.14 2010.06.14 2010.06.09 2010.06.09 2010.06.30 2010.06.01 2010.06.01 2010.06.14 2010.06.14 2010.06.14 2010.06.18 2010.06.30 2010.06.11 2010.06.07 2010.06.01 2010.06.21 2010.06.15 2010.06.20 2010.06.20 2010.06.29 2010.06.11 2010.06.08 2010.06.21 2010.06.10 2010.06.10 2010.06.07 2010.06.03 2010.06.24 2010.06.24 2010.06.25 2010.06.01 2010.06.17 2010.06.17 2010.06.25 2010.06.25 2010.06.30 2010.06.07 2010.06.01 2010.06.11 2010.06.09 2010.06.09 2010.06.23 2010.06.22
3319
CFM56-7B27
2010-06
DELIVERED
2010.06.23
44
CFM56-7B27 CFM56-7B27
2012-09 1998-03
ORDERED RETURNED
2010.06.08 2010.06.25
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
125
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
737-8K5(W) 737-8K5(W) 737-883 737-883 737-86N(W) 737-86N(W) 737-86N 737-85F 737-8S3 737-8S3 737-89P(W) 737-89P(W) 737-89P(W) 737-8AS(W) 737-8U3(W) 737-8U3(W) 737-86Q(W) 737-8Q8(W) 737-823(W) 737-823(W) 737-823(W) 737-823(W) 737-8KN(W) 737-8KN(W) 737-83N(W) 737-8CX 737-83N(W) 737-8Q8(W) 737-8K5(W) 737-8K5(W) 737-8BK(W) 737-823(W) 737-823(W) 737-8FH(W) 737-846(W) 737-846(W) 737-86N 737-84P(W) 737-8EH(W) 737-8EH(W) 737-8EH(W) 737-890(W) 737-8GJ(W) 737-8GJ(W) 737-86N(W) 737-86N(W) 737-86N(W) 737-86N(W) 737-86N(W) 737-86N(W) 737-8CT(W) 737-8CT(W) 737-89P(W) 737-8EH(W) 737-8EH(W) 737-86J(W) 737-86J(W) 737-8AL(W) 737-8AL(W) 737-8AL(W) 737-86N(W) 737-86N(W) 737-8AS(W) 737-8AS(W) 737-8AS(W) 737-82R(W) 737-82Y(W) 737-82Y(W) 737-82Y(W) 737-8HC(W) 737-82R(W) 737-82R(W) 737-82R(W) 737-890(W) 737-800(W) 737-89L(W) 737-800(W) 737-800(W) 737-9LBER(W) 737-9LBER(W) 737-92LER(W) 747-446D 747-446D 747-446 747-446 747-4F6 747-4F6 747-8
New Owner/Operator
HANSUNG AIRLINES TUIFLY GL MERCURY GERMAN SKY AIRLINES MIDWEST AIRLINES XL AIRWAYS FRANCE JIN AIR YAKUTIA AIRLINES SUNROCK AIRCRAFT CORP SUNROCK AIRCRAFT CORP DELTA AIR LINES ACG CHINA EASTERN AIRLINES TRAVEL SERVICE AIRLINES GARUDA GARUDA VIKING AIRLINES TUI AIRLINES NEDERLAND AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES BABCOCK & BROWN FLYDUBAI SKY AIRLINES TRAVEL SERVICE AIRLINES SKY AIRLINES TUI AIRLINES NEDERLAND UNKNOWN TRAVEL SERVICE AIRLINES SUNEXPRESS AMERICAN AIRLINES AMERICAN AIRLINES MALAYSIAN AIRLINE SYSTEM JAPAN AIRLINES JAPAN AIRLINES CELESTIAL HAINAN AIRLINES TRANSAVIA AIRLINES GOL GOL ALASKA AIRLINES SPICEJET SPICEJET GECAS SHANDONG AIRLINES GECAS AIR CHINA GECAS AIR CHINA BOC WESTJET CHINA EASTERN AIRLINES GOL GOL AIR BERLIN AIR BERLIN BOC HAINAN AIRLINES HONG KONG AIRLINES GECAS CHINA EASTERN AIRLINES RYANAIR RYANAIR RYANAIR PEGASUS AIRLINES MC AVIATION MCAP SKYMARK AIRLINES [JAPAN] SUNEXPRESS PEGASUS AIRLINES PEGASUS AIRLINES PEGASUS AIRLINES ALASKA AIRLINES OKAY AIRWAYS AIR CHINA UNKNOWN UNKNOWN BOEING BUSINESS JETS WELLS FARGO BANK AZERBAIJAN AIRLINES AERSALE AERSALE WELLS FARGO BANK TRANSAERO AIRLINES BABCOCK & BROWN TRANSAERO AIRLINES BOEING BUSINESS JETS
Previous Owner/Operator
GERMANAIR CANJET AIRLINES SAS GL MERCURY LIFT TURKEY VIKING AIRLINES KOREAN AIR LINES AERCAP CYPRUS TURKISH AIRLINES CYPRUS TURKISH AIRLINES BOEING DELTA AIR LINES ACG BLUE AIR-TRANSPORT AERIAN BOEING MC AVIATION SUNWING AIRLINES MIAMI AIR INT BOEING WILMINGTON TRUST BOEING WILMINGTON TRUST BOEING BABCOCK & BROWN WELLS FARGO BANK WELLS FARGO BANK WELLS FARGO BANK MIAMI AIR INT KIRRETT UNKNOWN CIT BOEING WILMINGTON TRUST RBS BOEING JS AVIATION CYPRUS TURKISH AIRLINES BOEING GOL BOEING AERCAP BOEING BOEING BABCOCK & BROWN BOEING GECAS BOEING GECAS BOEING GECAS BOEING BOC BOEING BOEING AERCAP BOEING RBS BOEING BOC BOEING BOEING GECAS BOEING BOEING BOEING BOEING BOEING MC AVIATION MCAP JAPAN BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING BOEING JAPAN AIRLINES JAPAN AIRLINES JAPAN AIRLINES WELLS FARGO BANK SOUTH AFRICAN AIRWAYS BABCOCK & BROWN BOEING
Serial No. or No. of (Orders)/ [Options]
27979 27991 28323 28323 28591 28592 28636 28825 29246 29247 29653 29653 29653 29926 30146 30146 30292 30670 30914 30914 31099 31099 31765 31765 32348 32360 32576 32799 32907 32907 33023 33518 33518 35105 35358 35358 35643 35766 35831 35832 35832 36346 36368 36368 36546 36546 36547 36547 36548 36548 36696 36696 36769 37601 37601 37754 37754 37953 37953 37953 39389 39389 40283 40284 40285 40696 40712 40712 40712 40777 40874 40875 40876 (2) (10) (20) (8) (2) 38890 38890 (-2) 26347 26348 26359 26359 28959 28959 (1)
Line No.
44 248 625 625 233 258 756 188 475 493 3294 3294 3294 722 3303 3303 1451 1481 3298 3298 3307 3307 3302 3302 933 1084 875 1467 1117 1117 1682 3291 3291 2501 3315 3315 2884 3313 3165 3309 3309 3317 3310 3310 3293 3293 3300 3300 3312 3312 3314 3314 3311 3301 3301 3306 3306 3299 3299 3299 3304 3304 3318 3323 3322 3295 3308 3308 3308 3320 3316 3325 3326
3033 3033 907 941 1153 1153 1158 1158
Engine Model
CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B27 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B24 CFM56-7B24 CFM56-7B24 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27B1 CFM56-7B26 CFM56-7B26 CFM56-7B26 CFM56-7B27 CFM56-7B27 CFM56-7B27 CF6-80C2B1F CF6-80C2B1F CF6-80C2B1F CF6-80C2B1F CF6-80C2B1F CF6-80C2B1F GENX-2B67
Date of Manf. or First Exp. Deliv. 1998-03 1999-03 2000-07 2000-07 1999-02 1999-03 2001-01 1998-12 2000-01 2000-01 2010-05 2010-05 2010-05 2000-11 2010-05 2010-05 2004-01 2004-03 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2001-08 2002-02 2001-05 2004-02 2002-03 2002-03 2005-03 2010-05 2010-05 2008-01 2010-06 2010-06 2009-04 2010-06 2010-01 2010-05 2010-05 2010-06 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-06 2010-06 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-06 2010-06 2010-06 2010-05 2010-05 2010-05 2010-05 2010-06 2010-06 2010-06 2010-06 2014-07 2012-03 2013-04 2012-09 2013-03 2009-08 2009-08 1992-02 1992-09 1998-03 1998-03 1998-04 1998-04 2015-08
Transaction Type
SOLD RETURNED RETURNED LEASED LEASED SUB-LEASED SUB-LEASED LEASED RETURNED RETURNED DELIVERED SOLD LEASED SUB-LEASED DELIVERED SALE-LEASEBACK SUB-LEASED SUB-LEASED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED LEASED LEASED LEASED LEASED SUB-LEASED SOLD LEASED LEASED DELIVERED SALE-LEASEBACK LEASED DELIVERED SALE-LEASEBACK RETURNED DELIVERED LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED SALE-LEASEBACK DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED SALE-LEASEBACK DELIVERED LEASED SUB-LEASED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED SOLD LEASED DELIVERED DELIVERED DELIVERED DELIVERED ORDERED ORDERED ORDERED ORDERED ORDERED DELIVERED SOLD CNCL-ORDER SOLD SOLD SOLD LEASED SOLD LEASED ORDERED
Date
2010.06.25 2010.06.02 2010.06.10 2010.06.10 2010.06.09 2010.06.03 2010.06.01 2010.06.09 2010.06.22 2010.06.22 2010.06.07 2010.06.07 2010.06.07 2010.06.12 2010.06.15 2010.06.15 2010.06.10 2010.06.30 2010.06.11 2010.06.14 2010.06.21 2010.06.23 2010.06.14 2010.06.14 2010.06.24 2010.06.18 2010.06.04 2010.06.29 2010.06.08 2010.06.08 2010.06.06 2010.06.04 2010.06.07 2010.06.30 2010.06.24 2010.06.24 2010.06.22 2010.06.29 2010.06.25 2010.06.17 2010.06.17 2010.06.29 2010.06.17 2010.06.17 2010.06.09 2010.06.09 2010.06.10 2010.06.10 2010.06.22 2010.06.22 2010.06.24 2010.06.24 2010.06.22 2010.06.10 2010.06.10 2010.06.16 2010.06.16 2010.06.11 2010.06.11 2010.06.11 2010.06.15 2010.06.15 2010.06.25 2010.06.30 2010.06.30 2010.06.08 2010.06.22 2010.06.22 2010.06.22 2010.06.29 2010.06.25 2010.06.29 2010.06.29 2010.06.22 2010.06.30 2010.06.25 2010.06.30 2010.06.03 2010.06.17 2010.06.17 2010.06.01 2010.06.10 2010.06.24 2010.06.30 2010.06.30 2010.06.10 2010.06.10 2010.06.03
Source: OAG Fleet iNet, September 10, 2010
126
AIRCRAFT FINANCE GUIDE 2011
AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
757-232 757-232 757-232 757-232 757-28A 757-28A 757-236 757-28A 757-230 757-236 757-222 757-222 757-230(W) 757-230(W) 757-236 757-2Q8(W) 757-2Q8(W) 757-2Q8(W) 757-2G5 757-23N 767-341ER 767-3P6ER 767-3Q8ER 767-32LER 767-34AF 767-34AF 767-34AF 767-32LAF 777-212ER 777-222ER 777-212ER 777-212ER 777-212ER 777-212ER 777-FDZ 777-FZN 777-FZN 777-367ER 777-3B5ER 777-381ER 777-381ER 777-381ER 777-346ER 787-8D3
New Owner/Operator
DELTA AIR LINES DELTA AIR LINES DELTA AIR LINES DELTA AIR LINES T COOK FEDERAL EXPRESS FEDERAL EXPRESS MINT AIRWAYS FEDERAL EXPRESS FEDERAL EXPRESS AEROTURBINE AEROLEASE AEROLEASE OPEN SKIES NATIONAL AIRLINES UTAIR AVIATION UTAIR AVIATION ILFC THOMSON AIRWAYS THOMAS COOK BUSINESS AIR IRAQI AIRWAYS EL AL AZERBAIJAN AIRLINES UPS C.C. & E.I. UPS AZERBAIJAN AIRLINES ROYAL BRUNEI AIRLINES FAILAKA UNKNOWN TRANSAERO AIRLINES ROYAL BRUNEI AIRLINES ROYAL BRUNEI AIRLINES QATAR AIRWAYS DEUCALION AEROLOGIC CATHAY KOREAN AIR LINES ALL NIPPON AIRWAYS ALL NIPPON AIRWAYS ALL NIPPON AIRWAYS JAPAN AIRLINES ROYAL JORDANIAN AIRLINES
*5.% s !)2"53 A300B4-605R A300B4-605R A300B4-605R A300B4-605R A300B4-605R A310-203(F) A310-325 A318-112ELITE A318-112ELITE A319-112 A319-112 A319-112 A319-111 A319-112 A319-112 A319-100 A319-100 A319-115LR A319-115X A319-133X A320-214 A320-232 A320-232 A320-233 A320-233 A320-211 A320-231 A320-231 A320-232 A320-232 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-212 A320-214
AIRBUS A300 LEASING CHRYSLER CAPITAL CORP CHRYSLER CAPITAL CORP LUFTHANSA MAHAN AIR FEDERAL EXPRESS AVSA SARL SAUDI RED CRESCENT AUTHORITY MID EAST JET WILMINGTON TRUST ROYAL FALCON OF JORDAN ALPHA STAR AVIATION SERVICES EASYJET LUFTHANSA MERIDIANA FLY CIT UNKNOWN AIR FRANCE KUWAIT GOVERNMENT SYSTEM CAPITAL MGMT CELESTIAL WELLS FARGO BANK THOMAS COOK CELESTIAL ONUR AIR VUELING AIRLINES AIR SWEDEN TRAVEL SERVICE AIRLINES ILFC NESMA AIRLINES WELLS FARGO BANK CYPRUS AIRWAYS JETSTAR ASIA TURKUAZ AIRLINES INTERJET JAZEERA LEASING WELLS FARGO BANK VIRGIN AMERICA ACG CHISHIMA
Previous Owner/Operator
Serial No. or No. of (Orders)/ [Options]
WILMINGTON TRUST WILMINGTON TRUST WILMINGTON TRUST WILMINGTON TRUST THOMAS COOK T COOK BRITISH AIRWAYS WELLS FARGO BANK WELLS FARGO BANK BRITISH AIRWAYS WILMINGTON TRUST AEROTURBINE GOAL AEROLEASE PEGASUS ILFC ILFC FINNAIR ILFC AURELA WELLS FARGO BANK SOUTHERN AIRCRAFT CONSULTANCY ILFC BOEING BOEING BOEING C.C. & E.I. BOEING SINGAPORE AIRLINES AIR INDIA SINGAPORE AIRLINES UNKNOWN SINGAPORE AIRLINES SINGAPORE AIRLINES BOEING BOEING DEUCALION BOEING BOEING BOEING BOEING BOEING BOEING BOEING
22919 22920 23612 23613 24369 24369 24398 24544 24738 24882 25042 25042 25140 25140 25592 29377 29382 30046 30394 30735 24752 26235 27600 40342 37860 37860 37860 (2) 28524 28714 28998 28998 30871 30872 36100 36198 36198 36163 37646 37949 40686 40687 (-7) (3)
AMERICAN AIRLINES AMERICAN AIRLINES AMERICAN AIRLINES LUFTHANSA LUFTHANSA WELLS FARGO BANK CSA CZECH AIRLINES PERFECT AVIATION SAUDI REDCRESCENT AUTHORITY DELVAUX WILMINGTON TRUST THE SILVER WING AIRBUS AIRBUS NBB AIRBUS AIRBUS ALC LUFTHANSA AIRBUS AFS ALPSTREAM WELLS FARGO BANK MANDALA AIRLINES CELESTIAL IBERIA ACG AIR SWEDEN BRITISH MIDLAND ILFC BETASTREAM CIT JETSTAR AIRWAYS CYPRUS TURKISH AIRLINES CIT JAZEERA AIRWAYS JAZEERA LEASING WELLS FARGO BANK GULF AIR CELESTIAL
423 459 460 773 773 356 674 3932 3932 1124 1124 1494 4327 4332 588 (-4) (10) 2456 3957 4319 1198 1240 1411 1482 1482 158 169 169 1697 1697 1785 2108 2423 3259 3374 3656 3656 3656 409 4137
Line No.
134 135 138 154 226 226 224 280 274 323 361 361 382 382 453 857 1010 1006 922 931 289 502 655 990 991 991 991 350 205 149 149 378 398 874 872 872 877 875 870 873 878
Engine Model
Date of Manf. or First Exp. Deliv.
Transaction Type
Date
PW2037 PW2037 PW2037 PW2037 RB211-535E4 RB211-535E4 RB211-535E4 RB211-535E4 PW2040 RB211-535E4 PW2037 PW2037 PW2040 PW2040 RB211-535E4 PW2040 PW2040 PW2040 RB211-535E4 RB211-535E4-B CF6-80C2B6F CF6-80C2B4 PW4060 CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F CF6-80C2B7F TRENT892B PW4090 TRENT892B TRENT892B TRENT892B TRENT892B GE90-110B1L GE90-110B1L GE90-110B1L GE90-115BL2 GE90-115B GE90-115B GE90-115B GE90-115B GE90-115B GENX-1B64
1987-04 1987-05 1987-06 1987-10 1989-03 1989-03 1989-03 1990-03 1990-02 1990-09 1991-03 1991-03 1991-06 1991-06 1992-04 1999-02 2002-03 2002-02 2000-03 2000-05 1989-11 1993-06 1997-03 2010-04 2010-05 2010-05 2010-05 2013-02 2001-06 1999-02 1998-06 1998-06 2001-11 2002-03 2010-05 2010-05 2010-05 2010-05 2010-05 2010-04 2010-05 2010-05 2015-10
LEASE-BUYOUT LEASE-BUYOUT LEASE-BUYOUT LEASE-BUYOUT RETURNED SOLD SOLD LEASED SOLD SOLD SOLD SOLD SOLD LEASED LEASED LEASED LEASED RETURNED LEASED SUB-LEASED LEASED LEASED LEASED DELIVERED DELIVERED SOLD LEASED ORDERED LEASED RETURNED SOLD LEASED LEASED LEASED DELIVERED DELIVERED LEASED DELIVERED DELIVERED DELIVERED DELIVERED DELIVERED CNCL-ORDER ORDERED
2010.06.16 2010.06.17 2010.06.23 2010.06.22 2010.06.16 2010.06.16 2010.06.04 2010.06.25 2010.06.30 2010.06.30 2010.06.24 2010.06.29 2010.06.29 2010.06.29 2010.06.30 2010.06.11 2010.06.07 2010.06.01 2010.06.02 2010.06.28 2010.06.22 2010.06.21 2010.06.21 2010.06.01 2010.06.22 2010.06.22 2010.06.22 2010.06.04 2010.06.01 2010.06.01 2010.06.11 2010.06.11 2010.06.01 2010.06.20 2010.06.09 2010.06.01 2010.06.01 2010.06.25 2010.06.09 2010.06.10 2010.06.30 2010.06.30 2010.06.01 2010.06.17
CF6-80C2A5 CF6-80C2A5 CF6-80C2A5 CF6-80C2A5 CF6-80C2A5 CF6-80A3 PW4156A CFM56-5B9/3 CFM56-5B9/3 CFM56-5B6/2P CFM56-5B6/2P CFM56-5B6/2P CFM56-5B5/3 CFM56-5B6/3 CFM56-5B6/2P
1988-02 1988-03 1988-03 1996-11 1996-11 1984-11 1993-03 2009-06 2009-06 1999-10 1999-10 2001-04 2010-05 2010-05 1996-04 2014-01 2005-04 2009-07 2010-05 2000-03 2000-05 2001-01 2001-04 2001-04 1990-12 1991-08 1991-08 2002-01 2002-01 2002-04 2004-02 2005-04 2007-09 2008-01 2008-10 2008-10 2008-10 1993-02 2009-11
RETURNED RETURNED RETURNED RETURNED SOLD LEASE-BUYOUT RETURNED RETURNED LEASED SOLD LEASED SOLD DELIVERED DELIVERED LEASED CNCL-ORDER ORDERED SALE-LEASEBACK RETURNED DELIVERED SOLD SOLD LEASED RETURNED LEASED SOLD LEASED SUB-LEASED RETURNED LEASED SOLD LEASED SUB-LEASED RETURNED LEASED SOLD SOLD LEASED RETURNED SOLD
2010.06.15 2010.06.15 2010.06.15 2010.06.30 2010.06.30 2010.06.04 2010.06.01 2010.06.01 2010.06.02 2010.06.10 2010.06.10 2010.06.01 2010.06.04 2010.06.09 2010.06.15 2010.06.01 2010.06.30 2010.06.30 2010.06.01 2010.06.10 2010.06.01 2010.06.23 2010.06.14 2010.06.01 2010.06.02 2010.06.02 2010.06.24 2010.06.29 2010.06.09 2010.06.09 2010.06.23 2010.06.05 2010.06.30 2010.06.22 2010.06.01 2010.06.18 2010.06.18 2010.06.18 2010.06.01 2010.06.24
CFM56-5B7/P CFM56-5B7/3 V2527M-A5 CFM56-5B4/P V2527-A5 V2527-A5 V2527E-A5 V2527E-A5 CFM56-5A1 V2500-A1 V2500-A1 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5A3 CFM56-5B4/3
Source: OAG Fleet iNet, September 10, 2010
AIRCRAFT FINANCE GUIDE 2011
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AIRCRAFT FINANCE GUIDE
AIRCRAFT TRANSACTIONS JANUARY-JUNE 2010 EQUIP Model
New Owner/Operator
A320-214 A320-231 A320-232 A320-232 A320-232 A320-232 A320-214 A320-211 A320-232 A320-232 A320-214 A320-214 A320-232 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-214 A320-216 A320-216 A320-214 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-232 A320-232 A320-232 A320-232 A320-214 A320-214 A320-214 A320-212 A320-232 A320-200 A321-211 A321-211 A321-211 A321-231 A321-212 A321-211 A321-211 A321-231 A321-231 A321-200(W) A330-223 A330-243 A330-243 A330-223 A330-223 A330-243 A330-223 A330-223 A330-223 A330-243 A330-203 A330-203 A330-243 A330-322 A330-322 A330-322 A330-342 A330-343E A330-343E A330-343 A330-343 A330-343E A330-343E A330-343X A330-343X A330-302E A340-542(HGW) A340-542(HGW) A340-542(HGW) A380-861 A380-861
AIR FRANCE XL AIRWAYS FRANCE CHINA EASTERN AIRLINES CHINA SOUTHERN AIRLINES CIT DRAGONAIR GULF AIR ISRAIR CHINA SOUTHERN AIRLINES BRITISH AIRWAYS GECAS SAUDI ARABIAN AIRLINES AIR CHINA TAM LINHAS AEREAS TAM LINHAS AEREAS WIZZ AIR HUNGARY SICHUAN AIRLINES INDIGO INDIGO AIR BERLIN AFRIQIYAH AIRWAYS BOC SPRING AIRLINES AIRASIA THAI AIRASIA ILFC WHITNEY LEASING AIR FRANCE SAUDI ARABIAN AIRLINES MIDDLE EAST AIRLINES CHINA EASTERN AIRLINES QANTAS JETSTAR AIRWAYS TUNIS AIR GECAS NOUVELAIR TUNISIE AIR CHINA CHINA SOUTHERN AIRLINES QANTAS JETSTAR AIRWAYS LUFTHANSA JET-I LEASING WHITE AIRWAYS SAFI AIRWAYS ANADOLUJET CIT BOC AIR BERLIN BOULLIOUN ALPSTREAM AG AIR FRANCE AIR BERLIN CHINA SOUTHERN AIRLINES CHINA SOUTHERN AIRLINES LUFTHANSA FINNAIR ARIK AIR IMAGINARIUM HAWAIIAN AIRLINES TAM LINHAS AEREAS TAM LINHAS AEREAS OMAN AIR CHINA SOUTHERN AIRLINES AIRCASTLE ATLASJET INT TURK HAVA YOLLARI AIR FRANCE AIR FRANCE TURK HAVA YOLLARI BRAVO LEASING ONUR AIR BRUSSELS AIRLINES ONUR AIR SWISS SAUDI ARABIAN AIRLINES AERCAP AIR CHINA LEASE CORP INT SINGAPORE AIRLINES SAGA AIRLINES MONGOLIAN AIRLINES FINNAIR KUWAIT GOVERNMENT SONAIR HI FLY EMIRATES EMIRATES
Previous Owner/Operator
CHISHIMA VIKING HELLAS AIRBUS AIRBUS AIRBUS CIT AIRBUS VGS AIRBUS AIRBUS AIRBUS GECAS AIRBUS AIRBUS RBS AIRBUS AIRBUS AIRBUS CRESCENT LEASING AIRBUS AIRBUS AIRBUS BOC AIRBUS AIRASIA AIRBUS AIRBUS WHITNEY LEASING AIRBUS AIRBUS AIRBUS AIRBUS QANTAS AIRBUS AIRBUS GECAS AIRBUS AIRBUS AIRBUS QANTAS AIRBUS CCM AIRLINES WELLS FARGO BANK ILFC ATLASJET INT AIRBUS LTU INT AIRWAYS BOC CYPRUS TURKISH AIRLINES AIRBUS ALC AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS HSH NORDBANK CIT IMAGINARIUM AIRBUS SECOUYA AIRBUS AIRBUS SWISS AIRCASTLE BRITISH MIDLAND ALC FI ELM LEASING AIRBUS IBERWORLD AIRLINES BRAVO LEASING ILFC ILFC AIRBUS AIRBUS AIRBUS AERCAP AIRBUS LEASE CORP INT TURK HAVA YOLLARI SAGA AIRLINES AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS AIRBUS
Serial No. or No. of (Orders)/ [Options] 4137 414 4220 4232 4247 4247 4255 426 4290 4306 4314 4314 4317 4320 4320 4323 4326 4328 4328 4329 4330 4331 4331 4333 4333 4335 4335 4335 4337 4339 4340 4343 4343 4344 4347 4347 4348 4350 4356 4356 4363 548 548 671 676 (-4) 1607 1607 2117 4067 4251 4334 4338 4341 4360 (5) 1002 1104 1104 1118 1118 1120 1129 343 343 398 443 498 (1) 072 072 095 098 1101 1127 1130 1130 1132 1132 407 407 (-2) 1091 (1) (1) 009 (32)
Line No.
Engine Model
CFM56-5B4/3 V2500-A1 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5A1 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B6/3 CFM56-5B6/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/3 CFM56-5B4/3 V2527-A5 V2527-A5 V2527-A5 V2527-A5 CFM56-5B4/3 CFM56-5B4/2P CFM56-5B4/2P CFM56-5A3 V2527-A5 CFM56-5B3/P CFM56-5B3/P CFM56-5B3/P V2533-A5 CFM56-5B1/3 CFM56-5B3/3 CFM56-5B3/3 V2533-A5 V2533-A5 PW4168A TRENT772B-60 TRENT772B-60 PW4170 PW4170 TRENT772B-60 PW4170 PW4168A PW4168A TRENT772B-60 CF6-80E1A3 CF6-80E1A3 TRENT772B-60 PW4168 PW4168 PW4168 TRENT772-60 TRENT772B-60 TRENT772B-60 TRENT772C-60 TRENT772C-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 TRENT772B-60 CF6-80E1A4B TRENT553-61 TRENT556-61 TRENT556-61 GP7270 GP7270
Date of Manf. or First Exp. Deliv. 2009-11 1993-03 2010-05 2010-06 2010-03 2010-03 2010-03 1993-04 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-05 2010-06 2010-06 2010-06 2010-05 2010-05 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 2010-06 1995-07 1995-07 1997-03 1997-03 2001-10 2001-10 2003-12 2009-10 2010-03 2010-06 2010-06 2010-06 2010-06 2013-08 2009-05 2010-03 2010-03 2010-04 2010-04 2010-05 2010-06 2000-05 2000-05 2001-04 2001-11 2002-10 2011-07 1995-01 1995-01 1995-04 1995-04 2010-02 2010-05 2010-06 2010-06 2010-06 2010-06 2001-05 2001-05 2010-05 2010-10 2010-09 2006-08 2015-04
Transaction Type
LEASED SUB-LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED LEASED DELIVERED LEASED DELIVERED SOLD LEASED DELIVERED DELIVERED DELIVERED DELIVERED LEASED DELIVERED DELIVERED LEASED DELIVERED DELIVERED DELIVERED LEASED DELIVERED RETURNED LEASED LEASED SUB-LEASED CNCL-ORDER RETURNED LEASED RETURNED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED DELIVERED DELIVERED ORDERED LEASED SOLD LEASED DELIVERED SALE-LEASEBACK DELIVERED DELIVERED RETURNED LEASED SUB-LEASED SALE-LEASEBACK SALE-LEASEBACK ORDERED RETURNED LEASED LEASED LEASED DELIVERED DELIVERED DELIVERED SOLD DELIVERED LEASED RETURNED SUB-LEASED CNCL-ORDER DELIVERED ORDERED ORDERED DELIVERED ORDERED
Date
2010.06.24 2010.06.29 2010.06.09 2010.06.29 2010.06.30 2010.06.30 2010.06.07 2010.06.11 2010.06.11 2010.06.03 2010.06.07 2010.06.07 2010.06.10 2010.06.14 2010.06.14 2010.06.09 2010.06.10 2010.06.15 2010.06.15 2010.06.07 2010.06.28 2010.06.21 2010.06.21 2010.06.18 2010.06.18 2010.06.30 2010.06.30 2010.06.30 2010.06.29 2010.06.18 2010.06.22 2010.06.22 2010.06.22 2010.06.25 2010.06.28 2010.06.28 2010.06.30 2010.06.29 2010.06.30 2010.06.30 2010.06.30 2010.06.24 2010.06.24 2010.06.26 2010.06.01 2010.06.01 2010.06.10 2010.06.10 2010.06.22 2010.06.01 2010.06.30 2010.06.16 2010.06.17 2010.06.18 2010.06.30 2010.06.25 2010.06.10 2010.06.15 2010.06.15 2010.06.17 2010.06.17 2010.06.09 2010.06.18 2010.06.01 2010.06.14 2010.06.10 2010.06.30 2010.06.01 2010.06.15 2010.06.01 2010.06.18 2010.06.29 2010.06.23 2010.06.16 2010.06.28 2010.06.22 2010.06.22 2010.06.25 2010.06.25 2010.06.01 2010.06.30 2010.06.01 2010.06.11 2010.06.08 2010.06.08 2010.06.04 2010.06.08
Source: OAG Fleet iNet, September 10, 2010
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AIRCRAFT FINANCE GUIDE 2011
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