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Aviation Schuldschein gathers momentum

Aviation Schuldschein issuances begin to pick up in 2017, but still only account for a tiny fraction of the wider Schuldschein market. more

20/11/2017

in News , Ishka insights , Capital Markets , Premium , Investor Education , Aircraft Finance Market

A growing pipeline of ABS - Ishka New York Conference

More lessors are seeking to issue aircraft asset backed securitisations (ABS), according to delegates at Ishka’s Investing in Aviation Finance Conference held last week in New York. more

24/10/2017

in Ishka insights , Capital Markets

ABS optimism undented by spate of airline bankruptcies

Following the bankruptcies of Alitalia, Air Berlin, and Monarch Airlines, Ishka examines which ABS transactions are the most exposed. more

10/10/2017

in Ishka insights , Capital Markets , Aircraft Finance Market

Are ABS deals inflating asset prices?

Ishka reports on the Investor panel at this week’s ISTAT EMEA event held in Edinburgh. more

28/09/2017

in Capital Markets , Aircraft Finance Market

Engine-backed securitisations: a new old frontier?

Ishka examines the recent history of engine-backed securitisations. more

14/07/2017

in Ishka insights , Capital Markets

Spreading its Wings: Wings Capital Partners expands to Dublin

Ishka speaks with Wings Capital Partners founder, Stephen Hannahs, as the US lessor welcomes a new equity partner and boost its asset portfolio. more

02/07/2017

in Lessors and Lease Rates , Ishka insights , Capital Markets

Alitalia – a test case for the modern ABS

Ishka studies the key features of the top three ABS exposed to Alitalia to understand their structural protections for investor protection. more

16/06/2017

in Aviation financings , Ishka insights , Capital Markets

Steady as she goes: Capital markets update 2017 year-to-date

Ishka reviews recent trends within the capital markets for both lessors and airlines. more

19/05/2017

in Home , Ishka insights , Capital Markets

Lessors go unsecured

The major public lessors have reorganised their debt structure with unsecured notes now making up the bulk of their financing. more

10/05/2017

in Lessors and Lease Rates , Lessor finances , Ishka insights , Capital Markets

Will Schuldschein take off for aviation?

Following a series of aviation-related Schuldschein issuances in the past two years, Ishka’s two-part series examines how the German Schuldschein has emerged as the darling of the European private placement market. more

01/05/2017

in Ishka insights , Capital Markets

Investor’s guide: What is Schuldschein?

Following a series of aviation-related Schuldschein issuances in the past two years, Ishka’s two-part series examines how the German Schuldschein has emerged as the darling of the European private placement market. more

26/04/2017

in Ishka insights , Capital Markets , Aircraft Finance Market

European investors warm to aviation

Key takeaways from Ishka’s London April Aviation Investor Conference. more

09/04/2017

in Ishka insights , Capital Markets , Investor Education

2016 capital markets review: Investors embrace lessor deals

Ishka examines the various aviation finance capital market trends of 2016. more

14/02/2017

in Ishka insights , Capital Markets , Investor Education

Reminder: Ishka Deals of the Year Awards submissions deadline

A reminder that the deadline for submissions for Ishka's Deals of the Years Awards is only a few weeks away. The Ishka Deal of the Year Awards celebrate the best closed aircraft financings of 2016.  more

15/01/2017

in Ishka insights , Capital Markets , Aircraft Finance Market

Vietnam Airlines completes privatisation

The value of Vietnam Airlines increased 40% to $2.1 billion, paving the way for government divestment of 86% of the airline group. Shares rose 40% with its second public offering in as many months. ANA Holdings holds 8.8%, which Vietnam Airlines holds 70% in Jestar together with Qantas and 49% of Cambodia Angkor Air. more

09/01/2017

in Airline Profiles , Capital Markets

Southern Airlines Group Finance gets capital infusion

A $72 million cash infusion will go into Southern Airlines Group Finance Company as part of an agreement between China Southern Airlines and China Southern Air Holding Company (CSAHC) increasing the capital of the finance company to $144 million (CNY1 billion). The deal awaits government approval. China Southern will increase its stake in the financial unit from 21% to 25%, while the group holding 66%. more

09/01/2017

in Lessors and Lease Rates , Capital Markets , Aircraft Finance Market

Qatar takes 10% stake in LATAM Airlines

Qatar Airways subsidiary Qatar Airways Investments (UK) completed the acquisition of 10% of LATAM Airlines as 2016 ended at $10 per share. more

09/01/2017

in Airline Profiles , Capital Markets

GoAir nixes IPO plans for now

India’s GoAir postponed its initial public offering saying it has to reach critical mass before making the move. It had planned a $150 million (INR10.22 billion) IPO as part of a plan for its parent company to reduce its stake in the company by 23%. more

09/01/2017

in Airline Profiles , Capital Markets

Alitalia gains new financial infusion

A new short-term financing, part of restructuring the loss-making Italian airline, was approved by creditors including UniCredit and Intesa Sanpaolo. The next step is to cut a deal with key stakeholders to develop a financing package that will determine whether or not the carrier survives. more

23/12/2016

in Airline Profiles , Capital Markets

China Southern interested in Air Kyrgyzstan stake

China Southern sent a letter of interest in acquiring a 49% stake in Air Kurgyzstan, according to Kyrgyzstan civil aviation authorities, which earlier called for such proposals for the ailing national carrier. more

23/12/2016

in Airline Profiles , Capital Markets

United Continental fleet reconsideration could hurt Boeing

The shift in United’s capital expenditures including the indefinite deferral of 61 Boeing 737s as well as other possible changes to the airline’s order book may end up hurting Boeing depending on the size of the ultimate cutback. United has about 200 Boeing aircraft on order the vast majority for the 737 MAX but it is also one of the largest customers for the Dreamliner. The airline has been converting some of its 787 orders to 777-300ERs providing a boost to that program. More concerning is statements that everything is on the table in the fleet reconsideration plans which could signal a shift to Airbus or an increase in the acquisition of used equipment. more

23/12/2016

in Aircraft Asset Profiles , Capital Markets , Aircraft Finance Market

$170mn IPO scheduled for VietJetAir

VietJetAir expects to raise $170 million through an initial public offering, now 95% owned by Nguyen Thi Phuong Thao. The company’s shares will be listed on the Ho Chi Minh City Stock Exchange in February when its valuation is expected to rise to $1.2 billion. The IPO is said to be over subscribed by 200%. more

22/12/2016

in Capital Markets

Bombardier completes note redemption

Bombardier Inc. redeemed all of its 5.50% Senior Notes due 2018. more

22/12/2016

in Capital Markets

Lufthansa acquires Brussels Airlines

Lufthansa will take over Brussels Airlines, crippled by the terrorist attacks earlier this year, further boosting Lufthansa’s budget division which has almost single-handedly consolidated the European low-fare market. The German carrier acquired 45% of Brussels Airlines in 2009, with an option to acquire the rest as part of an effort to expand Eurowings and better compete against Ryanair and easyJet. more

20/12/2016

in Airline Profiles , Capital Markets

SB Leasing Ireland leases 10 aircraft to Aeroflot

Aircastle and easyJet completed a purchase and leaseback program for 10 Airbus A319-100 aircraft, manufactured in 2005 and 2006, featuring easyJet's distinctive dual over-wing door exit configuration, which enables higher density seating. more

20/12/2016

in Capital Markets , Aircraft Finance Market

AirAsia bails out Indonesia AirAsia

In response to a crackdown by civil aviation authorities in Indonesia on airlines without sufficient equity to run operations, The AirAsia Group moved to recapitalize Indonesia AirAsia by purchasing $225.6 million in perpetual capital securities in PT Indonesia AirAsia (IAA), in which it owns a 49% stake. more

20/12/2016

in Airline Profiles , Capital Markets

AVA Airways funded by Capital Partners

In its fourth attempt to launch operations, AVA Airways, which proposed to provide service throughout the Caribbean with four Airbus A319-100s, signed a partnership agreement with Capital Partners, a US equity firm, in a deal valued at $65 million. It is going for Dominican Republic certification. more

20/12/2016

in Airline Profiles , Capital Markets

Ishka launches Deals of the Year Awards

Ishka is now accepting submissions for its Deals of the Year Awards. The Ishka Awards celebrate the best closed aircraft financings of 2016. Submit your deals today. more

19/12/2016

in Ishka insights , Capital Markets , Aircraft Finance Market

The Ishka View: Will 2017 be a hard or soft landing?

The aviation industry faces the prospect of a weaker 2017. Edward Pieniazek, head of advisory & analytics at Ishka, investigates and asks whether investors should brace themselves for a hard or soft landing next year. more

18/12/2016

in Ishka insights , Capital Markets , Investor Education , Modelling and Forecasting , Aircraft Finance Market

IAMSA acquires VivaAerobús, Irelandia acquires Viva Colombia position

Irelandia Aviation’s stake in VivaAerobús was acquired by IAMSA Group, which now becomes the sole owner of the Mexican LCC. The Mexican bus company launched the airline with Ryanair founders in 2006. For its part, Irelandia is acquiring IAMSA’s 25% state in VivaColombia. more

11/12/2016

in Airline Profiles , Capital Markets

Fitch affirms BBB- for Alaska

Saying its outlook was stable, Fitch Ratings affirmed its BBB- rating for Alaska Airlines upgrading it from the negative watch it earlier set as deliberations on its merger with Virgin America made its way through the Department of Justice. Now that DOJ has approved the deal, the ratings agency expects the deal to close this week.  more

11/12/2016

in Capital Markets

Jet Airways plans $300mn offering

India’s Jet Airways is working on a $300 million equity offering and wants to sell the shares at a premium to current prices as part of an effort to expand. The airline is currently 51% owned by chair and founder Naresh Boyal with 25% owned by Etihad Airways. Etihad is said to be in talks to acquire a further 25%.   more

11/12/2016

in Capital Markets

A380 gets long term backing from Emirates, Rolls-Royce

While many in the industry have been making noises about the end of the Airbus A380, the obituary was written too soon, according to Emirates and Rolls-Royce which recently recommitted to the giant jet citing its ability to serve hot and high-load markets. The move puts to rest threats the order would be cancelled. The airline plans to take delivery of its first RR-powered aircraft on December 16 and continued to the scheduled end of deliveries in 2026. more

11/12/2016

in Aircraft Asset Profiles , Airline Profiles , Capital Markets , Investor Education

CALC issues first tranche of medium term notes in PRC

China Asset Leasing Company completed the issuance of the 2016 1st tranche of the 5-year Medium Term Notes in the PRC in an amount of $47.82 million (RMB330) million with the coupon rate of 4.19%. The proceeds will provide supplemental funding for deposit payments and pre-payments for the acquisition of aircraft. CALC (TJ) and the Medium Term Notes are rated AA+ by China Cheng Xin International Credit Rating Co. Ltd, a credit rating agency. more

09/12/2016

in Lessors and Lease Rates , Capital Markets , Aircraft Finance Market

Airline profits fall short of IATA forecast

In June the International Air Transport Association (IATA) predicted global airlines would earn $39.4 billion but now suggests the industry will report $35.6 billion in profits for 2016. Still, that is a record for such a volatile and disparate industry. The organization forecast global airline profits will decline in 2017 to $29.8 billion. more

09/12/2016

in Airline Profiles , Capital Markets , Investor Education

Investor’s guide to aviation debt structures

Ishka continues its educational series of Insights and provides an overview of the most common debt structures available in aviation finance. more

07/12/2016

in Ishka insights , Capital Markets , Investor Education

American Airlines Bonds affirmed at BB-, outlook stable

Fitch Ratings affirmed the Long-Term Issuer-Default Rating (IDR) for American Airlines Group at 'BB-'. The ratings also apply to American's primary operating subsidiary, American Airlines, Inc. concluding its rating outlook is stable. The agency cited solid operating margins and sizeable cash flows resulting from its US Airways merger. In addition, it cited the management of its merger integration. Cost pressures are expected to impact margins driving them down from peak levels generated in 2015 and 2016 owing to cost pressures, the possibility of higher fuel prices, and a soft unit-revenue environment, said the agency, noting profitability is expected to remain well above levels generated prior to American's bankruptcy and merger with US Airways. more

07/12/2016

in Airline Profiles , Capital Markets , Investor Education

Air Berlin gets reprieve

Air Berlin will get a cash infusion of $319 million (€300 million), more than four times its market value, as part of a deal in which Etihad acquires its subsidiary Niki which will in turn be used to launch a new leisure carrier in a joint venture with TUI Group. Air Berlin will retain Niki’s A321s while its A319 and A320 will become the basis of the Etihad’s new Vienna-based venture. In turn, Niki will take over Air Berlin’s southern European and North Africa routes. Etihad’s plans to join with TUI to launch a new leisure start up based in Vienna took a step forward when the airline approved the deal to hold a 25% stake in the new company while TUI holds 24.8% with the remainder held by NIKI Privatstiftung, a private foundation. The new venture, scheduled to launch in April will build to a 60-aircraft fleet including 14 aircraft now operated for Air Berlin by TUI under wet lease. more

07/12/2016

in Capital Markets , Investor Education

‘Basel IV’ to hit aviation hard but ECAs get off lightly

Proposed amendments to the final elements of the Basel III capital rules – unofficially dubbed “Basel IV” now include an exception for ECA financing. However the new rules are set to penalise traditional secured aviation bank financing and encourage more risky unsecured financing for aviation credits. The new tougher capital requirements could prompt some banks to leave the sector completely. more

05/12/2016

in Regulatory and Accounting , Capital Markets , Aircraft Finance Market

Cash infusion nears for AirAsia

The Bank of Negara Malaysia helped AirAsia move a step closer to gaining a $247 million cash infusion by approving the issuance of new shares. Executives now have 60 days to come up with the money to buy the shares. The bank approved the offshore borrowing that had held up the transaction.  more

02/12/2016

in Capital Markets

Fitch revises North American Airline outlook to stable

Fitch Ratings revised downward its rating of the North American airline sector from positive to stable for 2017. The service cited moderate deterioration in credit metrics over the next year although it reiterated the sector is still solid by historical standards. It continues to see weakness in unit revenues, increasing pressure on international markets and sizable shareholder-focused cash flows.  more

02/12/2016

in Capital Markets

Allegiant reopens senior notes due 2019

Allegiant Travel plans to offer additional notes of its 5.50% senior notes due 2019 with proceeds to be used for general corporate purposes. The notes will be consolidated, form a single series, and be fully fungible with the outstanding notes issued on June 25, 2014 and will be general unsecured senior obligations of the company, guaranteed by all of the company's wholly owned domestic subsidiaries. They will rank equal in right of payment with all existing or future senior unsecured indebtedness. Goldman, Sachs & Co. is acting as the sole book-running manager for the offering of the notes.  more

02/12/2016

in Capital Markets

Vietnam Airlines sets capital increase offering for first quarter

Vietnam Airlines plans to issue 191.1 million shares to shareholders at a price of VND10,000 in the first quarter of 2017. The Ministry of Transport has proposed the Ministry of Finance consider its... more

02/12/2016

in Capital Markets

Investor’s guide: How to deal with the end of first lease?

In this Insight Ishka’s senior consultant, Stuart Flaye, provides some key tips in how to manage the end of a first aircraft lease. more

29/11/2016

in Lessors , Ishka insights , Aircraft financing and leases

Public lessors’ Q3 roundup: Lessors embrace a sellers’ market

The theme that clearly emerged from the public lessors’ Q3 reports is that there remains aggressive competition for aviation assets in the secondary market, driven by significant appetite for metal from non-traditional players. more

25/11/2016

in Lessors , Ishka insights , Aircraft financing and leases

How do lessors differ from their leasing sidecars?

Several aircraft lessors have smaller leasing joint ventures in which they share equity with other investors. Ishka’s analysis reveals that these lessor sidecars tend to be manifestly distinct to their leasing company parent(s) - often containing much younger assets and adopting a different trading strategy. more

23/11/2016

in Lessors , Lessor finances , Ishka insights , Aircraft financing and leases

Lessors vulnerable to false aircraft lien claims

Imagine waking up as a lessor and being unable to sell or release your aircraft because an unknown person has placed a claim on the aircraft. This nightmare scenario happened recently to leasing firm Kahala Aviation whose aircraft was subject to a lien, known to lawyers as a Non-Consensual Right or Interest (NCRI). more

22/11/2016

in Airlines , Lessors , Ishka insights , Aircraft financing and leases

Q3 Analysis: Fly struggles to spend its cash

Is stiff competition for aviation assets a hallmark of a sellers’ market? In its Q3 earnings Fly Leasing reported it has sold all its earmarked aircraft at a premium to book value. Yet at the same time revised downward its capex expectations stating attractive aircraft purchases are now harder to source. more

21/11/2016

in Ishka insights , Aircraft financing and leases

Will Dodd-Frank force lessors to keep more skin in the game?

Dodd-Frank requires originators of aircraft asset-backed securities (ABS) to retain at least 5% of the residual risk. The Ishka View is that Dodd-Frank is unlikely to hamper lessors from signing new ABS deals but the Act still leaves many questions unanswered as to whether aircraft assets will fall within the purview of the new rules. more

18/11/2016

in Ishka insights , Aviation bonds and IPOs , Capital Markets , Aircraft Finance Market

AerCap: right size, not big size

AerCap’s latest results show a deterioration in certain credit metrics as the lessor continues to streamline its business. The Ishka view is that AerCap’s current robust operational metrics and stated strategic plans appear healthy and go some way towards mitigating concerns over the softening of the company’s credit parameters in the past nine months. more

11/11/2016

in Lessors , Aviation financings , Lessor finances , Ishka insights , Aircraft financing and leases

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2018 Aviation Finance Market Forecast 
Trusted, independent assessment of the aviation landscape to help identify markets and assets which offer the greatest return on investment and the best potential for growth 

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