Boeing projects the world’s airlines should see reasonable liquidity and pricing for new-aircraft delivery financing next year as jet builders accelerate production to meet demand, the manufacturer announced in London on Tuesday while issuing its fifth annual finance market forecast.
Financing, Insurance and Taxes » Aviation Financing
Issues regarding financing of aircraft.
As the business aviation industry slowly recovers lost ground in terms of aircraft sales and flight hours, the liquidity of funding for aircraft purchases is showing signs of emerging from its hibernation over the past few years.
Dublin, Ireland-based Milestone Aviation claims to be on track to lease $1 billion worth of helicopters by year-end. The company, created in 2010 by former NetJets top execs Richard Santulli and William Kelly, provides various leasing arrangements to helicopter operators, from lease on new helicopter delivery–the customer chooses the aircraft, negotiates the contract and then assigns it to Milestone–to sale-leaseback.
NationAir Aviation Insurance has added in-house IS-BAO audits to its services. The company’s claims advisor, Tom Surgalski, is now an accredited IS-BAO auditor and will provide its new offerings, which include Stage I, II and III IS-BAO audits, gap audits and general consulting on IS-BAO standards and safety management systems. Surgalski will be available to discuss IS-BAO issues at NationAir’s booth at the NBAA Convention next week.
Japan’s Sumitomo Mitsui Bank (SMBC) beat more than 30 other bidders to complete the acquisition of RBS Aviation Capital on October 15, demonstrating the growing importance of leasing in new-airliner acquisitions. The bank’s new SMBC Aviation division intends to merge two other leasing companies owned by its shareholders to challenge for the number-three position in the leasing sector, controlling some 331 aircraft.
Ireland-based aircraft lessor Avolon is speaking out against what it characterizes as irresponsible speculation that the economic life of modern airliners has been significantly reduced by the dismantling (for parts) of a number of relatively young aircraft, such as the Airbus A318. In an October 2 webcast, Avolon CEO Domhnal Slattery and head of strategy Dick Forsberg presented the results of a study drawing on raw fleet data provided by consultancy Ascend, combined with its own 10-year projections.
Engine Lease Finance (ELFC) has become the first CFM International (CFMI) spare-engine lessor to use the manufacturer’s portable maintenance for lessors (PML) program under a memorandum of understanding that could be formally ratified by year’s end.
A legal case that could hold serious ramifications for the aircraft financing and leasing industry met its end with a blow against the lenders when the U.S. Supreme Court refused to hear an appeal.
With aircraft owners facing continuing headaches over importing aircraft into the European Union, offshore registrations are increasingly being considered as a more flexible option. At the same time, lawyers have been scrambling to develop elegant solutions to avoid at least immediate liability for punitive rates of value added tax through deferral schemes.
A new 3,600-sq-ft customs-clearance facility has been constructed at Hector International Airport in Fargo, North Dakota, on the north general aviation ramp between two of Fargo Jet Center’s main hangars. It is equipped with the latest technology to expedite U.S. Customs clearances and improve the experience for international passengers. Fargo Jet Center is exhibiting here at EBACE (Stand 456).