1 / 9

Aircraft Leasing in the Americas

Aircraft Leasing in the Americas. 11 September 2019. DAE at a glance | June 2019. Owned, managed, committed Weighted by NBV of the owned aircraft only excluding held-for-sale and finance lease aircraft Weighted by Ascend half life CMV of the owned aircraft only Excludes Joramco

tyronica
Download Presentation

Aircraft Leasing in the Americas

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Aircraft Leasing in the Americas 11 September 2019

  2. DAE at a glance | June 2019 • Owned, managed, committed • Weighted by NBV of the owned aircraft only excluding held-for-sale and finance lease aircraft • Weighted by Ascend half life CMV of the owned aircraft only • Excludes Joramco • Includes consolidated ICD ownership

  3. Global Customer Relationships Asia Pacific 27% MEASA 41% Europe 18% Americas 14% • No customer constitutes more than 15% of total fleet size (1) All values by NBV, as of 31 December, 2018. Includes owned aircraft only and excludes held-for-sale and finance lease aircraft All figures are rounded for presentation purposes 3

  4. Advantages of Operating Leases for Airlines • Insufficient capital to purchase aircraft • Inexpensive access to high-value assets • Near term aircraft availability – quick growth • Fleet planning flexibility – manage cycles • Avoidance of residual value risk • Avoidance of technical obsolescence Lessor Operating Lease Airline

  5. Americas – Widespread Use of Operating Leases Canada55% leased USA 27% leased Mexico 90% leased Brazil 62% leased LATAM 53% leased • The Americas has ~5,600 aircraft in service and ~2,400 on order • There are 73 operators in the region, 29 of these have moved to NEO or MAX 59.9% 40.1%

  6. Being Successful In The Americas • Capitalization – Sufficient capitalization to meet customer’s own business plan • Business Plan – Customer must have a real product differentiator, hard to compete only on price • Experienced Management – Management team should have experience in aviation and should have demonstrated success • Preliminary “Three Point Test” Typically, customer must meet all three points before involving the business!

  7. Environment Affecting Aviation in The Americas • The 2019 forecast expects 54% of airline profits to come from North American carriers • Capacity discipline/delivery deferrals continue • Traffic continues on up-trend • Stable fuel prices and low interest rates • Growing LCC development with credible parent groups • Widespread fleet rollover to next generation technology • Strengths Weaknesses • Signs of cost-yield squeeze • Currency weakness in Latin American countries • Lagging infrastructure in Latin America • Impact of Avianca-Brazil demise and Avianca restructuring • Exposure to 737-Max grounding

More Related