eBook - ePub
The Commercial Aircraft Finance Handbook
Ronald Scheinberg
This is a test
Partager le livre
- 418 pages
- English
- ePUB (adapté aux mobiles)
- Disponible sur iOS et Android
eBook - ePub
The Commercial Aircraft Finance Handbook
Ronald Scheinberg
DĂ©tails du livre
Aperçu du livre
Table des matiĂšres
Citations
Ă propos de ce livre
The book offers a comprehensive overview of the multifaceted matters that arise in the process of financing commercial aircraft. It reviews the different topics on a high-level basis, and then explains the terminology used for each particular area of specialization.
Foire aux questions
Comment puis-je résilier mon abonnement ?
Il vous suffit de vous rendre dans la section compte dans paramĂštres et de cliquer sur « RĂ©silier lâabonnement ». Câest aussi simple que cela ! Une fois que vous aurez rĂ©siliĂ© votre abonnement, il restera actif pour le reste de la pĂ©riode pour laquelle vous avez payĂ©. DĂ©couvrez-en plus ici.
Puis-je / comment puis-je télécharger des livres ?
Pour le moment, tous nos livres en format ePub adaptĂ©s aux mobiles peuvent ĂȘtre tĂ©lĂ©chargĂ©s via lâapplication. La plupart de nos PDF sont Ă©galement disponibles en tĂ©lĂ©chargement et les autres seront tĂ©lĂ©chargeables trĂšs prochainement. DĂ©couvrez-en plus ici.
Quelle est la différence entre les formules tarifaires ?
Les deux abonnements vous donnent un accĂšs complet Ă la bibliothĂšque et Ă toutes les fonctionnalitĂ©s de Perlego. Les seules diffĂ©rences sont les tarifs ainsi que la pĂ©riode dâabonnement : avec lâabonnement annuel, vous Ă©conomiserez environ 30 % par rapport Ă 12 mois dâabonnement mensuel.
Quâest-ce que Perlego ?
Nous sommes un service dâabonnement Ă des ouvrages universitaires en ligne, oĂč vous pouvez accĂ©der Ă toute une bibliothĂšque pour un prix infĂ©rieur Ă celui dâun seul livre par mois. Avec plus dâun million de livres sur plus de 1 000 sujets, nous avons ce quâil vous faut ! DĂ©couvrez-en plus ici.
Prenez-vous en charge la synthÚse vocale ?
Recherchez le symbole Ăcouter sur votre prochain livre pour voir si vous pouvez lâĂ©couter. Lâoutil Ăcouter lit le texte Ă haute voix pour vous, en surlignant le passage qui est en cours de lecture. Vous pouvez le mettre sur pause, lâaccĂ©lĂ©rer ou le ralentir. DĂ©couvrez-en plus ici.
Est-ce que The Commercial Aircraft Finance Handbook est un PDF/ePUB en ligne ?
Oui, vous pouvez accĂ©der Ă The Commercial Aircraft Finance Handbook par Ronald Scheinberg en format PDF et/ou ePUB ainsi quâĂ dâautres livres populaires dans Business et Transportation Industry. Nous disposons de plus dâun million dâouvrages Ă dĂ©couvrir dans notre catalogue.
Informations
PART 1
INTRODUCTION
âAircraft Financeâ is the art of financing aircraft. The Aircraft Finance market is in excess of U.S.$100 billion per year for the financing of new deliveries.1 Insofar as commercial aircraft (and related assets) are highly expensive (the smallest in-production Boeing aircraft, the Boeing 737-700, has a list price of some U.S.$75 mil lion; the largest Airbus aircraft, the A380 has a list price of almost U.S.$390 million; and the GE-90 engine that powers the Boeing 777 aircraft list at approxi mately U.S.$24 million each),2 they often need to be financed. With inherent demand for financing on the operator side, there is similarly a pool of financiers ready, willing and able to supply financing to meet this demand.
Aircraft are perceived (especially by aircraft lenders and operating lessors â those who are putting the money in (âAircraft Financiersâ or âFinance Partiesâ)) to be assets that are highly desirable to finance: they hold their value, earn a decent return, are relatively easy to find and, in many jurisdictions, are subject to beneficial legal regimes that allow timely recovery in default situations. The world of Aircraft Finance is dominated by three principal actors: the aircraft operator/airline, the aircraft lessor and the aircraft lender.3 Aircraft Finance transactions may have all three of these actors involved in a single transaction, such as one would find in a Back-leveraged Operating Lease, or any sub-combination:
âą airline/operator-lessor, in a leasing transaction;
âą airline/operator-lender, in a mortgage financing (reliant on the operatorâs credit); and
âą lessor-lender, in a mortgage financing (reliant on the lessorâs credit).
Each of these three parties brings a very different perspective to an Aircraft Finance transaction.
âą The operator wants the cheapest possible cost (rent and return conditions or fees and interest charges).
âą The lessor (vis-Ă -vis the operator) wants the maximum return (rent and return condition) and least amount of risk to its Aircraft Asset.
âą The lessor (vis-Ă -vis the lender) wants the cheapest possible cost and maximum flexibility for use of the Aircraft Asset.
âą The lender (vis-Ă -vis the operator and lessor) similarly wants the maximum return (fees and interest income) and least amount of risk to the Aircraft Asset.
Those different perspectives can be summarized, then, by the following relationships.
âą Return versus Cost.
âą Risk versus Flexibility.
Of course, these two categories are themselves linked: the greater the risk, the greater the required return. Risk tolerance and required levels of return, therefore, necessarily dictate different approaches between lessor and lenders, and between lessors and lenders, on the one hand, and the airline/operator on the other.
Exhibit 1.1 summarizes these primary risk/reward categories.
A further, and critical, overlay to this dynamic between the parties is the debtor-credit relationship among them. One of the very essential elements of the risk component is that obligations are largely uni-directional: the operator has the ongoing obligation to pay the rent/debt service and, in the case of a lease, return the Aircraft Asset,4 while the Aircraft Financiers satisfy their obligations on day one by delivering the Aircraft and/or financing.5
Efforts to balance all these various rights and risks in the case of any given financing require a broad skill set. Participants are required to have, or have access to, investment banking structuring skills, legal analysis, technical (metal) comprehension, insurance expertise, tax and accounting expertise and loan pricing know-how, to name but a few of the skill sets in which Aircraft Finance practitioners of all professions must have some level of working knowledge proficiency. Take an airline bankruptcy, for example. Finance parties holding lease or debt financing of an aircraft operated by the bankrupt airline must be able to analyze their contractual rights under the transaction documents (with the airline and the other finance parties), their rights under law, their rights in respect of the aircraft, the value and operational condition of the aircraft, their sale/lease remarketing options if they were to repossess the aircraft, their financing and refinancing (or exit) options and their risks of ownership and insurance needs on a repossession (among others!). That is quite an interdisciplinary understanding. While no professional is expected to be an expert in all these areas, any Aircraft Finance professional worth his salt will at least know the questions that need to be asked outside his personal area of expertise so as to be able to build a sufficient knowledge base to respond to developments and opportunities.
Primary risk vs flexibility issues | Primary reward/return vs cost [economic] issues | |
Operator (vs lessor or lender) | âą Manner in which maintenance (for example, deferrals) is conducted âą (Sub)-leasing rights âą Re-registration rights âą Insurance deductibles/ self-insurance | Lessor: âą Rent âą Term âą Term renewal options âą Purchase options âą Security deposits âą Maintenance reserves âą Return conditions Lender: âą Amortization profile (average life) âą Maturity âą Security deposits âą Maintenance reserves âą Interest rate âą Prepayment premium/make whole âą Breakage costs |
Lessor (vs lender) | âą Limit restrictions on re-leasing: jurisdiction economic terms contractual terms âą Cure rights âą Remarketing rights âą Buy-out rights âą Equity squeeze protection âą Recourse versus non-recourse | âą Amortization profile âą LTV coverage âą Maturity âą Security deposits âą Maturity extension options âą Interest rate âą Prepayment premium/make whole âą Breakage costs |
Source: Authorâs own.
This Handbook is an attempt to provide Aircraft Finance professionals â bankers, investment bankers, appraisers, lawyers, insurance brokers, airline and lessor treasury-types and hedge fund, private equity and rating agency analysts â with resources, not to make them experts in an area outside of their particular expertise, but to provide a framework for knowing what questions and issues may be coming into play in a given situation.
Accordingly, this Handbook touches on the various disciplines with which profess...