Aircraft Investment

Asset Management

Advisory and Valuations

Aircraft Investment

Aircraft Remarketing and Transitions

Available Assets

Technical Services

Repossessions

Identifying investment opportunities and supporting decisions throughout your assets' life

 

Our Asset Management and Aircraft Finance Advisory teams work collaboratively to offer all-encompassing investment support, so our clients have our backing from beginning to end.

 

This includes identifying and advising on suitable investment opportunities, supporting purchase and leasing negotiations, and providing a range of technical services through the entire lease-term along with expert advice around mid-life strategies.

US$1.1B

of aircraft under IBA Asset Management programmes

330+

Aircraft and Engines Inspections Annually

300+

Buy Side Due-Diligence in 2019

30+

Redeliveries & Repossessions in 2019

Delivering End-To-End Aircraft Investment And Management Support

From pre-lease prospect identification to lease end extension, renewal or exit, IBA's Asset Management and Advisory teams partner with clients to deliver wide-ranging aircraft investment and management services. We can help with diverse activities including purchase due-diligence and lease contract negotiation, valuations, planned and unplanned maintenance, financial and legal processes, records management and aircraft and lease remarketing to ensure optimal outcomes.

 

Backed by InsightIQ intelligence and with abundant experience of aviation assets and leases, we supply effective business-critical management services to secure and develop clients' assets.

 

Support includes navigation of financial and legal processes, operating scheduled and ad-hoc maintenance events, overseeing and exploring aircraft utilisation and trends, controlling maintenance costs and maintenance fund administration.

 

We exploit our knowledge of aviation contracts to ensure lease maintenance obligations are fulfilled by developing comprehensive maintenance planning documents (MPDs). Underwriting the requirements of lease terms, such MPDs lay down clear, timetabled procedures for lease collection including rent, reserves, deposits and, if appropriate, letters of credit.

Get in touch

 

We also monitor and analyse aircraft maintenance and utilisation data to ensure assets are operated and cared for by lessees in compliance with contract terms. Our aircraft records management facilities furnish clients with maintenance, service, operational and storage documentation that guarantees full traceability and accountability.

 

Such diligence is essential to preserve evidence of compliance with airworthiness directives or safety notices and supports asset values during aircraft redeliveries, repossessions and remarketing activity.

 

IBA's Maintenance and Cost Forecasting Solution equips clients with essential clarity of focus on aircraft maintenance reserves, events and costs to give total visibility of a portfolio's aviation assets. Empowered by accurate forecasting capabilities, clients can preserve adequate cashflow to provide for costly events such as airframe heavy checks, engine shop visits, life limited part (LLP) replacement or landing gear and auxiliary power unit (APU) overhaul.

 

Our Maintenance and Cost Forecasting Solution also allows clients to proactively realise and manage maintenance fund surpluses by way of trading, lease or re-lease or part-out decisions.

Get in touch

Carbon Emissions Calculator: Opportunities for Lessors

There are various strategies lessors can adopt to reduce their fleets’ carbon emissions and, in doing so, potentially benefit from lower financing costs, strengthen their investor relations’ story and develop a greater competitive advantage with lessees.   IBA outlines two key strategies: purchasing new technology planes with lower emissions levels and committing to offsetting a proportion of the emissions their lessees generate.   1. Buying new technology planes with lower emissions Airframe and engine OEMs are working on many initiatives that will improve technology and produce more efficient and potentially carbon free aircraft, but this is evidently a longer-term proposal. In the medium term, buying new gen technology planes will potentially provide a good investor relations story, fit with many airlines long term strategies and also potentially provide a ‘Greenium’ benefit, with access to lower cost finance. 2. Offsetting proportions of carbon emissions generated by the lessee There are three offsetting options, the impact of which can be calculated using rich intelligence from the InsightIQ platform and newly launched Carbon Emissions Calculator (CEC).   Voluntary offset schemes at $3/tonne High quality offset schemes at $13/tonne Buying and holding emissions allowances from the EU Emissions Trading Scheme (ETS)   Source: IBA InsightIQ CEC   Read the full case study here   Based on calculations and analysis from InsightIQ CEC, we conclude that buying and holding Emissions Allowances from the EU ETS may be the most efficient carbon reduction strategy for lessors. Although upfront costs are higher, buying emissions allowances at the start of a lease and holding them until lease end is an investment. Current market expectation is that these assets will appreciate in value by 70% - 75% by 2030. Investors will therefore have an opportunity to profit from their re-sale at lease end. Emissions trading also enjoys high environmental integrity as a regulated market. To understand the maths behind this conclusion, we have created the following Case Study:   Case study- Airbus A321 neo (Non-ACF/ACTs) with LEAP-1A33 Engine A lessor can commit to offset emissions as a competitive differentiator in a bid to win a lessee. Using the example of a new A321neo narrowbody bought in April 2021 for US$ 56M and offered on a 12-year notional US$ 360K monthly rental, its residual asset value will be US$ 35M at lease end. We can mine the emissions information our CEC generates to calculate the following CO2 outcomes to calculate the offset costs and impact on IRR.   All Data used and displayed in this article is derived from IBA’s proprietary data platform IBA InsightIQ.   If you have any further questions or comments please contact: Ian Beaumont Sign up for a demo

Airport Landing Slot Values; Heathrow Pre- and Post-Covid and the Battle for Airport Slots

Senior Aviation Analyst Youcef Berour Minarro investigates the airport slot market, the impact of Covid-19 at London Heathrow, and the outlook for future slot values.   This paper has been prepared to give an overview and insight into the current airport slot market, with specific emphasis on LHR as one of the most traded airports in the world. This article will review the impact COVID has had on LHR and what the IATA slot waiver extensions mean for slot values.   IBA are one of only a very few appraisers recognised for airport slot valuations having completed a variety of assignments at airports including London LHR, London Gatwick and New York JFK.   In 2015, IBA was involved in Europe’s first ever bond tied to airport slots where Virgin Atlantic Airways secured a £220 million secured note transaction using the airline’s take-off and landing slots at London Heathrow Airport. The bond was used to invest in new Boeing 787-9 aircraft. The bond had a tenor of 15 years. The notes were split between two tranches: £190 million A1 notes and £30 million A2 notes. The A1 notes have a weighted average life of 12 years, while the A2 notes have a weighted average life of 10 years. This was the first time in European air travel history that airport slots have been leveraged in this way, claiming the Deal of the Year in 2016.   In 2020 alone, IBA have been heavily involved in performing a range of valuations for various purposes including slots securitisations, balance sheet purposes and for disposal/acquisition of slots. Download the full report 

Case Study: Setting up and managing a new aircraft leasing fund

The airline industry has seen record aircraft orders that are driven by the operational needs of airlines. Investors who are new to aviation have been keen to participate in the equity and debt financing and, as a result, need to have experienced teams as well as a platform to effectively source and manage assets.

 

The setting up and managing of a new aircraft leasing fund through to exit sounds daunting, but IBA Group supported the successful point-to-point delivery of what was known as the Investec Global Aircraft Fund (IGAF) portfolio.

 

Investec Bank Australia invited IBA to take part in equity raising roadshows in order to create a fund to invest in aircraft operating leases. As well as standing shoulder to shoulder with the structured finance team, IBA also sourced various assets with leases attached, as well as originating sale leaseback opportunities.

 

This type of project highlights the breadth and depth of the IBA team, as we provided valuable input on the aircraft values, including current, future, lease encumbered and maintenance reserve cash flows.

Case Study continued...

 

 

 

 

We also offered insight on airline scoring and due diligence, lease document reviews, drafting and negotiation. IBA additionally presented the senior/mezzanine debt provider with information requests and investment committee reports, as well as taking part in the meetings and approval processes. This resulted in the initiation and growth of the IGAF portfolio.

 

The IGAF portfolio consisted of 20 aircraft, predominantly B737-800 and A320 aircraft, but also included A330-200/300s and B777300ERs across the world. Worthy operators included EVA Air, Qantas, IAG, Air China, Shenzhen Airlines, GOL and Jet Airways to name a few.

 

During that time IBA managed both the onboarding and ongoing asset management, whilst also extending the leases or, alternatively, redelivering and remarketing all of the original leases. Four aircraft were sold for part out during the period, including two B737-700s that were redelivered from Kenya Airways, and two B737-800s that were redelivered from Jet Airways. In those cases, the aircraft return conditions were renegotiated, allowing the airline to reduce their expenditure, whilst also allowing the fund to retain the multi-millions of dollars that were accrued for future maintenance. This added to the overall IRR for the fund.

IBA's new integrated intelligence platform

Get your FREE demo today!

Book a demo of InsightIQ

Please provide background on your company and your aviation analysis requirements so we can tailor our offering to your business needs:

Please leave this field blank

By registering, you confirm that you agree to the storing and processing of your personal data as per our privacy policy





What our clients say

Login

If you have already been provided with your InsightIQ credentials, click InsightIQ. If you are looking for IBA.iQ, click IBA.iQ.