Our aircraft lease management services include, identifying suitable investment opportunities, contract negotiations, lease management and timely recommendations of optimal exit strategies

Aircraft Investment

Our Asset Management and 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 services through the entire lease-term along with expert advice around mid-life strategies

Peter Walter
Aircraft Investment

Peter Walter

Peter Walter

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At IBA, we also offer supervision of the required financial and legal processes, maintenance and utilisation, and maintenance cost management, which is critical to the success of our clients’ investment.  We are also experienced in the managing of contracts meaning that we can support the requirement of the lease with the MPD, such as the management of a collection of lease payments. This can include rent, reserves, deposits and letters of credit (where appropriate), alongside the analysis of maintenance and utilisation of data to ensure that the aircraft is being used and maintained to contract. We also manage records, giving full traceability and accountability which is essential both for aircraft redelivery and remarketing.

Our Maintenance & Cost Forecasting Solution IBA.MC provides visibility of aircraft maintenance events and costs for all aviation assets within a clients’ portfolio. By implementing an accurate forecasting, clients can ensure a sufficient cash flow to cover events such as airframe heavy checks, engine shop visits, LLP replacement, landing gear and APU overhaul. It also provides ample opportunities for the proactive management of maintenance exposures or the realisation of surpluses through trading, lease/ re-lease time, or part-out decisions.

Case studies

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.

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 A330-200/300’s and B777300ER’s 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 B737-700’s that were redelivered from Kenya Airways, and two B737-800’s 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.

After 12 years of successful involvement with the IGAF portfolio, it was sold to Oaktree and now forms a large part of the Sprite ABS. IBA is no longer involved.

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