The Aviation Investival : Hong Kong

Analysing the headwinds and tailwinds facing the aviation finance community.

• Understanding the various aviation cycles
• Macroeconomic indicators; the correlation between interest rates, inflation and GDP to the industry
• Impact of protectionism on the economy

• Comparing Hong Kong’s withholding tax treaties to Singapore and Dublin
• How attractive is Hong Kong for lessors seeking to access Chinese investors?
• What role will the Asian capital markets play in financing new aircraft deliveries?

• An analysis of the differences between the two asset classes
• How has aviation performed relative to real estate?
• Cash flows, asset preservation and maintenance

The session will kick off with three mini pitches promoting alternative products. Our panel of investors will then vote on the most convincing and discuss how their investment strategies are evolving.

• How are investors evaluating different capital structures?
• What are investor’s cash on cash and IRR requirements?
• Understanding the rating and regulatory requirements for Asian investors

How should investors think about, and evaluate, different segments of the market?

Analysing different airline business models from low-cost to full-service carriers.

How to evaluate a leasing company

• What appetite is there from investors in the region for aircraft ABS paper?
• Building a marketable deal
• Capitalising on economic flows to and from China to create a belt and road transaction

As investors hunt for yield, gain a 360 understanding of the metal and risks associated with it.

Calculating assets values

1. Calculating the economic life of new aircraft technology
2. Which assets are under pressure?
3. Calculating lease encumbered values

Picking the right aircraft                                                                                                                                                       

1. New, mid and end-of-life aircraft: Where is the sweet spot?
2. Engine considerations, configuration and returns
3. Modelling the liquidity of new aircraft technology

Cashflow modelling and understanding maintenance events

• Maintenance valuations and impact on cash flows and expenses
• Return conditions
• Understanding lease cashflows
• Waterfall liabilities

Delegates will be split into smaller groups and tasked with finding actionable initiatives to develop the Asian capital markets.

• Do structures and documentation need to be tailored for Asian investors?

• Deal structuring solutions to lower funding costs in a buyers’ market

• Injecting liquidity into the public equity markets

This session will examine the relative importance of several key pillars when evaluating a deal, examining the importance of each factor and how variables can affect the risk of a transaction.

Focused roundtables fostering more collaborative discussions around country specific issues. Champagne will be on hand to help loosen tongues!

Assessing the offshore aspirations of Chinese investors

The next paradigm for the Korean aviation finance market: investing in aircraft portfolios and taking greater asset risk

New investor frontiers: assessing the appetite of Taiwanese and Australian investors for aircraft

What is next for the Japanese market? How can JOLCO’s and JOLS evolve to include new airlines and lessors

The day will close with more structured networking. Centred around finding assets at the right price, our consortium of heads of trading will be on hand to provide aircraft remarketing and acquisition advice.

Tables will be split up by aircraft type, and our expert speakers will provide insights on values, production rates, trading volumes.