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Castlelake beats pre-pandemic pricing as its returns to the aircraft ABS market

US fund manager and leasing firm Castlelake has priced the first commercial aircraft ABS in the 10 months since the global onset of the Covid-19 pandemic – achieving one of the lowest yields to date for an aircraft ABS and beating pricing on its last two transactions issued in 2018 and 2019. more

20/01/2021

in Lessors and Lease Rates , Capital Markets

Investor watch: Fund managers team with lessors to catch aircraft pricing dip

Several money managers have committed capital to aircraft asset managers this month for new debt and equity opportunities within aircraft leasing – despite the sector continuing to be buffeted by the Covid-19 pandemic. more

18/01/2021

in Aircraft Asset Profiles , Lessors and Lease Rates , Aircraft Finance Market

Lessor bonds: Lessors kick off 2021 with a flurry of issuances

Aircraft lessors took advantage of a benign debt capital market in January to issue several unsecured bonds. more

15/01/2021

in Lessors and Lease Rates , Aircraft Finance Market

Ishka invites 2020 Deals of the Year Award submissions

Ishka is now accepting submissions for its Deal of the Year Awards. The Ishka Deal of the Year Awards celebrate the best closed aircraft financings of 2020. The awards will be announced at Ishka’s Dublin conference in June 2021. more

11/01/2021

in Lessors and Lease Rates , Aircraft Finance Market

The (surprisingly short) list of airline failures in 2020

The (surprisingly short) list of airline failures in 2020 Commercial aviation endured its worst crisis to date thanks to the Covid-19 pandemic but Ishka research indicates there were relatively few airlines failures in 2020. more

07/01/2021

in Lessors and Lease Rates , Aircraft Finance Market

Ishka’s Aircraft Pricing Benchmark: A320neo and MAX prices stay firm

Ishka launches its new price discovery service, the Aircraft Pricing Benchmark, the markets’ own guide to current leases and aircraft prices. more

04/01/2021

in Lessors and Lease Rates , Home , Aircraft Finance Market

Seasons greetings from Ishka!

Ishka is taking a break over the Christmas holiday period. We want to offer a sincere thank you to all of our readers for your continued support. Normal Insight service will resume in January. more

23/12/2020

in Lessors and Lease Rates , Aircraft Finance Market

Lessors push back against 12-month PBH requests

Lessors are resisting long-term power by the hour requests from airline customers as they hope for a summer 2021 vaccine-induced aviation recovery. more

14/12/2020

in Lessors and Lease Rates , Aircraft Finance Market

Engine lessor Q3: Rental revenues slump as Fortress snags discounted CFM 56s

Engine lessors and investors have bought current generation engines at “extremely distressed” pricing, say leasing sources. more

30/11/2020

in Lessors and Lease Rates , Aircraft Finance Market

Update: Castlelake to fund lessors and airlines as banks ‘step back’ from the sector

Aviation asset manager and investment firm Castlelake, L.P has launched a new aviation private placement lending programme this month, hiring Armin Rothauser, previously at Starwood Capital and Deutsche Bank, to lead the new programme. more

25/11/2020

in Lessors and Lease Rates , Aircraft Finance Market

Public lessors Q3: Airline rent deferral demands dip but could return as winter approaches

Three publicly traded lessors, Air Lease Corporation (ALC), AerCap and Fly Leasing (Fly) granted $45 million in rent deferrals in total to their lessees in Q3, just 10% of the amount booked in Q1 2020, as the pace of airline rental forbearance requests slowed down since the start of the year. more

23/11/2020

in Lessors and Lease Rates

Fly posts $8.3m loss with rent collections at just 53%

Fly Leasing (Fly) slid into the red this quarter, booking a net loss of $8.1 million as aircraft sales stalled and carriers struggled to meet their lease payments. more

19/11/2020

in Lessors and Lease Rates

Ishka World Tour: Pricing on aircraft ABS A notes ‘snap back’

Pricing on the senior A notes for many aircraft ABS “snapped back” to 90 cents on the dollar in the secondary market in September and October, according to speakers at Ishka’s World Tour. more

18/11/2020

in Lessors and Lease Rates , Aircraft Finance Market

AerCap Q3: Record loss as lessor takes $915m widebody impairment

AerCap posted an $850 million net loss in the third quarter largely due to a $915 million fleet impairment concentrated on current technology A330 and 777 widebodies. more

17/11/2020

in Lessors and Lease Rates , Aircraft Finance Market

Cheap leases help Rex take on Bain’s Virgin Australia

Australian regional carrier Regional Express Holdings Ltd (Rex) aims to increase its fleet to around 30-40 single-aisle aircraft by the end of 2022 as it takes advantage of a soft leasing market to bolster its fleet. more

13/11/2020

in Lessors and Lease Rates

ALC Q3: No PBH ‘pandemic’ as lessor hits record-high liquidity

ALC maintained its focus on liquidity this quarter as deferral requests slowed ahead of what executives expect to be a bleak winter for carriers. Despite seeing its revenues down for the third quarter running, the lessor’s liquidity is at an all-time high. more

11/11/2020

in Lessors and Lease Rates

Ishka World Tour takeaways

Ishka presents some of the key takeaways from the Ishka World Tour Conference. more

10/11/2020

in Lessors and Lease Rates , Modelling and Forecasting , Aircraft Finance Market

Aircraft values: Freighters alone escape the CMV slide

Aircraft values and lease rates continue to trend downwards, according to three appraisers speaking at Ishka’s World Tour. more

06/11/2020

in Aircraft Asset Profiles , Lessors and Lease Rates

Are we seeing more 'realism' yet from leased aircraft sellers?

Bid/ask spreads are “narrowing” on aircraft prices, say asset managers, but trading leased aircraft remains challenging. more

04/11/2020

in Lessors and Lease Rates , Capital Markets

CALC CEO Mike Poon: Chinese lessees fulfill deferral agreements

In an interview with Ishka, CALC CEO Mike Poon credits China’s upturn, a narrowbody focus, and a disciplined approach to leasing as keys to its enviable H1 2020 performance. more

19/10/2020

in Lessors and Lease Rates , Aircraft Finance Market

Spreads slow to renormalise on active IG lessor bonds

Spreads remain high on pre-crisis levels on all but A-rated aircraft leasing bond issuances, an Ishka analysis of 251 actively trading lessor issuances has found.  more

13/10/2020

in Lessors and Lease Rates , Capital Markets

Lessors worry airlines will impose ‘abusive’ PBH contracts

Several carriers have asked lessors in the last few weeks to take power-by-the-hour leasing agreements (PBH) as a means to reduce costs in preparation for a tough winter for passenger traffic. more

12/10/2020

in Lessors and Lease Rates , Aircraft Finance Market

Lessor bonds Q3: Fresh issuances double on Q2

Aircraft lessors flooded back to the bond market in Q3 2020. After tepid issuances in Q2, Q3 total new issuances were the highest of the last seven quarters – and over double the previous quarter. more

09/10/2020

in Lessors and Lease Rates , Capital Markets

Malta leverages regulatory changes to attract aircraft lessors

The Government of Malta has tabled in parliament an update to the country’s 2010 Aircraft Registration Act to make itself more appealing to lessors. more

08/10/2020

in Lessors and Lease Rates , Regulatory and Accounting , Investor Education

Lessors wait for A220 sale/leaseback opportunities

Sources state that increased market risk and capital deployment limitations are likely to result in higher lease rates when new A220 RFPs do eventually come to market. more

28/09/2020

in Aircraft Asset Profiles , Lessors and Lease Rates

NAC CCO on regional aircraft resilience and its debt standstill

NAC's CCO, Jim Murphy, speaks with Ishka on the strength of the regional market, NAC's recent debt standstill and the Dash 8 market. more

25/09/2020

in Lessors and Lease Rates

High debt costs eat into aircraft lessor returns

Some lessors may be making lower returns on new sale/leaseback deals than they were pre-Covid because of increased financing costs, according to Ishka research. more

16/09/2020

in Lessors and Lease Rates , Aircraft Finance Market

Covid-19 ushers in a nascent 787 and A350 secondary market

Ishka estimates there are up to 22 787s and A350s in the market looking for new operators. more

01/09/2020

in Aircraft Asset Profiles , Lessors and Lease Rates , Aircraft Finance Market

Fund watch: Icelease signals buying intent with naked aircraft purchase

Reykjavík-based lessor Icelease together with Corrum Capital Management, a private investment firm, have bought a naked 12-year old Boeing 737-800 through their joint venture CCM ICL Leasing LLC. more

26/08/2020

in Lessors and Lease Rates , Aircraft Finance Market

JSA and CDB Aviation test the market with leased aircraft portfolios

Aircraft trading, the normal sale of leased and naked aircraft between lessors, nearly ceased entirely after the immediate onset of the Covid-19 pandemic. However, Ishka is aware of new activity in the market as lessors begin to test investor appetite for leased aircraft. more

19/08/2020

in Lessors and Lease Rates

Public lessors Q2: Delayed rents top $700m but requests have ‘peaked’

Air Lease Corporation, Fly Leasing and AerCap have accumulated $702 million in deferred lease payments, but the three firms are optimistic that the worst has now passed. more

17/08/2020

in Lessors and Lease Rates , Aircraft Finance Market

Q2 ends Fly’s selling spree as lessor offers longer rent deferrals

Q2 2020 marked the end of Fly Leasing’s (Fly) aircraft selling spree: the lessor recorded no gains on aircraft sale for the first time in nine quarters as the pandemic depressed transaction volumes across the industry. more

14/08/2020

in Lessors and Lease Rates

ALC Q2: Deferral repayments “significantly” outstrip fresh forbearance requests

Repayment of deferred aircraft rents now “significantly exceeds” requests by airlines for new support, while greater caution on the part of lessors has led to a fresh insistence upon security deposits and a hike in lease rate factors (LRFs) on sale-leaseback transactions. more

10/08/2020

in Lessors and Lease Rates

AerCap Q2 2020: Deferrals slash 12-month cash flow outlook by 26%

The wave of aircraft lease deferrals has cut AerCap’s 12-month cash flow expectation by 26% over the past two quarters from $3.1 billion to $2.3 billion at the end of Q2 2020. more

04/08/2020

in Lessors and Lease Rates , Aircraft Finance Market

Boeing cuts output as lessors trim quarter of 737 MAX orders

MAX cancellations have been creeping up at nearly double the monthly 31-aircraft production target. Among those, lessors feature heavily. more

03/08/2020

in Aircraft Asset Profiles , Lessors and Lease Rates , Aircraft Finance Market

Lessor bond issuances plummet in Q2 2020

An analysis of a sample of bonds issued by aircraft leasing companies in 2019 Q2 versus 2020 Q2 shows that lessors issued, overall, fewer bonds (by 40.8%) and of smaller amounts (by 31.7%). more

17/07/2020

in Lessors and Lease Rates , Capital Markets

Lessor bonds: Spreads stay wide as ratings agencies mull downgrade

An analysis of 236 currently trading lessor bonds show that spreads remain wide versus pre-Covid levels across maturities and ratings. more

09/07/2020

in Lessors and Lease Rates , Capital Markets

Altavair CEO: ‘The aircraft leasing model has to evolve’

Altavair CEO Steve Rimmer believes “outsized returns” for aircraft lessors are a thing of the past, arguing that the Covid-19 crisis is accelerating a process of change that was already underway within aircraft lessors and their relationships with aircraft manufacturers. more

02/07/2020

in Lessors and Lease Rates , Aircraft Finance Market

Risk of an oversupply of 737-800 freighters, warn cargo sources

The 737-800 freighter market is at risk of potential oversupply, say cargo sources, as more aircraft lessors and operators are looking at cargo conversion over the next few years. more

25/06/2020

in Aircraft Asset Profiles , Lessors and Lease Rates

ABS update: S&P announces aircraft and engine ABS downgrades

Ratings agency S&P downgraded 23 securities from 30 separate aircraft and aircraft engine ABS transactions last week. Twenty of the lowered ratings remain “On Watch” for potential further downgrade. more

24/06/2020

in Aircraft Asset Profiles , Lessors and Lease Rates , Aircraft Finance Market

NAC wins court approval to seek debt standstill from lenders

Regional aircraft lessor Nordic Aviation Capital (NAC) has received permission from the Irish High Court to negotiate a debt standstill and deferrals with its largest lenders. more

10/06/2020

in Lessors and Lease Rates , Aircraft Finance Market

Lessors get ready for a second wave of aircraft rent deferrals

Lessors warn they are preparing for a second wave of aircraft rent deferral requests from struggling airline customers after granting some initial form of temporary rental relief earlier in the year. more

03/06/2020

in Lessors and Lease Rates , Aircraft Finance Market

Asset Managers Survey: A limited hike in equity returns

An Ishka survey of aircraft asset managers reveals many are concerned about possible aircraft repossessions while several lessors are still trying to trade aircraft portfolios despite difficult market conditions. more

20/05/2020

in Lessors and Lease Rates , Aircraft Finance Market

Aircraft lessors end up with a majority stake in Norwegian

Lessors have become the largest group of shareholders in Norwegian Air Shuttle (Norwegian) after creditors and shareholders agreed to a NOK10 billion ($958 million) debt-for-equity scheme to help the troubled airline unlock crucial state aid. more

13/05/2020

in Lessors and Lease Rates , Aircraft Finance Market

Public lessors Q1: Covid onset results in mild hit to lease revenues

Fly, ALC, and AerCap finished Q1 2020 with mild declines to their operating lease revenue, as the bulk of lease deferrals agreed with airline customers have yet to hit lessors’ balance sheets. more

12/05/2020

in Lessors and Lease Rates , Aircraft Finance Market

Public lessors Q1: Rent deferrals top $500 million

Ishka summarises the talking points of lessors' Q1 earnings calls, including airline support, sale-leaseback and forward placement activity and how best to fund yourself through a crisis. more

11/05/2020

in Lessors and Lease Rates

​​​​​​​Lessors bid on Wizz and EasyJet sale/leasebacks

Wizz and EasyJet join several carriers that are also rumoured to be in the market. Sources estimate that there may be as many as two hundred aircraft currently in the sale-leaseback market as airlines explore any means they can to raise cash. more

06/05/2020

in Lessors and Lease Rates

Engine SLB bids up to 40% below pre-Covid levels

Engine lessors say they are bidding on engine RFPs at a 30% - 40% discount from pre-coronavirus prices as airlines continue their frantic search for liquidity. more

05/05/2020

in Lessors and Lease Rates , Aircraft Finance Market

The rise of ECAs and supported financing for aircraft deliveries

Two recent aircraft deliveries to Pegasus, financed with the support of ACG and Balthazar respectively, offer positive signals that non-payment insurance providers are still “on” for aircraft deliveries. more

27/04/2020

in Lessors and Lease Rates , Aircraft Finance Market

Ishka and Oriel cut aircraft values as airlines look to reduce fleets

Appraisers at Oriel and Ishka cut asset values and lease rates in early April across various aircraft types due to the coronavirus crisis and warn that further cuts are likely. more

14/04/2020

in Aircraft Asset Profiles , Lessors and Lease Rates

Transaction Economics

Transaction Economics – Aircraft Values and Trading Data

Get real pricing and deals data and dynamic, independent aircraft values from Ishka’s trusted team

Ishka Advisory – Airline Restructuring

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Ishka Insights

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