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Aviation Schuldschein gathers momentum

Aviation Schuldschein issuances begin to pick up in 2017, but still only account for a tiny fraction of the wider Schuldschein market. more

20/11/2017

in News , Ishka insights , Capital Markets , Premium , Investor Education , Aircraft Finance Market

Big three US carriers aren’t paying any corporation tax

The big three US carriers have been able to offset recent record profits thanks to years of previous losses. more

15/11/2017

in Airline Profiles , News , Ishka insights , Regulatory and Accounting , Premium

Norwegian’s Q3 results prove doubters wrong

Low-cost carrier Norwegian Air Shuttle has posted surprisingly robust third quarter results. more

31/10/2017

in Airline Profiles , News , Ishka insights , Premium , Aircraft Finance Market

Airlines neglect EU compensation rules at their peril

Carriers have fought EU compensation legislation bitterly since its introduction in 2005 more

30/10/2017

in News , Ishka insights , Regulatory and Accounting , Premium , Technical Expertise

Russia’s GTLK sets sights outside Russia

Ishka speaks to Roman Lyadov, CEO of Russian lessor, GTLK Europe. more

19/10/2017

in Lessors and Lease Rates , News , Ishka insights , Premium

Airbus helps C Series to ‘spread its wings’

Airbus has come to the rescue of Bombardier’s foundering C Series programme by taking a 50.01% majority stake in the venture. more

17/10/2017

in Aircraft Asset Profiles , Ishka insights , Premium , News

‘A kaleidoscope of liquidity’ – financiers cast a critical eye over bank lending

Ishka reports on the aviation finance panel at last week’s ISTAT EMEA event held in Edinburgh. more

05/10/2017

in Ishka insights , Aircraft Finance Market , News

ALC Q3 results: no clouds in sight?

Air Lease Corporation’s (ALC) most recent quarterly results highlight why investors are still seeking a foothold in aircraft leasing. The Californian aircraft lessor showed a 17% rise in revenues compared to last year and an improved EBITDA margin of 93.1%. The Ishka view is that the company’s performance demonstrates that its business model is well-suited to the upswing part of the industry cycle. more

08/11/2016

in Ishka insights , Aircraft financing and leases , News , Lessors

Avolon, CIT announcement could happen on Friday

CIT is rumoured to be preparing an announcement this Friday regarding its sale. Rival lessor Avolon, which is owned by Chinese conglomerate HNA Group, is said to have won the bidding war for the US leasing firm, according to sources on the side of the Europe ISTAT conference. more

27/09/2016

in Lessors , News , Curated

Aircraft lessors continue to perform despite being highly leveraged

Aircraft leasing is a capital-intensive business and aircraft lessors remain highly leveraged. However, the larger lessors can boast of enviable operating margins. Several lessors have become listed which has also helped optimise their capital structures. Ishka has compared the public financials of AerCap, Air Lease Corporation, Aircastle, Aviation Capital Group, Avation, BOC Aviation, FLY Leasing and SMBC AC to assess their performance. more

30/08/2016

in Lessors , News , Ishka insights

Could Air Malta prove a challenge for AerCap?

All of Air Malta's 8 aircraft are currently leased from AerCap which is a rarity. The struggling State Island national carrier is under considerable pressure to remain an entity in the market as its cost cutting measures have been insufficient. With only a few options left, the Ishka view is that only a deeply restructured Air Malta can survive under the umbrella of a bigger carrier. However, the question is whether there are airlines willing to invest in Air Malta. more

09/08/2016

in Airlines , Lessors , News , Ishka insights

Will banks and lessors finance Iran aircraft orders?

Iran, through Iran Air, is in talks with Boeing and Airbus for up to 198 new aircraft through direct orders. At least two big issues remain in place for either of the two aircraft order deals. The first is regulatory approval in the face of increasingly vocal US opposition in Congress towards the selling of aircraft to Iran and any involvement by the US Export Import Bank. The other related but secondary concern is whether banks and lessors are willing to finance aircraft deals into Iran. more

27/07/2016

in News , Ishka insights , Manufacturer news , Aircraft financing and leases

Can Monarch Airlines survive as a low cost carrier?

The two largest LLCs operating in the UK, Ryanair and easyJet, are both rumoured to be interested in acquiring Monarch Airlines which has recently made the transition from a charter to a low-cost carrier. However, if Monarch is not acquired then it faces the greater challenge of building a successful low-cost business model. To do so it will need to lower its CASK rates if it is to successfully compete against other LCCs in the long-run. more

20/07/2016

in Ishka insights , News , Airline news

Future appears bleak for Fastjet

Since Fastjet started operations in late 2012 it has struggled to breakeven. The Ishka view is that the airline faces an uncertain future until it implements some drastic changes to its operations and overhauls its network and fleet. In the absence of a strong restructuring program, the carrier could be staring at bankruptcy in the near future.  more

19/07/2016

in Airline news , News , Ishka insights , Curated news

Brexit Part II: Weaker sterling impacts airline order books

Following Brexit, the GBP is down 14% against the US$, reaching a 31-year exchange rate low of 1.2798. Currency devaluation will impact traffic, but a weaker pound also means airlines may have to pay more for aircraft purchases. Our analysis suggests that among the airlines operating out of the UK, Jet2 appears to be one of those more vulnerable to a weaker pound. Sustained currency weakness may lead it to defer some of its planned deliveries. more

15/07/2016

in Airline news , News , Ishka insights , Aircraft financing and leases

Against heavy odds Aeroflot is heading for a profit in 2016

Following a challenging 2014 which saw losses of RUB 17.1 billion ($267 million), Aeroflot has managed to stem the tide in 2015 and is on track to make a profit in 2016. more

14/07/2016

in Airline news , News , Ishka insights

China’s growing leasing ambitions

Ishka provides a summary of the major Chinese players in the aircraft leasing sector – old and new – and anticipates what the future may hold once the dust has settled. more

08/07/2016

in Lessor news , Lessor finances , News , Ishka insights

Unprofitable Oman Air faces uphill task to break-even by 2017

Oman Air made pre-tax losses of $209.18 million in 2015, adding to total accumulated losses of $1.7 billion, and although the airline has had some success in limiting its losses last year, its financial performance remains unsustainable. The strategy is to break even by YE2017 and prepare the ground for a possible privatisation, but on current trends the Ishka view is that more needs to be done to make this happen. more

07/07/2016

in Airline news , News , Ishka insights

Is there an opportunity for the smaller Egyptian airlines in times of adversity?

At a time when international air travel to Egypt has been on a decline as a result of the socio-political unrests and terrorism related incidents, outbound travel from the country has displayed a healthy growth trend. A continuation of this trend would lead us to take a more optimistic view on the medium to long-term prospects of the smaller Egyptian airlines. more

06/07/2016

in Market moves , News , Ishka insights

Avianca’s bid for new equity vital for fleet financing

Avianca is set to receive 149 aircraft between 2016 and 2024, but the airline is struggling to bring its costs down and tackle an unsustainable level of debt. The carrier’s gross adjusted leverage – as measured by total adjusted debt EBITDAR – is currently 7.4x. The company is in the market for a $500 million capital injection. If it fails to find this additional equity it will face a challenge in funding its fleet renewal. more

01/07/2016

in Airline news , News , Ishka insights

SAS needs to continue reforms to counter losses

Ignoring the non-recurring revenue and cost items, SAS posted losses in both the quarters of the first half of FY 2015/16. SAS needs to improve its capacity utilization especially on intercontinental routes this summer in-order to post a profit for the full year. The carrier has improved its bottom line through concerted restructuring efforts but needs to continue with its reforms as it still faces strong competition from low-cost carriers. more

30/06/2016

in Airline news , News , Ishka insights

JP Lease acquires leased A320s for JOLs

Japan-based JP Lease Products and Services has acquired four aircraft on lease from Aercap.  JPLS bought A320 and an A321 on lease to Dragon Air - vintage 1998 (MSN 930) and vintage 2002 (MSN 1695) with 4-6 years remaining on the lease. The firm has also acquired two vintage 2004 A320s (MSN 2206 and MSN 2191) on lease to Aer Lingus.   CIC financed the Are Lingus aircraft while DVB Bank Singapore funded the Dragon Air aircraft. Vedder Price are the lawyers on the deal advising Aercap while K&L Gates advised JPLS. Watson Farley (WFW) advised CIC and Clifford Chance advised DVB Bank. Arena Aviation Capital arranged the deal and will service the aircraft.

Photo:ERIC SALARD
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30/06/2016

in Lessor news , News , Curated news

What does Brexit mean for aviation investors?

We look briefly at three key areas in aviation – the assets, passenger traffic and and the new regulatory environment to understand the impact of last week's historic UK vote on aviation. more

27/06/2016

in Airline news , News , Ishka insights , Curated news , Manufacturer news

Can LOT Polish Airlines afford to overhaul its fleet?

The Polish carrier’s newly appointed CEO, Rafal Milczarski, is considering overhauling the carrier’s narrowbody fleet. Ishka sees a short-haul fleet overhaul as a step in the right direction but can LOT afford a substantial fleet expansion just three years after the carrier was on the verge of bankruptcy? more

23/06/2016

in Airline news , News , Ishka insights

A quantum leap for once-struggling Qantas

The Australian airline appears to be on track for a sustained recovering as continues its Transformation Plan. Qantas has eight Boeing 787-9s which are scheduled to begin delivering in late 2017 through 2018. The Ishka view is that the new aircraft, which will mostly be used to replace the airline’s ageing 747-400s, will not threaten Qantas’ profitable codeshare agreement with Emirates but will allow the airline to benefit from the high rise in Chinese traffic to Australia.  more

22/06/2016

in Airline news , Lessor news , Ishka insights , News

Robust finances enable Spirit’s strategy change

Spirit Airlines’ (Spirit) new CEO has announced a new strategy for the Ultra-Low Cost Carrier (ULCC) which will include targeting 500 new domestic routes, cutting capacity by 10% and changing the culture of ‘America’s most hated airline’ in an attempt to improve customer service. more

13/06/2016

in Airline news , News , Ishka insights , Premium news

Alaska’s merger with Virgin America will be expensive but will aid growth

Alaska Airlines and Horizon Air’s parent firm, Alaska Air Group, Inc., is set to acquire Virgin America, Inc. Despite the limited commonalities, Ishka believes that this merger makes strategic sense for both the airlines, especially in a consolidating US airline market. However fleet integration, Virgin’s shareholders and the increased leverage could still challenge Alaska’s attempt at expanding its market share beyond the Pacific Northwest. more

06/06/2016

in Airline news , News , Ishka insights , Premium news



The Aviation Investival: Korea

21th March, 2019

The only dedicated Korean aviation investor event returns to Seoul in March 2019 with some new twists and surprises.


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