Ishka : Ishka Provides Trusted, Expert Assessment And Opinion On The Latest Industry Trends And Emerging Issues In The Global Aviation Finance Market.

How long will China remain 'closed for business' for Boeing?

Chinese airlines have been conspicuous in their avoidance of direct aircraft orders with Boeing as the trade war heats up between China and the US. more

09/10/2018

in Regulatory and Accounting , Aircraft Finance Market

Q1 2018 Traffic Update: Year-on-year load factors pick up

As part of a regular series looking at the trends in air traffic and capacity, in this week’s Insight, Ishka reviews the traffic and capacity changes during the first quarter of 2018. more

23/05/2018

Slots still risky for financiers as collateral despite Monarch victory

Monarch’s creditors recently won the right to trade the defunct carrier’s airport slots after an appeal but White & Case, in a guest report, argues that slots still represent uncertain collateral for financiers. more

08/05/2018

IFRS rules likely to cause currency volatility for airlines

One consequence of incoming accounting changes, IFRS 16 and IFRS 9 will be increased currency costs for airlines with predominately non-US dollar revenues. more

16/01/2018

in Ishka insights , Regulatory and Accounting

Hong Kong’s latest bid for aircraft leasing ‘dominance’

Proposed changes to how Hong Kong-listed lessors report aircraft transactions are part of an effort to reduce their operating costs and improve the attractiveness of listing in the city. more

27/11/2017

in Lessors and Lease Rates , Ishka insights , Regulatory and Accounting , Premium , Aircraft Finance Market

US airlines save billions under Trump tax changes

A proposed cap on corporate tax deductions for net interest expense is unlikely to have any effect on US airlines, but a 15% reduction in the top rate will be a boon for carriers. more

24/11/2017

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

Untested: non U.S. EETCs in bankruptcy

Ishka takes a closer look at the creditor protections for Norwegian’s EETC. more

06/11/2017

in Ishka insights , Regulatory and Accounting , Modelling and Forecasting , 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

What impact will the end of QE have on aircraft rents?

As the Fed begins to end quantitative easing Ishka examines how aircraft rents will begin to be impacted. more

29/09/2017

in Lessors and Lease Rates , Ishka insights , Regulatory and Accounting

Airlines charge lessors more for novations

As the world’s fleet increases, airlines are forced to spend time doing novations as lessors trade their aircraft. Ishka examines some of the challenges lessors and airlines face with novations. more

04/09/2017

in Lessor finances , Ishka insights , Regulatory and Accounting , Technical Expertise

Will Brexit force the UK to drop out of the European open skies deal?

In a special guest insight piece, RDC Aviation Economics’ Tim Coombs, looks at the impact of Brexit on airlines and airports. more

21/08/2017

H1 2017 traffic growth and load factors up but Middle East sees decline

As part of its regular series on air passenger traffic, Ishka studies the evolution of traffic and capacity during the first six months of 2017. more

18/08/2017

in Ishka insights , Regulatory and Accounting

Repossession risk report: Nigeria and Turkey

Anecdotal evidence suggests that aircraft repossessions are on the rise. Ishka looks at two of the more difficult jurisdictions to retrieve an aircraft from: Nigeria and Turkey. more

03/07/2017

in Lessors and Lease Rates , Ishka insights , Regulatory and Accounting , Technical Expertise

How will changes to Ireland’s double tax treaties impact new lessors?

Ishka reviews what changes to Ireland’s double tax treaties as part of the OECD BEPS regulations could mean for aircraft lessors. more

22/06/2017

in Ishka insights , Regulatory and Accounting , Aircraft Finance Market

More firms seek to set up aviation debt funds

At least three non-bank institutions including an insurance firm are actively looking to create their own private aviation debt fund, according to Ishka research. more

21/02/2017

in Ishka insights , Regulatory and Accounting , Investor Education , Aircraft Finance Market

Can the low-cost long-haul model be profitable?

Low-cost airlines revolutionised the aviation industry in the last ten years, driving prices down and forcing incumbents to compete. Now carriers like Norwegian and Air Asia X have applied the same low-cost model to long-haul flights. The challenge now is to deliver sustainable profitability. more

26/01/2017

in Airline Profiles , Regulatory and Accounting , Investor Education , Aircraft Finance Market

Mexican senate increases foreign ownership cap    

The move toward increasing foreign investment in its aviation sector took another step forward as the Mexican senate voted to increase the cap on airline foreign ownership from the previous 25%, to 49%. It must now be approved by the Mexican Chamber of Deputies. The move paves the way for a possible increase in Delta’s stake of AeroMexico to 49% and Avianca’s stake in Aeromar to 49%. more

09/01/2017

Azerbaijan moves to further liberlise air market

Azerbaijani government authorities marked the further liberalisation of the aviation sector as well as privatisation as two priorities in the current version of its strategic plan for the country. AZAL fleet renewal plans were targeted with plans to open negotiations planned with Embraer, Airbus and Boeing. In addition, it wants to develop an LCC as part of a plan to boost tourism with Buta Airways set to launch in the autumn with Embraer aircraft. more

09/01/2017

New Chinese restrictions raise hopes for regional jet manufacturers

After China imposed new restrictions on new entrant airlines, regional jet makers are looking for an increase in orders from Chinese airlines. Still they face competition from COMAC as well as questions about the size of western regional airliners. China wants to increase capacity in secondary markets now that capacity in big cities has been satisfied and access has been restricted to the major markets. Airlines are now required to put to use 25 smaller regional jets before they can qualify for larger equipment, which could prompt a demand for 250 new RJs potentially from Bombardier, Embraer, Sukhoi and Mitsubishi in addition to COMAC’s ARJ 21. more

20/12/2016

Azerbaijan to increase LCCs in effort to reduce ticket prices and promote tourism

In an effort to promote tourism and reduce ticket prices, civil aviation authorities in Azerbaijan said is increasing the number of low-cost carriers. The airlines could be created under Flag Carrier AZAL or as a separate company. It is also cutting airport costs. more

20/12/2016

Norwegian plans domestic service in Argentina

Norwegian Air Shuttle is planning to launch a new Argentinian airline in 2017 to serve the domestic market, creating the market’s first LCC. more

20/12/2016

Brazil files formal WTO challenge on Bombardier subsidies

In response to increased government funding of Bombardier, Brazil plans to file a formal complaint with the World Trade Organization over the $2.5 billion in state aid. Brazilian jet maker Embraer says the subsidies have distorted the market. more

20/12/2016

Closing the tax loop: BEPS and aviation

A project launched by the G20 and the OECD to improve international tax laws and prevent aggressive tax planning is set to impact aviation firms. Ishka examines how the Base Erosion and Profit Shifting (BEPS) project will affect airlines and lessors. more

14/12/2016

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

Two opportunities to reopen US Ex-Im

Plans to make US Ex-Im fully operational again were dealt a blow this week when Congress rejected an amendment to a short-term spending bill that would allow the bank to function without a full board. Ishka examines two possible opportunities to reopen the bank. The first involves a new Senate banking committee chairman, while the second involves the next US budget. more

11/12/2016

in Ishka insights , Regulatory and Accounting , Aircraft Finance Market

Brazil to release new aviation regulations next week

In an effort to streamline the airline regulatory regime, Brazilian civil aviation authority said it is set to release new regs on December 13 designed to provide relief from the costly and weighty regulations now in place. Brazil, which observers hope will bring regulations more in line with ICAO standards, is now the most expensive and difficult country for airlines, especially with a 50% premium paid on fuel alone. more

09/12/2016

ARJ21-700 receives first certification outside China

Civil aviation authorities in the Republic of Congo granted COMAC’s ARJ21-700 a type certificate, the first such regulatory approval outside of China. The government of Congo placed a firm order for three aircraft in 2014. A delivery date has not been set. There are 413 orders from 19 customers for the ARJ21. more

09/12/2016

in Aircraft Asset Profiles , Regulatory and Accounting

Lucky Air plans new LCC in China

Yunan Lucky Air acknowledged it is working with two state-owned agencies on a joint venture to launch a low-cost carrier known as Chengdu Shenniao Airlines. The Hainan Airlines subsidiary would have a 35% stake in the new company. more

08/12/2016

Avianca to launch Argentinean subsidiary

After acquiring 12 ATR72-600s and six options for a planned subsidiary in Argentina, Avianca said it filed for the right to operate domestic and international service under its new Avian Líneas Aéreas subsidiary. more

08/12/2016

in Airline Profiles , Regulatory and Accounting , Investor Education

US DOJ approves Alaska-Virgin merger

The US Department of Justice approved the $2.6 billion merger of Alaska and Virgin America airlines, clearing the way for integration. However, the department required Alaska to reduce its code-sharing agreement with American on 20 or more of the 250 routes in a move to preserve competition. more

07/12/2016

Canada grants foreign ownership exemption to Jet Metal and Jetlines

In a departure from current 25% cap on foreign ownership, Jet Metal and Jetlines were granted an exemption by Canadian civil aviation authorities, allowing them to have a 49% share of foreign voting interests. The term of the order is through 2021. more

07/12/2016

Law firms end legal confusion over US ABS rules

Originators of Aircraft ABS deals are not subject to the Dodd-Frank’s 5% risk retention rules, according to a panel of aviation lawyers in a new white paper. Ishka examines their argument and assesses what this means for future ABS issuances. more

06/12/2016

in Regulatory and Accounting , Aircraft Finance Market

‘Basel IV’ to hit aviation hard but ECAs get off lightly

Proposed amendments to the final elements of the Basel III capital rules – unofficially dubbed “Basel IV” now include an exception for ECA financing. However the new rules are set to penalise traditional secured aviation bank financing and encourage more risky unsecured financing for aviation credits. The new tougher capital requirements could prompt some banks to leave the sector completely. more

05/12/2016

in Regulatory and Accounting , Capital Markets , Aircraft Finance Market

Cyprus Airways to fly again

With the delivery of its first aircraft, an Airbus A319, on Thursday, Cyprus Airways is paving the way to take to the skies again. Its predecessor was shut down in January 2015 after the European Commission ruled it was getting illegal state aid. Based in Larnaca, it will operate A319s throughout the Mediterranean region. more

02/12/2016

Airbus scores neo orders from Aircalin

In an effort to boost tourism to New Caledonia, AirCalin placed a Memorandum of Understanding for two Airbus A330-900neos as well as two A320neos. The move is part of a fleet replacement program at the airline, which is the first to order the wide body in the South Pacific. Delivery is expected after 2018. The aircraft will also be used to expand its Japan and Chinese networks. more

30/11/2016

Airbus becomes single company on 1 January

Airbus laid out plans for it’s restructuring, which includes merging Airbus Group (formerly EADS) with Airbus Commercial Aircraft. The move requires a reduction in staff of about 1,200 employees and a headquarters move from Paris and Munich to its main manufacturing base in Toulouse. more

30/11/2016

WTO finds Boeing had illegal state subsidies

Boeing was granted illegal state subsidies for the Boeing 777X Dreamliner, according to a ruling by the World Trade Organization released yesterday. WTO cited tax incentives Boeing received from its manufacturing base in Washington where it is building its latest wide body offering, which it has more than 300 orders. more

29/11/2016

Boeing claims victory in WTO ruling

In a response to a World Trade Organization ruling Boeing received illegal state subsidies via tax incentives for its 777X plans, Boeing noted that the international body rejected six of the seven challenges made by the European Union in the ongoing battle between Airbus and Boeing. The Chicago-based Boeing said WTO also reject most of the seventh challenge saying that tax deal is “inconsistent with WTO agreements.” more

29/11/2016

airBaltic first to take delivery of CS300

Just 16 days before it is scheduled to perform its first revenue flight, the first Bombardier CS300 was delivered to airBaltic ticking off a major milestone in the programme, which also included the first revenue flight of its sister ship the CS100 with SWISS. airBaltic, the Latvian flag carrier, is the launch customer for the larger variant designed to carry between 130 and 150 passengers. more

29/11/2016

in Market moves , Airlines , Manufacturers

ATR 72 delivered to Air Calédonie

The first of four ATR ATR 72-600s was delivered last week to Air Calédonie to be used in domestic operations. more

29/11/2016

Pilot opposition will limit success of larger regional jets

US mainline scope clauses limiting the weight on regional routes to 86,000 pounds and 76 seats have always limited the ability of regional airlines to upgauge their fleets owing to pilot opposition to outsourcing their jobs to regional airlines. That, in turn, will likely limit the success of Embraer, with its ERJ-175E2 and Mitsubishi MRJ90 in selling their larger regional jets to regional operators. However, Embraer has managed success with its larger aircraft by making them profitable for all three business models – LCC, mainline and regional operations. Delta’s new pilot contract is a test case as results from its recent contract will be known on December 1. It is significant that both United with its push of mainline aircraft into historically regional routes and Delta with its acquisition of the Bombardier CS300 for mainline operations are moving away from regionals indicating pilots are achieving success. Mitsubishi’s new regional jet needs to shed 1,323 pounds making it unlikely to be acquired for such routes although some regionals have at least placed MOUs on the aircraft. SkyWest has 100 E2s on order following on from the aircraft’s success in dominated the 70-seat market in the US. Bombardier’s CRJ-900, on the other hand, is within the weight limitations. more

28/11/2016

in Market moves , Airlines , Manufacturers

Boeing, Vietnam Airlines celebrate latest delivery

Boeing delivered Vietnam Airlines’ 10^th 787-9 Dreamliner last week, marking the halfway point in its 19-aircraft order for the aircraft. more

28/11/2016

Airbus aiming for 80 A350 deliveries next year

After experiencing production problems on some of its aircraft, Airbus said it is targeting 80 A350 deliveries in 2017 in the wake of a successful first flight of the A350-1000 last Thursday. The company wants to increase production to 10 per month in 2018 depending on whether or not it can wrangle in suppliers for cabin equipment, which prompted missing its target this year. more

28/11/2016

A350-1000 takes to the skies

Airbus expects the flight testing and certification programme for its A350-1000 which, for the first time, took to the skies over France yesterday, will be shorter than the A350-900 owing to the experience built up from that programme. Certification is expected in the second half of 2017. more

25/11/2016

Fiji working on Boeing 737 MAX order

Fiji Airways will order five Boeing 737 MAX 8 aircraft as part of a program to replace a like number of Boeing 737s as the new aircraft arrive in 2018 and 2019. Fiji will acquire the CFM-powered aircraft in a sale-and-leaseback deal with GECAS under a 12-year lease. Fiji has been in a fleet replacement program since 2013. more

24/11/2016

Air Arabia converts five A320 options to firm orders

Five A320ceo options held by UAE LCC Air Arabia were converted to firm orders in a deal valued at $485 million adding five aircraft to the airline’s original 44-aircraft order for the European narrow body. It will take delivery in 2H2017. Air Arabia is also leasing six A321neos from Air Lease Corp. more

24/11/2016

A350-1000 set to fly

The first flight of the Airbus A350-1000 is scheduled for Thursday, November 24. The aircraft will be powered by Trent XWB-97 engines and, subject to weather conditions, will take off at 10:30 am local time in Toulouse. Launch customer is Qatar Airways, which is scheduled to take delivery at the end of 2017. Airbus has 195 firm orders. more

23/11/2016

Boeing reorganizes into three parts: Airliners, fighters and spare parts

The appointment of Kevin McAllister to head Boeing’s commercial division is part of a company-wide reorganization designed to elevate the division to the same level of its defense and space units. more

23/11/2016