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Covid-19 bailouts: Alitalia gets $235m, KDB throws Asiana $2bn lifeline

The tally of confirmed bailouts grew by $2.06 billion since last update on 3rd September with the following additions. more

17/09/2020

in Airline Profiles , Aircraft Finance Market

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

On Watch: LATAM and Avianca hit DIP financing roadblocks

Ishka updates on airlines in bankruptcy and creditor protection. This week, LATAM and Avianca saw DIP financing proposals rejected and restrained by court orders. more

15/09/2020

in Airline Profiles , Aircraft Finance Market

Rising airline debt margins attract hedge fund interest

Higher margins and better loan terms on new secured aircraft loans have attracted the attention of hedge funds seeking to offer debt to airlines directly through debt funds and private placements, state financiers. more

09/09/2020

in Capital Markets , Aircraft Finance Market

Airbus undelivered aircraft glut shows signs of easing

Airbus and Boeing had nearly 600 built but undelivered aircraft at the end of Q2 2020. This number is now likely to be higher, but the situation at Airbus appears to be improving. more

07/09/2020

in Investor Education , Modelling and Forecasting , Aircraft Finance Market

Covid-19 bailouts: Dubai gives Emirates $2bn, Avianca gets $370m loan

The tally of confirmed bailouts grew by $2.37 billion. Meanwhile, three major airlines in Norway are reportedly due to have a crisis meeting with the Norwegian government next week. more

03/09/2020

in Aircraft Asset Profiles , 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

Covid-19 bailouts: Trump considers further support for airlines, Thai LCCs to get $769m in loans

The tally of confirmed bailouts grew by a mere $15.5 million since last week’s update, the second smallest weekly increase since this series began in March. more

28/08/2020

in Airline Profiles , 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

State aid vs revenues: Which airlines have secured generous state aid?

Ishka compares state aid packages for 62 airlines and airline groups against their most recently reported pre-Covid annual revenues. more

25/08/2020

in Airline Profiles , Aircraft Finance Market

Covid-19 bailouts: Seven carriers get $2.8bn in new and additional aid

The tally of confirmed bailouts grew by nearly $2.8 billion over the past two weeks as seven airlines received new or additional state aid. more

20/08/2020

in Airline Profiles , Aircraft Finance Market

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

Analysis: DZ Bank mulls new sales process for DVB AIM/AM

DZ Bank is understood to be exploring a new sales process for DVB AIM/AM after a planned merger with Japanese Bank MUFG stalled in the face of US banking regulatory hurdles. more

11/08/2020

in Capital Markets , Aircraft Finance Market

Covid-19 bailouts: Trump backs further $25bn for US airlines

The political momentum behind a proposed extension to the US CARES Act payroll support program makes its continuation likely, but the terms and size are yet to be negotiated. more

07/08/2020

in Airline Profiles , Aircraft Finance Market

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

Airbus and Boeing Q2: Lessors lead order activity as OEMs cut output

Lessors “largely [drove]” OEM order activity in Q2 2020, said Airbus CEO Guillaume Faury, as airlines struggling to deal with the impacts of Covid-19 stepped back as buyers. more

31/07/2020

in Aircraft Asset Profiles , Aircraft Finance Market

Covid-19 bailouts: Brussels Airlines aid takes Lufthansa's total to $12bn

The Belgian government and Lufthansa agreed on a stabilisation package to rescue Brussels Airlines. The latest $335 million in state aid takes Lufthansa Group’s tally to $12 billion. more

30/07/2020

in Airline Profiles , Aircraft Finance Market

Will other lessors need to adopt an ‘NAC type’ debt standstill?

Nordic Aviation Capital (NAC) managed to win itself some breathing space after it successfully arranged a debt standstill with its creditors in early July. But sources warn that NAC could simply be the first of several potential aircraft lessor restructurings set to eventually hit the market. more

29/07/2020

in Capital Markets , Aircraft Finance Market

Covid-19 bailouts: US majors support ‘clean’ CARES Act aid extension

Major US airlines will only support a “clean” extension of the payroll support beyond September without “extraneous conditions,” a major trade association has said. more

24/07/2020

in Airline Profiles , Aircraft Finance Market

Airline bonds Q2 2020: North American carriers dominate issuances

A rush for liquidity among large North American carriers during Q2 2020 saw Delta, Southwest, Air Canada, Copa and Spirit issue $8.65 billion of traded unsecured airline debt. more

20/07/2020

in Airline Profiles , Aircraft Finance Market

Covid-19 bailouts: Garuda, Aeroflot aid among $2.9bn tally uptick

Newly-announced state aid for Garuda Indonesia and Aeroflot made up a big share of the bailout tally weekly increase. more

16/07/2020

in Airline Profiles , Aircraft Finance Market

Covid-19 bailouts: Governments to take stakes in El Al and TAP

A bailout deal agreed by El Al Israel Airlines could see the Israeli state take a 61% stake in the airline while Portugal is set to acquire 72.5% of TAP Air Portugal. more

10/07/2020

in Airline Profiles , Aircraft Finance Market

Airlines seek summer A350 sale/leasebacks

Lessors indicate that after a “lull” sale/leaseback activity is now picking up but warn that financing remains a bottleneck for many asset managers looking to win mandates. more

07/07/2020

in Aircraft Finance Market

Airlines decelerate debt issuances to $7 billion in June

Carriers disclosed only $6.9 billion of fresh commercial debt in June 2020, nearly half the amount airlines accessed in the first two weeks of March alone, but roughly equal to the volume of new bonds issued in the same period last year. more

03/07/2020

in Capital Markets , Aircraft Finance Market

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

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

Covid-19 bailouts: Lufthansa bailout in question, countries mull new aid

Lufthansa warns it could file for bankruptcy protection if its largest shareholder votes against a German bailout package while other countries mull further aid for their airlines. more

19/06/2020

in Airline Profiles , Aircraft Finance Market

Rating agencies respond to Covid-19 stress on aircraft ABS deals

Rating agencies have downgraded or placed several aircraft ABS notes on watch downgrade in the last few weeks in response to the continued pressure on securitised leased aircraft portfolios in the wake of the Covid-19 crisis. more

18/06/2020

in Capital Markets , Aircraft Finance Market

Covid-19 bailouts: Cathay, Austrian, TAP receive state support (11th June)

The tally of confirmed bailouts grew by nearly $7 billion since the last update following announcements by Cathay Pacific, Austrian Airlines, TAP Air Portugal and others. more

11/06/2020

in Airline Profiles , 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

Negative A380 prospects weigh down closed-end funds

Few aircraft types have been as badly hit by the Covid-19 crisis as the Airbus A380. Four funds containing 18 A380s have seen their share price decline by 54% this year. more

09/06/2020

in Aircraft Asset Profiles , Aircraft Finance Market

Covid-19 bailouts: Austrian inches towards aid after Lufthansa deal

The finalisation of the Lufthansa bailout appears to have cleared the way for Austrian Airlines to receive state aid. more

05/06/2020

in Airline Profiles , 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

Strings attached: How does Covid-19 state aid constrain airlines?

Ishka reviews some of the most common conditions attached to airline state aid packages. more

01/06/2020

in Airline Profiles , Aircraft Finance Market

AFIC honours Norwegian claim, ECAs “busy” with airline restructuring requests

AFIC has honoured a non-payment claim, state sources while ECAs are busy with restructuring requests from airlines on legacy aircraft loans. more

31/05/2020

in Capital Markets , Aircraft Finance Market

On Watch: Will AirAsia X survive Covid-19?

In this week’s airline credit profile, Ishka looks at one of the ‘On Watch’ airlines, AirAsia X. more

27/05/2020

in Airline Profiles , 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

Covid-19 bailouts: Brazil downsizes bailout offer, others retrench (14 May)

Could governmental support to aviation be beginning to waiver? The total tally, including reported support packages in the works, saw a slight weekly decrease for the first time. more

14/05/2020

in Airline Profiles , 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

Covid-19 bailouts: Italian minister pledges $3.2 bn for Alitalia (7th May)

The tally of confirmed bailouts grew by a $1.16 billion over the past week as Garuda and IAG announced receiving state loans. Separately, Italy pledged $3.2 billion for Alitalia. more

07/05/2020

in Airline Profiles , Aircraft Finance Market

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

Q1 2020: How the large US carriers are managing Covid-19 cash burn

The four largest North American carriers are collectively burning through approximately $250 million per day, Q1 results show. more

04/05/2020

in Airline Profiles , Aircraft Finance Market

Covid-19 bailouts: Big week for big European airlines (1st May)

Ishka's airline bailouts tally grew by $15.7 billion over the past week as European countries granted state aid to large flag carriers. more

01/05/2020

in Airline Profiles , Aircraft Finance Market

OEM slowdown: Boeing and Airbus down to single digit deliveries

In this insight, Ishka examines the bleak production and delivery landscape for Airbus and Boeing. more

28/04/2020

in Aircraft Asset Profiles , 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

CDB Aviation's MAX cancellation piles further pressure on Boeing

CDB Aviation Lease Finance (CDB Aviation) has cancelled 29 of its undelivered 737 MAX aircraft order with Boeing and amended the rest of its MAX order, according to last week’s Hong Kong Stock Exchange filing. more

22/04/2020

in Aircraft Asset Profiles , Aircraft Finance Market

Airline bonds Q1: Chinese carriers responsible for record issuances

Unsecured airline bond issuances in Q1 2020 outnumbered Q1 2019 nearly two-to-one. Short-term Yuan bonds issued by Chinese airlines represented the vast majority. more

21/04/2020

in Airline Profiles , Aircraft Finance Market

Cargo carriers enjoy short-term coronavirus boon

A sudden drop in freighter capacity has allowed airlines to double their prices and charter rates year-on-year in some places, although the threat of a global recession means carriers are keeping a cautious eye on the future. more

20/04/2020

in Aircraft Finance Market

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