On Watch: AirAsia X and Norwegian to cut widebodies, SpiceJet faces $27m lessor claims
Long-haul low-cost carriers Norwegian and AirAsia X have in the past two weeks announced plans to trim their widebody fleets to cope with the Covid-19 crisis. more
22/10/2020
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
Covid-19 bailouts: Govt support for Malaysia Airlines dims as owner hints at liquidation
The confirmed state aid tally grew by nearly $5 billion since the last update, with the vast majority attributable to state investments in China Eastern Airlines. more
15/10/2020
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
Airline bonds Q3 2020: North American issuers move to secured bonds
The pursuit of liquidity by North American carriers drove many to the capital markets again in Q3 2020 with $13.5 billion issued – 63% out of the global $21.4 billion in issuances. more
05/10/2020
Covid-19 bailouts: White House proposes $20bn PSP extension, Norwegian potential nationalisation
The ‘second wave’ of state aid for airlines is well underway, with US carriers about to receive an extension to the Payroll Support Programme (PSP). more
01/10/2020
Lessors explore ECA support for new aircraft deliveries
Aircraft lessors are in discussions with financiers about using export credit agency (ECA) backed debt and supported financing for new aircraft deliveries as debt markets become increasingly selective for aviation credits. more
30/09/2020
Lessons in rejection: LATAM’s decision to drop its EETC aircraft
Ishka speaks to two lawyers involved in the issuance of LATAM's 2015-1 EETC to unpack the significance of its rejection. more
24/09/2020
in Airline Profiles , Capital Markets , Aircraft Finance Market
Kroll and S&P unveil aircraft ABS September downgrades
Rating agencies Kroll and S&P announced further aircraft ABS downgrades following disappointing August remittance updates by many transactions. more
23/09/2020
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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