What We Do
We provide practical and commercial solutions to suit operating airline companies’ requirements. The airline operator can choose from a range of financial arrangements that include:
We help companies take out a secured or unsecured loan to buy commercial aircraft. Under secured loans, the aircraft may be repossessed in the event of non-payment of security interest.
Sale and Leaseback
Typically for aircraft that are less than seven years from the date of delivery from the manufacturer, airlines can sell these aircraft to, and immediately leaseback the aircraft from our institutional capital providers.
Under this arrangement, operating companies can extend their loan terms. This can be on a fixed or variable interest rate basis based on the market terms available at a given point in time.
Our leasing agreements involve one party who owns and leases the aircraft (the lessor) and one party who pays rent to the lessor in exchange for the use of the aircraft (the lessee). We arrange finance for both Finance Leases and Operating Leases.
Also known as a “capital lease”, our finance leasing arrangement involves a lessor, often a special purpose company (SPC), which purchases the aircraft through a combination of debt and equity financing, and then leases it to the operator. We arrange the capital from the market at the lowest cost of capital available on the international markets. The key characteristic of a finance lease is that it requires the lessor to transfer all the risks and rewards of ownership of the asset to the lessee substantially.
Criteria for Aircraft Financing
- We arrange finance for fuel-efficient and in-demand aircraft from leading manufacturers. We believe in the importance of fuel-economy and will finance aircraft that have high fuel efficiency (measured by passenger kilometres per litre of fuel or pax-km/L). We will finance aircraft that are at par or above the industry average fuel efficiency.
- We will typically finance aircraft that are less than seven years from the date of delivery from the manufacturer.