DOCSLIB.ORG

October 2007 Atlantic Battle Plans He Euro-Majors Are Starting to Make Some Big Moves in Antici- CONTENTS Tpation of Next Year's US-EU Open Skies Regime

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
October 2007 Atlantic Battle Plans He Euro-Majors Are Starting to Make Some Big Moves in Antici- CONTENTS Tpation of Next Year's US-EU Open Skies Regime Aviation Strategy Issue No: 120 October 2007 Atlantic battle plans he Euro-majors are starting to make some big moves in antici- CONTENTS Tpation of next year's US-EU open skies regime. Air France has announced a comprehensive joint venture with Analysis Delta. Mirroring the long-established KLM/Northwest agreement, the two airlines will implement full revenue and cost sharing on all their services between their respective hubs (CDG, Orly and Lyons; Air France’s advance 1 Atlanta, JFK, Cincinnati and Salt Lake City), as well as the planned, from April next year, Heathrow operations. The aircraft leasing business: This is only the first phase. All the main SkyTeam members have applied for extended anti-trust immunity, the main effect being that • GECAS the AF/DL operation would combine with the KL/NW joint venture, • ILFC generating an estimated €20-30m net benefit for the Air France • Boeing Capital Corporation Group. • AerCap The assault on Fortress Heathrow has been launched with the • CIT transfer of three daily LHR slot pairs from Air France to Delta, • Babcock & Brown enabling the US carrier to fly double dailies to/from JFK plus a daily • Aviation Capital Group to Atlanta. Air France itself will operate from LHR to Los Angeles (and • RBS Aviation Capital from there connect to Tahiti, which is legally part of France). AF/KL • Pegasus Aviation has another 22 daily slots at LHR, though not all are suitable for transfer from short to long haul operations. Plus all of the other major How the passenger will benefit from all this consolidation is rather players and new entrants 2-13 unclear - unlike the KL/NW agreement which rationalised numerous thin O&D city-pairs by hubbing passengers over Amsterdam and Briefing Detroit, the AF/DL alliance focuses on cooperation on thick hub-to- hub routes, though it also should intensify competition on the very Lufthansa: Ready for lucrative LHR-JFK market. major acquisition? 14-23 For BA this incursion means that it has become more important to get its business-orientated Atlantic subsidiary successfully off the Databases 24-27 ground. Project Lauren, as it is known, is scheduled to start up with 757s in the summer of 2008. Incidentally, just how seriously the net- Airline traffic and financials work carriers are taking the new wave of business-class carriers may be indicated by Delta starting a JFK to Orly service in direct compe- Aircraft available tition against L'Avion, while American has started Stansted to counter the impact of Maxjet and EOS. Regional trends For Lufthansa, Air France's moves make it more likely though not inevitable that it will make an offer for bmi when the present sell Orders option on bmi's part turns into a buy option on Lufthansa's part next year (see Briefing, page 14). With a consolidation trend apparently in motion, Iberia, for not particularly logical reasons, has probably PUBLISHER become a more attractive target for BA or Lufthansa or Air France or indeed Grupo Marsans (the owner of Spanish long-haul charter Air Comet and Aerolineas Argentinas, which has just signed an MoU for Aviation Economics 61 Airbuses including four A380s). James House, 1st Floor Observing all this is Michael O'Leary who is apparently deter- mined to create a long-haul low cost carrier, separate from Ryanair, 22/24 Corsham Street and dubbed Ego Air. Intensely commercial as always, he states that London N1 6DR the right time to start up is in a recession when he can pick up equip- Tel: +44 (0) 20 7490 5215 ment cheaply as opposed to today's very strong aircraft market. Fax: +44 (0) 20 7490 5218 e-mail: [email protected] www.aviationeconomics.com Aviation Strategy Analysis Is the leasing market peaking? ith lease rates still climbing, a continuing amount of leasing assets and companies that Wshortage in second-hand aircraft and are changing hands, which always tends to very few spare production slots available at happen at the very top of the market. It is a Aviation Strategy Boeing and Airbus until after 2010, the leasing long list. Recently there have been floats for is published 10 times a year industry is enjoying its best times since 1996- AerCap, Aircastle and GECAS's Genesis, by Aviation Economics 1999. But is the cyclical upturn that started in while the Bank of China bought SALE, Terra 2004 at the very top of its peak, or will the bull- Firma acquired AWAS and Pegasus, a Editor: ish market continue for another few years? Macquarie-led consortium bought GATX's Keith McMullan [email protected] Most of the industry holds strong views that portfolio, and Standard Chartered is buying good times are here to stay for a while longer, Pembroke. Contributing Editor: with the peak not being reached until 2009 or Of course there has always been a steady Heini Nuutinen 2010 and a downturn only in 2012-2013. change of ownership in the aircraft leasing Some are even speaking of a "super-cycle" in industry, but it is the growing interest of private Contributing Editor: Nick Moreno the industry. The rationale goes that this leas- equity funds in today's market that some see ing upturn is different to others, since this time as a crucial warning sign that the market is at Sub-editor: it is not dependent on US and European air- or even past its peak. The activity of UK buy- Julian Longin lines but rather on long-term, rising demand out specialist Terra Firma is particularly attract- [email protected] from China, India and other emerging Asian ing criticism, with one analyst regarding its Subscriptions: markets. Combine this with other factors such acquisition of AWAS as having "curious tim- [email protected] as consolidation in the US industry and ing", while others believe that the company impending modernisation of the ageing fleet paid too much for AWAS, having chased the Tel: +44 (0)20 7490 5215 there, along with signs that many airlines have deal after reportedly losing out on earlier decided to permanently put a larger proportion attempts to acquire debis and Boullioun. Copyright: Aviation Economics of their fleet on leases in order to increase flex- The "bulls" say this criticism is unfair, given All rights reserved ibility, and the consensus view is that there is that there is more than just one large private no market bubble waiting to burst. equity company looking to buy leasing assets Aviation Economics The circumstantial evidence that the peak at the moment, with banks that were reluctant Registered No: 2967706 has not yet been reached is substantial. Many to own aviation assets in the years after (England) airlines are signing longer leases (up to 10 September 11 also now looking to buy lessors, Registered Office: years in some cases) and the strong narrow- while there is continuing interest from some James House, 1st Floor body market has been joined by a strengthen- lessors to merge with competitors. Indeed 22/24 Corsham St ing widebody market as airlines try to plug the Babcock & Brown, Macquarie Bank, Allco London N1 6DR gap before the A380 is eventually delivered. Finance, the UK's Standard Chartered Bank, VAT No: 701780947 The operating lessors' share of the world fleet Mitsubishi Corp. and Dubai Aerospace ISSN 1463-9254 has risen from an estimated 19% to 31% over Enterprise are all reported to have bid unsuc- The opinions expressed in this publica- the last decade (according to research from cessfully for Pegasus or SALE, and may be on tion do not necessarily reflect the opin- ions of the editors, publisher or contribu- Aircastle), with some lessors claiming this will the look-out for other potential acquisitions. tors. Every effort is made to ensure that the information contained in this publica- continue to rise, reaching 50% in the next And they are being joined from growing tion is accurate, but no legal reponsibility decade. interest out of China in the aircraft asset man- is accepted for any errors or omissions. Having said all that, there is a small (but agement sector, fuelled by the booming avia- The contents of this publication, either in whole or in part, may not be copied, growing?) view that 2007 and 2008 will be the tion industry there and by government stored or reproduced in any format, print- peak of the cycle, with the market likely to soft- "encouragement" to buy foreign assets. The ed or electronic, without the written con- sent of the publisher. en in 2009 or even before then. One analyst Bank of China is believed to be looking for fur- (who, unsurprisingly, prefers not to be named) ther leasing acquisitions, while Beijing-based says there is a lot of "froth" in the leasing mar- China Minsheng Bank (the largest privately- ket, and that direct evidence for this is the owned bank in China) is talking with potential October 2007 2 Aviation Strategy Analysis partners, both foreign and domestic, in order Oaktree, Singapore Airlines and WestLB), to set up a leasing entity, and at least four prior to a downturn? If the latter occurs, then other Chinese banks are looking to set up Terra Firma will have to wait until the next leasing ventures. peak before it can sell at a profit - which it may Yet, unlike most banks and leasing compa- well be prepared to do, but which surely is not nies, private equity companies tend to have what Guy Hands (the CEO of Terra Firma and relatively short-term investment horizons, and a legendary UK financier who founded the it's likely that Terra Firma will be looking to sell company after leaving Nomura in 2002) is its assets and make a large profit in around banking on? two to four years from now - which some say Interestingly, the two powerhouses of the will be right in the middle of the leasing down industry - GECAS and ILFC - appear to be cycle.
Load more

Recommended publications
  • Peculiarities of Development of the Low-Cost Airlines in Russian and Norwegian Context
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Brage Nord Open Research Archive Logistics and transport BE303E 003 Peculiarities of development of the low-cost airlines in Russian and Norwegian context by Elena Toramanyan Spring, 2007 Abstract E. Toramanyan, Master thesis ABSTRACT Low-cost flights per se become more and more popular in the world airline industry, while in Russia the first low-cost carrier has recently appeared. The purpose of this paper is to investigate the phenomenon of low-cost carriers, peculiarities of the development of the low-cost airlines in the context of Russian Federation and Norway. In order to cover the topic, deep literature review and qualitative research were carried out. In the paper, I attempted to follow history, analyze reasons for low-cost flights, advantages and disadvantages of low-cost carriers, scrutinize perspectives and peculiarities of the low-cost airline market in Russia and Norway, and analyze future opportunities. Under these circumstances, case study method and interviews as primary information sources and reports and articles written by airline experts as secondary sources were used. Two companies were under the research: Sky Express – a Russian low-cost airline company launched the market this year, and a Norwegian low-cost airline company, a member of European Low Fares Airline Association, Norwegian Air Shuttle. Deep literature review concerning low-cost airlines and empirical findings showed that the phenomenon of low fares has its peculiarities on a particular market. In order to understand the role of context regarding the research question, I tried to find similarities and to reveal differences in the activities of two companies with the help of PESTE analysis.
    [Show full text]
  • Aircraft Leasing Refer to Important Disclosures at the End of This Report
    Asian Insights SparX – Aviation Aircraft Leasing Refer to important disclosures at the end of this report DBS Group Research . Equity 10 February 2017 HSI : 23,575 Asian Lessors in the Ascendancy Asian lessors have, notably via acquisitions, muscled Analyst • Paul YONG CFA +65 6682 3712 in amongst the top players globally in recent years [email protected] [email protected] With 3 players now listed in HK and a myriad of Singapore Research Team Asian names linked with potential deals in this • space, the sector should continue to garner interest Backed by firm long-term secular growth in air passenger travel globally, we are positive on the prospects of aircraft leasing, which provides better • returns and earnings visibility compared to airlines Our top pick is BOC Aviation (BUY, TP HK$48.40) and we initiate coverage on China Aircraft Leasing Stocks • (CALC) with a BUY call and HK$11.60 TP Mkt 12-mth Price Cap Target Performance (%) Price 3 mth 12 mth Stable cash flows and returns attract Asian investors. HK$ US$m HK$ Rating Faced with lower growth and returns in other assets, and BOC Aviation 41.30 3,632 48.40 (2.6) NA BUY helped by cheaper cost of debt funding, we believe Asian CALCChina 9.23 733 11.60 (3.5) 61.9 BUY investors of all types – banks, insurance companies and even CDB Financial Leas 1.94 3,129 2.01* 0.0 NA NR family funds, are looking towards aircraft leasing assets to provide stable and predictable cash flows and returns. Closing price as of 9 Feb 2017 * Potential Target Source: DBS Bank Long-term air travel growth underpins prospects for aircraft leasing.
    [Show full text]
  • Annual Report 2008
    Annual Report 2008 BABCOCK & BROWN AIR LIMITED Babcock & Brown Air Limited (B&B Air) acquires and leases modern, high- demand and fuel-efficient commercial jet aircraft under multi-year operating lease contracts to a diverse group of airlines throughout the world. B&B Air is managed and serviced by Babcock & Brown Aircraft Management (BBAM), the world’s fourth largest aircraft leasing company. As our servicer, BBAM arranges and manages the leases of our fleet and acquires and divests our aircraft. BBAM has more than 20 years of experience in aircraft and lease origination, re-marketing, administration, technical management and disposition. BBAM manages a fleet of approximately 300 commercial aircraft valued at more than $7.8 billion, leased to 80 airlines in 35 countries. BBAM’s established leadership position in the aircraft leasing industry, its experienced senior management team and its extensive relationships throughout the world allow us to maximize the value of our portfolio throughout its life cycle by acquiring aircraft economically, accessing the most attractive markets, re-marketing our aircraft efficiently when leases expire and disposing of our aircraft for the best value when market conditions warrant. 1 LETTER From THE CHAIRMAN AND THE CEO Dear Fellow Shareholders, We are pleased to report on B&B Air’s first year as a public company. In 2008, B&B Air produced strong financial results. Our net income was $48.1 million, or $1.44 per share, on revenues of $236.1 million. During the year our unrestricted cash balance increased by $41.2 million to $56.8 million, after returning nearly $74 million to shareholders through a combination of dividends and share repurchases.
    [Show full text]
  • Air Transport in Russia and Its Impact on the Economy
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Tomsk State University Repository Вестник Томского государственного университета. Экономика. 2019. № 48 МИРОВАЯ ЭКОНОМИКА UDC 330.5, 338.4 DOI: 10.17223/19988648/48/20 V.S. Chsherbakov, O.A. Gerasimov AIR TRANSPORT IN RUSSIA AND ITS IMPACT ON THE ECONOMY The study aims to collect and analyse statistics of Russian air transport, show the in- fluence of air transport on the national economy over the period from 2007 to 2016, compare the sector’s role in Russia with the one in other countries. The study reveals the significance of air transport for Russian economy by comparing airlines’ and air- ports’ monetary output to the gross domestic product. On the basis of the research, the policies in the aviation sector can be adjusted by government authorities. Ключевые слова: Russia, aviation, GDP, economic impact, air transport, statistics. Introduction According to Air Transport Action Group, the air transport industry supports 62.7 million jobs globally and aviation’s total global economic impact is $2.7 trillion (approximately 3.5% of the Gross World Product) [1]. Aviation transported 4 billion passengers in 2017, which is more than a half of world population, according to the International Civil Aviation Organization [2]. It makes the industry one of the most important ones in the world. It has a consid- erable effect on national economies by providing a huge number of employment opportunities both directly and indirectly in such spheres as tourism, retail, manufacturing, agriculture, and so on. Air transport is a driving force behind economic connection between different regions because it may entail economic, political, and social effects.
    [Show full text]
  • Skyteam Global Airline Alliance
    Annual Report 2005 2005 Aeroflot made rapid progress towards membership of the SkyTeam global airline alliance Aeroflot became the first Russian airline to pass the IATA (IOSA) operational safety audit Aeroflot annual report 2005 Contents KEY FIGURES > 3 CEO’S ADDRESS TO SHAREHOLDERS> 4 MAIN EVENTS IN 2005 > 6 IMPLEMENTING COMPANY STRATEGY: RESULTS IN 2005 AND PRIORITY TASKS FOR 2006 Strengthening market positions > 10 Creating conditions for long-term growth > 10 Guaranteeing a competitive product > 11 Raising operating efficiency > 11 Developing the personnel management system > 11 Tasks for 2006 > 11 AIR TRAFFIC MARKET Global air traffic market > 14 The passenger traffic market in Russia > 14 Russian airlines: main events in 2005 > 15 Market position of Aeroflot Group > 15 CORPORATE GOVERNANCE Governing bodies > 18 Financial and business control > 23 Information disclosure > 25 BUSINESS IN 2005 Safety > 28 Passenger traffic > 30 Cargo traffic > 35 Cooperation with other air companies > 38 Joining the SkyTeam alliance > 38 Construction of the new terminal complex, Sheremetyevo-3 > 40 Business of Aeroflot subsidiaries > 41 Aircraft fleet > 43 IT development > 44 Quality management > 45 RISK MANAGEMENT Sector risks > 48 Financial risks > 49 Insurance programs > 49 Flight safety risk management > 49 PERSONNEL AND SOCIAL RESPONSIBILITY Personnel > 52 Charity activities > 54 Environment > 55 SHAREHOLDERS AND INVESTORS Share capital > 58 Securities > 59 Dividend history > 61 Important events since December 31, 2005 > 61 FINANCIAL REPORT Statement
    [Show full text]
  • Anastasiya Burmakina-Fleming [email protected] 127 Milkweed Lane, Bunker Hill, WV 25413 Cell: 304-433-4479
    Anastasiya Burmakina-Fleming [email protected] 127 Milkweed Lane, Bunker Hill, WV 25413 cell: 304-433-4479 Source/Target language: English/Russian to Russian/English Fields of expertise: aviation, traveling, mass media, fashion industry, beauty, nutrition, cooking, blogging. EXPERIENCE 2012 - present time Translator/Interpreter, Free-lancer; Teacher, English-by-Skype Duties and Responsibilities: a) translate text from English to Russian/Russian to English in the aviation field, food, diet, nutrition, fashion, beauty, etc. b) teaching English to Russian speakers via Skype. Proofreading/editing: English to Russian for www.Ebay.com and Lingotek. 2011 Catering Supervisor, Sodexo, Inc., Winchester, VA. a) coordinated room layouts for the catering department, maintained bar inventory for functions; planned special events of several hundred guests, b) accommodated client requests/concerns. 2008 – 2009 Head of Agreements and Claims/Translator, Airlines Atlant-Soyuz, Moscow. a) maintained Aircraft Lease Agreements , b) revised invoices in accordance with agreement terms and conditions. Translation: accounting paperwork, legal documents for Russian Customs, Lease/Purchase Agreement for Aircraft Spare Parts 2008 Senior Specialist of Contracts and Agreements/Translator, AirUnion Airlines, Moscow. a) gathered and translated documents for the Customs procedures for aircraft operation in Russian territory, b) negotiated/interpreted with top management regarding Lease conditions and mutual preparation of the Lease Agreement of Boeing aircraft with
    [Show full text]
  • Global Leaders in Aviation Finance
    Global Leaders in Aviation Finance kpmg.ie/aviation Why Ireland Choose KPMG Since the creation of Guinness Peat Aviation Based in Ireland, KPMG has been the leading adviser to the international leasing industry for over 30 years. We are (GPA) in the 1970’s, Ireland has been a globally recognised as the Aviation Finance and Leasing centre of excellence in aviation finance Centre of Excellence with an incomparable scale and depth and leasing, with an extensive number of of experience within the sector. skilled arrangers, managers and advisors We provide a range of audit, tax and advisory services and based here. More than half of the world’s can assist across a range of issues. No matter what stage leased aircraft are leased from Ireland. your company is at, we have the expertise to help you. Most significant transactions in the sector have involved Irish leasing companies. The KPMG Ireland is the leading transaction advisory industry looks set to grow further, with very firm in the global aviation finance market large orders being placed by Irish lessors. X We are the only professional services firm identified in the “AirFinance Power 30” list of companies that make an essential contribution to aviation finance. To qualify, The Irish Government’s ongoing commitment to maintaining all companies had to meet one test: if they went out of competitiveness is evidenced in the recent introduction of business would the market feel a significant loss? the ‘Aviation Act’, which came into force in July 2014. This Act, should enable investors to benefit from ‘Alternative A’ X We have the biggest concentration of aircraft leasing type protection in the Cape Town Convention.
    [Show full text]
  • AVIAAM LEASING AB (Incorporated in Lithuania with Public Limited Liability, Corporate ID Code 302330793)
    AVIAAM LEASING AB (incorporated in Lithuania with public limited liability, corporate ID code 302330793) Offering of up to 14,181,716 Shares, with a nominal value of LTL 1.00 each, and admission to trading on the Warsaw Stock Exchange of up to 43,305,593 Shares of Joint Stock Company AviaAM Leasing This document (the "Prospectus") has been prepared for the purpose of (i) the offering (the "Offering") of up to 14,181,716 ordinary registered shares in the share capital of Joint Stock Company AviaAM Leasing (the "Issuer" or the "Company"), with a nominal value of LTL 1.00 each, and (ii) the admission of up to 43,305,593 ordinary registered shares of the Issuer (the "Shares") to trading on the Warsaw Stock Exchange (in Polish: Gie³da Papierów Wartoœciowych w Warszawie S.A., the "WSE"). The Issuer will be offering for subscription up to 13,857,790 newly issued Shares (the "New Shares"). Gediminas iemelis (the "Selling Shareholder"), the Issuer's direct minority shareholder (but indirectly majority shareholder), will be offering up to 323,926 existing Shares (the "Sale Shares"). The New Shares to be issued by the Issuer and the Sale Shares offered by the Selling Shareholder are referred to, where thecontextpermits,astheOfferShares.TheIssuerwillonlyreceivethenetproceeds from the sale of the New Shares, whereas the Selling Shareholder will receive the net proceeds from the sale of its Sale Shares. The Offer Shares offered in this Offering constitute a minority interest in the Issuer. Prior to the completion of the Offering, the Selling Shareholder holds 1.1% of the issued share capital of the Issuer.
    [Show full text]
  • Aviation Industry Leaders Report 2021: Route to Recovery
    The Aviation Industry Leaders Report 2021: Route to Recovery www.aviationnews-online.com www.kpmg.ie/aviation KPMG REPORT COVERS 2021.indd 1 20/01/2021 14:19 For what’s next in Aviation. Navigating Change. Together. Your Partner For What’s Next KPMG6840_Aviation_Industry_Leaders_Report REPORT COVERS 2021.indd 2021 2 Ads x 4_Jan_2021.indd 4 19/01/202120/01/2021 15:37:29 14:19 CONTENTS 2 List of 10 Regional Review 24 Airline Survivorship 36 Return of the MAX 54 Chapter Four: The Contributors and Post-Covid World Acknowledgements Chapter One Assessing which Boeing’s 737 MAX incorporates a regional airlines will survive the aircraft was cleared for The recovery from 4 Foreword from Joe review of the aviation immediate health crisis return to service after the devastation the O’Mara, Head of market. and the subsequent the US Federal Aviation coronavirus pandemic Aviation, KPMG recovery period has Administration officially has wrought on the 18 Government rescinded the grounding world is expected to be Ireland become an essential Lifelines skill for lessors, lenders order. Industry experts slow but how will the 6 Chapter One: and suppliers. discuss the prospects new world environment This section takes a for the aircraft type and impact demand for air Surviving the Crisis deep dive into the levels 28 Chapter Two: Fleet how it will be financed. travel. This chapter also of government support considers the impact This chapter considers Focus for the aviation industry 44 Chapter Three: The of climate change the macroeconomic and around the world and Airlines are likely to Credit Challenge concerns on the aviation geopolitical shock of the considers its impact emerge from the crisis coronavirus pandemic industry.
    [Show full text]
  • 22.4Bn 1.4Bn 1.5Bn
    Annual Report 2007 Sustainability in fi gures Annual Report 2007 tonnes reduction in CO2 emissions 200,000 through optimised air traffic processes 7,434 customer profile index on record level Upgrade to Industry Leadership EUR m investment in vocational and 300 professional training 22.4bn EUR revenue 146 different nations within the Group 1.4bn www.lufthansa .com EUR operating result www.lufthansa -fi nancials.com http://responsibility.lufthansa .com worldwide supported projects by the 31 employee initiative “Help Alliance e.V.” 1.5bn EUR cash value added Annual Report 2007 Sustainability in fi gures Annual Report 2007 tonnes reduction in CO2 emissions 200,000 through optimised air traffic processes 7,434 customer profile index on record level Upgrade to Industry Leadership EUR m investment in vocational and 300 professional training 22.4bn EUR revenue 146 different nations within the Group 1.4bn www.lufthansa .com EUR operating result www.lufthansa -fi nancials.com http://responsibility.lufthansa .com worldwide supported projects by the 31 employee initiative “Help Alliance e.V.” 1.5bn EUR cash value added Lufthansa Group overview Lufthansa business segments overview Highlights Group Key data * Change Financial calendar 2008/2009 Passenger Transportation 2007 in % Passenger Transportation Our airlines are 2007 2006 Change in % Revenue €m 15,956 18.4 amongst the best in the world. Lufthansa and Revenue and result - of which external revenue €m 15,367 18.9 SWISS are premium carriers with global services. 2008 2009 Revenue €m 22,420 19,849 13.0 Operating result €m 826 102.0 Adjusted operating margin % 6.0 2.3 pts.
    [Show full text]
  • Excluded Contracts Designation Notice
    Primary DOCA Excluded Contracts Designation Notice This is the Excluded Contracts Designation Notice for the purposes of, and as defined in, the Deed of Company Arrangement dated 25 September 2020 in relation to Virgin Australia Holdings Ltd and certain of its subsidiaries (Primary DOCA). The Deed Proponent delivers this notice to the Deed Administrators pursuant to clause 10.1(b) of the Primary DOCA. Capitalised terms used in this notice and not otherwise defined have the meaning given to them in the Primary DOCA. A reference to a contract in this notice is a reference to that contract as amended, supplemented, novated or restated prior to or on the date of Completion of the Primary DOCA, including any amendment or supplement entered into after the Commencement Date. This notice is divided into the following parts: • Part 1: Part 1 of this notice sets out the contracts that were listed in Part 1 of Schedule 7 (Excluded Contracts) to the Primary DOCA (Excluded Contracts Schedule). These contracts are Excluded Contracts under the Primary DOCA. • Part 2: Part 2 of this notice sets out the contracts that were listed in Part 2 of the Excluded Contracts Schedule and in respect of which either: (a) the counterparty has waived or will waive, prior to or with effect from Completion, any event of default or breach by the relevant Deed Company which occurred on or prior to the Commencement Date or which may occur during the Deed Period or on Completion insofar as the Creditor would be entitled to terminate the contract or (where applicable) take possession of or otherwise recover from a Deed Company property leased under that contract; or (b) the Deed Proponent designates the contract as an Excluded Contract notwithstanding that the counterparty has not satisfied the requirements of paragraph (a).
    [Show full text]
  • Aircraft Financing (US): Overview
    Resource ID: W-001-5042 Aircraft Financing (US): Overview PRACTICAL LAW FINANCE WITH RICHARD FUREY, HOLLAND & KNIGHT LLP, BASED ON AN ORIGINAL ARTICLE BY MARA ABOLS, DARCY BINDER, JAMES HAYDEN AND CHRISTIAN HANSEN OF WHITE & CASE LLP Search the Resource ID numbers in blue on Westlaw for more. An overview of aircraft financing and the The different national and sub-national laws and regulations and challenges posed by these transactions. international treaties and conventions that must be taken into account when structuring and documenting aircraft financing This Note also discusses the parties typically transactions. The interrelationship among these different laws, involved in aircraft financing transactions and regulations, and treaties create significant complexity that must be considered when negotiating these transactions. For more their roles, including manufacturers, owner information on these issues, see Practice Note, Aircraft Financing: trustees, lessees, export credit agencies, and US and International Laws, Regulations and Registration Requirements (W-001-6310). development banks. The potential liability for participants involved in aircraft financing transactions in case of an accident or other loss event. The illiquid nature of the aviation market. There are not many Aircraft or aviation financing is the financing of the purchase and potential buyers of the aircraft if there is a default under the loan operation of one or more aircraft and related assets, by an airline, agreement, indenture or lease, as applicable. Even if a buyer can aircraft lessor or other entity using one of a variety of financing be secured: structures. Depending on the needs of the participants, the financing zthe cost of transferring ownership to that buyer may be may be structured as a secured loan, a debt offering, or a lease significant; and (whether an operating lease or finance lease).
    [Show full text]