Airfinance Journal July/August 2021 Airfinance Journal July/August July/August 2021 July/August RE A DY FO DY R Ready POST-p A NDEMIC LIFT OFF for post- pandemic lift off 2021 is shaping up to be another big year for BOC Aviation ISSUE no. 418 ISSUE no. 2021 LEGAL GUIDE | WHAT NEXT FOR REGIONAL OEMS? AIRFINANCE JOURNAL AwarDS 2020 A S I A P A C I F I C 2 0 2 1 3-4 NOVEMBER S A V E T H E D A T E S C A N M E Editor’s letter Technology comes to the fore No air show, no problem as the new aircraft announcements just keep coming, writes Olivier Bonnassies. une is traditionally marked by technology and United had already announced that it was Jcommercial announcements at the annual investing in urban air mobility start-up Archer with air show with aircraft and engine manufacturers a $1 billion order for up to 200 aircraft as part of an briefing the aviation community about their latest effort to change how people commute within major developments and future vision. metropolitan cities. And although this year’s Paris air show was In an exclusive interview with Airfinance Journal, cancelled, this has not prevented a surge of Avolon’s chief executive officer, Domhnal Slattery, technology announcements. said this project was a “continuation of a strategic First, on 3 June, United Airlines announced journey” toward net-zero emissions for the aviation plans to buy 15 new supersonic aircraft and “return industry. supersonic speeds to aviation” in 2029. “This is just the beginning of a multidecade Supersonic passenger flights ended in 2003 evolution in green travel, and I am taking a 50-year when Air France and British Airways retired vision, and this is step one,” he says. Concorde, their flagship aircraft which entered Slattery believes these aircraft types will begin passenger service in 1976. The new Overture aircraft to reshape regional and short-haul air travel, A S I A P A C I F I C 2 0 2 1 will be produced by a Denver-based company, particularly in regions such as Europe, where the Boom, which has yet to flight-test a supersonic jet. average stage length is less than 300 miles. The deal with United comes less than a month since There are challenges to incorporating this new the failure of Aerion Corporation, which had built up technology in cities around the world. Infrastructure 3-4 NOVEMBER $11 billion in orders for a planned supersonic business investment will be needed to support eVTOL aircraft but announced in late May that it could not operations, particularly around busy airport control secure adequate funding to continue the programme. zones. Boom’s Overture orderbook, including purchases Supersonic passenger travel may have different and options, stands at 70 aircraft, with Japan Airlines challenges such as noise, pollution and fuel S A V E T H E D A T E and Virgin Group placing preorders for the aircraft. consumption. Overture is expected to be the first large commercial aircraft to use net-zero carbon emissions New (conventional) aircraft in 2035? from launch, optimised to run fully using sustainable Airbus and Boeing are not in a hurry to launch aviation fuel (SAF). new programmes after amassing orders for their Capable of operating at Mach 1.7, the 65- to 88- A320neo and 737 Max families over the past seat aircraft is expected to cut travel time between decade. Recall that these programmes were S C A N M E more than 500 destinations nearly in half compared announced as improvements to their existing with current-generation models. successful families. The programme is slated to start rolling out in The ball has passed to the engine original 2025, with test flights in 2026. equipment manufacturers. “United continues on its trajectory to build a GE Aviation and Safran, which have renewed more innovative, sustainable airline, and today’s their CFM International partnership until 2050, have advancements in technology are making it more launched a technology development programme viable for that to include supersonic planes,” says called CFM RISE (Revolutionary Innovation for United’s chief executive officer, Scott Kirby. Sustainable Engines). RISE will combine both manufacturers’ single open eVTOL rotor concepts. The RISE engines will be developed Then a week later, Vertical Aerospace came to light in hydrogen burning, jet fuel and sustainable aviation (the company had been in existence since 2016) fuel versions. with a massive announcement for electric vertical The new programme, which targets more than take-off and landing (eVTOL) aircraft, VA-X4, the five- 20% lower fuel consumption and CO2 emissions passenger urban air mobility aircraft. compared with today’s engines, will be ready for Avolon will join Microsoft, Rolls-Royce, Honeywell, prime time by the mid-2030s. and American Airlines as equity investors in Vertical, It will be interesting to see how Airbus and Boeing OLIVIER BONNASSIES working with Virgin Atlantic, a VA-X4 launch airline respond to this timeline. No doubt the 200- to 300- Managing editor customer in Europe. seat market will be revisited soon. Airfinance Journal www.airfinancejournal.com 3 Contents Cover story News Analysis Special reports and interviews Smooth operator Griffin targets sale and Market competitors - BOC Aviation was swift in enacting its 11 leaseback growth 41 Narrowbodies getting larger and going further “downturn plan” at the start of the Covid-19 The new asset management firm sees more pandemic, and 2021 is shaping up to be potential for newer asset classes when As Boeing gets to grips with returning the 737 another big year for the lessor, its managing building relationships with airlines in the Max to service, Airbus is seeking to maximise director and chief executive officer, Robert context of Covid-19, Griffin’s chief financial sales of the A321. Geoff Hearn assesses their Martin, tells Dominic Lalk. officer tells Hugh Davies. respective prospects. Special reports and interviews Data Speedy lease deal key to MAG 43 restructuring 33 12 Pilarski A sense of urgency, trust and transparency 46 were the only elements that really mattered in Malaysia Aviation Group’s negotiations with Guide to Aviation creditors. Lessors now have more options to 47 redeploy aircraft, chief executive officer, Izham Lawyers 2020 Ismail, tells Dominic Lalk. Airfinance Journal Global 14 Awards 2020 People news Blockchain helps kickstart 6 32 international travel Mobile app IATA Travel Pass will help News Analysis travellers store and manage their verified certifications for Covid-19 tests or vaccines, ABS pricings reach new levels 8 reports Laura Mueller. Legal moves 2020/21 The capital markets are booming again as What next for Regional aircraft 48 aviation starts its rebound from Covid. Olivier OEMs? Bonnassies reports. 36 Legal survey 2021 Mitsubishi Heavy Industries has put its Spacejet 50 Airfinance Journal’s legal survey programme on hold indefinitely given changes Banks remain conservative in recognises the most active law firms in in the market environment. Airfinance Journal 9 lending 2020 by regions and financing structure. explores the incumbent players in the 70- to Bank appetite for the aircraft leasing business 100-seat market and their priorities. Hugh Rising stars has decreased in the post-Covid-19 pandemic Davies and Olivier Bonnassies report. 61 era, reports Elsie Guan. Airfinance Journal recognises six of the Values and lease rates trend: most promising legal associates for 2020. Truenoord eyes new-gen 39 Boeing 787-9 regional narrowbodies Recent private equity 10 Appraisers think values for the middle investment in aviation Anne-Bart Tieleman, Truenoord chief member of the Boeing 787 family will come 66 executive officer, tells Hugh Davies that under further pressure in the short term, but Private equity has been upping its game in smaller aircraft were on the Dutch lessor’s believe they will recover as long-haul travel aviation, writes David Berkery, partner, A&L radar long before the pandemic struck. returns. Geoff Hearn reports. Goodbody. Managing editor Group sub editor Senior marketing executive (Subscriptions) Printed in the UK by Buxton Press, Buxton, Olivier Bonnassies Peter Styles Wilson Eva-Maria Sanchez Derbyshire. +44 (0)207 779 8062 +44 (0)207 779 8450 [email protected] Managing director, The Airline Analyst [email protected] No part of this magazine can be reproduced Mike Duff without the written permission of the Asia editor +44 (0)207 779 8058 Publisher. The Airfinance Journal Ltd. Dominic Lalk [email protected] Production editor Registered in the United Kingdom 1432333 +852 2842 6941 Tim Huxford (ISSN 0143-2257). [email protected] Advertisement manager Greater China reporter Chris Gardner Divisional CEO Airfinance Journal (USPS No: 022-554) is a full +44 (0)207 779 8231 service business website and e-news facility 管沁雨 (GUAN Qinyu); Elsie Guan Jeffrey Davis with printed supplements by Euromoney +852 2842 6918 [email protected] Institutional Investor PLC. [email protected] Head of sales Senior Reporter George Williams Subscriptions / Conferences Hotline Although Euromoney Institutional Investor Hugh Davies +44 (0)207 779 8274 +44 (0)207 779 8999 / +1 212 224 3570 PLC has made every effort to ensure the +44 (0)20 7779 7346 [email protected] [email protected] accuracy of this publication, neither it nor any [email protected] contributor can accept any legal responsibility Head of Asia subscriptions Customer Services for consequences that may arise from errors Harry Sakhrani or omissions or any opinions or advice given. Consulting editor +44 (0)207 779 8610. +44 (0)207 779 8203 Geoff Hearn 8 Bouverie Street, London, EC4Y 8AX [email protected] This publication is not a substitute for specific Content Director, AFJ and Industry Chair professional advice on deals.