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Global Aircraft Leasing Newsletter 13 March

Global Aircraft Leasing Newsletter 13 March

Air Canada flips Boeing 787 Dreamliners for big gains

Strong demand for the Boeing 787 among the world’s airlines has created a profitable sideline for Air Canada – selling some of its 787 aircraft and leasing them back. Air Canada sold two of its newest planes last year for $351-million and leased them back, recording a $19-million gain on the sale, and it expects to sell and lease back more 787s this year, chief financial officer Michael Rousseau said last week.

Air India to lease six Boeing widebody aircraft

Indian carrier Air India will lease six additional widebody aircraft—either Boeing 777-300ERs or Boeing 787-9s—as its international expansion plan continues. Air India CCO and board member Pankaj Srivastava told Air Transport World (ATW) in an exclusive interview that the carrier is in the midst of an evaluation process.

Aircraft lessors lukewarm on Boeing’s planned 737-10 jet

Major aircraft leasing companies have offered a lukewarm response to proposals by Boeing <BA.N> to build a bigger version of its 737 MAX family to counter the Airbus <AIR.PA> A321neo. Boeing has begun offering the model code-named 737 MAX 10X to airlines, saying it would be the most efficient single-aisle jetliner in the business – a claim disputed by Airbus.

Steven Udvar-Hazy, executive chairman of Air Lease who is regarded as one of the industry’s most influential voices, questioned the logic of adding a longer version of the slow-selling 737 MAX 9, which was rolled out last Tuesday. “The question to ask is, would Boeing even be considering the (737) MAX 10, if it weren’t for the A321neo,” he said at the ISTAT Americas air finance conference.

Three awards presented to Turkish Airlines for its successful aircraft financing models

Turkish Airlines has been awarded as the runner up in the “Trade and Export Finance Deal” category by Bonds & Loans for its brand new B777-300ER aircraft delivered in September 2015. The total financing builds up to 16.8 billion Japanese Yen and the structure is a combination of an innovative, complex and unique U.S. Ex-Im Guaranteed French Tax Lease. The carrier has been awarded as the runner up in the “Structured Finance Deal of the Year” category as well by Bonds & Loans for its brand new 3 A321-200 aircraft delivered between September and November 2015. The carrier has also been awarded as the finalist in the “Transport Finance Deal of the Year” category by Bonds & Loans at the awards ceremony held in İstanbul, for its brand new 1 B777-300ER and 8 B737-800 aircraft delivered between May and August 2016.

UNB arranges aircraft purchase loan

Union National Bank (UNB) has announced the successful completion of a 12-year aircraft financing term loan facility for the acquisition of an Airbus A380 aircraft by Baz Aircraft Leasing One, in which it acted as mandated lead arranger. Baz Aircraft Leasing One is the first special purpose company (SPC) to be incorporated in the Abu Dhabi Global Markets (ADGM) for aircraft financing.

Willis Lease Finance Reports 2016 Pre-tax Profit Up 87.4% to $23.9 Million

Willis Lease Finance Corporation reported pre-tax earnings for 2016 of $23.9 million, up 87.4% from $12.8 million in 2015, on record revenue of $207.3 million. Charles F. Willis, Chairman and CEO said “Our fourth quarter and full year results reflect a combination of improved utilization, growth in the lease portfolio and the continued effective management of our assets—all contributing to record total revenues of over $207 million. We also broadened our sources of equity through the issuance of preferred equity, which will serve our growth plans well.”

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