Latin America School of Aviation Finance

 

DAY ONE: Wednesday October 1st, 2014

8.30am Registration and morning refreshments

9.00am Introduction by course leaders

9.10am Market trends in Latin America

• Understanding airline performance indicators and trends
• Market development: How to know what cycle we are in and where the market is going
• Consequences of market consolidation
• Market predictions for 2015

1. Gilberto Peralta, General Manager Latin America & Caribbean, GE Capital Aviation Services
2. Jose Maluf, Vice President, Fleet and Engines, LATAM Airlines Group

9.40am Financing options available in aviation

• Overview of financing options
• How does the economy affect financing availability?
• Review of potential sources of finance and their related structures including: Debt, equity, securitization, EETCs, export credit and manufacturer finance
• Strategies for selecting the best alternative for aircraft financing

1. Christian Wulf, Director Transportation Group / Aviation Finance, BNP Paribas

10.40am Morning refreshments

11.10am Aircraft secured debt markets review and other sources of liquidity

• The prospects for EETCs in Latin America
• EETCs vs. other financing alternatives
• Review of the aircraft and engine portfolio securitization market
• Role of private equity, hedge funds and sovereign wealth funds
• Other aircraft financing structures

1. Matthew Little, Vice President, Structured Finance, Investment Banking Division, Goldman Sachs

12.00pm Export credit lending

• Role of ECAs and implications for financing options
• How has export credit provision changed?
• How to get export financing
• Understanding regulation and politics

1. Marcio Nobre Migon, Head of Department, Aircraft Financing - Export Credit Division, BNDES

12.50pm Lunch

2.00pm Aviation Secured Debt Markets: Practical Application

Principals of secured debt market transactions will be reviewed and highlighted in the context of a case study of one or more large capital markets transactions by the participants in those transactions

1. Jeanette Pinard, SVP & General Counsel, GECAS Asset Management Group, GE Capital Aviation Services
2. Fred Bass, Partner, Holland & Knight LLP

2.45pm Credit issues for aviation finance

• Airline industry risk characteristics and how this has changed over the past year
• Judging an airline’s competitive position
• Revenue generation and cost control
• Analyzing profitability, cash flow and the balance sheet
• Credit risk in aircraft leasing and secured lending
• Reviewing rating agencies: What has changed?
• How does aviation compare to other industries in the current economic climate

1. Jonathan Root, Vice President - Senior Credit Officer, Airlines, International and U.S. Jones Act Shipping Sectors, Moody’s Investors Service

3.30pm Afternoon refreshments

4.00pm Case study: Teams and explanations

Delegates will be divided into groups of varied professional backgrounds and will begin work on case studies from either the perspective of an airline or a lessor/financier. These case studies are intended to provide a practical insight into the fundamentals of structuring an aircraft finance transaction through the negotiation of a letter of intent for a hypothetical aircraft finance transaction. The first day’s training/lectures will provide the fundamental information required initially to outline the major issues and generate thoughts on positions and strategies. Faculty members will be available during these preliminary discussions to guide delegates and answer any questions.

6.00pm End of day one followed by evening drinks reception

DAY TWO: Thursday October 2nd, 2014

8.45am Morning refreshments

9.00am Operating leases: Explanation and update

• Comparing operating leases with straight financing
• Overview of typical terms
• Assessing the latest trends

1. Edward Sheard, Vice President and Lead Counsel, GE Capital Aviation Services
2. Richard Furey, Partner, Holland & Knight LLP

9:50am Operating leases: Practical application

Operating leasing principles will be reviewed and highlighted in the context of the simulated negotiation of a letter of intent for the lease of an aircraft.

1. Luis da Silva, Senior Vice President, Marketing, GE Capital Aviation Services
2. Felipe Campos, Vice President, Leasing and Engines Contracts, LATAM Airlines Group
3. Bill Piels, Partner, Holland & Knight LLP
4. Serge Sergiou, Partner, SNR Denton

10.50am Morning refreshments

11.20am Maintenance reserves and technical considerations in operating leasing

• Basics of maintenance reserves
• Basics of return conditions
• Pre-return planning
• Discrepancies from redelivery conditions
• Addressing return condition compliance costs that would exceed net economic benefit
• Handling disputes

1. Eduardo Mora, Vice President, Marketing, GE Capital Aviation Services

12.10pm Interchanges and fleet management: Considerations for airlines and lessors

• What is an interchange?
• How is an interchange documented?
• What are the respective rights and obligations of the various parties under an interchange?
• What is the utility of an interchange in fleet management?

1. Carlos Torres, Fleet Legal Director, Avianca
2. Nathan Leavitt, Attorney, Holland & Knight LLP

1.00pm Lunch

2.15pm Lease assignments and assumptions: Three perspectives

• What role does the transferability of leases play in the operating lease market?
• What are the economic impacts?
• What are the Selling Lessor's concerns and priorities?
• What are the Purchasing Lessor's concerns and priorities?
• What are the Lessee's concerns and priorities?

1. Tatiana Medaglia Barreto, In-House Counsel - Aircraft Contracts / I.T. / Intellectual Property, Gol Transportes Linhas Aereas Inteligentes
2. M.J. Spelliscy, Partner, Holland & Knight LLP

3.00pm Afternoon refreshments

3.30pm End of session and break for work on case studies

The remainder of the afternoon will be devoted to negotiating and finalizing the letters of intent with the teams determined the previous day.The training and lectures on the second day will have provided additional information and insights to negotiate the case study letter of intent. Faculty members will be on hand to assist.

5.30pm End of day two

DAY THREE: Thursday October 3rd, 2014

9.00am Morning refreshments

9.30am Case study presentations

10.30am What happens when it all goes wrong?: The view from three jurisdictions

• Key considerations and strategies in a downturn
• Negotiations with creditors
• Legal constraints
• Rescheduling debt
• Review of the relevant default and remedy provisions
• How do restructurings work?
• Bankruptcy law in various jurisdictions

1. Fabio Falkenburger, Partner, Machado Meyer Sendacz Opice
2. Mark Antonecchia, Partner, Holland & Knight LLP
3. Boris Otto, Partner, Holland & Knight LLP

11.20am Morning refreshments

11.50am Restructuring/Repossession case study: Mexicana Airlines

• Key features of restructuring
• Legal options in repossession scenario
• "On the Ground" view of a repossession

1. Edward Sheard, Vice President and Lead Counsel, GE Capital Aviation Services
2. John Toriello, Partner, Holland & Knight LLP

12.40pm The ratification of the Cape Town Convention in Latin America

• When is the Cape Town Convention applicable to a sale, lease or financing of an aircraft or engine?
• What rights and remedies are provided to a creditor and debtor under the Cape Town Convention?
• How do those rights and remedies differ based on the way the Cape Town Convention was ratified by a particular country?
• What lessons can be learned by other countries seeking to ratify the Cape Town Convention?

1. Terena Rodrigues, Executive Vice President, General Counsel, Embraer
2. Carlos Sierra, Partner, Sierra y Vazquez
3. Bernardo Rodriguez, Partner, Parra Rodriguez Sanin

1.30pm Lunch

2.30pm Commercial Aviation Operations to the USA: A regulatory overview

• US carrier certification
• Foreign aircraft carrier certification
• IASA and safety issues
• Bankruptcy issues, and effect on flight operations
• Other pitfalls to avoid

1. Anita Mosner, Partner, Holland & Knight LLP

3.20pm End of life options and considerations

• Key considerations in scrapping and part-outs
• Whether to consign or to sell
• Green time engine leasing and maximizing return
• Unique uses for end of life aircraft

1. Patrick Bergin, Senior Vice President, GE Capital Aviation Services

4.10pm Closing remarks from the course directors followed by refreshments and close of school