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Agenda Overview

Day One: Monday 2nd November

0830 Registration and morning coffee
0850 Introduction by course leader
  1. Anup Mysoor, Managing Director, Asia Head, Aviation Investment Banking, Citi
0900 Overview of the aircraft financing market
  • Cyclicality of the aviation industry
  • Lessors and airlines funding costs
  • Effect of implementation of Basel III on commercial lending
  • Developments in the debt capital markets
  • Effect of volatility on equity financing
  • Export credit back financing
  • Local currency lending
  • Alternative investors in the aviation industry
  1. Anup Mysoor, Managing Director, Asia Head, Aviation Investment Banking, Citi
  2. Scott Miller, Vice President, Aviation Investment Banking, Citi
0940 Commercial lending and syndication
  • Direct loans
  • Loan facilities
  • LTV analysis
  • Pricing mechanisms
  • PDP finance
  • Lending considerations - airlines vs. lessors
  • Credit risks – airlines vs. lessors
  1. Nikolai Lvov, Vice President, Global Aviation  -Asia Pacific, Citi

1020 ECA financing – what has changed?
  • ECA financing structures
  • Effect of the new ASU on aircraft lending
  • Fee structures and pricing trends
  • Developments in ECA debt capital market products
  • Applying Cape Town discounts in ECA financing
  1. Harrison Moskowitz, Export Agency Finance, Asia Pacific, Citi
1100 Networking coffee break
1120 Debt capital market financing
  • What are the basic DCM products?
  • Functions of primary and secondary markets
  • Bonds vs. loans
  • Institutional liquidity and market makers
  1. Cristina Chang, Director and Head of Asia Pacific Securitized Products, Citi
1200 Lunch
1320 Debt capital market financing
  • What are the basic DCM products?
  • Functions of primary and secondary markets
  • Bonds vs. loans
  • Institutional liquidity and market makers
  1. Cristina Chang, Director and Head of Asia Pacific Securitized Products and Asia Pacific Transportation Finance, Citi
1400 Structured finance: ECA guaranteed bonds, ABS, EETC and portfolio term loans
  • Why issue structured debt?
  • Deal structures
  • Rated vs unrated issuance
  • Institutional appetite and recent trends
  1. Cristina Chang, Director and Head of Asia Pacific Securitized Products, Citi
1440 Equity market financing
  • IPOs
  • Underwriting process
  • Sources of equity
  • Key considerations in secondary issuance
  • Convertible bonds
  1. Anup Mysoor, Managing Director, Asia Head, Aviation Investment Banking, Citi
  2. Scott Miller, Vice President, Aviation Investment Banking, Citi
1500 Asset backed lender’s perspectives on credit risk and asset risk
  • Asset risks vs. credit risks
  • LCCs vs. Legacy carriers 
  • The differing risk exposure of lessors compared to ABS lenders 
  • How do ABS lenders manage their risk differently? 
  • Key considerations in lending 
  1. Vicente Alava Pons, Managing Director, Aviation Finance, DVB Group Merchant Bank (Asia)
1540 Networking coffee break 
1600 Repossession and remarketing of aircraft 
  • Importance of aircraft maintenance logs and record keeping 
  • Jurisdiction risk in repossession of aircraft
  • Developing and  implementing a successful remarketing strategy
  • Managing the process of aircraft redeliveries and re-registrations 
  • Execution risk 
  1. Vincent H M Lam, Senior Vice President, Cabot Aviation
1640 Fundamentals of aircraft valuations
  • Supply and demand for aircraft
  • Methodologies for valuations
  • Factors affecting aircraft values
  • Interpretation of market information
  • Secondary markets
  1. Dr. Stuart Hatcher, Head of Valuations and Risk, IBA
1720 Resurgence of PDP financing 
  • Lessors as PDP lenders 
  • The roles played by both airframe and engine manufacturers in PDP financings
  • Corporate lending vs secured asset back lending
  • Novation structures for PDP financing 
  • New structures for PDP financing 
  1. Paul Ng, Partner, Milbank
1800 Day One summary followed by cocktail reception

Day 2: Tuesday 3rd November

0830 Registration and morning coffee 
0850 Introduction by course leader: Why leasing instead of buying? 
  1. Peter Huijbers, Head of Airlines Marketing, Hong Kong Aviation Capital
0900 Fundamentals of the leasing industry
  • Industry dynamics – what’s changed? 
  • The aircraft leasing competitive landscape 
  • How to manage the cycle 
  • The economic life of an aircraft and residual value risk
  • Strategic implications of the current market conditions
  1. Peter Huijbers, Head of Airlines Marketing, Hong Kong Aviation Capital
0940 Selecting the right aircraft types for your business models
  • Evolving airline business models
  • Development of LCCs models in Asia
  • How do airlines’ business models affect the selection of aircraft?
  • Lessors’ business models and addressing airline requirements
  • Assessing the impact of technology and production rate on aircraft values
  • How do airlines, lenders and lessors forecast and manage the RVs?
  • Purchasing agreements – things to look out for
    Andrew Cowen, CEO, Hong Kong Express
    1020 Risk management for lessors 
    • Asset, Credit and Structural risk
    • Jurisdictional risk and repossession considerations 
    • Technical, maintenance and record issues
    • Maintenance reserve cycles – full vs half 
    • Insurance 
    1. Paul Dwyer, Chief Operating Officer, Hong Kong Aviation Capital
    1100 Networking coffee break 

    1120 Technical asset management of a fleet
    • Key challenges for managing a mega fleet 
    • MRO – what is good maintenance planning and what is not?
    • How to manage a diversified pool of maintenance reserves and costs 
    • Technical considerations in a lease agreement 
    • The importance of technical records for engineering 
    1. Oisin Murray, Head of Technical, Hong Kong Aviation Capital
    1200 How do lessors engage in asset and liability management? 
    • Record keeping - importance of IT systems in asset and liability management 
    • MRO contract specification with aircraft and engine manufacturers 
    • Conflicting interest with airlines and OEMs in maintenance reserve management 
    • Portability and assignability of maintenance reserves 
    • Acquisition and disposal of aircraft
    1. Oisin Murray, Head of Technical, Hong Kong Aviation Capital
    1240 Lunch
    1340 How do lessors finance their fleets? 
    • Why there is a constant source of funding for global lessors 
    • How to diversify funding costs 
    • Lessors’ credit vs. aircraft credit  – which one is more important to lenders when assessing risks 
    • How to utilize your capital structure to minimize funding costs
    1. WOON WuiJin, Senior Director, Capital Markets, HKAC
    1420 MROs perspectives on redeliveries and managing lessor and lessee requirements
    • Market dynamic of MROs in Asia
    • Conflicting interest between operators and lessors for ensuring redeliveries compliance 
    • How importance is the relationship of MROs with airlines and lessors 
    • Dispute resolutions 
    1. Ralf Schulze, Senior Sales Executive Lessors and Banks, Lufthansa Technik AG 

    1500 Networking coffee break

    1520 Operating platforms for lessors
      Deal process
      • Controls and approvals
      • Technical specifications
      • Negotiation and management skills
      • IT systems and fleet management
      • Lease management
      1. Nick Hardge, Head of Transaction management, Hong Kong Aviation Capital

      1600 Understanding the engine as an asset class 
      • Value propositions for engines – how do lessors assess the residual value of engines? 
      • Engine leasing and engine cycles 
      • Effect of PMA and DER - OEM counter-activity
      • Effect of new types of engines on the residual value of existing engine
      • The added importance of maintenance, repair and overhaul (MRO) for engines 
      • Repossessing an engine and the Cape Town Convention 
      1. Jon Sharp, President & CEO, ELFC
      1700 How to Assess Credit Risk in Airlines and Operating Lessors

      • Determine target market eligibility
      • Identify risk of payment default associated with a relationship and/or transaction 
      • Justify the risk relative to the reward
      Philip Ziegler, Senior Vice President, ICG Risk Management, Citi Group

      1740 Day two summary followed by cocktail reception

      Day 3 Wednesday 4th November

      0830 Registration and morning coffee 
      0900 Introduction by course leader
      0910 What are new lessors looking for in financing? 

      • What are the drivers of cash rich real estate developers and tycoons to enter the leasing?
      • Pros and cons of different entry models – portfolio acquisition, JV or organic grow
      • Financing considerations of cash rich new lessors
      • Competitive advantages and disadvantages of new lessors
      • Can new lessors transform the leasing landscape in next 5 years?
      1. Nicolas Parrot, Managing Director, Co-Head Trasnportation Sector, Investment Banking Asia Pacific, BNP Paribas Singapore

      0950 Financial analysis and evaluation of airlines 

      • Access to financial information of airlines – public vs private
      • Industry, business and credit risk
      • Key performance and valuation metrics and indicators
      • Performance of airlines
      1. Michael Duff,  Managing Director, The Airline Analyst

       1030 EETCs as standalone asset class 

      • What is an EETC? 
      • Why airlines and lessors issue EETCs 
      • Issues on rating 
      • Jurisdiction risk - Cape Town and Chapter 11
      • Securities packages 
      • Latest developments in EETCs 
      1. Richard Finlayson, Managing Director, Head of Asset Finance, Deutsche Bank

      1110 Networking coffee break

      1130 Aircraft securitization 

      • Value proposition of aircraft securitization
      • Why lessors and airlines issue ABS
      • Structural considerations within ABS transactions 
      • Collateral management and investor protection 
      • Case study 
      1. Kevin Law ,  Executive Director, Securitization - Asia Pacific, BNP Parisbas  

       1210 Local currency issuance and MTN aircraft financing programmes

      • Accessibility of local currency issuance
      • MTN Programmes
      • Benchmark yield Curves analysis
      • International Rating Introduction
      • Bond Secondary Performance
      1. Samson Lee, Managing Director, Head of Debt Capital Markets, BOC International

      1250 Lunch
      1410 Alternative sources of liquidity – JOLs and JOLCOs

      • Overview of the Japanese leasing industry 
      • Characteristic of Japanese lessors 
      • JOLs and JOLCOs –how do they differ from each other?
      • Equity syndication and investor base 
      • Types of tax investors 
      • Benefits of using the declining balance depreciation method
      • JOLCOs -  exercising the call option for purchasing aircraft  
      • Residual value guarantees for aircraft
      1. Ayasuhiro Nakauch, Vice President, Strategic Solutions Department, Mizuho Securities 

       1450 The use of SPVs in aircraft finance and leasing transactions 

      • What is an SPV?
      • Why use an SPV?
      • Where to incorporate the SPV?
      • How to structure a deal using an SPV?
        • Mark Western, Joint Managing Partner, Maples and Calder
        • 1530 Dispute resolutions

          • What is a dispute?
          • Documenting dispute resolution procedures
          • Choice of governing law
          • Resolving disputes
          • Enforcing securities
          • Cape town treaties and repossession

          Bill Gibson, Partner, Dentons

          1610 Networking coffee break
          1625 Lease accounting under IFRS

          • Lease classification under accounting standards
          • Accounting treatments for leases 
          • Updates on new accounting standard proposals
          • Consolidation of subsidiaries and SPVs 

          1. Sanel Tomlinson, Partner, Professional Practice – Accounting, KPMG

          1705 Taxation for aircraft leasing

          • What is the international tax regime for leasing? 
          • Latest developments in tax treaties
          • Taxation in cross-border leasing 
          • Taxation in buying and selling of aircraft 
          • Tax relief in different jurisdictions
          1. John Timpany, Partner, Tax, KPMG

          1745 Summary and close of school