2016 Asia Pacific Aviation Finance and Operating Leasing School

8:20AM Registration

8:50AM Introduction of course by course leader

• Welcoming note
• The airline industry  today
• Key drivers of air transport  

Nicolas Parrot, Managing Director, Co-Head Transportation Sector, Investment Banking Asia Pacific
BNP Paribas Singapore

9:20AM Managing the risks in aircraft financing

• Credit risk: Assessing the solvability of an airline to meet its LT debt and lease obligations
• Asset risk: Understanding liquidity, life cycles and market values of aircraft and engines
• Structural risks: Getting LTV, security package and structural cash flows right
• Repossession & remarketing risk: Legal & practical considerations

Pierre Briens, Director, Investment Banking Asia, Transportation Sector, Investment Banking Asia-Pacific, BNP Paribas

10:00AM A focus on commercial debt: The core option for most airlines & lessors

• Financing menu for airlines and lessors
• Secured vs unsecured debt
• Financing airlines vs lessors
• Single aircraft vs portfolios
• Managing contingent currency and interest rate risk
• PDP financing

Alain Rousseau, Vice President, Transportation Sector, Investment Banking Asia-Pacific, BNP Paribas

10:40AM Networking

11:00AM Debt capital markets

• Transaction, private vs public placements
• Senior unsecured and secured notes
• ABS and EETCs
• ECA guaranteed bonds

Andy Lai, Managing Director, Head of Securitization, Asia Pacific, BNP Paribas

11:30AM Derivatives for the aviation industry

• Interest rate risk: Fixed vs floating
• Fuel price volatility
• Currency risk

Simon Ng, Director, Global Markets, Asia-Pacific, BNP Paribas

12:00PM Japanese operating lease with call option

• JOLCO fundamentals
• Key considerations
• NK vs TK investors
• What will happen tomorrow?

Nicolas Parrot, Managing Director, Co-Head Transportation Sector, Investment Banking Asia Pacific
BNP Paribas

12:30PM Lunch

2:00PM Case Study

Case Study: Bidding on an airline’s RFP
This is an interactive case study inspired by real cases. Guided by the speakers, the audience will be split into groups to make a bid and win an airline RFP (format of the case study to be determined)

Alain Rousseau, Vice President, Transportation Sector, Investment Banking Asia-Pacific, BNP Paribas
Pierre Briens, Director, Investment Banking Asia, Transportation Sector, Investment Banking Asia-Pacific, BNP Paribas
Nicolas Parrot, Managing Director, Co-Head Transportation Sector, Investment Banking Asia Pacific
BNP Paribas
Jude Ryan, Regional Head of Legal, Corporate Banking BNP Paribas
Simon Gagey, Head of Loan Syndicate & Sales, South East Asia, BNP Paribas

3:30PM Networking coffee break

4:00PM Getting your mandate and term sheet right without outside counsel

• Mandate letter - why sign one?
• Mandate letter - what's important?
• Key structural issues to cover at term sheet stage

Jude Ryan, Regional Head of Legal, Corporate Banking, BNP Paras

4:40PM Distribution of aviation assets to the bank and fixed income markets

• Reason for distributing aviation assets
• Finding liquidity and matching it with the appropriate risk profile
• Recent dynamics on the loan market

Simon Gagey, Head of Loan Syndicate & Sales, South East Asia, BNP Paribas

5:10PM M&A and IPOs in the aviation sector

• Types of M&A deals
• Common tension points between buyers and sellers
• Why do airlines IPOs
• Typical valuation methods

Nicolas Parrot, Managing Director, Co-Head Transportation Sector, Investment Banking Asia Pacific
BNP Paribas Singapore  

5:45PM Cristal ball session

Where is aircraft financing market heading?

Moderator: Nicolas Parrot, Managing Director, Co-Head Transportation Sector, Investment Banking Asia Pacific, BNP Paribas Singapore

6:15PM Course summary followed by cocktail reception

8:30AM Registration day

8:50AM Introduction by course leader

Dick Forsberg, Head of Strategy, Avolon

9:00AM 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

Dick Forsberg, Head of Strategy, Avolon

9:40AM Operating platforms for lessors

      -    Deal process
      -    Controls and approvals
      -    Technical specifications
      -    Negotiation and management skills
      -    IT systems and fleet management
      -    Lease management

Lucas Mollan, Chief Technical Officer, Avolon  

10:20AM 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

Deirdre Clifford, Head of Credit Risk Management, Avolon

11:00AM Networking

11:20AM Technical asset management of a fleet

• MRO – what is good maintenance planning and what is not?
• How to manage a diversified pool of maintenance reserves and costs
• Conflicting interest with airlines and OEMs in maintenance reserve management
• Portability and assignability of maintenance reserves
• The importance of technical records for engineering

Lucas Mollan, Chief Technical Officer, Avolon

12:00PM 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 cost

Gareth Halpin, Treasurer & Head of Capital Markets, Avolon

12:40PM Lunch

1:40PM How do lessors choose a tax efficient jurisdiction for aircraft leasing

• Key considerations for choosing a tax efficient jurisdiction for registration
• Singapore as a regional hub for aircraft leasing
• Hong Kong tax reform - Section 23C, 23D, 39E and Aircraft & Shipping Articles - what needs to be changed in the current tax regime?
• Why lessors are choosing Dublin as the global leasing hub  

John Fulton, Senior Manager - Tax, Avolon

2:20PM 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

Ralf Schulze, Senior Sales Executive Lessors & Banks, Lufthansa Technik AG

3:00PM Networking coffee break

3:20PM Fleet selection and financing considerations for airlines

• Evolving airline business models
• Development of LCCs models in Asia
• How do airlines’ business models affect the selection of aircraft?
• Financing sources for  startup LCCs
• Key considerations for leasing vs buying

Justin Wong, ManagerAircraft Analysis, HKExpress

4:00PM 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

Paul Ng, Partner, Milbank

4:40PM Course summary followed by quiz

5:40PM GECAS Cocktail reception

8:30AM Registration and morning coffee

9:00AM Introduction by course leader

9:10AM 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

Cristina Chang, Managing Director, Asia Pacific Structured Finance, Asia Pacific, Citi

9:50AM 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

Vicente Alava Pons, Managing Director, Aviation Finance, DVB Bank SE Singapore Branch 

10:30AM Developments of LCY aircraft financing

• Impact of currency fluctuation on airlines and lessors funding strategies
• Developments of CNY and CNH markets
• Asian currency MTN programmes
• Institutional investor base

Samson Lee, Managing Director, Head of Debt Capital Markets, BOC International

11:10AM Networking coffee break

11:30AM 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

Michael Duff, Managing Director, The Airline Analyst

12:10PM Fundamentals of aircraft valuations

• Supply and demand for aircraft
•  Methodologies for valuations
•  Factors affecting aircraft values
•  Interpretation of market information
•  Secondary markets

   

Bryson P. Monteleone, ISTAT Certified Senior Appraiser, Tailwind Capital Partners

12:50PM Lunch

1:50PM 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

Jon Sharp, President & CEO, ELFC 

2:30PM 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?

Allen Ng, Partner and Aishah Fauzi, Registered Foreign Lawyer, Baker & McKenzie

3:10PM 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 – Aviation, Dentons

3:50PM Networking

4:00PM Lease accounting under IFRS-16

• Lessees: New definition, new accounting
• Impacts for Lessors
• Sale and leaseback
• Transition options
• Other impacts

Sanel Tomlinson, Partner, Professional Practice – Accounting, KPMG

4:40PM 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
   

John Timpany, Partner, Tax, KPMG
 

7:20PM Summary and close of school