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Agenda Overview

Day 1: Monday, October 31, 2016

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

Day 2: Tuesday, November 1, 2016

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

Day 3: Wednesday, November 2, 2016

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