Summer School of Aviation Finance 2017

8:15AM Registration and welcome coffee

8:45AM School and case study introduction

9:45AM Introduction to aircraft finance and the aviation industry

10:15AM Export Credit Financing

• Export Credit Agencies – introduction and role in financing new aircraft on order
• Why do - exist and what do they do?
• Highlighting key features of export credit in a transaction
• Working with commercial lenders on deals standards borrowers need to adhere to in order to access ECA coverage
• How much coverage can ECAs provide on new loans?
• Future trends – Is there room for PDP funding and ECAs to work together?
• New products: ECA bonds and pre-funded bonds

11:15AM Morning break

11:45AM Asset management and remarketing in a volatile market

• Successfully assessing portfolio exposure in current market conditions
• Deciding on the right appraiser / appraisal
• Demystifying the appraisal process: What should clients be aware of when choosing aircraft?
• Analysing the cost of reconfiguration for different types of aircraft

12:30PM Lunch

1:45PM Operating leasing

• Operating lease fundamentals and lease market developments
• What do lessors look at when putting deals together?
• Why would airlines use operating leases?
• Lessors’ challenges yesterday, today and tomorrow
• Lessors’ business models and exit strategies

2:30PM Asset Focus – Crash course in asset valuation

• Aircraft/Engine liquidity
• Key determinants of aircraft value
• Aircraft maintenance status and understanding maintenance reserves

3:30PM Afternoon break

4:00PM Update on the Cape Town Convention

5:00PM Applied Case Work: Structuring an Aircraft Finance Transaction

6:00PM Drinks reception

7:00PM Dinner

9:15AM Morning Coffee

9:30AM Capital markets in aviation

• Reviewing the EETC Market and development of Non-US issuers into this market
• EETCs vs. other financing alternatives
• Review of the aircraft and engine portfolio securitization market and structures
• Unsecured issuance among Aircraft Lessors vs Airlines
• Institutional term loan and secured bond markets
• Review of non-recourse alternatives: Use of Aircraft ABS in aircraft portfolio sales

10:20AM Sources of funding

• How has aircraft financing been affected by present market conditions?
• Focus on increasing pricing and decreasing tenor length in transactions
• Assessing different products on the market: equity; debt; securitizations; conduits; financing and operating leases
• Successfully structuring transactions: Key factors to take into consideration
• Assessing and mitigating risks

11:10AM Morning break

11:40AM Credit and risk issues

• Aircraft security – how protected are you?
• Key drivers of successful airline management
• Competitive environment & market positioning
• Financial analysis, jurisdiction risk and transaction structure

12:30PM Lunch

2:00PM Manufacturer support

·        Assessing customer support

·        What type of products do manufacturers support and how?

·        Why are aircraft a good investment?

3:00PM Afternoon break

3:30PM Introduction to legal issues in aircraft financing

• Structure diagram and typical transaction documentation
• Use of special purpose companies
• Overview of covenant package and typical events of default

4:30PM Applied Case Work: Structuring an Aircraft Finance Transaction

6:00PM Drinks reception

7:00PM Dinner

8:45AM Morning coffee

9:00AM Insurance considerations

• Insurance considerations
• What risks should you be aware of?
• Breach of warranty
• Loss payee clauses
• Captive insurers

9:45AM Engine asset management, leasing and financing

• ROI on engines and how engines compare with aircraft as assets
• Engine leasing and financing
• How do engines impact lessors and bankers’ financing?
• Practical impacts of power-by-the-hour maintenance arrangements and how they fit into the financing world

10:45AM Morning break and case study preparation

12:30PM Case study presentations and prizes

1:20PM Closing remarks from the Faculty

1:30PM Lunch and close of School