North America School of Aviation Finance 2017

8:30AM Registration and morning coffee

9:00AM Introduction by course leaders

9:10AM Market overview

• Reviewing airline performance over the past year: Indicators and trends

• Market consolidation and competition

• Outlook for the year ahead: Market development predictions

9:40AM Reviewing financing options and new products in present market conditions

• Overview of financing options: How will 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

• New financing options available or maturing to meet market demand

10:40AM Morning coffee and refreshments

11:10AM Export credit financing

• The changing and increasing role of ECAs and the implications for financing options

• How has ECA credit provision changed in the past twelve months?

• How to get Ex-Im financing

• Comparing Ex-Im and other ECA financing

• Understanding regulation and politics

12:00PM Alternative sources of liquidity

• Assessing key relationships in aircraft trading

• Assessing unburdened collateral and value-added contracts

• Role of private equity, hedge funds and sovereign wealth funds

• Liquidity program process

12:50PM Lunch

2:00PM Aircraft capital markets review

• Reviewing the EETC Market

Development of Non-US issuers into this market

• Review of other financing alternatives

Unsecured issuance among Aircraft Lessors and Airlines

Institutional Term Loan and Secured Bond markets

• Review of non-recourse alternatives

Use of Aircraft ABS in aircraft portfolio sales

• Other aircraft financing structures and considerations

3:00PM Case Study of Commercial Aviation-related Secured Debt Transactions in the Capital Markets

•U.S. Securities Law Regulatory Regime

•Typical structure of an Asset Backed Securitization Transaction

•Role of the Servicer

•Lease Assignment/Novation Process

•Structure of a Secured Notes Offering by an Operating Lessor

•Documentation

•Comparison of recourse and non-recourse transactions

3:30PM Afternoon coffee and refreshments

4:00PM Selling aircraft and engine assets

• How to sell parts at the right price

• Where is the demand likely to come from?

• What is a reasonable level of exposure to the aircraft sector?

• Understanding what models go for what price

• How to structure the right deal for all parties

4:30PM Case study: Teams and explanations

Delegates will be divided into groups of varied professional backgrounds and will begin work on case studies. These are intended to provide a practical insight into the fundamentals of structuring an aircraft finance transaction, through the development of a financing proposal. The first day’s training/lectures will provide the fundamental information required initially to outline the proposal and generate ideas. Faculty members will be available during these preliminary discussions to guide delegates and answer any questions.

6:00PM End of Day One followed by drinks reception

8:30AM Morning coffee and refreshments

9:00AM Operating leases: Explanation and update

• Comparing operating leases with straight financing

• Overview of typical terms

• Basics of maintenance reserves

• Basics of return conditions

• Assessing the latest trends

10:00AM Operating leases: Practical application

• Fleet planning needs

• Warranties, indemnities and guarantees

• Lessor assignments and the airline

• Lessee aircraft modifications

10:40AM Morning coffee and refreshments

11:10AM 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 the rating agencies: What has changed?

• How does aviation compare to other industries in the current economic climate?

12:00PM The effects of the Cape Town Convention on daily aircraft and engine finance

• When is the Cape Town Convention applicable to a sale, lease or financing of an aircraft or engine?

• What should a creditor or contract party do to protect itself under the Convention?

• What special terms should be contained in aircraft financing contracts due to the Convention?

• Bankruptcy options and remedies

12:45PM Lunch

2:00PM Transaction structures, documentation and the principles of tax based-leasing

• Internal Revenue Service ‘true lease’ guidelines

• Issues regarding depreciation

• Like-kind exchanges

• Lessor analysis – yield optimization and return

• Lessee analysis – present value benefit

• Lease vs. buy analysis

3:00PM Lessor – lessee/seller – purchaser’s views on the process of aircraft deliveries and returns

•Pre-delivery and pre-return planning

•Engine and component substitutions

•Return costs that exceed net economic benefit

•Handling disputes

4:00PM Afternoon coffee and refreshments

4:30PM End of session and break for work on case studies

The remainder of the afternoon will be devoted to finishing work on the case studies in the teams decided the previous day.

The training and lectures on the second day will have provided additional information and insights to further develop answers for the case study problem. Faculty members will be on hand to assist.

5:30PM End of Day two followed by drinks reception

8:30AM Morning coffee and refreshments

9:00AM Case study presentations

10:00AM What happens when it all goes wrong? [US Market]

• Key considerations and new strategies in a downturn

• Negotiations with creditors

• Legal constraints

• Rescheduling debt

• Review of the relevant default and remedy provisions•

•How do restructurings work?

• U.S. bankruptcy law

11:15AM Morning coffee and refreshments

11:45AM Restructuring/Repossession Case Study

• Summary/Overview of Repossession and Enforcement Actions

• Form of restructuring documents used by different lessors

• Consequences of Concurso Mercantil/Chapter 15 filings

• Efficacies of Cape Town Convention

• Hostile and amicable repossession scenarios

• Considerations for future leases

12:30PM Asset management, remarketing and valuations

• Assessment of exposure

• Selection of a remarketing services provider

• Ongoing management of exposure

• Examining the appraisal process

• Review of current trends in aircraft valuations

• Hot picks and dud buys for 2017/18

1:00PM Lunch

2:00PM Fuel hedging in the aviation industry

• Exploration of standard hedging strategies and structures

• Why certain structures have failed for airlines: What went wrong?

• New hedging structures to survive in a volatile economic and fuel environment

• Oil price predictions for 2017/18 and beyond

2:30PM Emerging Markets and Evolution of Aircraft Finance – Overview of the current aircraft finance markets and an outlook on their future state

• Overview of the current aircraft finance markets and an outlook on their future state

•Common approaches to aircraft finance in developing markets

• Regional features

• Further developments

• How will emerging market demand be affected by the credit crunch?

• What new leasing and financing structures are likely to be seen?

3:30PM Closing remarks from the course leaders and end of School