Slots, Gates and Routes – Monetizing Intangible Assets Slots, Gates and Routes (SGR) are immensely valuable assets for airlines, referred to commonly as “intangible” assets for valuation and collateralization. For operators, SGR assets represent strategic long-term competitive advantages and their value helps to raise additional capital for airlines, predominantly based in North America. mba estimates […]
In this edition of mba’s insight series, we will look at the three major pillars of commercial aircraft finance, the relationship of operators and lessors to those pillars, and the past investment cycles seen in the industry. From this solid foundational understanding, we will explore the importance of accurate asset valuation and discern some lessons […]
South Korea Aviation Market Snapshot Powered by mba’s REDBOOK STAR Fleet Here are some of the insights derived from the report: Currently 396 aircraft are operated by South Korean carriers Half of all aircraft operated in South Korea are leased 75% of the country’s fleet is operated by the top three carriers In 2017, there […]
What’s Driving Values in Q1 2018? REDBOOK’s ISTAT Certified Appraisal Team Has the Latest: Relying upon the current market conditions and the aircraft transactions that have occurred at the end of 2017 and into the first quarter of 2018, mba has updated and released the Q1 2018 values on REDBOOK. Below you’ll find the highlights […]
Aircraft leasing has become a significant factor in today’s aviation marketplace. In the 1980’s as little as 1.7% of the worldwide commercial fleet was owned or managed by lessors. Today lessors, led by industry powerhouses like GECAS and AerCap, hold the titles to over 40% of the global aircraft fleet.[1] By 2021, half of all […]
Since the launch of the 737 Next Generation (NG) and the A320ceo family, the preference in the narrowbody market has shifted and resulted in the changes culminating in the MAX and neo family of aircraft. The most distinctive shifts we have observed are the general upgauging of the aircraft and a greater sensitivity to fuel […]
This edition of mba’s Insight Series highlights some of the complexities of the helicopter market by analyzing the recent history of the rotor wing environment, examining new possibilities in helicopter capital markets, and discerning future helicopter industry trends. Enabling Global Infrastructure A look skyward in nearly any part of the world will reveal the range […]
Introduction Monarch Airlines Limited (“Monarch”) sold its London Gatwick (“LGW”) slots to British Airways for an undisclosed amount on November 24th, reigniting the discussion on airline slot ownership within the aviation community. In order to understand how a bankrupt carrier without an AOC was able to monetize these assets, it is useful to review the […]
Source: OAG, World Bank; 2017 Data current as of 3Q The first LCC in the region, GOL, began operations in 2001. For the next 15 years another LCC entered the market approximately every two years increasing to eight LCCs in 2016. In 2017 alone we have seen five LCCs begin operations in three countries where […]
In an aircraft lease, lessors collect maintenance compensation for utilization on the individual components on each aircraft. These typically include the airframe, landing gear, auxiliary power unit (“APU”), engines, and engine life limited parts (“LLPs”). The chart below depicts a typical distribution of monthly maintenance reserves over each component, determined by cost and approximate interval […]