Airfinance Journal North America School 2019

29 April - 01 May 2019

Downtown Association

New York, United States

Event Overview

The New York School of Aviation Finance 2019 is launching over April 29th-May 1st. In partnership with Holland & Knight; during this course you'll join peers from across North America to gain in-depth knowledge of the latest funding products, discover how to stay ahead of the curve in competitive markets and learn how to put together complex and innovative financing structures. Taught by leading industry figures; the school promises to be a vital stepping stone in the career of any aspiring aviation finance leader. 

Key features for 2019 include: 

·         A 3-day intensive course, featuring 16+ hours of lessons and practical case studies to enhance your knowledge

·         Full supplementary learning materials and advice on continuing your training 

·         Course accreditation 

·         The opportunity to network with senior course leaders representing companies from across the aviation finance sector

 

Agenda

08 30 AM Registration & morning coffee
09 00 AM Introduction by course leaders
09 10 AM Market Overview
  • Reviewing airline performance over the past year: Indicators and trends
  • Market consolidation and competition
  • Outlook for the year ahead: Market development predictions
  • Evaluating the most popular forms of liquidity in 2017/18
09 40 AM 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 40 AM Morning networking break & refreshments
11 10 AM 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 00 PM 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 50 PM Lunch
13 45 PM Aircraft capital markets review

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
14 45 PM 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
  • Alex Green, General Counsel, Merx Aviation Finance
15 15 PM Afternoon networking & refreshment break
15 30 PM Selling aircraft & 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
16 00 PM Insurance capital and products in aviation finance
  • In recent times, starting with AFIC, Insurance backed financing products have proliferated in the aviation space, what are these structures and how will they impact the industry?
  • How can airline customers utilize these products and under which circumstances are they suitable?
  • What impact can we expect these products to have on ECA funding?
16 30 PM Case study: Teams & explanations

Participants 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 participants and answer any questions.

18 00 PM End of day 1 followed by drinks reception
08 30 AM Morning coffee & refreshments
09 00 AM Operating leases: Explanation & update
  • Comparing operating leases with straight financing
  • Overview of typical terms
  • Basics of maintenance reserves
  • Basics of return conditions
  • Assessing the latest trends
10 00 AM Operating leases: Practical application

• Fleet planning needs

• Warranties, indemnities and guarantees

• Lessor assignments and the airline

• Lessee aircraft modifications

10 40 AM Morning networking break & refreshments
11 10 AM 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 00 PM 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 45 PM Networking lunch
13 45 PM 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
  • Impact of GOP tax reform
14 45 PM 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
  • David Beker, Vice President, Marketing & Commercial Affairs, Air Lease Corporation
15 45 PM Afternoon networking & refreshment break
16 00 PM Innovation in aircraft trading – the GATS (Global Aircraft Trading System)
  • What impact do we expect the new trading platform to have on the broader industry and what problems is it seeking to solve?
  • How do Trust structures work in the world of aviation finance?
  • How will this new platform interact with aircraft which have leases attached?
  • Will this be the first of many appearances for blockchain in aviation?
16 30 PM 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.
18 00 PM End of day 2 follows by drinks reception
08 30 AM Morning coffee & refreshments
09 00 AM Case study presentations
10 00 AM 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 15 AM Morning coffee & refreshments
11 45 AM Restructuring/Repossession Case Studies – Primera & Small Planet
  • Overview of Repossession and Enforcement Actions
  • Pre-Lawsuit Considerations and Preparation  
  • Consequences of Chapter 15 filings
  • Efficacies of Cape Town Convention
  • Hostile and amicable repossession scenarios
  • Alternatives to repossession
12 30 PM 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
  • David Tokoph, Chief Operating Officer, Morten Beyer & Agnew
13 20 PM Networking lunch
14 15 PM 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
14 45 PM Emerging Markets and Evolution of Aircraft Finance – Overview of the current aircraft finance markets and an outlook on their future state
15 30 PM Closing remarks from course leaders & end of school

Speakers

Richard Furey

Partner

Holland & Knight

Richard A. Crowley

Tax Partner

Holland & Knight LLP

Arthur Rosenberg

Partner

Holland & Knight

Meghan O'Connor

Director

CITI

Alex Green

General Counsel

Merx Aviation Finance

David Beker

Vice President, Marketing & Commercial Affairs

Air Lease Corporation

Christopher J Chaput

Managing Director

Duane Park Capital Management LLC

Charles Greenberg

Managing Director

Clinch River Capital Partners

David Tokoph

Chief Operating Officer

Morten Beyer & Agnew

Venue

Downtown Association

60-70 Pine Street,
New York,
US

;