Airfinance Journal China School 2019

11-12 June 2019

The St. Regis Shanghai Jingan

Shanghai, China

  • Sponsors >

  • BNP Paribas
    Course Leader

Event Overview

We are proud to announce the launch of our renowned aviation finance school series in China. Since 2004, we have trained over 600 professionals and many are now running their own divisions and companies.

The Inaugural Airfinance Journal China School will take place on 11-12 June and will be followed by the Airfinance Journal China 2019 on 13-14 June at the St. Regis Shanghai Jingan.

In the inaugural China School, we will bring together over 15 senior industry professionals to share valuable market updates and equip participants with practical knowledge across spectrums of aviation finance and leasing. During the two-day training, curriculum will cover but not limited to aircraft valuation methodologies, risk management in aircraft financing, fleet management tactics and equity performance assessment. This intensive course is designed for aviation new joiners who wish to gain familiarity with the industry quickly or professionals who hope to refresh existing knowledge.

What you'll learn:

  • Fundamentals of aircraft financing 
  • Risk management for lessors 
  • Aircraft maintenance costs  
  • How do lessors choose a tax efficient jurisdiction for aircraft leasing
  • Understanding residual values 

      


 

 

 

 

 

Airfinance Week China 2019

11 - 12 June | Airfinance Journal China School 2019
13 - 14 June | Airfinance Journal China 2019
13 June | Airfinance Journal China Awards 2018

Contact us

Sponsorship: Kenneth Yu, kenneth.yu@airfinancejournal.com
Speaking opportunity: Yvonne Kwok, yvonne.kwok@airfinancejournal.com
Registrations: Charis Kwok, charis.kwok@airfinancejournal.com
Logistics: Louisa Kung, louisa.kung@airfinancejournal.com

Agenda

08 00 AM Registration
08 50 AM Introduction by course leader
09 00 AM Overview of aircraft financing market
  • Characteristics of airline industry
  • Financing menu for airlines and lessors
  • PDP financing
  • Major financing tools: commercial loan, bond market, ECA, tax lease
09 40 AM Airline strategy and management
  • Evolving airline business models
  • How do airlines’ business models affect the selection of aircraft?
  • Key considerations for leasing vs buying
  • Gaining competitiveness through mergers and acquisitions
10 20 AM Risk management for lessors
  • Risk management framework
  • Asset risk
  • Airline credit risk and evaluation
  • Balance between risk & return
  • Liability risk
  • Jurisdictional risk and repossession considerations
11 00 AM Networking break
11 30 AM Remarketing of aircraft
  • Asset management strategies for airlines and lessors
  • Remarket procedures, documentation and records
  • Negotiation management
  • Single vs portfolio asset remarketing
  • Case studies
  • Remarketing challenges in 2019
12 10 PM End of life solution for aircraft
  • Key drivers of aircraft retirement
  • Average aircraft retirement age by models
  • Comparison of major disassembly locations around the world
  • Part out cost by aircraft models
12 50 PM Lunch
14 00 PM Understanding the engine as an asset class
  • The engine leasing market
  • The business model
  • The importance of engine maintenance
  • Residual values and exit strategies
  • The engine OEMs in the aftermarket
14 40 PM How do lessors choose a tax efficient jurisdiction for aircraft leasing
  • Latest developments in tax treaties
  • Evolving tax regimes of tax efficient jurisdictions
  • Key considerations for choosing a tax efficient jurisdiction for registration
  • Typical structures of the transactions
  • Taxation in cross-border leasing
15 20 PM Cape Town Convention
  • What is Cape Town Convention
  • Cape Town Convention’ advantages to aircraft financiers, lessors and airlines
  • Insolvencies and default remedies
  • How has it evolved over the last decade?
16 00 PM Networking coffee break
16 30 PM The application of PRC bankruptcy law in aircraft financing and leasing in China
  • Will a default ever happen in China?
  • Lessors’ and lessees’ rights
  • Liability – lessors vs. lessees
  • Termination of lease term and dispute resolution
17 10 PM Dispute resolutions
  • What is a dispute?
  • Documenting dispute resolution procedures
  • Choice of governing law
  • Resolving disputes
  • Enforcing securities
  • Cape town treaties and repossession
  • Recent case study
17 50 PM End of day one
08 30 AM Registration
08 50 AM Introduction by course leader
09 00 AM Current state of aircraft leasing industry
  • Industry fundamentals and aircraft leasing competitive landscape
  • The rise of Chinese lessors and their next steps
  • Key drivers for the business of airlines and lessors
  • Aircraft valuation and residual value risk
09 40 AM Fundamentals of aircraft valuation
  • Valuation methodologies: depreciation, economic life, residual value and lease rate factor
  • Aircraft supply and demand: are there too many planes in the market?
  • Maintenance effects and cycle: half-life, full-life and zero-Life
  • Factors affecting aircraft values
  • Secondary market transactions
10 20 AM Debt capital markets
  • Transaction, private vs public placements
  • Senior unsecured and secured notes
  • ABS and EETCs
  • ECA guaranteed bonds
11 00 AM Networking coffee break
11 30 AM Aircraft Maintenance Cost and Residual Value
  • Main contributors to maintenance cost: Airframe heavy check, landing gear overhaul, engine, etc
  • Current maintenance cost by aircraft models: B737-800, A320-200, A321-200, A330-200/300, B777-300ER, B787-8/-9 etc
  • Key factors affecting maintenance costs
  • Maintenance costs on residual values
12 10 PM 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
12 50 PM Lunch
14 00 PM Shifting from credit-focused to asset-based lending
  • What are the valuation matrices for an asset-based lender
  • How do asset-based lenders differ from commercial lenders?
  • Market trends in secured and unsecured lending?
  • Common repayment profiles and balloon risks for A321, A330-300 and B777-300ER in the current market conditions
14 40 PM Equity performance of airlines vs lessors
  • Historical equity performance of airlines versus lessors
  • Key financial indicators of lessors versus airlines
  • Rating agencies' perspective of public lessors and airlines
  • What are the exit opportunities for new aircraft investors?
15 20 PM Networking break
15 50 PM 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, lessors and MROs in maintenance reserve management
  • Portability and assignability of maintenance reserves
  • The importance of technical records for engineering
16 30 PM Getting your lease agreement and return conditions right
  • How to make the lease agreement and return conditions right in the first place?
  • Conflicting interest with airlines, lessors and MROs in maintenance reserve management
  • What are the common disputes with lease return condition and possible remedies?
17 10 PM End of day two

Sponsors

Attracting thousands of participants annually from airlines, leasing companies, financial institutions, investment houses and government bodies, our events provide you with an unparalleled platform from which to promote your organisation’s brand, products and services.

Find out more about our sponsorship opportunities

Course Leader

BNP Paribas

BNP Paribas

BNP Paribas is a leading bank in Europe with an international reach. It has a presence in 73 markets, with more than 198,000 employees. The Group has key positions in its three main activities: Domestic Markets in Europe, International Financial Services and Corporate & Institutional Banking.
 
In Asia Pacific, BNP Paribas is one of the best-positioned international financial institutions with an uninterrupted presence since 1860. Currently with over 17,000 employees* and a presence in 14 markets, BNP Paribas provides corporates, institutional and private investors with product and service solutions tailored to their specific needs. It offers a wide range of financial services covering corporate & institutional banking, wealth management, asset management, insurance, as well as retail banking and consumer financing through strategic partnerships.


Venue

The St. Regis Shanghai Jingan

1008 Beijing West Road,
Shanghai,
CN

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