Airfinance Journal Asia Pacific School 2019

28-30 October 2019

Conrad Hong Kong Hotel

Hong Kong, Hong Kong

Event Overview

The longstanding Airfinance Journal Asia Pacific School 2019 is a three-day aviation finance training designed for professionals who have joined the industry recently or wish to refresh their market knowledge.

The Airfinance Journal Asia Pacific School 2019 will take place on 28-30 October and will be followed by the 20th Anniversary Airfinance Journal Asia Pacific 2019 on 30-31 October at Conrad Hong Kong.

This year, Airfinance Journal proudly collaborates with BNP Paribas to host the second day of Asia Pacific School and tailor an interactive case study session for participants to put their knowledge into practice. During the three-day programme, about 30 senior industry professionals will share valuable market updates and equip participants with practical knowledge across spectrums of aviation finance and leasing. 

What you'll learn:

  • Fundamentals of the aircraft leasing industry 
  • Risk management for lessors 
  • Cape Town Convention – one of the key international treaties affecting aviation  
  • How do lessors choose a tax efficient jurisdiction for aircraft leasing
  • Aircraft lease securitisaiton

What our attendees said about Airfinance Journal School:

"Great event, sophisticated sessions and productive case study." Lei Yu, Industrial Bank Financial Leasing

"Enlightening!" Patrick Mao, BNP Paribas China

"Very informative and a good opportunity for people in the industry to communicate." Sharon Zhu, Haitong UT International Leasing

“Excellent course! Suitable for people who are new to this industry.” Crystal Wang, CMIG Aviation Capital 

“First-hand and useful information. Seasoned presenters.” Chester Liao, Cathay United Bank

        

 

LIMITED Guestroom Offer from event venue - Conrad Hong Kong
All attendees could arrange booking via here to enjoy preferential guestroom rate at Conrad Hong Kong.
Act fast to secure your room! 
(From HKD3650+10% onwards per room night. Limited offer and on a first-come, first-served basis.)

 

Airfinance Week Hong Kong 2019
28 - 30 Oct | Airfinance Journal Asia Pacific School 2019
30 - 31 Oct | 20th Anniversary Airfinance Journal Asia Pacific 2019

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
09 00 AM Introduction by course leader
09 10 AM Fundamentals of the aircraft leasing industry
  • Background of aircraft leasing
  • Industry fundamentals and key drivers
  • The aircraft leasing competitive landscape
  • Business cycle of the industry
  • Strategic implications of the current market conditions
  • Ways for lessors to prepare for economic downturn
10 00 AM Operating platforms for lessors
  • Deal process, controls and approvals
  • Technical specifications
  • Lease management
  • Negotiating a lease transaction
  • IT systems and fleet management
10 40 AM Networking break
11 10 AM Risk management for lessors
  • Risk management framework
  • Asset risk and liability risk
  • Airline credit risk and evaluation
  • Balance between risk & return
  • Jurisdictional risk and repossession considerations
11 50 AM 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
12 30 PM Networking lunch
13 45 PM How do lessors finance their fleets?
  • Why there is a constant source of funding for global lessors
  • How to diversify funding costs
  • Lessors’ credit vs. aircraft credit – which one is more important to lenders when assessing risks
  • How to utilise your capital structure to minimise funding costs
14 25 PM Fundamentals of aircraft valuations
  • Supply and demand for aircraft
  • Methodologies for valuations
  • Factors affecting aircraft values
  • Interpretation of market information
  • Secondary markets
15 05 PM Networking break
15 35 PM How do lessors choose a tax efficient jurisdiction for aircraft leasing
  • Evolving tax regimes of tax efficient jurisdictions
  • Key considerations for choosing a tax efficient jurisdiction for registration
  • What is a good tax treaty
  • Typical structures of the transactions
16 20 PM Cape Town Convention – one of the key international treaties affecting aviation
  • 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?
17 05 PM Close of day one
08 30 AM Registration
09 00 AM Introduction of course by course leader
  • Welcoming note
  • The airline industry today
  • Key drivers of air transport 
09 20 AM 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
10 00 AM A focus on commercial debt: The core option for most airlines & lessors
  • Financing menu for airlines and lessors
  • Secured vs unsecured debt
  • Financing airlines vs lessors
  • Single aircraft vs portfolios
  • Managing contingent currency and interest rate risk
  • PDP financing
10 40 AM Networking break
11 00 AM Debt capital markets
  • Transaction, private vs public placements
  • Senior unsecured and secured notes
  • ABS and EETCs 
  • ECA guaranteed bonds
11 30 AM Derivatives for the aviation industry
  • Interest rate risk: Fixed vs floating
  • Fuel price volatility
  • Currency risk
12 00 PM Japanese operating lease with call option
  • JOLCO fundamentals
  • Key considerations
  • NK vs TK investors
  • Factors affecting the effectiveness of JOLCO
  • Future potential of JOLCO
12 30 PM Networking lunch
13 50 PM Case Study: Bidding on an airline’s RFP
This is an interactive case study inspired by real cases. Guided by the speakers, the audience will be split into groups to make a bid and win an airline RFP. The objective of the Case Study is to put the participants in an Aviation Banker’s shoes during the entire RFP process with an airline. In order to win the mandate, each team will have to juggle with the requirements imposed by airline on the transaction structure, their internal constrains and the competition.
15 20 PM Networking break
15 40 PM Getting your mandate and term sheet right without outside counsel
  • Mandate letter - why sign one?
  • Mandate letter - what's important?
  • Key structural issues to cover at term sheet stage
16 20 PM Distribution of aviation assets to the bank and fixed income markets
  • Reason for distributing aviation assets
  • Finding liquidity and matching it with the appropriate risk profile
  • Recent dynamics on the loan market
16 50 PM M&A and IPOs in the aviation sector
  • Types of M&A deals
  • Common tension points between buyers and sellers
  • Why do airlines IPOs
  • Typical valuation methods
17 20 PM Course summary and close of day two
08 30 AM Registration
09 00 AM Welcoming Remarks by Airfinance Journal
09 05 AM Fleet selection and financing considerations for airlines
  • 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
09 50 AM Rating methodologies for airlines and lessors
  • Rating process and framework
  • Lessors and airlines rating methodology
  • Rating EETCs
  • Rating Aircraft ABS
  • Key credit forecast for 2020
  • Marjan Riggi, Senior Managing Director, Financial Institutions and Corporates, Kroll Bond Rating Agency
10 30 AM Networking break
11 00 AM Fly high with commercial aircraft manufacturers
  • What type of products do manufacturers support and how?
  • In what ways do regulations affect aircraft manufacturing?
  • What are some new aviation safety measures?
11 45 AM 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
12 30 PM Networking lunch
13 45 PM Aircraft lease securitisaiton
  • What is securitisation?
  • How to structure an aircraft lease securitisaiton?
  • How does asset composition affect securitisation transaction execution?
  • What are the legal concerns when we structure securitisation transactions?
  • How would risk retention rules facilitate the transactions?
14 30 PM Currency risk in aircraft leasing
  • Why and how do foreign exchange rates impact airlines and lessors
  • What is the role of foreign exchange rates in shaping passenger demand?
  • What are the demand characteristics?
  • What are the possible scenarios when there are mismatches in operating finances?
  • How to hedge away currency risk in aircraft leasing?
15 15 PM Networking break
15 45 PM Dispute resolution
  • What is a dispute?
  • Documenting dispute resolution procedures
  • Choice of governing law
  • Enforcing securities
  • Recent case study
  • John Frangos, Partner and Deputy Director, Dispute Resolution, Tilleke & Gibbins
16 30 PM Crystal ball session: How will the aircraft leasing industry evolve?
  • Ways to widen the source of funding for airlines and lessors
  • Emergence of new financing tools in the region
  • Future cooperation between important stakeholders of the industry
17 15 PM Close of school

Speakers

Marjan Riggi

Senior Managing Director, Financial Institutions and Corporates

Kroll Bond Rating Agency

John Frangos

Partner and Deputy Director, Dispute Resolution

Tilleke & Gibbins

Venue

Conrad Hong Kong Hotel

Conrad Hong Kong Hotel,
Hong Kong,
HK

Conrad Hong Kong Hotel

Located in the center of Hong Kong's business district, the Conrad Hong Kong hotel infuses contemporary elegance and smart luxury. The hotel has been awarded many acclaims, including the Award of Excellence by Smart Travel Asia magazine in 2011, and TripAdvisor's Travelers' Choice award. Situated above the Pacific Place shopping complex and near many business headquarters including the Bank of China and the Hong Kong Trade Center, the hotel is ideally located for guests looking to experience fast-paced life in this vibrant city. Guest rooms and suites feature luxurious amenities, such as marble bathrooms and high-speed internet, with sophisticated décor. Do business in a selection of 12 meeting rooms accommodating between 8 and 1000 guests, including the spectacular Grand Ballroom.

***Limited Guestroom Offer from Conrad Hong Kong***
Arrange booking via here to enjoy preferential guestroom rate at Conrad Hong Kong now! 
(From HKD3650+10% onwards per room night. Limited offer and on a first-come, first-served basis.)

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