#lessors

Railcar Lessors: A Aggressive Evaluation

Daily Insight – Thursday January 31, 2019 – Qatar converts ten A321neos to LRs

News

Qatar Airways is the latest airline to convert A321neos to the LR model, switching ten of its 50 on order. 

Qatar Airways plans use the A321LR to connect Doha to growing markets where current demand is insufficient for wide bodies or where current single-aisle aircraft in its fleet (A320/A321) lack the range. Additionally, the A321LR could provide more frequencies on existing routes, giving…

Daily Insight – Wednesday January 30, 2019 – 2019 looks tougher

News

Two leading sources of airline analysis are predicting that 2019 is going to be a tough year.  IBA.aero has this insight. And Ishka has this insight. As Ishka’s Eddy Pieniazek succinctly notes, “Nearly 20% of the airlines tracked by Ishka are entering 2019 with a negative outlook on their financials”. IBA offers this statement: “Whilst raising interest rates will indicate an improving…

Daily Insight – Tuesday January 29, 2019 – From duopoly to cartel with a commodity product

News

As Airbus absorbs the C Series and Boeing starts to absorb the E-Jet, we have moved from a duopoly to a cartel.  Both Airbus and Boeing are even buying up parts of the supply chain.  Rather than depend exclusively on third parties, we see the two big OEMs de-risk their supply chain by owning more of it.

Analysis

A duopoly is where there are two sellers.  A cartel is defined as a coalition of…

Daily Insight – Monday January 28, 2019 – Boeing Capital

News

Boeing Capital is considering offering Islamic financing options for its aircraft, in conjunction with a partner bank or financial institution to create a Shariah-compliant offering.  While this project is in its early stages, “it will be Islamic content and it will support airline financing” said Vasgen Edwards, managing director for Middle East-Africa customer financing.

Analysis

Airbus…

Daily Insight – Friday January 25, 2019 – Dublin Thoughts

News

AirInsight attended the two aviation finance conferences in Dublin this week. The conversations we had and overheard were generally positive.  Everyone is looking at growth.  Traffic is strong.  Load factors are high and airlines need more lift. The sooner the aircraft are delivered the better.  Steven Udvar-Hazy and ALC are more sanguine and do not want to see further production rate…

New accounting standards have impacts on those to which the rules apply.  In the case of IFRS 16, which takes effect in January 2019, the impacts could be significant for airlines, lessors, and financiers.  Airlines in the US will deal with ASC 842, in which operating leases are on balance sheet, but doesn’t change P&L reporting in the same was as IFRS 16 internationally.

Essentially, IFRS 16…