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CAPA TV | December 5, 2020

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Financing And Funding Growth: Managing Risk With Large Aircraft Orders

CAPA
  • On October 12, 2018
LCCs, as the newer players in the industry, are competing to meet future growth needs. They can scarcely afford to stand still if they are to assert themselves in the long term – especially as newer models enter. The need to plan for fleet expansion and replacement, as well as making decisions on leasing and purchasing. For larger LCC groups, one notable strategy to offset the risk inherent in large forward orders has been to establish a leasing capability, to absorb any excess capacity as new aircraft are delivered.

  • Finding the funding – debt and equity – to support LCC expansion. Is the money there?
  • What special features need to be considered in funding new and established LCCs?
  • Which funding models are most attractive to LCCS?
  • What roles have the OEMs played in LCC expansion?
  • Are markets large enough to support all the new orders?
  • What is the risk profile of an independent LCC vs a subsidiary?
  • Should airlines lease or purchase outright from the OEM?
  • Should LCCs with large order books establish their own leasing companies?
  • What skills are necessary for an LCC to be successful in this very different venture – while maintaining the airline operation?
Moderator: SMBC Aviation Capital, Head of Strategic and Market Analysis, Shane Matthews
Panel:
  • Air Lease Corporation, Executive Chairman, Steven Udvar-Hazy
  • BOC Aviation, Managing Director & CEO, Robert Martin
  • DVB Bank, SVP Aviation Financial Consultancy, Albert Muntane Casanova
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