In a potentially significant development that may impact the economics of aviation, the California Air Resources Board (“CARB”) is proposing a policy, as we previewed in January 2024, to update the state’s Low Carbon Fuel...more
Global air travel traffic (measured in revenue per kilometers (RPKs)) begins 2024 in line with pre-COVID highs. Certain markets, such as US domestic and intra-European have already surpassed pre-COVID levels and despite some...more
As 2023 draws to a close we are taking a moment to recap on some of the headline events that have occurred in the aviation industry during the last 12 months:...
1. A New Aviation CLO Issuance-
Alternative Aviation lender...more
12/27/2023
/ Aircraft ,
Airlines ,
Aviation Industry ,
Capital Markets ,
Collateralized Loan Obligations ,
Federal Aviation Administration (FAA) ,
Financing ,
OEM ,
Renewable Fuel ,
Russia ,
Ukraine ,
Unsecured Debt
Every major industry faces a complex path toward carbon neutrality, and aviation is no exception. Large commercial aircraft account for nearly 75 percent of the industry’s carbon dioxide emissions, and batteries that are...more
The purpose of this White Paper is to provide general guidance to transaction participants and practitioners in their consideration of the application of 17 C.F.R. Part 246, adopted jointly by the Securities and Exchange...more
One of the reasons for a reduction in the number of aircraft asset-backed securitizations (ABS) coming to market in 2022 and 2023, is the time lag between the rapid increase in interest rates by central banks and the...more
On January 25, 2023, the SEC reproposed its 2011 proposed rule to prohibit certain securitization participants from engaging in transactions that present conflicts of interest vis-à-vis ABS investors. This note answers a...more
2/1/2023
/ Asset-Backed Securities ,
Collateralized Debt Obligations ,
Collateralized Loan Obligations ,
Comment Period ,
Dodd-Frank ,
Federal Register ,
Prohibited Transactions ,
Proposed Rules ,
Risk Retention ,
Securities Act of 1933 ,
Securitization ,
Subsidiaries ,
Underwriting
Through Council Regulation (EU) 2022/328 of February 25, 2022, the European Union introduced new sanctions relating to, among other things, Russian aggression in Ukraine...more
In October 2022, the aircraft finance world descended on New York for a series of conferences hosted by Airfinance Journal, Ishka, and Airline Economics, respectively, along with meetings of the Aviation Working Group (“AWG”)...more
Demand for Narrowbody Aircraft Exceeds the Available Supply-
Outside of Asia, summer travel has seen a large recovery and this has coincided with a large uptick in demand for narrowbody aircraft by both airlines and...more
9/15/2022
/ ABS ,
Aircraft ,
Aircraft Financing ,
Aircraft Sales ,
Capital Markets ,
Climate Action Plan ,
Disclosure Requirements ,
Federal Reserve ,
Gas Prices ,
Interest Rates ,
OEM ,
Price Inflation ,
Securities and Exchange Commission (SEC)
With the last U.S. dollar (“USD”) LIBOR tenors being discontinued on June 30, 2023, the time has come for borrowers and lenders (and lessees and lessors) to think about replacing LIBOR in their existing facilities....more
The hundreds of aircraft stranded in Russia, the write-offs booked by many lessors and the anticipated litigation over whether such loss constitutes an insurable event under the contingent all-risk or contingent war risks...more
It’s hard to overstate the amount of turbulence experienced by the aviation finance market over the last three years.
After a banner 2019, when asset-backed securitizations —a key source of capital for many aircraft...more
After a two-year hiatus due to the pandemic, the Airline Economics and AirFinance Journal conferences returned to Dublin this month. The conferences were well-attended and there was optimism in the air among the many key...more
Since February 24, 2022, Russia’s invasion of Ukraine has led to unimaginable human suffering, a growing refugee crisis and a rising death toll. The invasion sparked a global response as governments moved to sanction the...more
3/30/2022
/ Airspace ,
Aviation Industry ,
Bureau of Industry and Security (BIS) ,
Economic Sanctions ,
EU ,
Export Administration Regulations (EAR) ,
Exports ,
Financial Markets ,
Insurance Industry ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Ukraine