Jetrader - September/October 2010 - 26

the rapid drop in MD80 values—the same happened more recently with B737 Classic values and early samples of the A320. With the new generation of widebodies rapidly approaching, the same may happen, and in some cases, such as the 747400, is already happening.

Concerns for the Financier
While it is generally recognized that, apart from airlines and leasing companies, the financial community plays an increasingly important role in the aviation

equipment market, it wasn’t that long ago that even some of the major airframe and engine manufacturers hardly spent any time presenting and explaining their new products to the financial community. In some cases even the extremely important opinion leaders of the appraisal community were ignored. While this has changed significantly and savvy OEMs organize financiers and investor meetings, unfortunately there are still a few OEMs that could do better in presenting their products to the financial community.

HAVE A WISH.
MORE RANGE / LESS EMISSION / BETTER PERFORMANCE / HIGHEST RELIABILITY

THE NEW A320P2F CONVERTED FREIGHTER
www.afc.aero
Airbus Freighter Conversion GmbH | Grenzstrasse 1a Tel: +49 351 8839 1400 | Dresden, Germany

Today it seems that a number of fair weather players—or “tourist banks” as they are sometimes called—can be seen returning to the airfinance market—a market they abandoned as soon as the going got a bit more difficult only a few years ago. Given the complexity of the aviation business and the equipment involved, it is essential for an aviation bank to have a deep knowledge of the airline business, the equipment markets and the technical characteristics of the assets involved. On one hand, this helps identify potential problem situations, such as financing aircraft that can be earmarked as oddballs. While during the upturn in the market these oddball aircraft may seem acceptable, during the downturn these are generally the first aircraft to be parked or scrapped. On the other hand, an indepth understanding of the asset may actually help in identifying opportunities, e.g. by identifying the significant part-out value of otherwise difficult to finance aircraft. Obvious examples of these situations include the MD90 as well as the B737-600, both less attractive aircraft but with very marketable engines. Contrary to what is often assumed, it is important for the financier to get full disclosure from the clients of the equipment specifications, including nonstandard items, modifications, damage history, etc. It is highly recommended for airline/lessor and financier to obtain full information in order to make the cost of changing LOPAs, weight and/or thrust upgrades, cargo conversion potential, etc., fully transparent. Certain, sometimes expensive, features unfortunately cannot always be recognized as adding value for a financier. Airlines claiming millions in extra value for a sophisticated IFE system may be disappointed. Winglets, however, will in most cases add value. So, in a complex business like the commercial jet market, specialist banks that understand “money and metal” will be able to come up with creative solutions that in the long-run will benefit all parties involved. Maybe more than ever in the past, “finance-ability” has become an import characteristic of any commercial jetliner.

26 The 1 485377_airbus.indd official

publication of the International Society of Transport Aircraft Trading 6/29/10 11:33:58 AM


http://www.afc.aero http://www.afc.aero

Table of Contents for the Digital Edition of Jetrader - September/October 2010

Jetrader - September/October 2010
A Message from the President
Contents
Calendar/New
Q&A: Dr. Alan Epstein
Commercial Outlook is Up as Economies Rebound
Crisis, What Crisis?
The Big Question
Funding Fundamentals
Is That a Lawsuit in Your Luggage?
AFRA Sets Ambitious Challenge for Aircraft Recycling Sector
Road to Recovery
Remembering Hafthor Hafsteinsson
License to Fly
Aircraft Appraisals
From the ISTAT Foundation
Aviation History
Advertiser.com/Advertiser Index
Jetrader - September/October 2010 - Jetrader - September/October 2010
Jetrader - September/October 2010 - Cover2
Jetrader - September/October 2010 - A Message from the President
Jetrader - September/October 2010 - 4
Jetrader - September/October 2010 - Contents
Jetrader - September/October 2010 - 6
Jetrader - September/October 2010 - Calendar/New
Jetrader - September/October 2010 - 8
Jetrader - September/October 2010 - Q&A: Dr. Alan Epstein
Jetrader - September/October 2010 - 10
Jetrader - September/October 2010 - 11
Jetrader - September/October 2010 - Commercial Outlook is Up as Economies Rebound
Jetrader - September/October 2010 - 13
Jetrader - September/October 2010 - 14
Jetrader - September/October 2010 - 15
Jetrader - September/October 2010 - Crisis, What Crisis?
Jetrader - September/October 2010 - 17
Jetrader - September/October 2010 - 18
Jetrader - September/October 2010 - 19
Jetrader - September/October 2010 - 20
Jetrader - September/October 2010 - The Big Question
Jetrader - September/October 2010 - 22
Jetrader - September/October 2010 - 23
Jetrader - September/October 2010 - Funding Fundamentals
Jetrader - September/October 2010 - 25
Jetrader - September/October 2010 - 26
Jetrader - September/October 2010 - 27
Jetrader - September/October 2010 - 28
Jetrader - September/October 2010 - Is That a Lawsuit in Your Luggage?
Jetrader - September/October 2010 - 30
Jetrader - September/October 2010 - 31
Jetrader - September/October 2010 - AFRA Sets Ambitious Challenge for Aircraft Recycling Sector
Jetrader - September/October 2010 - 33
Jetrader - September/October 2010 - 34
Jetrader - September/October 2010 - 35
Jetrader - September/October 2010 - Road to Recovery
Jetrader - September/October 2010 - 37
Jetrader - September/October 2010 - 38
Jetrader - September/October 2010 - Remembering Hafthor Hafsteinsson
Jetrader - September/October 2010 - 40
Jetrader - September/October 2010 - 41
Jetrader - September/October 2010 - 42
Jetrader - September/October 2010 - License to Fly
Jetrader - September/October 2010 - 44
Jetrader - September/October 2010 - Aircraft Appraisals
Jetrader - September/October 2010 - 46
Jetrader - September/October 2010 - From the ISTAT Foundation
Jetrader - September/October 2010 - Aviation History
Jetrader - September/October 2010 - 49
Jetrader - September/October 2010 - Advertiser.com/Advertiser Index
Jetrader - September/October 2010 - Cover3
Jetrader - September/October 2010 - Cover4
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