Jetrader - January/February 2012 - 9

Deutsche Bank’s Moody on early 2012 deals…
“For the first half of 2012, most borrowers would have completed their financing plans, with most deliveries likely mandated. That said, there is a difference between mandating a party and actually funding upon delivery, and this is something that borrowers are increasingly paying more attention to. For the second half of 2012 and into 2013, the financing outlook is less clear, but the expectation is that we will see increased levels of ECA support, although this still needs to be funded, and capital markets issuance will almost increase to fill the funding gap caused by the financial stress to the traditional European ECA providers.”

interested in buying EETCs from non-U.S. airlines. We definitely think there’s a lot of interest and they’re ready. From an airlines perspective, increasingly more and more airlines are going to be ready and interested in doing it. We’re starting to hear more from airline management teams outside the U.S. that they know they need to study the EETC because they see, as we do, that traditional forms of financing are becoming more expensive. Ultimately it will result in a situation where financing globally is more readily available to more players but probably at a higher priced point than four years ago when relationship bank money costs were at a very low-cost level.”

charge on aircraft financing dial down their participation, who’s going help the regional players understand and get comfortable with risk? European and U.S. banks should continue to assume a leadership role and continue to partner with local institutions, but the challenge remains how to get the regional capital flows to become more international, and finance outside their traditional geographic footprint.”

And Moody on secondary market conditions…
“Capital in this industry is not only reserved for new aircraft deliveries. Capital also gets deployed for refinancing of older aircraft and, in addition, there are currently a number of bank debt portfolios on the market where investors can also put their money to work. Therefore with these opportunities where yields may be more attractive, this could impact the amount of primary liquidity available as investors do have a choice as to where to deploy capital.” Thanks to Boeing for coordinating the panelists’ responses and supplying related editorial content.

Goldman’s Lee on the global markets’ readiness to accept new cap market structuring…
“I’ll answer that from two perspectives; one is the perspective of investor. They are definitely ready for it. We think that what has limited EETC issuance outside the U.S. has been supply, not demand. Big institutional investors have always been

Deutsche’s Moody on the role of regional banking…
Regional airlines generally tend to be able to attract financial support locally, where there is some sort of government ownership involved. European banks have historically taken a more global approach to aircraft financing and have generally tended to partner with local institutions. If these banks leading the international

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Jetrader 10/22/11 5:18:11 AM9

Jetrader - January/February 2012

Table of Contents for the Digital Edition of Jetrader - January/February 2012

A Message from the President
Aircraft Financing Ahead
Q&A: Bertrand Grabowski
Evolution of Engine Leasing
ISTAT Closes Out 2011 in Style
Aircraft Appraisals
ISTAT Members on the Move
Aviation History Index
Jetrader - January/February 2012 - cover1
Jetrader - January/February 2012 - cover2
Jetrader - January/February 2012 - A Message from the President
Jetrader - January/February 2012 - 4
Jetrader - January/February 2012 - 5
Jetrader - January/February 2012 - Calendar/News
Jetrader - January/February 2012 - Aircraft Financing Ahead
Jetrader - January/February 2012 - 8
Jetrader - January/February 2012 - 9
Jetrader - January/February 2012 - Q&A: Bertrand Grabowski
Jetrader - January/February 2012 - 11
Jetrader - January/February 2012 - Evolution of Engine Leasing
Jetrader - January/February 2012 - 13
Jetrader - January/February 2012 - 14
Jetrader - January/February 2012 - ISTAT Closes Out 2011 in Style
Jetrader - January/February 2012 - 16
Jetrader - January/February 2012 - Aircraft Appraisals
Jetrader - January/February 2012 - 18
Jetrader - January/February 2012 - ISTAT Members on the Move
Jetrader - January/February 2012 - Aviation History
Jetrader - January/February 2012 - 21
Jetrader - January/February 2012 - Index
Jetrader - January/February 2012 - cover3
Jetrader - January/February 2012 - cover4