Aircraft Financing Solutions / By Eric Dollman
GA Telesis is Uniquely Positioned to Provide Complete Aircraft Financing Solutions
With more than 21,000 commercial (Boeing and Airbus) aircraft in service today and the long-term forecast for commercial aircraft demand continuing to grow, demand for aircraft financing is strong and expected to remain strong for the foreseeable future. As a result, airlines and lessors alike require aircraft financing solutions to support their growing businesses.
Those aircraft financing solutions are currently provided by a diverse group of institutions, including investors in capital markets, commercial banks, export credit agencies, insurance companies, hedge funds, private equity, leasing companies and even the OEMs themselves. With commercial aviation being among the strongest industrial sectors in the world today, the group of institutions willing to provide aircraft financing continues to expand geographically and in number.
GA Telesis has long been providing aircraft, engine and inventory leasing solutions for our global customers. Recently, through the launch of our Leveraged Finance Group, we have become an alternative secured lender by expanding our product offerings to include debt financing. Even with the growing number of institutions willing to lend, we have identified a funding gap that exists today for certain aircraft types, older vintages, particular regions and even smaller loan sizes.
The Leveraged Finance Group’s product offerings include senior debt, subordinated debt, pre-delivery payment financing and uni-tranche structures. By not being limited by many of the same regulations and restrictions that limit many of our debt financing competitors, we have more flexibility. Examples of that flexibility include potentially lending more against the aircraft and to the customer as a whole, financing out-of-favor aircraft types, financing off-lease aircraft and provide financing for customers in emerging markets.
Given the extensive asset management experience as well as technical and valuation capabilities GA Telesis possesses through our Ecosystem, we believe that we are uniquely positioned as an alternative secured lender to address this funding gap. Whether it be through the Component Solutions Group, Engine Services, MRO Services or the LIFT group itself, GA Telesis is among the few industry players that are positioned to touch an aircraft throughout its lifecycle.
In addition to providing GA Telesis with the industry knowledge to provide complete aircraft financing solutions, our Ecosystem provides the relationships, including more than 1,000 airlines and 3,000 total customers worldwide, that bring the debt financing opportunities to us. GA Telesis is the only aftermarket company with significant operations in 20 countries on five continents.
Our debt financing capabilities are further enhanced by our strong financial backing from Tokyo Century Corporation.
With Boeing estimating there to be $870 billion of commercial aircraft currently in operation, $43 billion of that requiring refinancing in 2019, and another $143 billion being delivered this year, there are ample opportunities for GA Telesis to provide complete aircraft financing solutions to many of our valued customers as an alternative secured lender.